Quite a few people tell me that they want to make X number of dollars per day with their home business. When I ask them how they intend to do that, they can’t give me an answer other than that’s what they want to earn. Well, dreaming is nice, but income goals have to be based on some kind of reality. In this article, I’m going to give you one way of coming up with that reality. You may not like the answers you get here, but at least you’ll know what you’re up against.

First step is to actually decide on a niche that you want to get into such as health, debt, entertainment or whatever. Focus as tightly as you can on one specific thing in that niche like acne, warts, moles or some specific problem in the niche. You don’t want to spread yourself too thin here because that’s going to make it harder to get a foot hold in the market. Pick one thing and go after it.

Next step is to find out roughly how many people are looking for solutions to that problem each month. You do this by going to the Google keyword tool and looking up all relevant keywords to that niche. Let’s for argument sake say that you find a niche that has 100,000 monthly searches for all relevant “buying” keywords. What I mean by “buying” keywords are keywords that give a good indication that the person typing them is has money to spend and is willing to spend it.

After that, you want to size up the competition by going to the Google search engine. You want to at least make it into the top 10 sites in order to have a fair chance of getting a portion of those 100,000 monthly searches. You’re not going to get them all or even a majority of them UNLESS you can get a top position. Let’s for argument sake say that you think you can crack the top 10 and get about 10% of those monthly searches. That’s 10,000 hits a month to your web site.

Finally, you want to look at the product you’re selling. How much will you get paid for each sale? Let’s assume that it’s $25 per sale and the product converts at a modest 2%. That means that on your 10,000 monthly hits, you’re going to sell 200 of these. That’s pretty much what I did with my first ebook back in 2006. At $25 per sale, that’s $5,000 a month income.

Now, if your goal was to make five figures a month, well, you’re not going to do it with this niche alone or with this product. You have two choices. You can add another niche to the mix OR you can sell a product for twice as much money, assuming the same conversion. Point is, you can’t get $10 worth of ham out of a five pound bag.

There you have it. A simple way to figure out if your income goal is based on reality.

Try it. You might find out that it works pretty well.

To YOUR Success,

Steven Wagenheim

Looking for a solid 4 step plan to building your own business…FREE? Pick up my free report at http://www.stevewagenheim.com/4steps.html and get started TODAY!