[Free Training Series] Internet Marketing/Make Money Online – Choosing A Suitable Market – Part 2 of 2

This is part 2 and final in the Choosing a Suitable Market Training. If you missed Part 1, you can find it here 

Today, I am going to take you through the last steps of the process of Choosing a suitable Market, as this was defined as such, in the 4 core elements training post.

Here’s a summary of what is going to be covered in this 2-part Market Selection Training:

  • The 4 steps to selecting a Market/Niche [Covered in part 1]
  • The Key questions to keep asking when you are in or about to select your Market [Covered in part 1]
  • How To Identify Your Prospects’/Customers’ Biggest Desire(s) and How Could You Help Them Today [Covered in part 1]
  • Quality Vs Quantity Prospects [Covered in part 1]
  • Why People Buy
  • Market/Niche Competitive Analysis
  • Profitable Niche/Market Validation

Why People/Prospects Buy

There are certain elements that need to be in place in order for us to buy something. So When choosing your suitable market you’d need to take the following into considertation. We Tend To Buy Something Because of:

  • Interest
  • Abilty to buy (ie we actually have the money to buy)
  • Proven Recent Buy of Similar Product

Here’s a far-fetched example (to prove a point) that ties the above into place. You may like and may have owned more than one car (interest in cars and proven recent buy)  and you may be making an above average money (ie ability to buy) but you may not want to buy a Ferrari, as not everyone that likes cars and can afford to, would buy a Ferrari (as they will be lacking point number 1 above; Interest)

So it’s vital when choosing a market to address the right audience by making sure the above elements are in place.

Market/Niche Initial Competitive Analysis

The next step would be to try to identify the initial competitive analysis of our chosen Market/Niche. We do this by analysing, with the help of some free tools (links below) the overall ranking factors of a competitors website.

This is driven initally by the number of inbound links a competitor’s website would have in that market plus other on page factors. We do this to see how easy would be for us to rank organically in our chosen market/niche. Note that if you have a large marketing budget you could still get the desired traffic using Pay Per Click Traffic. PPC is beyond the scope of this series though and the current training post looks this from an organic search engine view.

So there are 7 ranking factors we tend to look when performing competition analysis (in regards to a website):

  1. Donain Quality of the website – We are looking for main keyword(s) in the domain name e.g. niche: Golf, subniche: how to play golf; A Domain name with highest quality, in regards to ranking factors would be http://www.howtoplaygolf.com
  2. Title Relevance  – keyword(s) found in the main site page title
  3. Links To URL (that we analyse) – we are looking for number of links (back links) into that domain (see tools we can use for this below)
  4. Links to Domain – the anchor text that points to the domain
  5. Pages Indexed – that is if you type, insite:domainname.com in Google, we look to see how many pages are returned. The more the pages indexed, the stronger the competitor
  6. Cache Recency/ Page Rank – This is really a measure of authority which is usally determined by a number of factors such backlinks, number of visitors, age of the domain etc). The higher the PR the more the authority of this website and so harder to compete for a chosen market. For example a new site will be given by Google a PR 0 after a few days of operation. However, Facebook with millions of user and visitors daily has a PR of 9. PR is key when you have backlinks to your sites. Key point: PR is not linear. In other Words if a competitor’s site shows 500 links from sites with PR0 linking to them but you have just 1 PR5 site linking to your site, in terms of authority status and if all else is equal, your site would be ranked higher.
  7. Domain Age – The longer the webiste/domain has been around, in terms of time, the more authority will have (from the search engines)

Carrying on with the initial competition analysis for our chosen market, there are generally 4 market levels we find when we perform an initial analysis on a competitor’s website, in regards as to whether it’d be relatively easy for us to compete with them. So each level below, represents a difficulty factor with 1 being the lowest and easier to compete and 4 being the highest.

  1. Level 1 – Easy. A few inbound links, if at all, poor on page factors ie main keyword not in domain name etc. These would be PR0 sites
  2. Level 2 – Medium. Some (Back)links < 100, good on-page factors ie title tag relevance or daomin relevance etc. These sites would be PR1, PR2 and PR3 mostly
  3. Level 3 – Hard. Lots of (back) links > 100, great on page factors. These sites would be PR4 and PR5
  4. Level 4 – 800-pound Gorilla. These sites will have 1000s of backlinks to them, Recognised Brand names like Playstation for example, Spot on domain names with keywrods etc. PR 7,8 and 9 here

Here’s what the above should tell you; If for your chosen market/niche when you perform a search for your main (long tail) keywords you end up with lots of websites with PR0, PR 1 or PR2, on page 1 and 2 of google search results, it’s your lucky day as it would be relatively easy to outrank them in a short period of time.

