For a product to be successful, market research is very important.
On the internet, market research mainly revolves around keyword and niche
researches.
This subject of keyword research actually needs an entire book devoted to it. So,
I will not dwell too much into it.
Basically for keyword research, we will need to find highly searched keywords
that do not have too much competing sites. The products that one is creating
should cater to these areas. In short, look for something with high demand, but
low competition.
Products that have too many competing sites are very hard to sell as the
competition is too great. It is very hard for your site to rank high on the search
engines. Without a good ranking, your site will not be easily found by potential
customers.
On the other hand, a product that has no one searching for will also be
unprofitable, even when there are very few competing sites.
For keyword research, some of the free tools available are:
Wordtracker free keyword suggestion tool
SEO Book keyword suggestion tool
Basically, these tools provide figures on the estimated number of searches for
related keywords.
To check for the potential profitability of the keyword/niche, you can compare the
number of searches for the keyword to the number of competing sites.
High keyword searches and low competitions denote good chance of profitability.
Basically, you use the search engines to gather information on number of
competing sites and page rank.

Andy said on Monday, September 1, 2008, 18:25
I love MarketSamurai for this type of research. It’s a new tool, but amazing.