The biggest mistake many new entrepreneurs make when starting a new business is to create a product or service based on something they enjoy and are interested in. Creating a product or service based on your interest isn’t bad. But is there any demand and market for the product after several months of working hard to creating it?

This is the major problem many new entrepreneurs are facing. They have no idea where to find people to buy their products. They are spending many sleepless nights just to create fantastic products but finally realize that nobody wants to buy their products.

If you do an analysis carefully, you will notice that those people are creating product before they find the market that wants the product. In the real world, what entrepreneurs should be doing is finding the market first before they start to create their own products and services. This will give you a better chance to have success.

How can we find and research the market? In this article, I’ll be showing you one very good way to find a profitable market by applying killer keyword strategy.

Looking For High Keyword Searches

Let’s start with keyword research. We need to find what are the words people are searching and how many times they are searching. The more times someone searches for a word, the more popular and more demand the word is. So it make sense to look for those keywords with high searches.

There are many tools available to find out how many times people are searching a keyword per month. One of the free and recommended tool is Google Adwords Keyword Tool. Personally I use this tool very often.

Assume you are in dog training niche. So we can start by searching “dog training” in Google Adwords Keyword Tool.

From the diagram, you can see that the 2nd column is the number of searches per month. You should look for those monthly searches of at least 10,000. The higher the better. It might not worth your effort to create a product for those searches with just 1,000 or 2,000. And you might not be able to grow your business in the future.

For our illustration purpose, I’ll choose “dog training classes” and “puppy dog training” with total monthly searches 14,800 for both. I believe you can analyze more keywords and find the perfect keyword for you.

Just to explain a bit more why I choose “dog training classes” and “puppy dog training”. With “dog training classes”, you can actually create some kind of online membership site which people can subscribe to dog training class and  learn how to train a dog. For “puppy dog training” keyword, you can easily create an ebook teaching people how to train puppy dogs.

Checking Keyword Competition

Next, we need to check how much competition in the search engines for each of these keywords. The competition here means how many other websites or web pages are promoting related products or services.

It is an important factor because if the competition is very tough, then it is difficult for you to acquire customers.

Let’s go to Google and enter the keywords “dog training classes” and “puppy dog training” separately. The number of competing web pages are 18,200,000 and 872,000 respectively. It is very clear that “dog training classes” are much more competitive than “puppy dog training”.

But wait, there is a little trick that you should do to really understand who are your actual competitors. If a website does mention the keyword in their content but doesn’t have the keyword in their title, chances are they probably aren’t promoting the product.

By using the following command, we’ll be able to get a much better list of our competitors. This command will eliminate those web pages that are not mentioning our keyword in the title tag.

allintitle: dog training classes
allintitle: puppy dog training

Now the results look a bit different from the above without using “allintitle” command. “Dog training classes” is less competitive with 8,360 competing web pages. Given that there are only 8,360 competing web pages for “dog training classes” keyword, it makes your chances of ranking well much easier.

Results/Searches Ratio (R/S Ratio)

This is the most important step – data analysis. Here is the data collected.

Keywords: dog training classes vs puppy dog training

Number of Searches: 14,800 vs 14,800

Number of Competing Web Pages: 8,360 vs 44,000

Let’s do some calculation based on the data we’ve collected. It is called R/S ratio (results/searches ratio). Results mean the number of competing web pages. It can be used to determine how much demand there is for a product/keyword.

The keyword “dog training classes” is searched 14,800 times and number of competitors is 8,360, so R/S is:

8,360/14,800 = 0.56

Let’s look at another keyword “puppy dog training”. It is searched 14,800 times and number of competing web pages is 44,000, so R/S is:

44,000/14,800 = 2.97

Typically we’ll look for R/S ratio which is less than 2. The lower the R/S ratio, the more profitable the keyword will be for you. So the winner is “dog training classes”.

Conclusion

When we’re trying to build an online business, it’s important to find the market before creating your product. In the market finding process, killer keyword strategy should be applied to find those keywords with low results/searches ratio (R/S ratio). It will help you to build a more profitable business no matter which industry you’re in.

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