Profitability
evaluation
Your current location on this site:
Evaluate if a market is profitable, don't just jump into it!
Most businesses
that go bankrupt do not evaluate the profitability of their activity.
You need to know
"if" it is possible to reach your goals, then you'll have to build up an
adequate strategy to gain advantage in front of your
Profitability
evaluation - always the first step!
Never put
anything before this! Profitability evaluation is always the first step in
setting up an online business.
Basically, you
need to find what keywords you're going to use in your site, how many
times those keywords are searched, what competitors there are, how strong
there are...
Here is a useful
tool:
Wordtracker
This site helps
you find the number of keyword searches/keyword combination searches per
day.
To evaluate
competition, we recommend you to do the following:
Check the search results on major search engines
Check
Yahoo,
Google,
MSN to see how stiff the competition is for certain keywords, keyword
combinations.
Check the Google Page Ranks of the potential
competitors
Check the Google
PR by downloading the
Google Toolbar. It's free.
The higher the
rank is, the stronger you competitor is. Most competitors will have PRs
between 1-4, which is considered to be low. Medium strength competitors
will have PR 5-6. Anything above PR 6 is considered high. However, the
Google Page Rank is a site quality tool. It's important in Google search
results, not a criteria in Yahoo, MSN results.
It's good to
have high PR, but it's not as important today as it used to be.
Check the number of backlinks that your
competitors have
The more
backlinks and the more relevant backlinks your competitors have, the
stronger they are. MSN, Yahoo see more backlinks than Google.
Type this into
the search field of Yahoo, MSN or Google:
link:http://www.website.com
(where "website"
is any website that you want to check for backlinks)
...you will then
be shown the results: webpages that link to the specified URL.
It can take more
than 1 year fro a search engine to see a site's backlinks
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