How to Tell if a Niche is Too Crowded

by Gregg Hall, 5/29/2007

Many people make the mistake of choosing a highly competitive niche and developing a business idea around it, only to find that the market segment is so inundated and crowded with competitors that it's virtually impossible for a new comer to make any money at all. Many new comers start off by choosing a niche that is far too broad and as a result far too crowded. If you're thinking of building a niche marketing website, a quick check using any online keyword research tool will tell you if this is the case.

Even if you get there first and discover a unique tight niche and create products and services to offer your customers, the existing internet marketers will notice you have discovered a profitable market segment, and you will soon find yourself having to compete with them. In no time at all when someone searches for a keyword similar to yours, they'll be amazed to find that there are so many other websites serving the same customers.

Before you start building a niche website, doing a little keyword research using an online keyword utility will return the number of web pages with a similar theme and which contain roughly the same content, this number being an indication of the competition you are facing. Bear in mind that even if the niche is narrow and tightly focused, it will start to become crowded even if only two or three new businesses start working on the same niche.

Unfortunately the plain truth is if you dominate a profitable niche market you will not be able to keep it a secret for long. No niche can be kept in absolute secrecy forever: there are too many smart people out there on the internet who all want to get their hands on a slice of the pie.

To keep your niche market profitable you need a constant stream of ready to buy customers, and one way to do this is to capitalize on search engine traffic. Use a good quality keyword research utility to uncover all the different words and phrases people use when searching for information on the internet. Next you create web pages which are optimized for these terms (known as keywords).

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Internet Marketing Strategy: The Write Way To Get Web Site Traffic

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