Part 2 of 5 Steps to Find a Profitable Niche: Compare overall Demand and Supply

Our objective is to choose a theme that is meaningful to you, has good demand (over 20 000 searches) and where the competition is not too great (high supply).

If you haven’t completed step 1 where we found ways to brainstorm for niche topics, refer to 5 Steps To Find a Profitable Niche:Part 1 Brainstorm Possible Niches

Once you’ve come up with about 10 possible niches or themes, here’s what you do:

Do Keyword Research and Assess the different Niche Topics  Overall Demand and Supply

Demand

We will first find the keywords that people use to search for these niches.

Go to Google Adwords Free Keyword Tool and choose the descriptive keywords option. Type in your niche’s main keyword.

Now you’ll get a list of related keywords- keywords people are typing in to find out about subjects related to your niche.

Do this for each niche and compare the 3 top  sites/niches keywords data.

Notice the actual search volumes for the main keyword, as well as the number of keywords that the tool returns, for each niche topic.

You want to make sure your niche main keyword has over 20 000 searches. If it doesn’t, disqualify it as a niche topic- it won’t generate enough traffic.

Also make sure your main word generates a lot of related keywords (over 15-20) and that there are a lot of searches being done on a lot of these keywords!

Once again, compare your three niche keywords/themes.

The Google Adwords Free Keyword Tool is great for assessing preliminary search volume (demand)- but SBI’s Brainstorm It! Tool gives Value Demand with the click of a button- i.e. it returns only words that have high value (monetary value) and high search volume associated with them!

Supply

Now you need to check that there’s not too much competition in the niche. If there are too many good websites on this topic, you are too late- the competition got there first!

This can be done by going to Google and doing a search to see how many returns you get.

Check that there are not too many Adwords campaigns running on the same phrases related to the topic.

At the end of this process, you’ll have a table that looks like this:

Initial Niche Comparison

Once again, SBI’s Brainstorm It! Tool will give you the REAL Supply for each keyword. It also gives the PROFITABILITY of the words.

Its really easy to use this option because you can compare demand, supply and profitability across all three related themes/niche topics at once.

This way you make a scientific decision about which topic is the best one to choose (no guessing).

Anyway, back to choosing our top niche:

Here, I will make more of an intuitive decision to make my choice. I will choose constipation as my overall (broad) niche theme.

I am not really sure what the supply numbers mean at this point, but I do know that “constipation” has enough demand to warrant further investigation.

There might be other reasons for choosing constipation. Perhaps your  MLM is a nutritional Products company and you  have products that can be useful for constipation sufferers- that you can sell!)

Constipation  looks like it has good demand (way over 20 000),  but it also seems to have very high supply- i.e. number of competing websites. (10 300 000). Although this supply seems alot, its not nearly as much as say anti aging, for example, which comes in at 20 800 000!

(This is where the SBI tool comes in so handy: It’ll immediately tell you whether the niche topic is  over supplied or not.)

I am realising that I’ll probably need to “dig down” deeper to find a related “constipation” keyword that could be a sub niche- it’ll need to have good demand, but must not have such high supply.

Constipation also does have very high advertiser competition, but there’s no need to worry about that right now. (We intend having a site that beats them through excellent content- not through paying money for ads).

If we drill down deep enough into the niche, to find a sub niche (which looks possible because there are 150 related  match keywords), I am sure we’ll find some easily winnable profitable keywords.

Dig Deep

Now we dig down deeper- compiling a list of the top 10-15 keywords (with the highest search volume) based on “constipation”.

We’ll look at these more specific niche related words to assess their search volume, their competition and their real supply.

Click here for 5 Steps to Find a Profitable Niche: Part 3:  Assessing Demand

Now, if you haven’t already, go read Niche Business Ideas: Niche Business Ideas for Online MLM. It is an overview article on finding your niche.