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This debate will likely go on ad infinitum for as long as the Internet is around. How do you decide what’s important when picking a niche? Do you conisder the amount of demand for that product or is the competition the most important factor? Let’s try to answer this objectively and see if we can’t figure it out.

We’ll try to reason it out with a hypothetical example. Say you could make people fly and all they had to do was swallow a pill. Flying around by yourself is scary so there’s not much demand for the product. Now, you go and look it up on the Internet to find out the state of the competition and discover that there is in fact zero competing sites for the phrase “pills for flying”. It stands to reason that with no competition you’d be able to sell to the people who wanted to take a pill and be able to fly. With no competition, how many sales do you think you would make? You’d make a sale to everybody who wanted to be able to fly by taking a pill.

This is a bit of a crazy example but it illustrates the point very well. If the competition is low enough and you have even a small demand you’ll be able to make at least some sales. This is the beauty of long tail keywords. They get few searches every month but the competition is low enough that your able to trickle in a few sales every month. Do you think it’s worth going after those keywords? Taking into account that a website is cheap and easy to setup and can cost you as little as $15.00 a month with hosting I think you know the answer to that one.

What if you wanted to go after a phrase that had a million competing sites or more? It might take a little bit more work but if the phrase was being searched 300 000 times a month you could potentially go after it. You know the market is there, it’s just a matter of being able to tap into it. It’s not as easy as capturing a niche market but with a little bit more SEO, some hardcore article marketing and maybe a bit of PPC you could claim your little piece of the action. With a market that big no one person can take it all. Even the mighty Google only has a 50% market share. So you see, there’s plenty for everyone.

We can safely say that the answer is they are equally important. If it’s a small pie and not a lot of people eating then take a big slice. If it’s a big pie and there’s plenty to go around then go for that as well. The only way to lose is to not try anything at all.