Follow your passion:
The first step in building an Internet business is niche selection. Everywhere you look online you will find those that tell you all kinds of ways to crunch the numbers and do pie charts to determine if that niche is right for you. I would like to take a different stance and tell you to follow your passion. Of course we will assume here that your passion is a topic that gets a reasonable amount of traffic. And yes, you will need to look at the numbers but, if you are passionate about your topic your passion will shine through. If you have a passion for guitar playing then people will get that in your content and from you articles and your sales letters and they will be drawn to you and your business.
What if your passion is in a competitive niche? Then I say go for it! Being in a competitive niche can be a good thing. This will make much of your research easier to do because you will already be able to see what is selling and what kinds of problems are common in your niche. Yes, you will have to be prepared to compete but that will also be easier for you since you will already have a big selection of proven solutions to offer you prospects and customers in the form of affiliate products.
Build a list:
The truth is, you might be able to swoop in and make some quick cash and there is nothing wrong with that. But to build a profitable long term business you will need to build a list in your niche. This gives you the opportunity to build a relationship with your prospects by providing them value. That in turn will build trust and make you the authority in your niche. By building a list you will build an ever growing pool of potential customers that you can market to and offer new solutions for their problems. Look at it this way, if you go to lunch at the local cafe and you get good food and service, you will probably go back time and time again. That cafe has built their business on repeat customers just like any long term business does. Why would you build your Internet business any differently?
Serve your market:
People don't want to be sold to, they want to be helped with a problem that they have. It's a mind set that will have a dramatic impact on the success of your business from the beginning. If you have the mind set that you are going to serve your market this will show through in everything you do in your business and they will come. Your attitude of serving your prospects and meeting their needs combined with a passion for your topic will have a magnetic effect on your business. With this attitude your list will grow and your products will sell and your bank account will grow. Why, because your prospect can tell if you are trying to pitch them or actually help them solve their problem.