It's always good to be able to target smaller niches.
The focus is a lot more specific, and you can easily write articles to attract targeted readers based on your primary focus.
Here are 3 simple steps to identifying a profitable niche (many people miss the last step).
Step 1: Start reading news, magazines and trade journals.
This step is important because it allows you to get a good sense of the level of activity in a market.
Pay more attention to the advertisements when browsing magazines.
What products are being promoted? How much do they cost? Are you going to sell similar products? All these questions will help you shape your web business.
Step 2: Use a special niche finding software.
You want to ascertain that there are enough keywords with high traffic volume you can target.
The traditional way is to use a free keyword tool to conduct research and find out if there are many popular keywords available.
If you have a little cash to spare, you can accelerate the research process by investing in a niche finding software.
Such software can assess the traffic volume as well as the level of competition in the search engines.
It gives you good idea of how competitive the market is.
Step 3: Assess the competition.
Finally, before launching your business, make sure that you assess the competition.
Too often, new marketers try to target niches with little or no competition.
This is a mistake because competition on the Internet is an indication on how big or profitable the niche is.
With zero competition, you are taking a huge risk as the niche is more likely to be unprofitable.