Estimating Market Profitability...

In this report I will reveal ways that you can estimate the profitability (wealth) of any market, sub-market, niche (or whatever you want to call it).

In other words I am going to show you how to find profitable markets to explore.

Many newcomers and experts go on their "feelings" about how one market may perform over another... This is insane!

Estimating Market Profitability

You may have an idea for a product or service or you may have a product or service to promote. Maybe you are trying to decide what product or service to promote as an affiliate. Maybe you already have a strong presence online and you are seeking the next "big thing".

Whatever the case may be you should always take pause and give your "thinking" mind a rest and allow tools to do the thinking for you. Online business is quickly lost by thinking too much.

Don't think... Research... Allow the Internet to reveal the answers you are seeking.

The first step before estimating the wealth of a market is to know what market you will explore.

Then you can use some free tools to get a wide ballpark estimation of the wealth of that market as opposed to another market.

When I say "market" I am referring to a broad general use of the term that includes other popular terms such as (niche, sub-market, theme, etc.).

Once you have a market in mind here is one of the most effective free ways to determine its wealth:

STEP 1: Get the Google Adwords Keyword Tool

Set up a free Google Adwords account (interactive tutorial) to get access to their keyword tool.

STEP 2: Swipe keywords & analyze their value

Use the Adwords Keyword tool to swipe keywords by following these steps:

  1. Enter the broadest keywords for the market you are exploring.

  2. Make sure the "Use Synonyms" box is checked

  3. Click "Get Keyword Ideas"

  4. For "Choose columns to display", choose "Show estimated avg. CPC"

  5. In the "Calculate Estimates using Max CPC" box enter 100. This will set the max CPC you want to see to $100 or less. This will ensure that all CPC estimates are shown.

  6. Click the "Recalculate" button

  7. Click the column header "Avg Search Volume". This will sort by search volume. The highest will be at the top.

It has been proven over and over again that the higher the CPC value for a keyword the more money that customers are spending in that market. Each keyword (or phrase) within a market represents a niche within the overall market. Keep these vital fact in mind as we continue to the video:

STEP 3: Choose 3 or 4 keywords (phrases) to examine using Google trends to see which one has more momentum.

  1. Go to http://www.google.com/trends

  2. Input your top 3 or 4 keywords (phrases) separated by a comma.

  3. The graph will show you which market has more momentum.

Watch this video:

Conclusion

After using these simple tools it won't take you long to see that there are literally millions of profitable segments (keywords) within every major market online.

The big question is which market will you focus on. In today's web 2.0 age you will have to become devoted to whatever decision you make so you need to ensure that you have at least a mild interest or passion about the market you choose or you will get bored to tears and ultimately fail.

The market research tools I have shown you above are a good way to find wealthy markets to explore further but the results are not as accurate as they could be.

In the next report I will share a tool that I use to quickly and easily locate wealthy markets and then determine their potential for profit.

Until next time,

Charles Heflin