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Know If Your Product Will Make Money Before You Invest: The Metrics Method Using Google Keyword Tool

In this article you’ll quickly learn the formula for figuring approximately how much money you’ll be making on your new product, before you make your first order. With this technique, you’ll only be able to calculate Internet figures, because you’ll be using Google’s keyword tool and some metric statistics that you may not know.

This is a good strategy because it will help you figure out exactly how to search engine optimize your landing page for your product, as well as the conversion rate you should be able to expect. The flaw of this strategy is that, unlike a PPC strategy, it doesn’t help you figure out the pricing of your product. If you’ve already figured that out, then you’re good to go with this one. If you’re not sure, figure out the average cost for a product like yours and use that as a hypothetical.

1. Pick 3 Keywords

You’ll want to go to Google’s keyword tool and do some research until you’re able to pick 3 high volume, low competition keywords. Only pay attention to the global monthly searches column. Type in the keywords that you would use when looking for your product, one keyword/key phrase per line, and choose 3 of the best matches that will land you the most visitors. These are the keywords/phrases that you will be using on your web page and in every bit of marketing material you release on the Internet.

2.  How Many Visitors

The first step of the formula is to figure out your visitor rate. This will not calculate your bounce rate for you, but you will know roughly how many visitors will make it to your page, which will also eventually let you know roughly how many conversions you’ll make. Add the GMS of each keyword together (100,000+300,000+250,000=650,000 global monthly searches). Multiple your sum by .015 (figuring 1.5% of your total searches) = 9,750 global monthly visitors to your page.

3. Conversion Rate

A well known metric is your conversion rate. A typical conversion rate is 1%-2%, so we’ll figure out 1.5% again of your total global monthly visitors, and this number will represent your monthly conversions by number instead of by percent. With this particular outcome, you’ll make about 146 sales.

4. How Much Money Is That?

To give you an idea, if your product sells for as low as $10, that’s $1,460 per month of income from your product before taxes and manufacturing expenses. If your product sells for $50 per piece, that’s $7,310 per month, and $100 per piece is $14,600 per month. Your final outcome depends entirely on the price of your product, not how many conversions you make.

Use this method to figure out the approximate monthly web-value of your product. This is so you can decide whether going through with the product is a good idea, and if so, how good of an idea it is. This can also help you decide on a target monthly price and help you tweak your product if need-be in order to hit it. Good luck!

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