If when you perform your competitive analysis you found lots of PR3 and above sites, in regards to ranking organicallym you may want to choose a differnt market/niche :)It’s not that it cannot be done but you will probably need to spend a lot of money to achieve better positions than your competitors.

If you are using firefox there are a number if addons you could use. I prefer SEO Quake for this (link here)

Also, by visiting a site you’d be able to know about the on-page factors just by looking at the domain name reletively to the market/niche and other factors mentioned above.

Profitable Market/Niche Validation

The next and last step would be to validate the suitability of your chosen market/niche. So the 1st question we really need to ask is; does the market have high demand in buyers? if you are in the MMO niche, I can tell you yes straight up 🙂 But you need to validate that assumption. And you do this using hte following methods and asking further questions.

Another question we should be asking is; do they( the potential buyers) talk about it (the niche) online in related forums and blogs?

Here are a few places I’d look first to answer questions 1&2 above, using my main niche keyword:

Is anyone spenidng money advertising on this market? An easy way to find this out would be by doing a Google Search for your main keyword for your chosen market.

Extra Tip: When performing the search try to see if in the results on the 1st page of Google you also see products and review sites. This is a good indicator that your keyword also is, what we call a “Buyer-intent” . This is very critical. For example if you search for moon you;d find millions of results but not many people would be interested to buy something related to the moon :). So The keyword has a really low “buyers-intent”. On the other hand people searching for “HDTV prices” there a very high probability that they are interesting buying a HDTV. So the keyword (HDTV prices) has a very high Buyers-intent and you should also see lots of product listings in google’s 1st results page.

Do you see any market related products being sold in Clickabank, cj.com, ebay.com etc?

Extra Tip: On Clcikbank sort your results by Gravity; the higher the gravity number hte more people promoting a particular product in a chosen niche

Extra Tip2: On cj.com sort your results by Earnings Per Click (EPC) Measure. The Higher the Better

Are there any higher priced products that you found in your search?

with this one we want to consider volume of overall sales and traffic patterns (seasonal demand like in the holidays). For example, People look/search for HDTVs, DSLR cameras more duign the holiday seasons. But they tend to look for Power tools when there is a bad economy as they’d want to do more DIY jobs as opposed to hiring a specialst etc)

Extra Tip: Run your main Keyword through Goolge Trends (google it :))

Are there any High Comission Payouts that you can see for that market/niche and products found?

Is there High PPC Competition?

  • Do a search on Google and see how many ads are appearing for the market, and any current products in that market. The more ads the better
  • Use Google Keyword Tool- The greener the more competition
  • Use other keyword competition analysis tools such as wordtracker.com, ispionage.com, spyfu.com, keywordspy.com et al

Is there High EPC in affiliate/CPA networks (like cj.com)? The more green you see in results when searching on CJ.com the better/higher the competition.

 

So with the above, relatively long post, we conclude the 2-part free training on Identifying and Selecting a Profitable Market/Niche

In next posts, now that you have an idea on how to select a suitable market, we’ll go through Product Research and in particular how to identify and select a suitable product, for your chosen niche.

I really enjoyed preparing this training post for you and I hope you enjoyed reading it.

As always please leave a comment sharing your thoughts on the above, if you care to share 🙂

All The Best

Kostas

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About Kostas Papadakis

Originally from Athens, Greece, I now spend most of my time and run my 2 businesses in London & South England, UK. I've worked with major Fortune 500 Type companies, online and offlne, around the world and, have over 10 years of experience in International Business Development, Marketing & Consulting in the IT, Security, Defence and, E&E Industries and Markets.
My Educational background is in Engineering and Business; I have a B.Eng(Hons) and a Masters Degree in Communication Systems Engineering and also Have a Masters Degree in Business Administration (MBA). I am also certified in a number of specialised areas from Network Security, to Project & Bid Management and I am Chartered Engineer (CEng) from the Engineers Council in the UK (MIET)
In "Internet Marketing/Make Money Online", I've been "lucky" to have been "virtually" trained with and mentored by some of the biggest names in the industry; Frank Kern, Rich Schefren, Jeff Johnson, to name a few. Lately I've Joined Mike Filsaime's VIP Mastermind Group.
For My personal & Professional development, I've been mentored by Jim Ron, Brian Tracy, Tonny Robbins and others mostly indirectly.
My Goal for this blog is to engage with you and to hopefully provide you some useful training in IM/MMO whether you are just starting or you are an experienced Internet Marketer.

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