This is the first thing you need to consider before even building and marketing your website. You need to research the market you are targeting for your particular industry extremely well.
So you should choose your website theme and research the different keywords that are relevant to your business thoughtfully. About 2-3 keywords should be ok to get started. But before choosing those keywords, you must know if there is a demand for them ie if people are actually searching the internet for them. This is very important. It's of no use targeting keywords that no one is searching for or keywords that have very few searches. Hence you should look for keywords which are high in demand but don't have much competition. Hence, you will targeting a very specific niche market.
A simple example can be selling candles, flowers, gardening tools or vehicle accessories.
If you have such a business offline, you can market it via Google quite easily. Still though, you will have competition but it will be more easier to get a top search engine ranking on Google targeting keywords related to these industries rather than too popular keywords related to marketing and promotion.
Nevertheless, if you are promoting your own internet marketing information products or affiliate products, you can choose such popular terms and achieve that top ranking with time. So everything is possible.
My favorite keyword research tools at the moment are Google's own keyword tool and Market Samurai. Google simply give you their list of keywords related to your target keyword, together with the approximate number of searches each term receives each month.
Market Samurai works with the same data (they pull the search data from Google), but it also checks the competition for each keyword, so you can get a rough idea of how easy or hard it will be to reach the top of the search engine for each particular keyword.
I know Wordtracker is a well known keyword tool, but personally I don't like it - plus it's quite expensive (they charge a monthly subscription) whereas Google is free and Market Samurai is a one off purchase.
I find that keywords with between 100 and 1000 searches per day (or 3000 and 30,000 searches per month) are generally the easiest to rank well for relatively quickly. The higher searched terms are usually a lot more competitive and will require a lot more link building work to reach the first page of google.
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