There are 3 questions you need to ask yourself while choosing a niche product:

1. Are your customers accessible?
This comes down to niche marketing your product for the right people in the right space.
Demographics, age, income and gender all play an important role in this.  Advertising a feminine product in an all-male gym in sounds crazy in the “brick and mortar” world but is easy to blunder on online if your targeting is not carefully planned out.

Let’s say you have a product that will help farmers grow more crops. You need to somehow figure out a way to communicate this product to them. There’s no point in advertising on billboards in big cities that farmers hardly ever frequent.

Make sure you have a clear niche marketing strategy to easily attract your customers.

2. Does the niche have potential to grow?
Does your niche product have the potential to grow into something  bigger and better or it is a one-time phenomenon? What about business in future? When niche marketing your product, you need to consider the lifespan of the product. Sometimes niche marketing isn’t the best way, especially if your product is a one-time thing. Remember the reason for niche marketing is not to “hit and run” make a samll profit and move on, the objective is to be a first entrant in a space where rapid growth in demand will make your website the authority in that arena.

Niche marketing is great for those products directed at a targeted group with their individual needs as the focus. However, make sure your niche product has the potential to grown into future sales through repeat business or as the niche idea catches on with others.

3. Is the product already established in the market?
The key is to take an already existing product and transform it into something a niche market would use. Or, develop something that does not exist, but should. A little competition never hurt anyone but if a large and well-known company is already selling the same product in the same niche market, it is going to be hard to convince your audience to switch to your product.

As an example, the Swiffer Sweeper combines sweeping and mopping into one easy motion. It is well known and trusted by everyone. Niche marketing this same product under a different name to a specific group of people, say, university students, is not going to help you much. However, changing the Swiffer into a smaller version, one that fits inside a dorm room desk drawer, might just work.

So, before you jump into niche marketing, ask yourself these simple questions to find out if your
product is niche marketing worthy.

Some people might argue that the days of discovering hot niches are long gone – mainly due to market saturation and fierce competition from the wannabe gurus.  What these people don’t realize is that niche marketing will never die, and new niches are born every minute of every hour of every day – you just have to know where to look!

Is it possible to generate massive profits using niche marketing and continuously discover “secret” untapped markets – all without your competition knowing?  Well to answer that question we first have to look at the many benefits of niche marketing and why it is such an effective business model.

To start things off, niche marketing is probably the easiest way to make a buck online within a reasonable amount of time.  The reason being is that niche marketing is less competitive, and often more targeted compared to a major market such as Ringtones or Weight Loss.  Less competition means easier rankings in the search engines.  Why spend three months trying to take the number one spot in a saturated market, when you can start on Friday and be at number one in Google by Monday?

Secondly, to be successful at niche marketing you only need a few solid skills:  effective keyword research and the ability to put together websites within a short amount of time.  Because niche marketing typically relies on organic traffic (natural traffic from the search engines) there are no psycho budgets required or massive pay per click campaigns needed.

Simply do your research, find the niche, put up your website, monetize it and get some links.  From that point you’re only responsibility is to keep the content fresh – and the traffic steady!

Lastly, unless you’re into trends or seasonally influenced markets, niche profits can be fairly reliable over the long run.  The trick to creating a sustainable business from niche marketing is to simply be aware of your surroundings and make sure your portfolio of hot niche sites are spread amongst various markets.  The end result should give you a rock solid Internet based business that is sustainable – as well as lucrative!

In actuality, there really isn’t a secret to discovering hot niches.  With the right resources, an eye online and an eye on the streets, you should have no problem catching every opportunity before it swims downstream.  I shall warn you though, niche marketing is not for the lazy-minded!  You have to remain sharp and focused at all times – because with millions of millions of people connected to the Internet the “I’ll do it tomorrow” attitude will ultimately lead to your failure.