What's A Niche?
Niche is a term for a small recess in a wall. A niche in Internet Marketing is a subset of the larger market place. For example, potty training is a niche in the larger parenting market. I like focusing on relatively small niche sites for passive income because they are not as competitive as some of the larger markets.
It Should Be Evergreen
When you're setting up a new passive stream of income, you want to choose a niche that is evergreen. This means that it will be just as relevant six month and three years from now as it is today. Stay away from seasonal items (think Christmas decorations for example) and fads that will quickly come and go (the latest exercise craze, the new hot toy). You can include some "hot" or seasonal items as part of your niche site, but you don't want to make it the focus of the site. The reason behind this is that you want it to bring in money month in and month out.
It's Got To Be Profitable
Speaking of which, the whole point of this exercise is to create extra income so we need to make sure that the niche we are choosing is profitable. Do people spend money on the topic you're talking about? For example, golf accessories are a great profitable niche, while a site on listening to online radio will be a lot harder to monetize.
Since we'll be monetizing these sites with affiliate products, it's also good idea to take a quick look and make sure there are some good products available that you can promote as an affiliate.
Tips For Coming Up With Niche Ideas
Last but not least, let me give you a few ideas on how to come up with profitable niche ideas…
Start With What You Know - Make a list of things that you know something about. These could be hobbies, life experiences and even work related stuff. Sit down and brainstorm a list of all sorts of different skills and interests that you have. Sort through them and weed out anything that's not profitable or evergreen.
Browse Through Books and Magazines - If you need a little extra inspiration, browse through books and magazines. If there are several books and a magazine on a particular topic, it's probably a good niche to get into. You can do your research at your local bookstore or visit Amazon and browse through categories there.
Look at Article Directories - Browse through one (or several) of your favorite article directories and pay attention to categories that have a lot of articles in them. They are usually written by niche website owners like you and if there's quite a bit of activity, chances are great that it's a profitable niche.
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Grab A Niche Pack from http://www.AffiliateNichePacks.com - If you don't want to do all that research yourself, just pick one of my affiliate niche packs. I go out and find niches for you and give you all the research you need to get started right away including keywords, content ideas and affiliate products to promote. Then continue working on your site with http://www.DailyAffiliateTasks.com
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