There are three key elements to building a successful residual income producing website:
- finding a profitable niche
- building a website
- and driving traffic to your website
Most beginners focus heavily on the second step – building the website – but that really its the least important part of the process. The most important part is finding a profitable niche and finding the right keywords that your potential customers and visitors are using to search for.
In general its not so much a keyword you are looking for – its more a key phrase – the longer the keyword phrase generally the less traffic there is, but also generally the traffic there is is more likely to buy: for example if you had a shoe website who do you think is most likely to buy a pair from you:
- someone who searches for “shoes” or
- someone who searches for “girls size 1 pink shoes”
the second person sounds like she needs a pair of pink shoes, and she needs them now! So you may only get a few visitors – but you might make more money because the traffic that you do have is buying traffic.
Think of it this way: how often do you go to a bookshop – and just browse – you may buy – but basically the bookstore is a destination with probably free coffee and comfortable seats – and you go to be entertained. You buy eventually – but not today. The trouble with a visitor to your website deciding “not today” is that they may get distracted and end up at a different website – its harder to remember which website you were on compared to remembering which book shop offers good free coffee!
Compare that to your local convenience store – you don’t go there just to hang out and see what’ interesting do you? No but when you go there its almost certain that you will leave having purchased something – and do you notice how many times you go to the store for milk but come out with several other items as well? If you want to make a residual income from your website – you want to be a corner convenience store – not a bookshop 🙂
So don’t decide to build a website about planning a road trip around Australia – just because you are – instead you first need to find out two things
- whether anyone actually searches for “planning a road trip around Australia”
- and how much competition there is
There are lots of fancy tools and ebooks who promise to tell you the answer to these two questions – but Google themselves provide a free tool: the Google Adwords Tool which although there a few tricks to how to use it properly, which I will talk about later and which definitely has its limitations – will get you started on your way to building residual income websites.
So click on the link – type in your keyword you are thinking about and do the following:
- change the search type to “exact” – look for terms which have at least 1000 searches a month for that exact term;
- add the Adsense CPC column in if you are considering Adsense on your website – eve if you are not a CPC of 5cents means that no wants to spend money advertising on that particular terms which may mean you need another keyword
- now check out the competition for that term – do you think you can beat those websites? If you can then you may have found your first niche!