The biggest mistake many people make when starting online business is they will create a products that usually based on something they just enjoyed doing. They spend months creating this product before starting to make money selling it… This is the pitfall where many people run into major problems when they begin to do online business. They end up spinning their wheels and finally realize that nobody wants to buy their latest and greatest product that they have spent months of their life creating.

Not only can this be extremely frustrating, but it also ends up completely wasting time and money.

What people should do is finding the “market" first and then creating the product based on what the market wants. That is so much easier than creating the product and then finding the market, which might not exist in the first place.

In this article, I will give you the easy way to find profitable markets. Once you find these markets you could create Adsense websites based on the topics OR you could create entire products around the topic... OR better yet, you could do both!

We will start off by doing Keyword Research. We need to find out profitable keywords so that we can use them to determine our own profitable markets.

Finding profitable keywords is not a difficult task to do. Anyone can use online tools to find valuable and profitable keywords with a few minutes of work, Quick and Easy. You just have to know how to find the answers to these three questions:

1. How many SEARCHES are made each month for your keywords? (DEMAND)

You need to find out how many SEARCHES are made each month for your keyword or keyword phrase.

The more number of searches, the more potential to receive traffic, which means more people come in to your business to either looking for and/or purchase. Thus you can make money.

If your keyword has high number of searches, it will likely be profitable because it is something people are searching for. So you will have more possibility to make money with a high demand keyword. Keep in mind, even a keyword with low number of searches (just 10 to 100 searches each month) may be profitable if you use it to adding into the right market place. However, a keyword which has no any searches is definitely useless to take it of your own. To discover the number of keyword searches, you can use this site like Overture (Yahoo Marketing) or WordTracker for your keyword researching tool. It gives you the number of searches received each month for each keyword you typed in. To quickly find out how many searches made each month for your keyword, go to http://www.inventory.overture.com/d/searchinventory/suggestion/

This is one of popular free keyword suggestion tool you can use to find the number of searches for the keyword or keyword phrase you are looking for.

2. How much COMPETITION do your keywords have? (SUPPLY)

Here is another important task for you to find out how much COMPETITION your keywords have before you begin to market your chosen products or services. You will hardly get traffics from the keywords with high level of competition. Thus, keep in mind that the most popular keywords will also have much competition, and you won’t to get traffic from them unless you use a PPC (Pay Per Click) advertising system like Google Adwords or Yahoo Marketing.

However, you may begin getting traffics from those high competitive keywords after spending months or even years of content building. The best way is to choose the keywords with little or no competition.

One of the best sites you can find out how much competition of your keywords is Google. Google will give you the number of pages related to the keyword you type in to searching. In order to get more accurate number of pages of your keyword phrase, you should type your keyword phrase within quotation marks such as “special valentine gifts". And Google will show you the search results featuring your exact keyword phrase you typed in. So you can determine how much competition your keywords have from Google search results.

3. How to KNOW if your keyword is really PROFITABLE?

If people are making money from promoting and optimizing your chosen keywords or keyword phrases, it will be noticed that those keywords are profitable. Make sense?

You can choose your keywords and type it into Google, Yahoo and MSN. And just count the number of Sponsored Links at the top and the right side of the page. If the keyword phrase you typed in is profitable, you will see a lot of sponsored links where there are sites or businesses are advertising, which means there is profit people are making.

In conclusion, if you are starting your business, the very first thing you have to do is finding out your profitable niches or markets by just following these three simple steps above. Once you have found your niche or market you think it would be profitable, you can then select the products related to your niches or markets you chose to promote. Finally I believe your online business will be successful if you put them into your effort.