In a previous post I talked about the importance of planning before executing. This post covers a critical part of the planning process, which is keyword research.
Keyword research maybe not be as important if your goal is to establish an authority website or blog much like Lisa’s. However, if you want to build a niche site and put it on a “set it and forget it” model, keyword research is going to be the single most important component of your success.
I have been developing niche sites for a few years now. I currently own a dozen with a few more in the works this year, and have sold a couple within the past couple years.
Although I generate income online from eight diverse income streams, establishing profitable niche sites is my highest income producing activity to date.
So let’s get straight into one key differentiation involved when conducting keyword research using the Google Keyword Research tool.
Using the Google Adwords Keyword Tool
The Adwords Keyword Tool is a free Google sponsored tool that allows you to research the demand, or monthly searches conducted each month for the keywords you are interested in.
When researching what niche to get into, you simply type in keywords resulting from your brainstorming session and Google will give you the search volume for that keyword and all other relevant terms (if you select that option).
The results are shown as local monthly and global monthly searches. Because Google is just one search engine, I usually multiply the numbers I see by a factor of three to cover the remaining 76,548 search engines out there.
I personally don’t use the free Adwords Tool very much because I have paid subscriptions to other more robust tools that I use to quickly research and crank out one niche site after another.
But for someone just starting out who is a beginner with niche sites, this tool is a good way to experiment and get a feel for the process in the most cost-effective manner – it is free!
Broad vs. Exact Match Search
Because many one and two-word search terms have a lot of competition, and because it is exponentially more difficult to conquer page one of Google for these terms, most niche site developers like me focus on long-tail search terms of three or more words.
I do this because chances are that I will find a solid, suitable domain name, and will likely get to page one of Google within 60 days (that is fast).
The problem is that the tool is set to a “broad” match by default, which means the search demand numbers are the combination of searches for each of the words that make up the long tail keyword.
This can be highly misleading and a key reason why many who attempt to build profitable niche sites often end up unprofitable and discouraged.
Have a look on the left-hand side. Always check the “Exact” match box to ensure accuracy of results.
Example 1:
Example 2:
You will see that when this box is checked, the search number is typically much smaller than the initial default results.
The main keyword “Accounting Software” goes from a search demand of 450,000 to 45,000. That is a drastic drop. You see how this can mislead people into starting what they think are profitable niche sites?
Components of a Profitable Niche Site
The success of a niche site is predicated on its ability to rank higher for high demand search terms. Most search terms that are high in demand typically have relevant products and services that are sold online by various vendors.
Therefore, selecting the right keyword(s) around which to base your niche website is critical to your ability to earn affiliate commissions from product sales, sales of your own digital products as well as advertising revenue.
In our example above, the main keyword “Accounting Software” has a cost per click (CPC) of $7+. That means advertisers are paying Google up to $7+ for just one click on an add resulting from that keyword search.
Based on the search demand you see your ability to conquer page one and the probability of visitors clicking through to your website. Additionally, you can run some rough calculations on how much money you can potentially make just from displaying ads with the AdSense program. Add to that all other revenue streams and you should be able to decide whether to pursue your contemplated niche.
Here is a quick formula you can use to estimate ad revenue:
Search volume (demand) * % of web surfers clicking through your website *Ad click through rate * 45% of the CPC of your main keyword
Assumptions you have to make:
1) You can optimize and market your website to where it is showing on page one of Google.
2) % of web surfers who will click through your website of all the listings on page one. The higher your website is on search engines, the higher the click through rate (CTR) will be.
3) Ad click through rates which are unique for every industry. A CTR of 2-3% is a reasonably conservative estimate in my experience for any given niche
4) Although Google has not published the percentage of revenue sharing it provides its Adsense partners, many including myself have deduced from some backward calculations that this is approximately 45% of the CPC, or the money the vendor pays Google for the ad. You can tweak this figure in the above equation as you wish.
[Lisa’s Note: Actually, Google disclosed they pay around 68% to publishers.]
Keyword Correlation to Profits and Website Value
Personally, I do not touch any niche unless I know I can generate at least $1,000 in passive and residual income from it every single month.
