The First Law Of Making Money With Blogs: The Higher The Subject Demand And Lower The Competition The More Money To Be Made
Tuesday, August 18th, 2009This is the first law you must obey if you will ever make money online from your blog or website. It is the foundation of your Internet business, and if the foundation is not right, nothing will ever stand.
What the law is saying is that, to be able to make money, you must choose a subject to set up your blog or website on, which must have appreciable number of people interested in it. They should also have a good record of spending money, and the level of competition in the industry should be low.
It is at this foundational stage that a lot of new comers to the Internet miss it. Perhaps, it is as a result of the misinformation they got from certain sources that they could set up blogs or websites on the area of their passion, and they would be able to make money from it.
This is true, but to an extent. If the subject you are passionate about shows that a large volume of people are interested in it, and these people actually spend money in the industry, then that would be a great subject to set a blog or website on.
But, if the subject does not draw the interest of more than a handful of people, then it would be a waste to invest your time and energy in it because it would never make money. Money is made from people who are interested in your subject, and the larger their number, the more the chance of making money from their patronage.
Therefore, the first thing you should do before starting a website or blog is to do some research to know if your area of passion has good volume of interested people, and if they spend money, as well as if the level of competition in the industry is low.
If your findings are positive, then, you could go ahead and set up your site knowing you could make money from it. but, if they are not, it will be better to either look for a profitable niche in that industry, or find another subject entirely.
I will show you how you can do this research using a free, but powerful software.
The Google keyword research tool, which you can find at https://adwords.google.com/select/KeywordToolExternal, can enable you to know before hand whether the subject you are about going into will be profitable or not.
This is how to do the research.
Log on to https://adwords.google.com/select/KeywordToolExternal, type in the subject you have in mind, for instance, golf training, then click enter.
The software comes out with the result as shown below.
This shows the level of searches made the previous month, and the average global monthly searches made in the last 12 months. You can also see the level of competition in the industry. The result also include related keywords to golf training, e.g., golf training aids, and golf swing training.
To get the above statistical result in terms of numbers, what you should do is to highlight the result page, then copy and paste it in a notepad. The statistical result for golf training is shown in a notepad below.

Now you can see the actual number of searches for golf training last month 201,000, and the average monthly searches in the last 12 months 135,000.
And also, very importantly, you can see how much people are bidding on the keyword golf training $2.03. What that means is that at the time I wrote this article, the average amount of money advertisers are paying per click when anyone clicks on their advert on this keyword is $2.03.
This is big money to spend on one click, so if there were 100 clicks on their adverts in a day, they would be paying $203.
What this implies is that people who are interested in golf training are money spenders. For someone to be paying $2.03 for a click on his or her advert means that that person knows he or she will make back the money together with profit from his or her target market – those looking for golf training.
And that is possible because those looking for golf training are people who are not just looking for free stuff, but are prepared to buy things relating to golf training.
This is how you can find out about the subject you want to get into first before setting out. Generally, keywords with average bidding of $0.50 and above will be profitable subjects to set up blogs or websites on, and of course, the higher the average bidding, the greater the money that can be made from that industry.
And when you combine the average bidding on the keyword with the average monthly search volume in the last 12 months, you will have a clear picture of what the industry looks like in terms of profitability.
Looking at the average monthly search volume for golf training, which is 135,000 and the bidding per click of $2.03, it means that the subject, golf training, is profitable.
But note that if the monthly volume of searches for the keyword is high, as well as the average bid on it, the possibility of stiff competition in that industry will be high too.
Therefore, in choosing a subject for your blog or website, you don’t only consider the search volume and average bid on it, but also the level of competition in the industry.
This is important if you hope to gain free traffic from search engines such as google and yahoo.
If the competition is very high, it would be extremely difficult for a newbie to compete with the established gurus who may have optimized their sites strongly for the search engines and ranking very highly.
However, you can still go ahead if you wish, to compete with the big guns, but you should be prepared to make serious investment in certain tools and materials, and patiently build your site.
But this is not the best way to go about having a money making site as a beginner, there is an easier way to achieving your goal of making money with blogs or websites even if strong competition exist in your subject area.
The best thing to do is to look within the industry for a niche that is not too competitive, but that has appreciable search volume and bidding level. With such a niche, you could still make money with your site without the danger of been crushed by heavy competition.
In fact, if you could pick a great niche, in terms of low competition, high search volume, and high bid level, and build your blog or website continually over time, you could become the niche leader, taking in much of the organic traffic from search engines to that niche, which could run into hundreds of thousands every month, and making the most money in the industry.
This is how to check the level of competition, to be sure you are not starting a blog or website that will never see the ray of the sun because there are huge trees taking up every available space in the sky.
Go to Google search engine at google.com and type in the keyword or the subject of your propose blog, e.g., golf training.
As you can see below, 68,100,000 web pages are brought out in the result (as at the time of doing this writing).

These are the pages the search engine could find in the entire worldwide web that have the words, “golf training” in them. This number is an indication of competition, but don’t panic, it is not a strong determinant of competition or whether your site can make money or not.
Here is how to know how strong the competition is, and if your website or blog could ever come up in good position on the major search engines, and take in huge traffic, which would therefore enable you to make money.
Individually, take the websites that appear on the first page to http://whois.domaintools.com. Copy and paste their URL in the search box, and click the “Lookup” button.
Some of the information whois.domaintools.com will provide you about the websites are their degree of search engine optimization (SEO), Alexa page rake, and inbounds links. To see their Google page rank, if you don’t have the tool on your browser, you can use the website: www.prchecker.info/check_page_rank.php
If all or most of the first ten web pages from google search result have very high degree of SEO (from 85 upwards), page rank (from 5 upwards), and hundreds of inbound or incoming links, it means the competition is extremely tough and there may not be any chance for a new site to come up on the first page of google when anyone searches for its keyword.
So, if you find your subject in such competition, you shouldn’t go ahead to set up a site on it if you desire traffic from the search engines (even if the subject is highly profitable) because you may never get it.
You will have to look for a less competitive niche, where the first web pages on google search result are page rank 3 or 4 and below, less degree of SEO, and not much incoming links.
However, if you plan to source traffic from other sources and not from the search engines or Pay Per Click, PPC, then you can go ahead to set up your site in a profitable subject, even if competition is strong – you will not be competing with them anymore.
I have just taken you through the basic keyword research process, which you must do to be on the right track to making money with your website or blog.
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That’s it for this lesson on the First Law Of Making Money With Your Blog or Website, watch out for the second law.
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