By: John Balthazar
The best way to research if you have a viable market is to perform a market profitability check. There are several methods, but what has worked best for me is derived from the system in Ewen Chia’s book “How I Made My First Million on the Internet!” Here is his basic formula:
Market Profitability Check:
– Is this a market where people are already buying?
– Are you tapping into current or future hot trends?
– Which markets are written about?
– How many competitors are already in the market?
– Validate your market with free keyword research tools
Let’s look at each of these checks in a little more detail. First, is this a market where people are already buying? Established markets are a very good thing to find to help sustain your business long term. New or fad markets can pop up overnight and then fizzle very quickly so be cautious to enter them unless you are very confident they will be good for your business in the long run. Second, are you tapping into current or future hot trends? Like I stated previously, future hot trends can be very exciting and filled with enormous growth and possibilities, but be careful not to put all your eggs in one basket by betting everything on the next hot trend or fad. Third, which markets are written about? The best place to start researching is by typing in your target market subject into Google or your favorite online search engine and researching the marketplace.
Also, check out the online articles and EZine websites to check if anyone is writing about your market. This is also a good source for industry information and content you can use on your own website. Also, don’t limit yourself to only online research. You can also research your local bookstore for books and magazines on your chosen market. Fourth, how many competitors are already in the market? A lot of competition is not always a bad thing. Competition means that what you are researching is likely a profitable market. Remember, there are lots of niches and sub-niches to market to so don’t let competition scare you away. Last, validate your market with free keyword research tools. Many internet business experts will advise people to use keywords searches such as Google AdWords to do market research. While these tools are useful in identifying what keywords internet users are typing into search engines and what kind of information they are looking for, it does not ensure market profitability so that is why I put the keyword search last as a step to help validate what is found in the earlier market profitability checks.
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