For niche sites, a big chunk of the $1,000 comes from Ad revenue from programs such as Google Adsense in addition to private ads, affiliate commissions from product sales, sales of my own digital products, lead generation, etc.
So where does the importance of a keyword come into play? Assuming you are well versed in how to get a website on page one of Google through various internet marketing strategies, the keyword search demand dictates the visitor traffic you get, which correlates to potential ad revenue for your niche website as per the equation above.
From an income perspective, traffic means everything. Your website traffic is directly correlated to the profits it generates. The more demand your target keyword has, the more traffic you can get, the more cash flow your website can produce, more net earnings and more value if and when you sell your website.
Websites are typically valued at a multiple of its annual earnings, called EBITDA in the corporate world, or simply a factor of X times your yearly income in the broader world. I sell mine between a multiple of 4 to 6 but have heard as high as 10 to 12, wow!
Therefore, conducting effective keyword research not only increases the likelihood that you profit from advertisement on your website in the short term, but also the ability to establish a solid income producing asset of high value over time.
Tip 3: Look for principal and minor keywords.
After all, paying fifteen cents per click is much more attractive
than paying one dollar per click. In a nutshell, the activity of keyword research
helps discover and optimize specific keywords so that the webpages can respond to the
search queries that are being typed into the search engines.
Hello there! Do you know if they make any plugins to
assist with Search Engine Optimization? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very
good results. If you know of any please share. Cheers!
Finally! Someone wrote a good article on how to use the Google Keyword tool. Its probably the best free tool on the internet if used properly. It’s key to helping you find niche sites to build. Thanks for the great info!
Is there any kind of an android app?
Thanks for sharing this, you have no idea, how hard i have tried to make use of the google adword tools for my benefits, am working on the niche based on your ideas, i”ll let you know as i progress.
Another good post. But the main problem what i am facing is i am working on a blog on which we post recruitment and results. These posts are only for some days after that they are useless. In this how we can get the good rank because you cant wait for the keyword research and all. How we can get a good rank in Google search.
Using keyword tool is really a great help but take note all its data is gathered from previous year. I usually shoot for keyword that has a minimal searches, this way there are less competition for such keywords. I mean 500 to 1000 searches a month is what I meant for minimal searches.
The most mistake that I made from blogging is I didn’t make any research keyword before launching my article in my blog http://www.motherhealth.info, but now base on the info above I will apply it to drive more traffic. Thanks a lot for the advice.
Thanks for the excellent and informative article! Nice to find your site as well Sunil, I’ve subscribed to the RSS feed.
I’m using Google KW Tool for several niche sites I want to launch, but am trying to find some clarification on the “Competition” column.
How relevant is this factor? Do you stay away from High, or is it a sliding scale depending on the CPC? Any insight on this topic would be greatly appreciated!
Ahmed – i think i know where you are getting at, but would like to clarify that this is not easy at all, however it is indeed very simple. Now with the over population of people competing for keywords, It’s a crap shoot most of the time.
I have read much about how to find suitable keyword through google keyword tool but this is new method to find profitable keyword. But I am surprised to know how is it simple and effective. BTW I have one question as I tested this technique I found keyword with higher CPC value has tough competition that means you will have to struggle a lot to win the position on first page in search result. In other words higher CPC means higher income with higher competition, lower CPC means less income with less competition but more traffic. Does anyone will help me to understand this calculation.
Regards,
Sunil
thanks for sharing such a informative piece of knowlege. I think every site owner must follow these points to get better result
Wow, that was great. I was just about to set up a website for a niche and I am glad I read this article first. Thanks for sharing and good luck to you. 🙂
Google Keyword tool is very helpful in finding right keywords for a website. The keyword competition, local and global searches are the features which have been proved very useful for keyword research activity.
Just a tip that i have found works well with getting your site under those more challenging keywords is with your you tube videos, title the video with the keywords you desire and of course optimize by placing those keywords in both the description and tags…it works for me give it a try!
Keywords is very very important.It’s waste of time if you choose wrong keywords.Google’s Keyword Tool is a great free tool.
