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"Discover the Magic Formula To Niche Business"
Today's SOHO Help Desk provides an insiders secret
to creating profitable niche products.
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A "Magic Formula" To Tell If Your Niche Business Idea
Will Snowball Profits or Bomb ...Even Before You
Create Your Info-Product!
by Dr.Prashanth Shivanna, copyright (c) 2005
"NICHE!" It's all the craze right now online. There's
a small fortune to be made by selling niche products
online to tightly targeted niche markets - from
information products to software to hard goods.
But many 'wanna-be' Internet business people waste
their time, effort and moony pursuing ideas that were
doomed from the beginning because they were trying to
fish in a pond with no fish!
Do you want to know exactly how successful internet
marketers assess the potential profitability of a
niche business idea even before they create a product?
Then, read this...
STEP #1: Select the keyword phrase that best describes
your proposed product area. The easiest way to do this
is to ask yourself, "What would I type into a search
engine if I was looking for the information contained
in my eBook"
For example, if you wanted to write a book about "How
to Stop Smoking", the phrase that best describes this
area is: 'stop smoking'
STEP #2: Calculate your Market Demand (MD)
Don't worry, this isn't as complex as it sounds! All
you have to do is go to the Overture search term
suggestion tool at:
Type your search term into the Search Term Suggestion
Tool and click the arrow. The numbers that come back
show how many times this search term and related terms
were entered by internet users in a single month.
For example when I typed in 'stop smoking', it shows
that 49363 people searched for the words stop smoking
in a single month. (Searches done in Jan, 2005)
Add up the Count numbers for all your 'related' Search
Terms. (For example.. stop smoking, quit smoking, etc.
This gives you your Market Demand (MD)
When I added up the Count values for all the related
Search Terms I got a Market Demand Of 167,078. So for
'stop smoking' MD = 167,078
STEP #3: Calculate your Visitor Profit Potential (VPP)
This is really easy as well. All you need to do is go
to Overture's View Bids Tool at:
and enter your search term. When the results come
back, View Advertiser's Max Bids. Take the number 3
bid as your VPP.
For example: When I entered the term 'Stop Smoking'
into Overture and viewed the advertiser's max bids,
the third highest bid was $1.56
So for 'Stop Smoking' VPP = $1.56
STEP #4: Plug your numbers into 'The Magic Formula!'
Potential Monthly Profit = (MD x 1.5/100 x VPP)
[The reason we multiply the MD by 1.5% is because as a
rule of thumb, it is possible to attract at least 1.5%
of most markets to your website.
The Visitor Profit Potential (VPP) is based on the
idea that the value of the third advertiser bid in
Overture is an indication of the profit per lead as
set by the market.]
So, for 'stop smoking'...
Potential Monthly Profit = (167078 * 1.5/100 * $1.56)
Result? -> http://yseh.com/stop-smoking
Now, $3909.62 a month is nothing to sneeze about. It
certainly makes a comfortable living. But if you still
insist... go create 5 such mini-sites and you'll have
five streams of solid income!
Simple but Profound -- Isn't it?
This formula gives a good estimation of the profit
potential of different markets.
Want more examples?
Let's say that you had two ideas for potential new
(1) Porsche restoration (2) Digital photography
If you didn't know better you might just go with the
idea that you are most interested in. This is like
selecting a pond to fish at because it is your
favorite place to sit rather than because it is the
best place to catch fish.
OK, let's put the magic formula to test
eBook Idea #1 - "Porsche restoration"
Market Demand (MD) - "653"
Visitor Profit Potential (VPP) - "$0.07"
Potential Monthly Profit - "$0.69"
eBook Idea #2 - "Digital photography"
Market Demand (MD) - "170234"
Visitor Profit Potential (VPP) - "$0.89"
Potential Monthly Profit - "$2272"
So according to the Magic Formula, it would be a waste
of time effort and moony writing a book about Porsche
Of these two areas, digital photography appears to
be the most profitable...
You don't have to know why the magic formula works.
All you really need to know is that it is a very
valuable tool used by some of the leading Internet
marketers to find popular markets and have profits
snowballing EVEN before they create any product!
Now that you know the 'Magic Formula', go funnel your
*million dollar ideas* into it and see if it will
snowball profits or bombs fast and hard!
Dr.Prashanth "quietly" earns a decent living from his
tiny little niche websites. Visit his niche resource
site at -> http://yseh.com/resources.htm for a FREE
Report that shows how to create and sell niche info-
products, without you having to write a single word!
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