Dr. Ralph Wilson of Web Marketing Today published an article on how to select a niche that has enough demand to generate adequate revenue, but not so much competition that advertising costs are excessively high.
In the article, How to Fail at Online Business – Neglect Niche Marketing, he explains why franchise businesses and MLM schemes fail on the Internet due to (1) competition and (2) fewer geographical market limitations.
According to Dr. Wilson, the answer is in researching and clearly defining a market niche with sufficient demand but without overwhelming competition. Nichification is the key.
Read the article on the Web Marketing Today website: How to Fail at Online Business – Neglect Niche Marketing