For those people who are going down the route of completing keyword trading this is one of the most important posts that you will read on my blog.
Over the last few days I have had occasion to review and comment on the different keyword research that you have been completing. It remains very clear to me that as part of this process it would be valuable to understand the formula that I use to test the profitability of a keyword.
Before I get into that though for the people who are reading this post and thinking “I don’t understand what keyword trading is” please don’t freak out. At my 3 day internet fast track program I taught a trading program where you would buy “cheap” traffic from tier 2 PPC Networks and then re-sell this traffic “marked up” back to tier 1 PPC Networks. The first 3 steps of doing this process were:
Step 1: Identify 20 – 50 Keywords
Step 2: Keyword Research
Step 3: Keyword Analysis
So let’s look at the formula that I use in assessing keywords:
Estimated Traffic x Estimated PPC Profit [(Google Adwords PPC Estimate – Yahoo Search Marketing PPC Estimate) x 50%) = Estimate Net Profit
Let me explain this to you quickly:
- Estimated Traffic – This is the traffic that wordtracker estimates the keyword gets per month in the United States
- Google Adwords PPC Estimate – This is the amount per click that google adwords estimates you would need to spend to be in the first position on a google search
- Yahoo Search Marketing PPC Estimate – This is the amount per click that yahoo estimates you would need to spend to be in the first position on a google search
- Estimated Net Profit – This is how much per month you could potentially make for the keyword
I hope this helps you in making decisions regarding the keywords that you are targeting