Niche Guides

We want to be as certain as we possibly can that our niche is focused enough but big enough, and that the people in that niche spend money.

So next I head over to the Overture Resource Center (http://searchmarketing.yahoo.com/rc/srch) and click on the “Keyword Selector Tool.”

Then I enter my niche and see how many times that keyword and all related keywords were searched in the previous month.

I like to see at least 10,000 searches for all keywords combined, but not more than, say, 50,000 or so (although I do have profitable niches that have only a few thousand searches at Overture, but they are the exception rather than the rule).

For “latch rug”, you can see that this market is just too small.

Remember that Overture searches are for Yahoo and their partner sites, so to measure the number of searches on Google, I usually estimate between 5 and 10 times this number to come up with Google’s searches. Also, depending on the market, I’ve sometimes found Overture’s figures somewhat inflated, so bear in mind that the number of actual searches might be lower.

If I’m happy with the number of searches for this potential niche, I next want to see how much pay per clicks (PPC) are going to cost me on Google Adwords.

For that I use Overture’s “View Bids Tool.”

I want to make sure I won’t have to pay more than a dollar or two per click on average, but of course what you can profitably pay for PPC will depend on your product’s selling price and how many you can sell.

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Just because a sub-niche is popular doesn’t mean people spend money on it.

Amazon – http://www.amazon.com

Amazon is a great place to see what currently exists for any given sub-niche.

Chances are, the more books there are written on that subject, the more that market spends on those topics.

For example:

First I specify “Books” to search. Then I enter my niche, in this case “crafts.”

Uh oh. There are WAY too many books returned. This niche is not targeted enough. It is too “mainstream.”

Much better! There are possibilities here.

We now suspect the following:

1) This sub-niche may be targeted enough.

2) This sub-niche may spend money.

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The Lycos Top 50 is another site, like Google Zeitgeist, where I will review the latest trends and look for hot topics to explore further. I will also look at Yahoo! Buzz for ideas as well (see below).

Yahoo! Buzz – http://buzz.yahoo.com

eBay Pulse – http://pulse.ebay.com

The eBay Pulse site is a great place to start looking at sub-niches. What I will do is select the category first (using the topics I’ve gathered from looking at the previous sites), then look for profitable sub-niches by then selecting a sub-category.

The best chance for success is if I am as specific as possible with my niche selection. In the example below, I don’t want to sell to the “crafts” niche.

I want to sell to grandmothers who enjoy giving their latch rug hooking gifts to their families and friends. Whatever. You get the idea.

 Also, I’ll always check the largest stores as well to see what they’re selling. There has to be a reason they are the largest stores. They must be doing something right.

 
eBay also puts out a PDF report of their hottest categories each month, available at

http://pages.ebay.com/sellercentral/hotitems.pdf.

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