One of the main keys to becoming successful online as a home business owner and Internet marketer is finding profitable markets for your products. One very important point to remember is always find your market before creating your merchandise. People often make the critical mistake of creating their product first only to realize when it’s too late there’s no market for their finished good.

In other words no one wants it. Now, unfortunately, you have to start all over again only this time you should investigate what people are searching for on the web and the best way to do this is through keyword research.

Simply put, keyword research involves finding out what words people are typing into the search engines most often and these words help you determine what people are looking for in the way of goods and services online. This of course tells you what product you can create which would be most in demand by the buyers on the Internet.

There are many tools available online to help you with your keyword search including Google’s software however there are others available for a reasonable price such as Overture. When using these tools you simply type in the words or phrase you’re interested in and this program will send back the results. This data will show you how many times this particular term was searched for on the web last month, thereby demonstrating what kind of demand there is in the market for products related to your search.

Next you need to find out how much competition there is in the market for these keywords. In other words how many websites are selling something related to your word or phrase? You do this by typing the words you’re wondering about into Google’s search engine and analyzing the results.

For example, if Google returns an astronomical number such as 15,000,000 websites found using your search term then the competition may be a little too intense to enter that particular niche. On the other hand if you see a number such as 160,000 then you should seriously consider entering the fray with a product of your own depending on the results of another important factor.

Now you need to determine your R/S ratio for your keywords. This ratio helps determine what kind of demand there is for a certain product by comparing results to searches. For example if you found your keywords were searched for 14,000 times last month and you also discovered that 160,000 websites were using this same term on their home page the your ratio would be 160,000/14,000 or 11.43.

Unfortunately this isn’t a very good result because the lower your number the more profitable your search term or key words will be for you if you build your niche website around these words. Of course the lower the number of websites also competing for these words the better chance you have to make a profit from a related product.

Your next step now would be to go through all your search terms and discover the R/S ratio for each while only considering the ones which are lowest in comparison, for example 2 or less. At the end of your keyword research, which can be tedious at times, you should have a solid list of words which you can build a home business website around by only promoting or creating products related to these terms.

Bob Withers is a professional sales and marketing person with over twenty years in the field. He has now set his sights on Affiliate Marketing and creating successful Home Based Businesses online to apply his trade. If you want to get in touch with Bob or learn more about Affiliate Marketing or setting up an Internet based Home Business please visit:
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