When it comes to building niche websites, the most important first step is to find a niche market that we can enter easily. Just like any other business, competitor analysis is the key.
Now the question is, what kind of competitor analysis we should do?
How to do competitor analysis for a niche market?
Since our primary aim is to rank high on Google and generate traffic to our site, we need to find a niche market that have low competition.
When I say low competition it doesn’t necessarily mean “low number of competitors” but rather, we want to see less websites that are well established or online retailers.
What we also want to see is other “low authority” websites like ours. This is why it’s OK to have high number of competitors as long as they are similar to our site, because it shows that Google is willing to rank other websites that are similar to ours.
This concept is not new and actually Spencer and his team at NichePursuits.com has been teaching this technique for a while now.
How is my method unique?
One issue I see with some of the existing methods I have come across is that they focus on keywords without purchase intent.
For example, let’s say we are interested in creating a site selling Kickboxing gear and based on some of the existing methods, we would look for top 10 competitors that are ranked in keyword “kickboxing”.
As you can see Map results shows up first followed by some local kickboxing studios. None of these results are really relevant competitors.
Now if we change the strategy a bit by using purchase intent (a.k.a buying intent) keyword, such as “buy kickboxing gloves”, we start to see a more accurate picture.
As you can see, Amazon.com is doing very well with this particular keyword.
With this in mind, I created the following process.
Combine a seed keyword with purchase intent keywords
Use Keyword Planner tool in Google Adwords to get a list of relevant purchase intent keywords with substantial search volume
Use our Keyword Difficulty Checker to find the “Difficult” keywords
Scrape the URL of the top 10 results in Google for each keyword
Identify Blog sites
Check the Page Authority / Domain Authority of each Blog site URL
I am basically looking for other blog site competitors that are ranking for very competitive purchase intent keywords.
If I manage to find a lot of blog type websites with low page authority/domain authority, this shows Google is OK to let low authority sites to rank high for purchase intent keywords in this particular niche market.
Let me use a real example to demonstrate this process.
“Blender” niche market competitor analysis
Let me show you how to do this in depth step by step.
Step 1) Use Excel to create a list of purchase intent keywords
Use the “&” sign to combine the text in each cell to easily create a list of purchase intent keywords for the niche market you are interested in.
In this case, we use “blender” as the seed keyword.
Step 2) Use Keyword Planner to get a list of relevant purchase intent keywords
We want to make sure the keywords our competitors are ranking for has some search volume behind it.
Download the keyword list and sort it by search volume (described in the video below).
Anything keywords with Average Monthly Search Volume between 100 to 2,000 are good candidates.
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