Here's the concept: The more highly targeted and specific your market is, the greater profit potential it contains.

Many people (especially beginners just starting out) completely miss this fact and just target broad online niches which they think are hot and have the potential to do well. This couldn't be further from the truth.

By targeting these wide markets, you are actually open to a lot more competition from other websites and business owners selling similar products and services. Not only is it extremely difficult to survive and compete for paying customers, but the market you are in would be considered too general, and people visiting your site may not even purchase your products as they are unable to find the more specific and detailed solutions to meet their needs.

Here's an example for clearer illustration purposes. Imagine that Joe, a football enthusiast, starts an online business in the football niche. Instead of focusing on specific and highly targeted online niches in the football market, he just decides to sell general merchandise about football, which includes everything ranging from football jerseys, books on football tricks and tactics, footballer's autographs, and even special limited-edition footballs.

This will end up as a complete failure as the internet is such a big marketplace with millions of competitors. There are websites out there focusing solely on teaching football tricks, while others specialize in football jerseys of a certain football team, and some just home in on selling the different kinds of limited-edition footballs. If he were to start a business in such a general niche as "football", he will definitely have a hard time surviving as he would be facing fierce competition from all the markets mentioned above, which are part of the broad "football" niche. Not only that, because he focuses on such a general market, the solutions and services he provides will not be as specific and in-depth as compared to other sites focusing solely on that certain niche ie. Football tricks for beginners, and thus he will have lesser customers paying for his products.

Therefore, instead of being the shark in the big ocean with millions of other sharks vying with you for food, be the only big fish in that small pond of baby fishes. Even though the population size is smaller to feed on, but at least there is lesser competition and you could easily establish yourself as the market leader in that segment, building your reputation and credibility much faster!

So, if Joe had understood this factual concept, he would have started an online niche specializing in something such as "football tricks teaching beginners how to control the ball when being approached by an opponent''. You see, this online niche is much more specific and more highly targeted. It narrows the interest group down to beginners that are interested to learn how to handle incoming opponents. Not only does it face much less competition than the general football niche, but it also gives him more chances to show off his skills and credibility in that area, thus securing more paying customers as the solutions he provides will be much more specific and detailed, and hence help football beginners solve their problems more easily.

Some may worry about the lack of customers or interest in their products if they were to focus on such a narrowed and targeted market. However, this is just a misconception as the internet is such a big place with tons of people searching for differnet information every single day. Even if you were to start a business in a targeted niche, you will still enjoy a significant volume of traffic to your site and still be able to earn a passive income that allows you to quit your job (with the right strategies of course)! Also, doing proper market research will help you identify whether your targeted niche has sufficient interest and profit potential, and such market research tools and software can easily be found online and used to help you find specific and profitable online niches in minutes, so this problem really isn't somethng to worry about.

In a nutshell, before you think of starting an Internet Business, always remember to find a "Highly Targeted" online niche so that you have less competition to go against and thus more profits to rake in!