Determine if the Niche is Worth your Efforts

In yesterdays post about building your Review Site Blueprint, we looked at a quick way of deciding how to pursue our niche market, whether we wanted to pursue a brand, type, or combination of the two, product review website.

In this article, we are going to get into the nuts and bolts of our prospective market, to determine if enough sales volume exists, to make the product review site worth building.

In sales… the LAST thing you want to do is spend time building up a Sales Presentation, for a product nobody is Buying! One of the most important steps you MUST take before building ANY website, is determine whether or not people are BUYING it! How much they ARE Buying, How Much of that May be Available to ALL Affiliates, and finally, a Realistic Expectation of How much YOU Can Earn from It!

Goal of this Section

• Determine The MAIN eBay Category of your Chosen Niche Market
• Determine Total eBay Sales Volume within the Niche Market
• Evaluate Affiliate Earnings Opportunity
• Decide Whether or Not to Pursue Niche Market

Before you get started today, nothing will have any meaning if you don’t have a TeraPeak account. TeraPeak is “The” sales metric tool for ebay, showing sales data for every single product, in every single category within the eBay system. If you are building a review website or even just selling products of your own on eBay, it is the best tool in your toolbox!

Step 1 – Find The [MAIN] Product Category

1. Login to Your TeraPeak eBay Research Account.
2. Type 1-2 Words that describe the Product people will be buying into the search Box. (Check both singular and plural if needed)
3. Choose the eBay Geo Location or eBay Motors area you are targeting and subscribed to from the Drop menu.
4. Search ALL Categories.
5. Choose 7 Days from the History Dropdown.
6. Click on Search.
7. From the Left Menu – Click onto the MAIN Category with the Products that you feel are Best Aligned with your Niche Market. (This will set the MAIN category into the top category box)
8. In the Top search box, Type a “More Specific” phrase about your Niche Market.
9. Change the History to 90 Days.
10. Click on Search.

Step 2 – Review and Evaluate the Sales Volume

Finding the overall sales volume is only the first step. Understanding HOW that Volume can Affect You is important! In order for a niche market to support you, it must deliver a MINIMUM amount of sales volume. Overall, we as affiliates will average approximately 3-5% of the total sales in commission. In other words, if you refer a sale to an item that costs $100, you can earn approximately $3-$5 in affiliate commission on average. This is true even in the eBay QCP model with a properly targeted site.

Note about new QCP model: Even though you are now paid on a per click basis versus an average of 5% of the overall sale, the math comes out very close to the same on mid-quality campaigns! Just look at the eBay revenue in your reporting tool, and compare it to what YOU earned. In almost every case, it is within 40-60% of the eBay earned revenue. Under the old system, it was approximately 50%.

In addition to the percentage of total sales volume, we also need to understand that we will never refer 100% of the traffic to that product niche. In the first year, you should evaluate the niche market based on a 5% MAXIMUM referral rate! Meaning, if eBay sells 100 “items” AND “you build your site correctly”, you should not plan on referring more than 5% of the overall traffic to that product. (This does not mean you WON’T refer MORE, just don’t plan on it!)

Affiliate Earnings Opportunity Formula

• 90 Days Total Sales X 4% Divided By 3 (months) = Total Monthly Affiliate Opportunity
• Affiliate Opportunity X 5% = YOUR Monthly Earnings Opportunity

Example

• $300,000 X 4% = $12,000, Divided by 3 Months = $4,000 Total Monthly Affiliate Opportunity
• $4000 X 5% = $200 Monthly Earnings Opportunity

When asked the MINIMUM Sales Volume I will pursue:

Anything LESS than a Total of $100,000 in Monthly Sales Volume, May Not be Worth the Time.

Examples

Universal Remote Control (Watch the 2 Minute Video)

1. Login to TeraPeak
2. Search for “remote control”, in “eBay.com”, “all categories”, “7 days”, Click Search.
3. Left Menu – Click on “Remote Controls” within the “A/V Accessories & Cables” main category
4. Top Menu – Type “universal remote”, Change the history to “90 Days” and Search
5. Record the Metrics onto your BluePrint
6. Total Sales Volume: $927,249 X 4% = $37,090, Divided by 3 = $12,363 Total Monthly Affiliate Opportunity
7. $12,363 X 5% = $618 Monthly Earnings Opportunity

Ladies Blue Jeans (Watch the 2 Minute Video)

1. Login to TeraPeak
2. Search for “jeans”, in “eBay.com”, “all categories”, “7 days”, Click Search.
3. Left Menu – Click on “Jeans” within the “Women’s Clothing” main category.
4. Top menu – Change the history to “90 Days” and Search
5. Record the Metrics onto your BluePrint
6. Total Sales Volume: $5,929,037 X 4% = $237,161, Divided by 3 = $79,053 Total Monthly Affiliate Opportunity
7. $79,053 X 5% = $3,952 Monthly Earnings Opportunity

Diamond Engagement Rings (Watch the 2 Minute Video)

1. Login to TeraPeak
2. Search for “ring”, in “eBay.com”, “all categories”, “7 days”, Click Search.
3. Left Menu – Click on “Engagement Rings” within the “Engagement and Wedding” main category.
4. Top Menu – Type “Diamond”, Change the history to “90 Days” and Search
5. Record the Metrics onto your BluePrint
6. Total Sales Volume: $22,755,389 X 4% = $910,215, Divided by 3 = $303,405 Total Monthly Affiliate Opportunity
7. $303,405 X 5% = $15,170 Monthly Earnings Opportunity

Common Sense Search Tips

Common Sense Rules when it comes to researching a Niche Market.

• If your Niche is sold in multiples, like “tires” pluralize your search term.
• If your Niche products are sold one at a time, like “car” use the singular version.
• It will help you to search BOTH methods if you are unsure how your Niche is sold most often.
• Think of How YOU Would Search for the Product(s)
• Look Through eBay at How the Products are Most Often Listed.
• Look Around the Web at How Others Represent the Items or Niche Market.

eBay Search Parameters Work Too!

What’s Next in the Review Site Blueprint?

In the next installment of Building a Review Site Blueprint, we are going to delve even deeper into a market, and start finding the exact brands we should be focused on! After all, now that we know there is sufficient sales volume, why not find the best selling products to focus on first?

Comments or questions welcome.

Previously Published Articles You May Like to Read:

• Review of the Niche Store Guide – Is It Really Worth It?
• Determine How You Will Approach The Market
• Determine & Set your New Website Goals!

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