Of all 100 people who are trying to make money online will fail to make more money. Why? This is because most of them are not putting much effort in the most important steps in their business, market research.

Many people did not know how to do a market research for their business, and they thought that market research is not an important thing. The fact is, market research is the main process that will determine the later stage of your internet business. It is the foundation that will affect your online business.

Therefore, if you are not building a strong foundation for your business, you will be out of business very quickly. Here are 3 factors that you have to consider when doing market research for your niche:

1. Profitability. You have to locate a market that is profitable. Even if the market size is a big one, but if the people in the market are not willing to spend, you will never make a lot of money from it. You can determine this by doing some research, check if there are any sponsored ads in your market. If there are, it means that your market is willing to spend.

2. Competition. The best is to locate a market that is less competitive. Nobody wants to go into a tough market especially for beginners. If you are going into a highly competitive market, you have to face the big players there. So choose a market that is less competitive for your business.

3. Knowledge and skills. At least start with a market that you have some knowledge or skills in. Don't go for a market that you don't know about. It is possible that you can make money there, but you are going to learn a lot and put in more effort if compare with a market that you already familiar with.

These are the 3 factors that you have to consider when carrying out your market research. Remember, market research is the foundation for your business. It will affect your business in the long-term. Therefore make sure that you do your market research correctly before you dive in.