Niche Marketing Series – How to Determine Your Potential Profit Margins

Prior to reading my niche marketing article below. If you want to save yourself a lot of time and frustration, increase your article marketing efforts, then check out my article rewriter or article spinner on the side bar of this website. It’s a great tool to leverage your time and productivity.

Are you confused about keywords? Are you tired of not making any money online in your internet marketing business? Do you want some straight talk once in for all on the best ways to get your online business going?

Here a are few pointers to keep in mind regarding picking the right keywords. So lets stripe away all the bullshit once in for all.

The key point you need to understand to be successful, especially in the beginning, is stop chasing after the big keywords like home based business or make money. They are simply too competitive. Besides, there are plenty of long tail keywords that you can make money at. So its not necessary to even look over there until you are making some cash and understand the process of SEO and ranking keywords.

For example, you need to study and go after the long tail keywords or phrases that have low competition. It doesn’t mean they are a walk in the park to get page 1, but less than the keywords above. Maybe consider something like mlm business opportunities, starting a home based business, content rewriter, niche marketing strategies, article rewriter, article spinners, how to train puppies etc. The list is really endless, but you just need to head over to Google’s keyword selector tool here and start doing your own digging.

The Money is in Focused Niche Markets

lets examine the process of how I would decide on a low competitive keyword by walking you through my process.

• 1st – start by entering your keyword like, dog training
  
• 2nd – scroll down the list and see which phrase interests you with a decent amount of monthly searches.

• 3rd – For example, “dog puppy training”
• 4th – Take the long tail keyword and enter that phrase in the keyword box and see what kind of results you get.
• 5th – This is the part, that I refer to as drilling down the list to get to find just the right long tail keyword phrase.
• The idea is to keep going until you find a term that is both low in competition, yet still has reasonable monthly searches.
  

Once I select a long tail keyword that is promising, like say the term article rewriter or article spinner, I will then need to figure out how many back links and what kind of results are on page 1 of G. For instance, I like to see not just websites on page 1, but results with articles within a website showing up. That tells me that my chances of getting on page 1 is better.

To figure out how many back links are for that particular URL, this is what you need to type in Google and Yahoo search field.

link:yourwebsitename.com

You may or may not always see results showing up depending on the category. Less in this case is usually better, unless the back links showing up are from monster authority sites.

How to figure if a certain keyword is profitable?

There’s a few things you need to factor in, while keeping in mind the results are not absolute. They could easily be off 10 or 20 percent or higher. But its the best we have from Google.

My rule is that the CPC has to be higher than $1 or I won’t bother with it for Adsense purposes. It doesn’t mean I won’t go after a particular term and use it some other way, but it needs to be above $1. You will only get 10 or 20% of the click thru rate on the rate that is advertised anyways.

Calculating the overall profit on your keyword

You need the following bits of information to make the calculation; Estimated Average CPC, and the Global month Search Volume – Exact Figure. It looks like the following…

$1.89 (CPC) x 1300 (dog puppy training)=> $2457 overall

Because that is the total for 1 long tail keyword, I need to do some further calculations as follows. I know that that number represents a 100% figure, but in position 1 on page 1, expect only about 40% of the clicks. Out of those numbers, expect only about 3 to 5% will actually click the Adsense Ad.

$2457 x 40% => $982.80 x 5% => $49.14

Although is doesn’t look like much and its not by itself, the point I want to make is that represents only 1 keyword. There are literally dozens of keywords you could rank for. What happens if you make the above amount per month and rank on page 1 for 20 or 30 terms?

$49.14 x 30 => $1474.20

The nice thing about the above results, its a nice part time income that you may be able to obtain over the course of a year. Once you get page 1, its a lot easier staying there, so you won’t have to constantly do back link building each week. Sometimes, you can get categories that you don’t have to touch again.

Ok, that wraps up this article for today. Just remember you can go after a lot better low lying keywords, than the big monster keywords and save yourself a lot of mental stress. Look at monthly searches of 1 to 5 thousand per month with low competition. For example you saw how I randomly picked dog puppy training. It could be any keyword phrase like how to pick the best breeding dog, article rewriter content rewriter, what’s the best dog food, etc. The list is endless. By looking at the overall potential profit, can give you 1 more piece of the puzzle and decide if a keyword if worthwhile or not.