How to Tell if a Niche is Too Crowded - page 2

by Gregg Hall, 5/29/2007

A point to bear in mind is some keyword research tools use the data from pay per click search engines to calculate the number of searches conducted for a given keyword, and this figure is not that realistic. Keyword research utilities such as WordTracker use data from the major metacrawlers like Dogpile to calculate very realistic keyword search statistics, and will give you the number of times any given keyword or phrase was searched for during the previous three months and a predicted count for the next 24 hours.

Each of these keyword research utilities maintains a very powerful database of raw data for your subsequent research. If the niche is starting to get too big, then the number of searches on your keywords will be in the thousands. Careful analysis will also reveal the number of websites in the niche, which will be a large number if your niche is crowded.

You can also use pay per click search engines to drive traffic to your website, but it's worth remembering that popular keywords are expensive. If the niche is profitable, your competitors will be prepared to pay hefty sums to buy those keywords. The only way you are going to get cheap pay per click traffic is by finding keywords which your competitors aren't using. Unfortunately these little known keywords won't be popular so you'll need to find a lot of them to get a reasonable amount of traffic to your niche site.

As your niche gets more and more crowded with new competitors these pay per click keywords will become progressively more expensive. There will be those new competitors who understand the value of keyword research and will discover the same keywords you are using. This will reduce the traffic to your website and so reduce the amount of money you can make.

A point will be reached when the niche becomes so competitive it is no longer profitable, and you will either have to abandon the niche or discover new methods of getting customers to your website.

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Gregg Hall highly recommends that you invest in keyword software like like Adwords Anaylzer, it will make your life a lot easier!!

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