This is a pretty solid indicator.
Go to Google Adwords External Keyword Tool and run some of your main keywords. Make sure to click the show/hide columns drop down and select “Show Estimated Avg. CPC”.
If you see people paying a lot for each click that is a good indicator people are making money in that niche.
Also check down the list to see if there are many words showing a lot of traffic.
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My question is “Would you need to have another figure to utilize with that because of the impact of the Dumb Tax that Google imposes?”
Thanks.
Clarence
the dumb tax is unrelated because this is not done in an adwords account. This is a guide to how much is being spent in a niche. Try debt management, you will see bids in the $8-13 range per click. If people are paying in that range there is money being made in that market. Now try model car and you will see 50-70 cents. There is obviously much less money being made in that niche. This is not the only thing to check to decide if a niche is one to go after but for me it is one that will make or break a niche that is great in all other ways.