I have created a brief 3 question survey concerning Niche Selection. Please take a minute and answer these questions and I will share the results with you in a future blog post.

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Keyword research is in the midst of radical changes right now. It seems that as Google gets more and more of the market share, the tools based on other data (Wordtracker, Yahoo, MSN, etc.) have become much less reliable. At the same time, as users look more and more for data that is both recent (wouldn't real-time data be great) and long tail (good luck getting real information on 'local' searches'), the flaws in the data provided by these tools is being exposed. Every time I use Wordtracker I see high volume search terms that I doubt any English-speaking human being would have ever entered.

So even though there are many different keyword research tools available on the market today, at this point in time I really only have two recommendations for most people.

1) Free tools - Google and Wordtracker both provide a lot of free tools now that will meet the needs of most people, especially when you are starting out. In fact, if you are researching a new market, I would suggest that the free tools are the best way to get really familiar with the data.

I will be adding some videos and tutorials that will help you get the most from these free tools, and after that, we will look at many other free tools and tricks that can help you get the data you need - for free.

2) Nichebot - to be honest, much of the data that is provided now by Nichebot is the same as what you can get for free from Google and Wordtracker. The biggest value of Nichebot comes in the convenience in how it helps you manage and filter and drill down into your keyword, and then the training they provide. It is also very reasonably priced.

I will be adding a full review of Nichebot soon, and also some videos walking you through some of my favorite ways to use their tools, but until then, I suggest you just go over to their site and get a free tour, or a very inexpensive trial (I think it is just $1 or something like that).

Note about Advanced Tools - There a many other advanced tools that are now available on the market, and some of them are very expensive. At times I will provide reviews for some of these tools, but their value is usually for people who have already mastered the basic of keyword research. If you can learn how to get the most out of the free tools and get some regular income coming in, then there are lots of tools that can make you more efficient, and you will have a basis for measure the ROI using the income you have, the value of your time, and the expected productivity improvement. But until you are making money, the most I would recommend spending would be on a monthly Nichebot membership - and the only reason I would recommend that would be because of the training you get with it.

I am using the term "Niche Research" to cover at least 4 different areas that critical to choosing a profitable and enjoyable business niche:

1) Market Research - Market research includes the process of collecting and analyzing information about a specific types of products and services, and also the customers who buy or using them. It includes looking at the needs of the customer, the various profiles or types of customers, what products and services are being purchased, how are they being marketed currently, what are the related costs, what are the trends, what new technology or products are likely to be coming out soon, and much more.

2) Keyword Research - this is a form of market research, and it involves the use of various tools to try and figure out which keywords people are using to look in the search engine for products or information related to a specific market or product. Along those lines, you will also want to see which keywords others are advertising and optimizing their websites for, which leads to the next form of research. 

3) Competitive Research - I need a better term here, but the goal is to understand who is already in or near the niche you are looking at. The reason I don't like the term 'competitive research' or 'competitive intelligence' is because many of the products and companies you find while doing this research will likely become your partners: you may end up selling their products, they may end up selling your products, you could bundle your products or services tioogether, you may interview them for your blog or podcast, etc. If there is a dominate product or company in your target market, you will likely end up positioning yourself relative to them - our product is cheaper, better, more stylish, has more features, etc.

4) Personal Inventory - This should probably be listed first, but this involves looking at your skills, knowledge, experiences, interests, needs, desires, resources, and relationship to help in choosing the best niche for you.

So why beat around the bush? The question I think most people want answered is "How can I make money on the internet?" I think a few people know exactly what products or services they want to provide on the internet, but most people do not have a clue. Sure, some people know when they are kids that they want to be a doctor or pilot, but most of us bounce around and end up in our 40's or 50's still looking for the answer to "What do I want to be when I grow up?"

Although I am sure that everyone would like for me to just provide a list of guaranteed profitable websites for them to choose from, I am afraid the answer  is not that simple. In fact, I am actually glad that the answer is different for each of us because that is what leads to a healthy and diverse marketplace.

So, like a good real estate agent would do, I am going to help you ask all of  the right questions about what you want and need. Then I will point you to the tools that will help you find the best options which match your criteria.

In the coming weeks we will be looking at 20 different niche strategies and over 50 different tools to help you get specific ideas for products and topics that people are hungry for. Most of these tools or websites are free, but we will also be reviewing some of the paid tools that can help you speed up the process of finding profitable niches. We will also be looking how to test your niche to be sure that there are people ready to spend money. Finally, for those that are still overwhelmed by all of this, we provide you with a list of ways you can outsource this process and hire a niche "inspector" who can take a few of your ideas and then do the research and validate the market for you at a reasonable cost.

Whether you are just starting a new business on the internet or you are looking to grow your existing business, finding your niche is one of the most important keys to success.

Finding a good niche is like shopping for real estate because a good niche for one person may not be a good niche for someone else. There are good "starter" niches, "second home" niches, "investment" niches, and even good "rental" niches.

At Niche Research Systems our goal is to provide the tools, training, and tips to help you find the best niches for you in order to get your new or expanding business off to a solid start. Subscribe to our RSS feed or to our newsletter because we will be adding new articles, reports and videos every week.