Step 3 – Researching The Competition
As I mentioned in Step 1 some competition is good – it proves there’s a market for a product or service. The problem is too much competition is bad, it generally drives down prices as competitors fight one another and try to capture sales. Additionally, it tends to drive up the cost of capturing a sale and therefore reduces your profit margin even further.
So what’s the right level of competition?
In my training course I share several methods I use to quantify how much is too much. Here I’d like to share one of the methods I use which is available to everyone and yet one of Google’s best kept secrets.
It’s called the ALL-IN-TITLE search. Let’s run a quick demo:
- Think of the niche or micro-niche you are considering. For the purpose of this example let’s use one of mine – men’s golf clothing.
- Open a Google search and type in the following:-
allintitle: followed by your niche or micro-niche
E.G – allintitle: mens golf clothing
On the next page you will see a number just above all the search results. This number represents the total number of sites indexed by Google that also use that particular term in their title. This gives you an indication of the number of businesses / sites that operate in your niche for that one term.
Have a play around at the stage and record how the number changes for the different sectors of your niche and micro-niche.
If the numbers you’re seeing are in the high hundreds of thousands, or even millions, there is room to break down your micro-niche even further until you’re seeing results below 100,000. If this is the case, revisit the work you completed in Step 1 and look for more micro-niche ‘buyer’ terms. For example; notice I’ve used the term ‘men’s golf clothing’ in the example and not just ‘golf clothing’.
This step is designed to be ‘useful’ without drowning you in analysis. Whilst I value understanding the competition levels in a given niche, I hate paralysis by analysis; and let’s be honest over analysing something just leads to avoidable delay and procrastination. This step is designed to offer a valuable insight whilst avoiding overkill.
In the next step we’ll take a look at what makes a good idea and, perhaps more importantly, what doesn’t!
Here’s to your success.
This article is from a series called '7 Simple Steps To Make Money From Your Website'
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