 Hey, what's going on guys? Welcome to a new video. So today then I want to talk about whether a product can actually be too Saturated or not, but before we jump into the video then I just want to mention quickly as always in every single video I am giving away a free one-to-one consultation call with me in this video If you want to enter then all you have to do is simply like the video and leave a comment down below And if you commented on my previous video then just make sure you stay tuned to the end of this one Where the winner will be announced and that being said then let's get straight into it So when it comes to answering them whether our products can actually be too saturated or not You can't really answer the question in one single word and there's a few different pieces of information You need to know as well So as it says here in a document then yes and no, but you have to take it case by case So to fully label something is saturated then you have to understand these four things number one Then is how many new people are coming into the market each and every year because if there's a strong amount of people coming Into the market then there's a strong amount of new potential customers added to that market that when people first come Into a market then obviously they're going to be untapped So potentially new customers number two then is what is your market size and strength because if a market is? hundreds of millions of people then it's going to take a significant amount of Advertising to actually fully cover that market and then therefore actually deem it saturated number three then is how much of the market has been covered So you need to do your research into how many people are actually Advertising within the space that you want to go into because again if nobody is advertising in it or there's not many people Advertising in it then obviously it leaves a gap in the market for you to go into yourself and number four Then how is the product being advertised and this one is actually really important because if there can be hundreds It's not thousands of people advertising in the same space that you want to go into But if they're all advertising the exact same product with the exact same ad then again It leaves a gap in there when it comes to standing out on social media It's about doing things in an original way Different to everybody else and ultimately having that unique selling point So how do we actually go about finding the answers to these questions now before we actually jump into it? There's a couple of points that I want to make a number one Then is just because a lot of people are selling the same product It doesn't necessarily mean the product is saturated going back to the questions if you can do it in a different way Or there's a strong amount of people coming into the market each and every year Then potentially you have new customers right there a good example of this and our company to look at is called blue Create go and check them out all of their best-selling products are kind of like this stereotypical drop-shipping products that everybody has seen before but because they took the time to Create really good ads that involved people and actors And viral ads that caught attention. They did really well So even though there are products the market has seen before because they advertise them better than everybody else They were still able to find success and then number two then however on the flip side of this And what we've just spoken about the more people selling the same products then the more difficult It is going to be to be successful too So to some degree then something can be saturated a good way to think of it as think of Saturation as like a scale you have not to 100 and very rarely if at all is pretty much impossible for something to be 100% saturated, but there's there's a scale so it can be 10% 20% 50 60% And ultimately the more saturated something is then the more work is going to take because you have to invest in a Really good ad you might have to change the product somehow change the design or the color just to make it unique to you And your company so question number one then how many people are coming into the market? So just an example I'm going to use the dog knee shoes That's like a typical example on this channel And it's probably like a typical niche that people tend to consider saturated and according to some research And I simply did a quick Google search. There's approximately Anywhere between one or two million people coming into the market each year and what I mean by that is then actually people who? Adopting dogs each and every year. So how many dogs are adopted each year UK 1.6 million dogs So every single year there's potentially another 1.6 million customers that won't have seen your product before won't have seen your competitors ads So they're untapped and I don't know about you guys But if you could just capture like 10% of them 160,000 customers You're going to be making some pretty decent money another interesting statistic that come across as well as this one now is for the US It's not really relevant to the UK, but each day then in the US 10,000 humans are born But within then if you compare that against puppies then and kittens and that's 70,000 So that represents one human to every 15 dogs Slash 45 cats at the moment like dogs are breeding a lot quicker than actually humans are so In terms of like the market strength then it's a very healthy market and that kind of leads me into point number two in fact Which is what is your market size and strength? so again, we're using a dog niche and Again, just a quick Google search you can find out some pretty interesting numbers Another thing we can look at then is the audience insights tool within your ads manager account So what you want to do