Niche marketing occurs when you focus on a targeted portion of the Internet market. Niche markets provide a product or service for a defined group of customers who have very specific needs. Niche marketers address the need and market accordingly.

For example, many people sell clocks. But, how many of them sell clocks that are shaped like animals? Selling animal-shaped clocks is niche marketing. (Of course, clocks are only one example. Once, you get thinking about the kind of products and services you want to offer, you will realize that the possibilities for niche marketers are virtually endless.)

One of the biggest mistakes that new Internet entrepreneurs make is ignoring the concept of niche marketing and focusing on big markets that appear to be big moneymakers. The problem with this tendency is the level of competition that is often encountered. Those who are already in the market are experts at what they do. It is almost impossible to compete with them when you are still learning the ropes of running an online business.

With niche markets, you can significantly increase your chances of success. Because there is less competition, people will actually be able to find your website, and in turn, buy your product. Niche marketing can also help you get traffic in other ways. For example, when using pay per click (PPC) campaigns, niche marketers will be using keywords that have less competition, providing consumers with more opportunities to click on the niche marketer