My Profitable Niche Adventure #1: First Failures

I had been wanting to dip my feet into niche marketing as a means of generating passive income for quite some time.  Unfortunately, two things stood in my way:

  • I had no idea how to do niche marketing.
  • I've always been horrible at choosing niches.


Well, thanks to seeing Pat from Smart Passive Income start from scratch and be successful, I decided to jump into the game and give it a try.

The Wrong Way to Find a Niche

My first attempt at finding a niche didn't go so well.  Rather than forking out the money to buy Market Samurai, I had my virtual assistants use a free method as shown by Tyrone Shum, BUT although it's a pretty solid method there is one factor that I didn't realize (I'll talk more about this later).

It was a few months before Christmas and my strategy was that I would find a market that I knew people would buy around Christmas time and New Years.  The only product that I could think of were home gyms, and I'd use Amazon Associates as the main driver for commissions.

I bought the URL “” (I no longer have this domain – dropped it) and off I went.

Not all keywords are the same…

I found 2 keywords that were under the Page Rank (PR) threshold of 3 and had a “decent amount of hits per month”.  I then had my VA start doing a whole host of things in order to generate traffic (We'll get to that later too).

After 1 month… poor rankings.

After 2 months… poor rankings.

After 3 months… okay ranking… and no traffic

What's up with that? Well, I failed to realize that when you are doing keyword research, even though a keyword may look like it gets a good amount of traffic and that it doesn't have much competition it doesn't mean that it's a good one to target.

Google doesn't tell you how people type keywords…

one of the most important things that I found out was that Google's keyword tool doesn't tell you how people type in keywords.  For example “Home Fitness Gym” may have a ton of searches according to Google, but that doesn't mean it's types in that exact way.  People may search for “Home Gym Fitness” or “Gym Home Fitness”. While this may not seem like a big deal, it is.

To me, the main reason why having your words in the right order is important is because you get a true sense of the competition.  Check out these two competetion analysis:

Home Fitness Gym PR

Home Fitness Gym Competition

The first is for the keyword “Home Fitness Gym”, competition isn't too bad right (as far as PR is concerned)…

Now check out “Home Gym Fitness”, which is a far more correctly searched term.

Home Gym Fitness PR

Home Gym Fitness Competition

If you were going after “Home Fitness Gym”, not only would you be targeting an irrelevant and un-searched keyword – you'd be facing more competition than you were expecting.

The first rule of niche marketing…

From my experience, the first rule that you should learn (and I learned the hard way) is to know your competition.  Use keywords and markets that aren't already over saturated.  Obviously there is a huge benefit to using Market Samurai since it saves you time and helps to show the real market competition you face, so I highly recommend it.

When I've chosen markets that have low SEO competition I've risen to the first page of Google pretty quickly and is how I helped Orange County Shutters do so well.  Often, I can get to the first page within a week or two.

Over the next few weeks, I'll show you some of the sites I've made, how well I've been doing, and I will share some of my strategies.  These are the strategies I used to make an extra $600 a month pretty easily.

See what happens in the next part of the series, and how I picked the right niche: Click Here to Go to Part 2!



  • Matt

    January 6, 2011

    Interesting, I've just recently heard of Market Samurai. It seems like a pretty cool tool. Fortunately, I had someone help out… otherwise it has a little learning curve. Thanks for sharing your tips 🙂

    • Dean Soto

      January 21, 2011

      Yeah, Market Samurai rocks. Later on in the series I am going to talk about how to use it for local businesses as well. (i.e. use it to help local businesses with SEO and getting their content seen).

      It's a really nice piece of software and runs on Adobe air. It's done me great justice so far.