When I am considering a new site, I first determine if I can get each page in the top 3 results - and exactly what that would take.
I’ve been told that the top 3 results on the major search engines share 50% of the click-through’s on any given search. I’m not sure how accurate that is, or where I first heard that tidbit now… and I’m not sure if that would be even thirds, or if the #1 result would get 50% and the other 2 results 25% each (of the 50% of all click-through’s)….
This is a “guesstimate” at best
… but so far has worked out well for me.
If I feel I can get in the top 3, I will take the monthly # of searches (multipled by 30 if daily results from WordTracker), and divide it by 2. Then take 30% of that number… and multiply it by a .5 or 1% conversion rate. (Low, of course, but better results are always expected
).
For example, let’s say that keyword x gets 400 searches a day, according to WordTracker. Approximately 12,000 searches per month. Divided by two, it’s 6,000 - and about a third of that is 2,000. That’s assuming every search results in a click - and that a #2 or #3 spot would get around 2,000 click through’s a month out of 12,000 searches.
A 1% conversion rate would equal 20 sales. If your commission/profit for the product sold on that page were $30, you could anticipate approximately $600/month in revenue.
Not accurate, but a good general guage. This would, of course, have to be done for each page of your site, and the total of all pages would be your ‘guesstimated’ potential monthly income from the site as a whole.
If you have a different method, or other factors that should be considered in the equation, feel free to leave your thoughts in the Reply box below!

Tags: affiliate sites, niche sites, profit potential, market research



4 responses so far ↓
Bonnie // Oct 4, 2006 at 10:09 am
Interesting, Lynn! But how do you determine whether you’d be able to get your new site in the top 3? Do you analyze the current top 3 sites and say, “What a bunch of crappy sites! I can do better than that!” (But in a much more scientific way, of course!
Lynn Terry // Oct 4, 2006 at 5:31 pm
I do analyze the top 3-5 search results for each of the keyword phrases, yes - LOL. I look at how many inbound links those pages have, at the “on the page optimization” of those pages, at the website as a whole… and then if it seems a bit competitive I will analyze their inbound links a little closer to get an idea of their ‘Link Reputation’.
Wes // Nov 28, 2007 at 6:30 pm
Lynn,
When checking the amount of inbound links. Do you count the sites that are ranking high for overall categories as oppose to site that specialize in your keyword. For example Sear.com may rank high for lawn mowers because they have inbound link coming from everywhere. Do I have a chance of out ranking Sears with my site which focus on Mclane Reel Mowers?
Lynn Terry // Nov 29, 2007 at 7:56 am
Hi Wes,
The thing is - search engines rank pages, not sites. So you have to do a quick check on individual keyword phrases and the results for each.
For example, with the keyword phrase you mentioned, the top 4 results in Google are “authority sites” in that niche. The #5 result has just over 100 inbound links from other domains.
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