This is an great post. Keywords are so important it is crazy! My keywords are still almost nowhere on google :(. Working on it though! 😀
Great stuff, Sunil. I’ll tell you, it has taken me and my partner a little over one year and an investment of over $20k to build our affiliate marketing campaign. It is a single company that we are promoting (not my website listed here) and last month we enjoyed $8k in commissions. But it definitely takes hard word, time, dedication, expertise and yes, money.
Thanks for the info…we also started by using AdWords Keywords Tool. 🙂
Sometimes I discover great keywords through Analytics. I then build a niche sites using those keywords. I maximized my income thru this process.
continue with the the great work on the site. I love it. Could maybe use some more updates more often, but i’m sure you got some better things to do like we all do. :p
i do waste lot of time in google keywords tool because i use it to search on keywords base on location and related to my website.
It provide a informative to keywords suggest which do show the global and local search rate.
What i need those keywords is help to place in my Google Adwords.
Thanks lisa for mind blowing tips. I m sure it help me.
Great article indeed.
That 1k/month popped my eye out. If only I have learned how to use the keyword tool. I am only starting and so still have a long way to go. Anyways, thanks for your article. At least now I know how to do better key word research.
At the moment, I am having difficult time finding the time to write article due to the demand of my day job. Hope I could find more time writing stuff.
I suppose this also applies writing articles?
Must say all the new developments like SEMRush,Micro Niche finder etc are also keeping adwords tool as a base for searching keywords but they are paid and this is free!!
I named my business/website based on what I had learnt about keywords from my first business venture, which had a sharp change in name to accommodative a more search engine friendly name. Keywords and keyword phrases are anything. As far as ad sense goes though I do not use that, I do not want competition on my site, business is hard enough!
Good article, i’m using the Google keyword tool more and more these days. I would be interested to know what the paid tools are your using?
Google places pages are a great means of increasing your online visibility.
http://www.DrewryMedia.com
Very informative post. Thanks for sharing this one. I’m a little confused of how does Google Keywords or market Samurai works.
amazing article sunil headoff to you.. i use search with a default Broad and now i release that was a very big mistake… priceless info
Have a good day to all! =)
We can also use SEMRush .. This also gives us a detailed analysis of keywords there CPC and related words..EVen I have developed various micro niche sites and am earning good with them..
I have tried to use SemRUSH, but stoped, because there was big difference between results from Google keyword tool and semrush. I think that data from google is more reliable
Hi there,
This is a very good article. However, please beware that Google keyword tool is not accurate and the clicks or views that it projects is false. If you use market samurai or similar keyword tools. You will understand the difference it makes.
Nice article, Sunil.
I got some insights into my second blog which would be launched exactly 4 or 5 months after I grow my 1st blog.
From your article, I exactly know how to key in my research and choose a great domain name to rake in both traffic and income.
Also, after I read your article, I checked the click through rate of the google ads on my blog and it’s about 3.05% and 3.30%. Guess that’s good for a starter, right?
Thanks for the knowledge
The beauty of reading this blog is that there’s always something to learn from Lisa & others. That’s what you call [true humility] ! =)
http://www.DrewryMedia.com
Great post, very thorough. There are some tools out there that can simplify the work and do most of it for you. Probably the most popular in the aff. marketing circle for finding microniche sites is Market Samurai. I’ve made the mistake of not doing exact match before, it led to a colossal waste of time.
Just like to yap the Brooklyn gum flappers and tawlk pretty much about everything…lol
http://www.DrewryMedia.com
you reaaly did a great post. Finding google keywords is really helpful for my site promotion. Thank you for sharing your excellent ideas.
Hello Sunil… sounds an Indian name??
Thanks a lot mate for this info.. I am was so dumb.. I didnt know there was a play with excat and broad match search…
Thanks a lot again.
Shaon
Shaon – nothing dumb about that. There is so much stuff online, picking it up one by one as you progress appears the norm. Yes, the the name is Indian.
“It takes work…” – I love the honesty. $1k per month per niche definitely got my attention. You mentioned in your first comment response that you had a pdf free on your blog, do you have that link handy?
