Is it more profitable to dominate a particular niche market or to compete in the most lucrative markets? Insurance, mortgage etc...
Both have equalizing pros and cons. 1. Niche markets are easier to break into but generally have a smaller TAM (total available market). 2. Large markets are extremely difficult to break into but the market is huge. If I had to make a recommendation, I would say to choose the niche market. You can make up for the smaller TAM with higher prices or multiple product offerings. Good luck!
Well, dominating a particular niche market can be more profitable if - you control the market and nobody wants to compete against you. You might earn more money too. Large markets = more sites, less money; because the general CPC + eCPM on most sites are usually lower, especially in the entertainment market.
You need a variety of products and deeper pockets for marketing in niche if your products are not as well established and understood. When the market is larger, you benefit from product familiarity but struggle for customers. You can charge more as niche. The market sets your prices more or less in large. Go for something in the middle if possible.
Having a piece of a huge market is going to be more profitable, but that will require enormous amounts of work, effort and time. The smaller niches, or even subniches are more likely easier to get in to and make a profit. With small niches you have the abillity to be in several niches at once, but with huge markets it's going to be a really difficult job to handle several of those at once. Though you could outsource it all if you made enough with one huge market etc. Go for the small niches untill you have deeper pockets to play with the big ones. greetz, jobic
Micro Niches are easiest to dominate especially if you address the unsatisfied need of customers of specific niche with a product or services.