If you haven't heard word 'niche' being batted around by Internet Marketers then you haven't been listening. Finding a niche has become antidote to competing in overly saturated online markets.
What is a niche?
According to Merriam-Webster's Online Dictionary a niche is described as "a place, employment, status, or activity for which a person or thing is best fitted... a specialized market".
Have you noticed that despite closing of many businesses in these harsh economic times, local hobby train store is still around? That 'hole-in-the-wall' eatery is thriving? Or that trends such as scrapbooking can start with a bang and still close within a year when four similar businesses start up in same area?
The online business world reflects same trends as experienced in offline world - often with faster turnover and startup rates. Those who promote a product or site that targets a small, select audience can tap into a market that is otherwise not being served. Despite limitations of client base, targeted nature of business creates a devoted and active market - aim of any business.
HOW DO I FIND A NICHE?
Finding a niche requires diligent research. Whether you have access to software that harvests and sorts information or you take a manual approach you must first start with ideas.
With a pen and paper (or computer, if that's more comfortable) brainstorm a list of businesses, products and industries. Create a list of keywords and phrases you think would be used by individuals looking for these items online.