is go to your audience insights tool Just make sure you have the country selected that you plan to go into And then you can choose as well with the dog issues pretty handy if you just click this plus mark you've got all these different options and The pets is found within hobbies and activities pets and then you can choose dogs And then this is going to give you kind of like an approximate amount of how many active people there are within your niche Now if you choose interests then so say we were going into cycling and we just put cycling then Obviously the audience is absolutely huge, but that doesn't necessarily mean that many people cycle It just means that many people have shown interest It just means that many people have shown interest and therefore part of that audience So when using audience insights, don't take it as kind of like fact just use it as a rough number The whole point here is to kind of gather information about a market and then use all the information together to kind of come up Like a general consensus or opinion on a specific niche And then something else I found which was quite interesting is that the average owner spends 1200 pound per year on their dog So where did I find this one? So here it was it was dog market size and it was here. So what is the UK pet industry worth? So the average dog owner in the UK spends a pretty penny each year in their pet 1200 pound to be precise now the reason this number is really important is because It gives you scope into how much or how expensive or what kind of products you can sell So if the average owner spends 1200 pound per year, then if I was trying to sell a product that was 600 pounds then In terms of like the market as an average then 600 pounds is a lot of money for somebody to spend on their pet Whereas if I was just trying to get them to spend say 15-20 pound on a color or 30-40 quid on a cool amount of something In the grand scheme of things, it's not a lot of money Which means on average most people would be willing to spend that amount of money if that makes sense Any questions at all on anything in this video by the way, feel free to leave a comment down below Moving on to question number three and four. In fact, I'm just gonna enter this down So it's a bit tardier and they're kind of both encompass the same thing like in terms of how you answer these questions Then you use the same method So question three and four was how much of the market has been covered and how is the product being advertised? So this is the difficult bit because it can be difficult to find ads about a certain niche or a certain product Now it did be quite an easy thing to do You could use something called ad swiper, but Facebook actually shut them down because of like the software and technology They were using and in fact, they shut down the ad espresso version as well So pretty much the only way to go about finding Facebook ads is to use the Facebook ad Library and which is public knowledge anybody can go in there and search for an ad But I tend to find that the results they give you a pretty poor and relevant to drop shippers So the best way in my opinion then is just to simply use the Facebook search Feature so when you search in for particular products on Facebook then a few things to keep in your mind that you Want to be looking at number one is look at how many views the actual video or post has and then you want to kind Of compare the amount of views it has against the market size and the new customers So we know then that the dog niche is Approximately one two million people every single year and then we want to look at the ad copy as well and see if they're all the same So a simple Facebook search I did earlier was LED dog color. I went straight to videos and This is going this is essentially what it showed me in terms of the results now You've got these different filters down the side so we could go just by 2019 if you want But if you want kind of like a broader view of everything then just go by any date because then it's going to give you kind of Like past history as well So just looking at these then keeping in mind the view so 1300 nearly 1226 28 million so that's quite a considerable one that we want to have a look at but 358,000 I mean if I was going through this list of Videos and all of them were like two million four million two million one million 28 million 14 million then I would be concerned but because it's not like that then I would have no problems at all with this product now Obviously, there's other External factors you have to think about like in the UK is that till 10 o'clock? So no one's going to buy this product So you do have to look at other Things I mean that's a completely different topic in fact at the moment We're just focusing on whether it's saturated or not and to me looking at the information and I don't believe it is Another thing I noticed as well as like everybody is selling the exact same product. So if we compare that to that Now I do actually experience selling this product But because I did find it increasingly difficult to sell this exact LED dog color was forced to look at other ones I'm purely because that's the same as that Which is the same as that which is the same as that? That looks slightly different, but it's the same as that. That's a completely different one That's like a silicon one, but it's the same as that That looks like something pretty unique in fact, but they're the same. They're the same Can't really see in those, but they're the same. They're the same So as you can see everybody's selling the same type of LED dog color So if you did want to try and break into this market then Either you have to do it in a completely unique way that grabs a lot of attention on social media Or why would find a different style of LED dog color than no one's