I recently found a string of 7 keywords in a niche where I was able to create a product. Combined exact match search for all 7 keywords is over 100,000.
After 3 months of SEO I'm on page 2-3 for all but 1 keyword which is on page 1.
When I look for keywords I look for the competition and ease of ranking.
I'll even target the low ball keywords that get 300-400 exact searches too for blog posts and articles, because they're EASY to get ranked for. It's often times easier to get ranked for 10-20 small long tail keywords that bring in 5k monthly searches than it is to get ranked for 1 keyword that has 5k searches though.
So to sum it all up... there really is no magic number. Just find something that you think you can get ranked for, and go for it.
After looking at your question again, I should also point out that I don't set up lots of small sniper sites, I focus on building authority sites which also make it easier to get ranked, build a list and dominate lots of keywords.
If you are selling a very high ticket item then 20 searches per month might be worth it. You need to understand which keywords are buying keywords and how many visits to your site can lead to a sale.
The number of searches is only a small part of the picture.
Well you want to find niches that have decent traffic but not too much competition. Also put yourself in the buyers shoes and ask what you would type in the search engine when you are looking to BUY. Big difference between this and when you are just looking for info.
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