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When evaluating whether to build a Niche site around a keyword phrase one suggestion is to simply use the following “rule”

Local Exact Match Searches per month in Google(LEMS) >10,000

CPC > $1

So a potential income of LEMS * CPC = 10,000 * $1 = $10,000 per month

However this calculation is flawed in a number of ways, it doesn’t take into account the following factors:

Firstly the CTR (click through rate) changes for each Serps position (Serps CTR) spencer has suggested a figure of 20% if you believe you can achieve somewhere in the top 5 positions guide of the amount of traffic available (42% if your confident of 1^st place). S0 rather than 10,000 searches we need to calculate the Clicks were likely to see through to our page which is 20% or 2,000 clicks per month

We also must take into account, that not everybody that clicks on you serps listing will then click on your AdSense Ad ‘s, so there is another CTR (AdSense CTR) to content with. Typically I achieve around 10% so I use that figure

So our clicks on ads becomes 10% of 2000 or 200 per month a small fraction of the original “exact match searches”

Secondly the CPC value is an estimate, in reality the actual CPC (cost per click,) paid by the advertisers will vary and also as an AdSense publisher we receive only 68% of the amount paid to Google (AdSense factor).

So now we arrive at

= ((LEMS * Serps CTR)*AdSense CTR) * (CPC *AdSense factor)

= ((10,000 * 20%) * 10% ) * ($1 * 0.68)

= 200 * 0.68

= $136

The new calculation now yields a more realistic potential income from the keyword and one that more fully reflects the reality of CTR and CPC for a given keyword.

By building this formula into a spread sheet it is then a very quick process to evaluate the potential income of the main keyword of a niche site.

However, most niche websites have a lot of traffic coming to the site through additional long tail keywords. In order to evaluate the potential income of these keywords, we can simply repeat the process above, varying just the LEMS and Serps CTR.

To do this by researching the main and long tail keywords using Google Adwords tool and extract the data to a spread sheet and apply the formula against each keyword.

Now were able to rapidly evaluate the maximum potential revenue for this niche. Care must be taken though as the formula only applies when you are confident of reaching a top 5 serps for each keyword phrase you enter.

So far the site is 3 main information pages and the start of two product pages. The design is such that the home page links to manufacturers pages (omron for example) which then feeds links to the individual product pages.

This allows us to develop each section seperately targetting the highest search volume product initally leading to a full range if applicable.

The design is also influenced by the Link Building strategy we plan to use which will rely on keyword research using Market Samuri, both long and short tail keywords. Links to the main pages will be created manually from related niche blogs and high PR sites. SENukex will be used then to create more links to the pages but also to individual high value product pages.

Heres a quick video of progress so far, bear in mind the odmain is new and only 5 links have be built so far (1 is showing as active)

1st Week Ranking Video
Pedometersstore.com – End of week 1 – 9th July 2011

Sends every 404 page not found error directly to start page (or any other page/site) to overcome problems with search engines

AddThis

Help your visitor promote your site! The AddThis Social Bookmarking Widget allows any visitor to bookmark your site easily with many popular services.

Akismet

It keeps your site protected from spam even while you sleep. A must have this site has many spammers hitting each day the plugin put them in spam folder making it easy to manage.

All in One SEO Pack

SEO for your WordPress blog.

Easy Privacy

Automatically adds a privacy policy page that includes an Adsense compliancy section. Configure it at Settings → Easy Privacy.

Google Analyticator

Adds the necessary JavaScript code to enable Google’s Analytics.

Google XML Sitemaps

This plugin will generate a special XML sitemap which will help search engines like Google, Yahoo, Bing and Ask.com to better index your blog.

SEO Friendly Images

Automatically adds alt and title attributes to all your images. Improves traffic from search results and makes them W3C/xHTML valid as well.

SEO Slugs

Removes common words like ‘a’, ‘the’, ‘in’ from post slugs to improve SEO.

WP Smush.it

Reduce image file sizes and improve performance using the Smush.it API within WordPress.

Paid Plugin for which im an Affiliate

EasyAzon

Quickly and easily insert Amazon affiliate links into your blog as either text or image links or as info boxes with a variety of information from Amazon.
can live with out this one. See pedometersstore.com (part of VBL community niche challenge) to see it in action.

The most important thing for me is can add amazon affiliate ID’s for each country. If a none .com customer visist you niche site and goes to tehre local amazon site you will not recieve commision without this feature..

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Originally of course it was the factor. However, it was simply too easy to scam PR as an indicator for ranking a site, Google have continued to evolve the algo to make it more and more sophisticated. With over 200 factors now present the importance of PR has clearly declined. Indeed PR of competitors sites below a PR of 5 seem no obstacle to top ranking your own site.

You can read the whole blog written by Susan Moskwa on the Google Blog at Beyond PageRank