1.Marketing to a broad audience. The purpose of niche marketing is to narrow down your potential buyers to a small, tightly-defined group of consumers, laser-target their preferences, and then contact them through the channels that define their interests. Many people, unfortunately, do not understand this; and they end up creating a niche marketing campaign that targets a large or generalist audience. They soon find out that there is simply too much competition and are forced to give up. They also find that their marketing campaigns yield pitiful responses, since they are untargeted and since the group in question is also untargeted. Don't make this mistake. Target your audience carefully.

2.Foregoing the beta testing phase. Most inexperienced niche marketers skip the beta testing phase. They don't like the idea of giving away their products for free, even if they will get something in return. Unfortunately for them, beta testing is a crucial part of a long term niche marketing strategy. In general, your customers, not you, will have the best ideas for what you can do within your given niche. Listen to them and you can only stand to benefit.

3.Failing to match the product benefits with the audience. Again, this is another serious problem: many niche marketers fail entirely in matching product benefits to audiences. On their sales pages, they write something that sounds mildly attractive, but it doesn't provide any concrete benefit for that specific audience. Again, if you're marketing to a niche audience, you have to pick your audience and then create a product for that audience. The last part is communicating to them that your product is in fact for them.

4.Underestimating the size of a given niche. Initially, you will want to narrow your focus in on your given target audience and their wants. Once you have done that, however, you will then want to penetrate further into your niche, marketing to customers who might not be as likely to purchase from you. The goal here is to make as many sales as possible; however, if you underestimate the size of your niche - and only market to those who seem most obvious - then you will never be able to maximize your profit in that given niche.

5.Malmonetizing a given niche site. In many cases, marketers will find a good niche and will capture a sizeable share of the traffic, but they wont ever be able to monetize it correctly. The end result is that they lose money or break even, when they could be earning money hand-over-fist. For this reason, it is always a good idea to look at a mix of monetization methods and what their revenue-generating potentials are.

Make sure that you understand each of these five tips well. Falling into any of these traps could be fatal to your niche marketing plans.