seen before now at the end of the day Guys what it boils down to is doing something different to everybody else and pretty much just standing out on social media So if you're selling the same product advertising in the same way, then you're just not going to do that So it's just about being different having that unique selling point So back to the Google documents then and just a few final notes, which are quite important So overall then it's about making a judgment using all the information you find And answers you have to these questions and making an overall judgment about a particular niche But if you're still not sure then there's a couple of things you can do So number one then you can look at the average kind of like cost per action or cpm for your niche And the way you find this information out is simply do a google search There's tons of information out there on the internet Most of the questions you will have you'll be able to find answers to just by doing a google search So found this website here and there's loads of different like infographics and information about Like click-through rates, etc So you can see here that the average cost per click for all these different industries and if you have a look at Where it's a 70p if we scroll down 70p or 70 cents the retail So you look at an average cost per click of 70 cents and you can compare that to other niches So if you want to go into health care versus fitness Then you can it will tell you which ones are more competitive than others Essentially and then finally to finish the video often guys The second thing you can do is simply just test the product So test some ads and then once you get some numbers and some data You can reverse engineer the process to see if you are going to be capable to make some money With that product in that particular niche So just an example then of how you would do that and you can have ad number one Then let's say you spend 20 pound on ads and for that you get 200 visits So if you do the maths then 20 pound divided by 200 visits, then you're looking at 10p per click So you can assume in things Perform on average according to ad number one then going forward you're going to get a 10 percent You're going to get sorry. You're going to get a 10p cost per click Basic average conversion rate then on the industry standard, which is around 3 percent It can be higher than that. It can be lower than that. Obviously how expensive your product is will affect that But again, you may have seen some sales on that. So you may actually have an accurate conversion rate to base these numbers on So therefore then using 3 percent You're going to convert on average six people in every 200 people Now work out your average order value if you're only selling one product and that product's 20 pound Then of course your average order value is going to be 20 pound Therefore every 20 pound spent on ads would return 120 pound in sales Six people times the average order value of 20 pound is 120 pound in sales Then last thing you need to work out then is your cost of goods sold So if you're selling one product and you retail it and sell it at 20 pounds But then it costs you eight pounds delivered to the customer Then your cost of goods sold is eight pound per order So eight pound per order times the six orders is 48 pounds So you're looking at 48 pounds cost of goods sold to fulfill those six orders Your your facebook ad spend was 20 pound your sales was 120 pound and therefore your profit is 52 pound So that's kind of like how you can first engineer it now I'm not saying everything's going to be as specific as this and you can guarantee that going forward because You never know. There's so many different factors. You might find that Certain audiences you can get a lot cheaper cost per click Some audiences might be more expensive But to kind of get like a rough rule of thumb or a rough guide or just a rough idea Basically if whether you're going to make any money in that niche then this is how you could go about doing it And that being said there guys that wraps up the video Um just a couple of notes to take away just because loads of people are selling a product Or because somebody has told you a certain product or niche is saturated Then make sure you do your own research because that's not always going to be the case Bottom line if you can sell a product and stand out in a way that no one else is Then you will always sell that product really well And that being said then if you enjoyed the video Please make sure you do leave a like and if you wanted to be entered into the one to one Raffle to win a call with me then please do make sure you leave a comment down below And that being said then let's get into announcing the winner of the last Here we are then guys on the previous video how to avoid valio dropship in It got a really good sponsor. Thank you very much for the support If you haven't seen the video yet, please do make sure you go and check it out So i'm just going to take the url then copy that head over to the random comment picker Get youtube comments. We had 69 that is definitely a record So thank you very much guys for the support for the channels with absolutely crazy We're going to be at 5000 subs really soon i think And the winner of the previous video then was cameron. So this was very helpful and encouraging things So thanks cameron. I really appreciate your comment. Make sure you reach out on instagram We can get that called arranged and guys if you didn't win this time and you fit up Well, you just haven't been very lucky recently and you just want to get straight down to business and book a call Then you can do so make sure you check out the link in the video description below And that being said guys, thank you very much for watching this video and i see you in the next one