Some niches, as you'll discover, aren't as profitable as others. You need to look at your audience and see if they're willing (and able) to spend money for the solutions they're seeking.

Golfers are a good example and tend to have to have spare cash for their hobby. They're also usually very enthusiastic about the game and would invest virtually unlimited sums of money to be the best on the golf course. So if you start writing an e-book for other fellow golf enthusiasts, it is sure to have just a market which is limited to golf players only. This is the niche market for them

Single moms on a budget, as a niche target market, may not be able to pay a high price for information showing them how to get organized. However targeting this same niche, you may find some are willing to invest a reasonable amount in something that shows them how to make more money using their home computer.

One good place to start is with online groups and forums. You can go to village or Yahoo and see what kind of groups garner the most posts. Men's groups such as Ask Men might give you insight into what kinds of information ebook products this portion of the population might need that help you generate a handsome profit.

You're looking for groups of people with a lot of problems. When you start creating your ebook products, you'll want to build a range of ebook products that focus on the same niche, allowing you to market to existing, loyal customers who buy from you repeatedly.

Occasionally, you'll find one group is too large and then you'll need to structure your product line around a much tighter group of people. People with children have many problems you could focus on, such as dealing with discipline, and saving or making extra money. With kids there never is enough money.

But you could create an even tighter niche by focusing on single parents or parents bringing up children with health problems. Remember an information product provides a solution, so it needs to be presented as something that will help solve problems.