Summary
- When evaluating a niche, look at the average monthly profit. A good example is $244,000, as high profits indicate a potentially lucrative niche.
- Use the Earnings Per Millie (EPMM), which is earnings per 1,000 page views, to gauge profitability. Calculate it by dividing the monthly profit by monthly page views and then by 12 months.
- For example, with an EPMM of $84, you are looking at a very profitable niche because industry surveys show that an EPMM of $17 to $32 is satisfactory.
- Remember, a higher EPMM means a more profitable niche.
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I would suggest implementing these easy, cost-effective strategies right away. They can help you understand your business niche better and improve your overall profitability without spending much money or time.
Evaluate Average Monthly Profit: Look at the average monthly profits in your niche. For example, a monthly profit of $244,000 signals a highly lucrative niche. Identify similar benchmarks in your specific industry to gauge where you stand.
Calculate EPMM (Earnings Per Millie): This is a simple yet powerful metric. It helps you understand how much you earn for every 1,000 page views. Here’s how you can do it:
- Find your total monthly profit.
- Find your average monthly page views.
- Divide your monthly profit by the monthly page views.
- Finally, divide the result by 12 to get your EPMM.
For instance, if your EPMM turns out to be $84, you are in a very profitable area since industry benchmarks range from $17 to $32. This means you’re doing significantly better!
Use Industry Benchmarks: Compare your EPMM with industry standards. A higher EPMM means more profitability. Aim to reach or surpass these benchmarks. If you're already above them, that’s a great indicator of your niche’s success.
These strategies can significantly improve how you evaluate the profitability of your business niche. They're easy and quick to implement but offer high value. Start today by calculating your EPMM and comparing it against industry standards. This will give you a clear picture of your business's financial health and guide your next steps. Keeping track of these numbers will help you make smarter business decisions without any extra cost.
Full Transcript
from this simple number you can figure out how lucrative and how challenging a niche is when you open up the listing this number right here average monthly profit $244,000 is what you're looking for the first metric you want to calculate is the epmp or earnings per Millie 1,000 page views and you can get the average monthly page views from Flippa right here make sure to divide by 12 months so epmp equals earnings per th page views ends up equaling $84 oh my God is that good yes there's been industry surveys that have shown that an epmp of $17 to $32 is satisfactory thanks for watching and remember to subscribe for more videos just like this one
