Building an Internet business based on a specific niche is not only good sound business it's smart.

What is a niche?

Boiled down, a niche is a specific area of interest people have. An example of a niche would be remote control cars.

People go crazy for them. They have complete web sites with:

1. Articles

2. Email newsletters

3. Forums

4. Part suppliers

5. Companies who sell popular remote control cars

I could go on and on, point is, this is a niche market that is both popular and offers a variety of ways to earn income.

Three Steps to Internet Income

1. Find a niche people are interested in.

This part is where research will pay off. Visit Google.com, type in a key phrase, for example, "remote control cars" remembering to add quotes too.

Look to right hand side at Adwords section.

How many ads do you see?

If you see 5-8 this will show you people are spending money to advertise within this niche. This is first clue this niche is popular.

what type of busisness is best for me?

Well I can't answer this for you but I can certainly give you a few pointers in right direction and my personal opinion. So here they are:

1. No emplyees. There is no need to employ people to do work for you.

2. Low costs. Most affiliate programs are free to join, you don't have to buy product to sell it. Some programs have a upgrade option to make which makes your earninig capacity somewhat larger.

3. No storage. The merchant is responsible for storage of product so you don't need to worry about space or storage costs

4. No shipping and handling. The merchant is also responsible for product arrival, so there's also another cost you don't need to worry about and running around you won't have to do.