Selection of niche is critical to the success of online business. It's no use building tons of great content, finding appropriate affiliate programs if your market isn't interested to buy from you (or doesn't have the capability to buy from you).
Make sure you follow these tips before you decide your niche market for site:
1) For best results, you must have a personal interest or even a passion for your niche market. It takes time to build an online business. If you aren't passionate about the chosen market you run the risk of losing interest before you finish building your business and in result simply wasting your time.
2) The targeted market must not be too big or you'll get lost in the crowds of people all trying to get customers attention. Big active markets are great if you have a huge marketing budget and lots of public awareness. This market are extremely hard for small business people to break into.
It's not impossible, but you'll do much better initially if you choose a small, sub niche related to one of the big markets and start. For example, cars is a big market, used cars is a sub niche, used car repairs is a better niche to start in with much less competition. Starting small will mean you have a good chance of generating free traffic roughly fast and getting your web business off on a strong foundation.
Ultimately you could expand out into the wider Used car market, but by starting small, you give your web business every opportunity for success because you are focus on a specific topic.
3) The niche you choose must have lots of people who are willing and able to spend money on products and services. Not only that, but it's best that they are spending money on Information products because this is where the highest profit margins are.
It's OK to promote physical products online and many people do very well at this. You can't beat information products for making lots of high margin, hassle free profits.
4) You want your niche market to be filled with people who are extremely passionate about everything to do with their favorite topic. It's much easier to sell products (especially information products) and services to people who are pre-disposed to buying all sorts of stuff to fuel their passion.
If the niche you are considering isn't filled with people who are jumping over each other with excitement, it could be a red flag that makes you think twice before spending the time required to build a business around it.
5) Even if you are going to offering your own products and services, it pays to be involved in a market where there are lots of affiliate programs available. You have opportunities to promote additional products to your list of prospects and buyers.
Not everyone is going to buy what you have for sale, so having affiliate products to fall back on will mean you will never be short of things to offer your growing list of subscribers.