Hopefully you have already taken a look at our first day’s post for the 30 days to make a sale case study. If not, check it out right here!
Today we’re going to delve in to the deep and dark abyss that is ‘market research’ we will cover a variety of things including:
- My #1 most important tip for choosing your first market.
- Why it’s not essential that you be interested in the market you will enter.
- How to find a market to even consider investigating.
- How to validate a market from both a revenue & competition point of view.
- Using SEM Rush to own your market research.
So, let’s begin!
My #1 most important tip for choosing your first market.
First of let me start by saying this tip is aimed at beginners. Those of you who have been struggling to make your first sale online or to make consistent sales weekly or monthly. I’d recommend you follow this advice.
My Tip: When choosing a market, always go for a market where the product’s price range is at least $100 and if possible $400-$500 per product.
Let me tell you a little secret…
When promoting products on Amazon, selling a $50 and selling a $500 product is no different – it’s not harder, it’s not more competitive, it’s not more time consuming…nada, nothing…it’s exactly the same. Except for…
…the commission of course. $2 vs $20 which would you rather take?
OK Will, you have my attention…now please explain to me how this is no different?
Well, we’re talking about Amazon here – your not pushing fat loss ebooks or acai berries.
There are over 200 million products on Amazon and there are thousands which are over $500 and sold every single day, we’re not even talking niche here, normal consumer products, everyday goods. Such as this or this or this and of course this.
Now if you are thinking, well what about the organic competition, again it’s no different. Organic competition isn’t determined by the price of a product obviously, so you have just as much chance of stumbling across a group of keywords targeting products in the $500 price range as you do with finding a group of keywords targeting products in the $50 bracket. It doesn’t take any more time and well the time you do spend is put to better use.
You see, once you do pop your cherry and start generating consistent sales you will be seeing commissions of $20+ per unit and to hit a $500 monthly revenue goal that’s only 25 sales (not even one per day). If you use my Amazon market forecast tool thingy that I mentioned in yesterdays post, you can have some fun and predict the profit of a market right now.
To summarise this first point – don’t choose a market with a low product price range.
Note: I will be writing a post in the next few days which discusses the positives and negatives of choosing products in both price brackets, so stick around or bookmark me and come back to check it out.
Why it’s not essential that you be interested in the market you will enter.
A lot of people will tell you that you should look for markets which you are interested in, hobbies of yours, passions and so on. Whilst I don’t disagree with this, I simply don’t want people to feel restricted when doing market research thinking that they have to be interested in the market, because you really, really don’t.
Now, the reason people usually advise to choose a niche which you are interested in is for a few reasons:
- So you don’t get bored.
- So you have some actual experience and knowledge of the market which will help you with writing, structuring and growing the website.
- So you actually have some initial ideas in the first place.
And, I completely agree with these reasons. However, I still don’t think you should restrict yourselves.
First of, if you get bored then you will get bored no matter what – the market won’t make a difference, if your not passionate about making money online, the topic you choose to start with will make no difference. Your attention and focus will fade away eventually.
Secondly, if you are looking to grow this in to a substantial business there will come a time when you begin to outsource content creation and at this point you can stop researching about survival knives or rice cookers or pressure washers or how to train a dog to pee or whatever else we crazy affiliate marketeers create websites about and instead you will focus the time you have on more growth focused activities.
Thirdly, if we restricted ourselves to only considering a hobby or interest that we had, we’d be missing out on a huge range of opportunities – remember 200 million products on Amazon!
However, it’s a good starting point…
Yes, a starting point – for example if your hobby is boat fishing, don’t just think about boat fishing but think about various types of fishing, as well as other outdoor sports, then go to Amazon and have a look at what they sell in the outdoor sporting arena. Check out the best sellers, which you can do by going here. Take note of products with a significant amount of product reviews (100+ is a good start). But with this strategy you are barely scratching the surface and your approach will be no different from a thousand other people trying to make money from Amazon Associates.
To increase your odds of uncovering a low competition, high opportunity niche you have to differentiate your strategy and begin looking at the bigger picture, using tools such as SEM Rush to analyse thousands of datasets and tools such as Long Tail Pro or Moz Keyword Difficulty tool to help analyse individual keywords.
But where do you start…
How to find a market to even consider investigating.
Well, we just discussed market research for hobbies and interests that have, I expressed my concerns but I didn’t and won’t dismiss this as a starting point. If ineffective at uncovering a potential market, at the very least it will act as an introduction for you to the whole area of ‘market research’ when it comes to building an Amazon affiliate website.
But this won’t do, we need more ideas, more market opportunities, more data to crunch…where can we get this data you ask? From SEM Rush (my favourite tool in the whole wide world).
At this point you might be thinking, but dammit Will, I thought you knew me and the position I am in. I don’t have $69.95 per month to spend on a piece of software. Well, I considered that, so I double and triple checked and then read SEM Rush’s refund policy and you can get a refund with 7 days of signing up (refund policy is here).
I am going to add my affiliate link to SEM Rush, if you feel like signing up and perhaps rewarding me: sign up here.
Honestly, if you are looking to build an Amazon affiliate website, SEM Rush will make everything much easier, as I explain below. I don’t want this to come across as a marketing ploy, if you stick around on the blog long enough you will come to realise there are very few tools or pieces of software that I recommend purchasing, but this is definitely one of them.
- What tools I use
- How I begin my market research.
- How I format my Excel sheets, the functions I use and why.
- Next steps.
I delve a bit deeper in to SEM Rush, Moz Pro & Long Tail Pro – all of which are paid accounts, but all of which come with either a free 30 day trial (Moz Pro & Long Tail Pro) or a refund period (7 days for SEM Rush).
Apologies for the length of the video, I tried my best to keep it short and concise but there is just so much to discuss. In the future I will be doing a step by step guide to using SEM Rush and will probably cover Moz Pro & Long Tail Pro in future videos as well.
If you have any questions about any thing I’ve discussed in todays post, just let me know!