A niche market may be described as a subset or small part of a market that a particular product or service is centered around. In other words a niche market is a combination of individuals who share similar interests,needs and goals. Via niche marketing the marketer focuses his or her efforts on a small segment of a bigger market for eg a marketer focusing on tires in the auto parts industry. Here are a few tips when trying to decide on a niche market. 

Sell products or services that interests you and that you are more passionate about. By doing this you are ensuring that you don't get bored easily and actually enjoy what you are doing. This also ensures that you are not just motivated by money but that you are exited about sharing your knowledge with others. Trying to sell or promote a product that you have absolutely no interest in will be a very difficult and uphill task to achieve.

Try to sell or promote products that you are more knowledgeable about. If you are not knowledgeable about a particular product or service then be sure to devote some time in researching and learning as much as possible about that area so that you can better serve your niche market.

Decide on your target audience.
Do your market research, find out if there are any market place shortages and if there are try to create, sell or promote a product to fill that gap.

Decide if your target market is huge enough for your business to be successful and sustainable. Your niche should be viable and have a lot of potential customers.

Your niche market should be a growing one, one that is becoming more and more popular on the internet, one that has a bright future.

Sell or promote products that are in high demand and that persons would be interested in. Do your research and start paying more attention to what people are interested in and what they are searching for on the internet.

Separate and differentiate your product or service from the masses. Try to offer something unique that no one else is offering in that market hence creating and owning your niche.

Do your keyword research to find out how many persons are doing searches using keywords related to your niche product. One simple way to do this is to do a Google search on these keywords just to get an idea.