Will Your Niche Be Profitable?

February 20, 2010

Finding a niche is a process that requires much thought and inner reflection. To become successful in the field of online business, you should assure that your chosen niche is profitable. By definition, a niche is a place, employment, status, or activity for which a person or thing is best fitted… a specialized market. If you really want to make sure you are on the right track in choosing your online niche, you first formulate some predictions or assumptions of its profitability in the market.

After the researches you have made and the informations you gathered, you can now have the  necessary informations used in determining the profitability of your niche. Some of these needs your mathematical ability in formulatinmg formulas and do calculations for a numerical probability of your future profit.

  • keyword
  • demand
  • clicks
  • sales
  • commission
  • PPC (pay-per-click)
  • Net profit – is the amount you gain in your business, its formula: commision-PPC = Net Profit

The calculation method does not imply that the result is right. This is just an estimation of the possible profit that you can gain with the topic you have chosen. Its just a way to test that you are in the right track and the niche is worth as a business. Don’t expect to much with the result of your calculations for its not so accurate and you are not that sure it would be successful. You can simply prove it when your really in the situation, the reality of the business, then you can test if your hyphothesis is true and realistic.

You can also acknowledge the importance of some software like the Adword analyzer. Adwords Analyzer goes and finds related keywords and analyzes them in terms of how many people search using those keywords, how much competition there is for these keywords. It makes your work easier, hassle-free and less time consuming. We already know some of the search engine, the wordtracker, overture and the google. Its a great pleasure for the searchers to have this software because it  is a huge time-saver , inexpensive, and easy to access.

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