I have a free tool for your niche marketing toolkit today.
Over the last weeks, I’ve been constantly doing keyword research for new niches to explore. One thing that became kinda annoying over time is to calculate the estimated profits of a new site every time in my head.
My calculator tells you what profits to expect if you rank #1 for your keyword. All you need to fill in is the monthly search volume, the estimated CTR and conversion rate and your commission.
It’s by far not groundbreaking, but it should help you with your go/nogo-decision for certain keywords.
The Calculator
Check it out here. It should be pretty straightforward to use. I also included notes with instructions that appear when you hover over the corresponding cells.
Note: Of course, you can’t sell 2.94 products. I left it unrounded for accuracy reasons.
How to calculate estimated profits
If you want to know how the calculator works, keep reading. If you hate math, you can stop reading now and check out the calculator instead.
The formulas
Monthly Search Traffic = Monthly Searches [exact match!] x 42% (Note: 42% is the average click through rate to your site if you rank #1)
Estimated Sales = Monthly Search Traffic x CTR (%) x Conversion Rate (%)
Estimated Income = Sales x Profits per Sale
Example
Let’s say your keyword gets 2800 monthly searches [exact match!]. If you rank #1 in Google, you will statistically get 42% of all searches to click through to your site. 2800 x 42% = 1176.
A typical CTR (Click Through Rate) on a small niche site might be 25%, and sales-letter conversion-rate might realistically be 1%. Let’s say you get $22 commission for each sale.
How much money will you make?
Estimated Sales = 1176 x 0.25 x 0.01 = 2.94
Estimated Income = 2.94 x 22 = $ 64.68
Again: Of course, you can’t sell 2.94 products. I left it unrounded for accuracy reasons.
Do you have any questions? Do you know a better method to estimate profits? Discuss in the comments.
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This is the last post on this blog while it is called “Live Life Big”. Over the next week, I’m moving to a cool new domain. I’ll also finally get a twitter handle that you can pronounce. Stay tuned.
Photo by stuartpilbrow