First of all; what is a niche (or niche market)?
A business that focuses on a niche is addressing a need for a product or service that is not being addressed by mainstream providers. You can think of a niche market as a narrowly defined group of potential customers that have specific needs.
Instead of offering sports clothing, for example, a business might establish a niche market by specializing in sports shoes.
Before you even begin building your first site, you’ll need to decide which market you’re going to target.
Obviously, if you don't know what your site is about or who you're going to target with it, you can't really build a site around it...can you?
If you’ve already figured this one out, way to go! This is undoubtedly one of the most difficult and overwhelming steps.
If you don't quite know what yours is yet, here are some key questions to ask yourself when determining your niche :
What topics am I already passionate about?
It's much easier to work on something if you're passionate about it. Plus, when you have a passion, you're usually quite knowledgeable about it too, so that definitely helps.
Is there money in this niche?
While following your passion is definitely the recommended option, sometimes the possibility of making money in a profitable niche trumps passion.
What topic could I see myself easily writing 25, 50, or 100 blog posts about?
The topic you choose must have enough depth that you can create a lot of content for it. This is important for building an authoritative site, for search engine optimization, and most importantly, for the end user.
Is there enough interest in/demand for products?
The niche you choose might draw enough interest from your audience when it comes to reading and acquiring knowledge, but are they willing to buy relevant products too? Without consumer interest in products it isn't going to make you much money.
Are there affiliate programs available?
This is obviously a crucial factor to consider. You might come up with an idea for a niche you know a lot about, but are there affiliate programs for? No affiliate program = no sales.