How do you know what products to sell?  Do you just decide to sell what you like or do you decide based on what people are looking for? Even if you have a unique product from the start, it is best to do some market research before you invest your money in the product. 

The concept behind niche market research is that Google keeps all the keywords that are being searched in its database. This allows you to know how many searches for a particular keyword/niche  are done on a daily or monthly basis. Then, you will need to know how much competition is out there for that niche and how strong is the competition from Google’s search engine optimization point of view. The strength of the competition is one of the most important consideration in choosing to sell a product in a certain market niche.

Here is an example to illustrate the concept of niches and micro niches - You start with a broader market like “Silver Jewelry”, then you drill down to a niche  “Turquoise Silver Jewelry” and then you can drill more down to “Turquoise Silver Watches”. You will be surprised to see what you can find.

Luckily there are tools available that make niche market research relatively easy and provide you with both keyword traffic information and competition information:

1) Google Keyword Research tool - free tool that provides number of searches for the keyword monthly and a high level sense of competition. For highly competitive niches you will need more information on the strength of the competition.
2)  Traffic Travis – free tool you can download at  http://www.traffictravis.com/2/
3) Market Samurai – you can download a free trial copy at  http://www.marketsamurai.com/
4) Micro Nich Finder – http://micronichesfinder.com/

Market Samurai and Micro Nich Finder are both very good tools that cost around $99 and each has its own pros and cons. I am currently using Market Samurai because of the extended free trial and free training to find niches within the market that I have chosen.

Knowing what people are searching for and knowing the strength of the competition gives you the necessary insight on what products will be commercially successful. This is a highly recommended step before you decide on what products to sell or to find specific micro niches that will sell better within your current market. It becomes increasing important to specialize around a micro niche in today’s competitive marketplace on the web.

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