Think of niche marketing as the opposite of mass marketing. Mass marketing attempts to reach the masses. The target audience is huge and unspecified, basically, the general population. But niche marketing offers a specialized or focused product and/or service to a very specific target market.

An online niche is a web site that focuses on one area or particular item and performs very well within that specialty. It provides what the larger sites can't or won't. It fills a need or want for a segment of a larger market in a tightly focused and highly specialized way. Because it is online, it can provide timely, updated information or offer a product or service not available locally.

Niche sites are not as obvious as general sites online. Unless you're in the field and looking for that kind of information, product, or service, you don't know they're there. i think of niche markets as being tucked away into a niche in cyberspace. When you step into the niche, a whole universe that revolves around that topic opens up. The beauty of niche marketing is, while you can't compete with the giant sites on their level, they can't compete with a good niche site on any level!

So take a niche that you knowsomething about. research its profitablity. Find out if there are enough people on the Web interested in that niche. Find out what they want and whether they spend money in that niche. Perform a competitive analysis. If all systems are go, then create a site around that niche, offering irresistible products that appeal to your niche client base.