|
The niche websites are build to get targetted traffic by providing useful information and earn money through mediums like pay-per-click advertising or affiliate schemes. The most important question is, ‘how popular the niche is?’. If the niche is not popular enough it means less hits to the site with less people searching for such content which results in less or no revenue.
This means that we surely need people searching for the content we are offering but we also need enough advertisers to gain from.
However, the supply and demand ratio is not the only thing we should be looking at for a niche website. There are other factors such as level of competition and value of the subject. If we are writing about SLR lense, comission will be higher from Lense sellers compared what wwe may earn by writing about door mats.
Here we are going to look at a scenario of a niche website mostly relying on Google AdSence. This business model works best if we have the supply and demand ratio worked out correctly along with the other relevent factors.
Let’s say we have a website that publishes content about tourist attractions in Australia. It is clear that we have many tourists each year who may search for this content prior to visiting Australia and we also have many hotels, motels and B&B owners and travel websites who will advertise. This is not very tough to guess. However, lets say we are to write about Mount Buller only, it becomes a very niche area and may be defficult to rely on a guesswork. Luckily, there are many a tools that can help us out here in determining if our niche has a chance.
Is there enough supply?
It is vital that you have many advertisers for your niche. Altarnatively if there are few advertisers we may end up having ads with no or less relevence. It is best to do the Google search as a first step of assessment.
Secondly, a very helpful tool, create a Google Adwords account and create a campain for your niche to see the required minimum first page bid for certain related keywords. This will not only give you an insight in to amount of competition (advertisers) but it also shows if the bids are large then you are likely to get a higher return on each click-through from the AdSense adverts appearning on your site.
How do I assess demand?
Since we have already assessed the supply and we know that there are businesses willing to advertise and pay good amount of money - we are half way there. Now we need to confirm that there are good number of people searching for our niche because pay-per-click is of no use if there is no one clicks!
Thanks to Google and many other providers, we have free tools available to see how popular each relevent keyword is and what is the approximate amount of search query performed for that keyword each month. We recommend using Google Keyword tool to see how many times your most relevent niche keyword gets search each month.
The Maths
There are many websites out there writing about various formulas for ’supply and demand, but in our experience these formulas do not fit in every scenario. As we discussed at the start of this article there are other things to consider such as bid amounts on Google AdWords, quality of competition, and availability of niche content.
To Sum Up…-
Assess the supply and demand
- Consider the amount of competition
- Per-click revenue analysis
|