This is the third part in a series of blog posts I’m writing about building a web site with Site Build It!, a suite of tools that helps you build a website without knowing all the technical stuff. Even if you don’t use SBI to create sites, I hope you’ll find this information useful.

Off the bat, I’m going to suggest you download my free niche ideas ebook here. It goes into more detail than these blog posts about brainstorming and researching a topic to see if you can make money with it. It’s the method I use to find a good niche.

Talking about profitability is tough, since it is the trickiest part of doing your research. There are many factors involved and no perfect formula that guarantees success. That’s why it’s critical that you take the time to do your research. Approach your idea from a few different angles and consider:

• what’s the supply vs. demand?
• are enough people looking for this information?
• what sort of affiliate programs are available for this idea?
• who’s your competition?
• do you know enough about your idea to provide valuable info? or are you willing to learn?

Supply vs. Demand

Very simply, a profitable niche is one where there is more demand than there is supply. In other words, enough people are looking for something, but there aren’t enough web sites out there providing the information. Both SiteBuildIt and Wordtracker have software that does the hard math for you. Wordtracker also has a free (though very limited) trial and SBI has a “try for 30 days” program.

Now, let’s say you search for data on the idea “hair styles” (this is the example I use in my niche ebook). “Hair styles” by itself isn’t a profitable niche. This means there are a ton of web sites out there using the term “hair styles” on their site so you’ll have a tough time competing. BUT, if you dig a little farther, you may see that “african american hair styles” or “prom hair styles” or “short hair styles” doesn’t have anywhere near the same level of competition. Of course, not as many people are searching for those specific phrases, but if you add them all up together, you have yourself a nice bit of traffic. Dig even farther and you may find that “african american prom hair styles” and “short hair styles for kids” look good too. On the face of it, creating a web site simply using the phrase “hair styles” isn’t looking good, but if you pull all of these ideas together, you have the foundation for a successful site.

Number of Searches

Can you create a web site devoted solely to “prom hair styles?” Of course…IF you find that enough people are looking for the information. There’s no point in building a site devoted to the 350 people seeking out “punk hair styles for petite blonde women”(but it could make a great page on your site!). What’s enough people? I’ve heard time and again that 10,000 searches a month is “enough.” With a concept like “prom” though, keep in mind that it is seasonal, so the number of searches during September will be very different than those during April.

Affiliate Programs

If you’re planning to promote someone else’s product, then you need to locate good affiliate programs. There may be programs out there, but the payout is small, which may not be worth the effort. Or maybe there are no affiliate programs that fit your idea. If that’s the case, consider developing your own products. A good way to find programs is to see what the competition is promoting. You can also check affiliate networks like www.cj.com and www.shareasale.com. They each manage hundreds (thousands?) of affiliate programs so it’s easy to find a company that fits. Also Google your web site idea with the terms “affiliates” or “affiliate program.” Some companies may keep their affiliate program in-house and this is a good way to find them. And don’t be afraid to contact a company that looks promising by asking if they have a program in place or are considering one for the future!

The Competition

Let’s face it; you’re not going to beat the eBays, Travelocitys and Amazons of the internet world sitting on a laptop at your kitchen table. But there is still plenty of room for you to carve out your niche. If travel is your passion, then choose a specific destination and “own” it. I know a woman who does VERY well with a site about a little island off the coast of Puerto Rico. Anyone who wants to travel there will find her site in the Top 10 of search results; and neither Travelocity or Expedia are anywhere on that list.

What Do You Know?

You may find in your research that “pythagorean theorem” is a winning niche, but unless you’re a mathematician or have an interest in mathematics, it’s probably not the idea for you. Be honest with yourself when considering web site concepts; you don’t have to have a Masters Degree in a topic to be an authority, but you have to be willing to research and learn what you don’t know. If the idea of learning about Pythagoras puts you to sleep, move on to the next idea!

“Don’t Even Try” Niche Ideas

This section is part-informative/part-rant in that I see people starting web sites time and again on this particular niche and there’s a very low chance of success.

• the WAH (work at home) idea: it’s oversaturated, period. Unless you’ve really made money sitting at home watching Oprah and eating bon bons, then don’t try it.

Find your own place to be an internet success!

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