Building a niche website online is one of the quickest and easiest ways to make money online.  There are in fact thousands of people who are making money using niche websites right now and many of them do not even put in consistent effort when it comes to their niche websites.  This is what is referred to as passive income, which is income that is generated on essentially a "sit and forget" basis.  While, this method is in fact one of the easiest in the online world, it is by no means "easy" to do and takes lots of hard work and dedication.  

Identifying Keywords

When setting up a niche website the first thing that you need to do is find a keyword with high search volume and low search rank competition.  This basically ensures that people will find your website when they search for whatever they are looking for.  Generally, you will want to go to Google Adwords and look for a keyword or keyword string that has search queries totaling over 1,000 searches per month.  This is to ensure that there is adequate traffic that will arrive at your website from Google search.  The next thing you want to do in this process is to search the keyword or string on Google and look at the competition in the search engine.  Generally speaking you want to have such a small amount of competition that your website can easily appear on the front page of the search results.  This step is absolutely vital as over 95% of Google traffic will never go beyond the first page of search results.  Here you must put your ego aside on what you think is the best for your website and learn to think like Google.  This step in the process might be a little tricky at first, but below is a video explaining the process in more depth. 

Setting Up the Niche Website

Now that you have successfully identified your niche the next step is to set up the website that will cater to your niche.  The simplest and most effective way to do this is to set up a cheaply hosted website that runs a Wordpress blog.  Wordpress blogs are easy to set up and require no coding knowledge whatsoever to operate.  And the best part is it's free!  Simply setting up the blog is not enough however, because you must generate quality content that targets your niche and related keywords.  You can either write this content yourself by researching the topics and writing articles, or you can use a freelancing website such as Odesk or Fiverr and purchase articles from professionals for as little as $5 per article.  For this step it is important that you know the related keywords to your niche and not just the keyword(s) you are targeting with the website.  You will probably want your niche website to rank across multiple related keywords so it is important to heavily incorporate these keywords into your content.

Driving Targeted Traffic

The last and final step of targeting your niche market online is far and away the most important step, and that is to drive traffic to your website.  Having a great website is pointless if no one visits it.  Getting ranked high in Google is one of the best sources of traffic, but there are ways to drive even more traffic while increasing your rank in Google.  This method is called building backlinks.  There are two main ways that Google decides how to rank a website in its search engine.  One is the targeted content from the website and the other is hyperlinks from around the web that link back to that website, these links are referred to as backlinks.  Backlinks from just any website are not enough because Google ranks backlinks based on the trustworthiness of the website that hosts the link.  Social Media websites have high amounts of authority within Google's search algorithm and thus allow you to kill two birds with one stone.  If you set up social media accounts on websites such as Twitter, Facebook and Pinterest and follow users who are following similar accounts in your niche then some of these users will follow you back in return.  Now all you have to do is post content from your website or other compelling content that you find and let your followers do all the work.  When your followers share your content they create a backlink for you as well as potentially visit your website through your social media account and thus driving traffic as well as increasing your rank within Google.

These strategies listed above are just a few ways that you can create your own profitable niche website.  These steps are merely suggestions that have worked for previous niche website builders and there is no guarantee that it will work for every niche website.  The most important steps that are not listed above are perseverance, dedication, and experimenting with what works for you.  So what are you waiting for?  Go out and build your very own niche website today!