The biggest secret of niche marketing is in understanding what constitutes a profitable niche. Once you're able to differentiate between solid niches that will return decent profits and other niches that will simply serve as a time suck and waste all effort and energy with no gain you will begin to truly be able to profit from Internet marketing.

How hard are niche markets to find?

Anyone who tells you that making money on the Internet is incredibly simple, incredibly easy, and that money will come pouring out with little effort is telling you a lie. That is not to say that this not potential for huge profit on the Internet. There is. The issue is that to make a profit online will require effort, work and learning the ins and outs of niche marketing. This will never happen overnight. This will never be easy. Once you have struggled through the learning curve the potential profit is there.

What can you expect from a good niche market?

Although riches beyond your wildest dreams are not in the cards with little effort, there is a distinct possibility to make a good living with some work and some learning. Once someone has exploited if you niche markets a solid stream of passive income will develop. The work involved is not hard but work must be done. Mistakes happen and do not matter niche markets. Almost all mistakes can be corrected at a later date. There is only one thing that is very hard to fix a later date. That thing is finding the initial niche market itself.

There are three things that you absolutely must understand to find a good niche market: Competition, Profitability, traffic.

Competition in a good niche market.

It is an absolute fact that in an overly competitive niche market you will waste far too much time energy and perhaps even a lot of your own money trying to rank only to fail miserably. Most decent markets will have some competition. That cannot be avoided. But it is essential, that you understand your level of competition and be prepared to face it. Often too much competition is a result of not narrowing your focus sufficiently to eliminate broad keyword competition.

Profitability of a good niche market.

The idea profitability is simple. Does it sell? It could be possible to rank admission page on your favorite TV show. But is such a thing really profitable? It could be that there is profit. But you need to know that there are things to sell and that their people by before you enter into a niche.

The essential need of traffic for good niche market.

Traffic is the lifeblood of the niche. Without traffic a niche will wither and die. The more traffic you have the better things will sell. This does not mean that you need 10,000 people to visit your site daily to make a profit. But it helps. Traffic and competition are always going to be at odds. The more traffic a niche has the more likely it is to have more competition.

Ask any businessman who has had a failed small business why it happened. There is a good chance he will simply say, "Not enough customers". This is just as true and is the secret behind niche marketing. The competition may be too big and not allowing anyone to find out about your site (competition). The people may be there, but no one wants to buy anything (profitability) and of course, there could possibly not be enough traffic inherent to the niche itself to drive enough traffic to make it worthwhile. Ultimately the only way to tell for sure is to go out there, do your market research and find out what works and what does not work for niche markets.