Laney, my comment will not post when I include a link due to spam filters. Just click on my name which will lead you to my blog. There you will see the free report for download on the right hand side. Interesting blog you’ve got.
Stephen, the best way to find out is to try out. Why don’t you take the top 5 traffic generating pages and experiment Adsense performance on those? Also consider reading my article on getting banned from Google Adsense.
Very inspiring post! Keywords is really important to niche marketing. Great article!
This is a great post. I have a Site that gets 700 visitors a day, but I do not have any adsence on it. With all the trouble with adsence accounts lately I have held back on putting it on to my site, I am just wondering if I should.
What troubles are you referring to Stephen? Regardless of the risk, Adsense should be just one component of the revenue stream, although in my article/example above I do make the assumption that it is the largest stream, as it is for many of my niche sites which I established for the sole purpose of generating revenues through Adsense. I do understand the risks involved.
I was referring to a few months back a lot of people got slapped by google with their Adsense accounts, so just a bit dubious. My niche site is a sugar glider site, makes ok money through a click bank product, but at 700 visitors a day maybe do you think I would be better adding some Adsense to this site.
What kind of things have you been hearing, if DrewryNewsNetwork may ask?
http://www.DrewryNewsNetwork.com
Finding a niche that earns a 1000 a month is pretty difficult when competing with people who are using automated seo.
Zack – what does “automated seo” mean / entail?
It’s all possible. Just keep moving forward & stay faithful, even when it seems like that goal can’t be accomplished. Remember to give thanks and pass the torch of inspiration, once you get to the sunnier side of the mountain, and help someone else succeed =)
http://www.DrewryNewsNetwork.com
Zack, may is better idea to do 10 niche blogs that earns $100 a month.
fantastic article well explained and easy to follow thank you for sharing it.
I wish I had had access to this information before starting my two blogs. (Certainly, the information was on the web in some form or another, but I was overwhelmed with stuff to learn at the time.) I think I would have done things differently. Thanks for the tips!
Sure, but Doug you can always go back and optimize as best you can using profitable keywords most relevant to your niche.
Wow, very detailed post. Great information!
thank you Stephen – hope it was helpful and applicable – if not now, then at some point down the road.
this is very help full on reaching the target so easy and so rapid
and this is very help full for people who wanna making a thousand dollars per month
Ahmed – i think i know where you are getting at, but would like to clarify that this is not easy at all, however it is indeed very simple. it takes some time and effort to execute, but more importantly one MUST know exactly how to execute (i.e. what to do)
This is a really good post Sunil. I am really interested in knowing more about making a thousand dollars per month with each niche I choose.
In my experience, it takes a lot of time coupled with accurate keywords and SEO to achieve that sort of online income in any niche.
How many of your niche sites are making a thousand dollars per month?
I
thanks for the thoughts Jordy.
what are you currently doing in terms of kw research and marketing (exposure)? you are right in that it takes effort like every worthwhile endeavor. however, time can be contracted with appropriate effective marketing methods.
each one of my niche sites is generating at least 1k/mo. with the exception of three which I launched this year. i am applying the same marketing methods on those as well and will be reporting on their progress on my blog.
i have written a comprehensive report on the process as i execute it which i provide for free on my blog. i’d love to hear your feedback after reading the report.
Sunil, I will get that ebook! I don’t have any one site that nets a thousand per month, yet.
I use the Adwords keyword tool for the majority of my research. I mean, after all Google is the king when it comes to search engine information.
I’ve ran Youtube advertising, Adwords and Facebook. All of which generated a ton of very targeted traffic, but in the end the “net” profits were below zero. ha ha
I do really well with organic SEO. The web is getting over crowded with all of the “make money online hype.”
I have always loved Lisa’s honesty about making money online, “It takes time.”
Now with the over population of people competing for keywords, It’s a crap shoot most of the time.
I really want the Thesis theme! I didn’t do any keyword research before I started my site but I had a good idea what I wanted to do.
Lisa you should link to this post from 2planawebsite it would fit perfectly into that.
Well, as they always say…the best things come to those who wait =)
http://www.DrewryNewsNetwork.com