All the experts say "find a good niche market" to make money in... That is great advice but what constitutes a "hot" or "good" niche market? How do you know that the market you're thinking of going into is a good market?

Test #1:

The first thing you have to do is make sure at least a few other advertisers are making money in the market. If you see people buying ad's on the search engines, then you know there is some money in that market.

Test #2:

The second thing you have to do is make sure at least a few competitors are selling information based products. The reason for this is - you don't want to have to educate your market on how to buy from you. You want to sell them what they are already buying - just do a better job of selling it to them.

Test #3:

Is there a lot of free information given away in this market? A good example is the tattoo market. It is a great market in terms of people searching for tattoo information - BUT it is a bad market in terms of people buying. Why would I buy information about tattoo patterns when I can just get it for free from one of the fifty sites offering it right in front of me?

Whenever you get a "great market idea", be sure to put it through the three tests that are mentioned above so you can make darn sure you got a hot market verses a market with a bunch of tire kickers in it.