Today we embark upon the process of exploring with keywords or keyword phrases, the supply of your pre-defined niche market, which is equivalent to your competition.
A recap of the last segment, we discussed the process of Finding Demand of Niche Markets via the following steps :
- Collate the Functional list of your niche using Google Adwords Keyword Tools
- Measure the Profitability of your Niche Market via a 2-step process of firstly measuring the volume of your Niche Market via Google Adwords Kywords Tool. Thereafter, evaluating the number of ads in SpyFu for profitability analysis
- Search for Profitable Affiliate Programs related to your Niche Market to sell
Notice a simple natural reaction whenever you need to run a quick research on a topic. You would remind yourself to “Google” the topic. When evaluating supply/competition, we do exactly that. Let’s run through the process.
Evaluating Supply = Competition
- “Google” your selected niche by inputting the keyword or keyword phrase.
- On the top right corner of the bar separating your search bar and search returns, you will find the total number of search returns and this number becomes the Supply or your competition. Do this in “Quotes”.
Note that the total number of search returns ie. the supply/competition will give you an idea of how much information or providers are out there competing to win over the potential niche customers.
However, that is not to say that when Supply runs into the millions the niche is too competitive. We must evaluate the supply against the demand before we derive our conclusion. Go for any number less than 20,000 to 50,000 competing pages.
No one has ever definitively set a benchmark figure for this formula, and neither will I here. The reason being that different niche markets behave and yield different results. There have been instances, albeit rare, when I entered more than usual competitive niches, thinking that the survival rate would be akin to nil, but surprisingly, I managed to pull through with interesting results. And the vice versa is true.
And more importantly, do share the results with all our readers out here. I would really appreciate it.
Next Stop brings us to to investigating Key SEO ideas at 6 Steps to Effective SEO for Online Niche Marketing Domination.
And for a recap of Part 1 of this series, check out Finding Demand of Niche Markets.