Step 2: Selecting Your Niche

The first and possibly most important step is picking the correct niche. A niche is a place or position. In our case, a specialized and profitable corner of the market. The niche you select does not need to be a topic of which you have any specialized knowledge or particular interest. That is not to say your chosen niche can’t be a topic you are interested in or have some knowledge about. Just make sure you don’t let your interests obscure your view of the niche’s profit potential. Remember, the goal here is to make money. If you select a niche that has little or no profit potential you will quickly become discouraged and find you have wasted a lot of time, effort, and money.

Creating a portfolio of profitable niche sites is a great way to establish a recurring passive income stream. A typical niche site may only make $2 per day. That equates to $730 per year. That certainly is not enough to live off of. But what if you had 50 niche sites in your portfolio? Suddenly that skyrockets to $36,500 per year. Now we are talking some serious cash, especially considering the fact that this is “passive income.”

Passive income is an income received on a regular basis, with little effort required to maintain it. Typically, once a niche site has been created and is up and running, very little additional maintenance is required. All the while, the income keeps rolling in. The trick is to find a niche that has profit potential, is not already over saturated, and properly set up your site to make it profitable. The goal of this guide is to walk you through that process with simple examples and explanations that everyone can follow.