Most online entrepreneurs make the mistake of NOT testing their ideas. They jump straight into producing a website or even a product, only to find out that no one wants to buy it.
You don't need to make that mistake because testing your business ideas is now easy and quick. Here is how you can do it in 6 steps.
One important idea that you want to keep in mind is that you should not be looking for a completely untouched subject. If there is money to made in your niche, people will already be making money there. But that's ok. If it's a profitable market, there can be room for you too!
You Can Market Test Business Ideas With Tools Available Online for FreeWe are going to go through 6 tests to determine whether our idea is in a viable online market that is making money, and whether we can expect to compete in this area.
First, we run through 4 tests to determine if our idea is in a viable online market.â€¨
Things You Will NeedWe can run these tests with a number of online tools, as mentioned throughout this document. A more detailed free blueprint for testing your online business ideas, including tools that you can use to conduct this market research, can be found at Google Placement.
Is There Enough Traffic Going to Your Niche?You can use tools, such as the Google Keyword Tool, to see how much traffic is going to your niche and specifically to the keywords. You will want keywords that are getting at least 200 searches a day.
Are There Advertisers in this Niche?You should be looking for a niche where people are already advertising, because if there is money to be made, others will be advertising. You can simply enter your search term into Google to see whether there are a decent number (say 4 to 5 at a minimum) of sponsored links associated with the search term.
Is This a Popular Subject for Books?Visit Amazon.com and enter your idea into their search engine, selecting the "Books" category. Sort your results by publication date. You will want to see 5 or more books that have been written recently or are forthcoming on your subject. If there is not a lot being written on your subject, then it is a sign that there may not be a lot of commercial interest in your area. â€¨
Are Their Affiliate Sales in this Subject?Visit Clickbank and see if there are affiliate products in this area. If there are few affiliate products, then there is limited commercial potential in your field. You will also want to focus on the "Gravity" indicator which shows items that are currently popular.
After you have found a viable online market, the next step is to determine if you can compete in this niche. This involves a further two tests.
Can You Achieve a Google Placement that Gets You On the First Page of Search Results?Getting listed on page one of Google can be a lot easier than people realize. However, it requires you to select keywords that are less competitive. Specifically, you want a search term that has less than about 30,000 other competing web pages. There are some excellent tools available online, as mentioned at the bottom of this article, to help you find out how many competing web pages exist for any given search term.
You also want to look at the strength of those competing websites, and specifically, the strength of the top 10 results for your search term. This involves analyzing the Pank Rank, number of backlinks and metadata of those sites. Again, excellent tools to do this research quickly and accurately are referenced at the end of this page. In essence, you are looking for at least one or two weak websites on the first page of results that you could potentially displace.
Are the First Page Websites Selling Similar Products or Services?You should look at the websites that appear on your first page of results for your selected keywords. You want to make sure that there are at least 2 or 3 of these websites selling similar products or services. This is a further validation of the market viability. It also helps you understand the competition, in order to determine how you can add value in this space.
These six steps will help you test the viability of any your online business ideas.