The very first step before attempting to set up your blog is to choose your blog's niche or topic.

Choose something that is something you're passionate about or at least have some bit of interest in, and something that is profitable i.e something that other people are passionate about and are willing to spend money on.

It is really important that you have some knowledge on your topic/niche so you know what you're talking about when making blog posts. If you are knowledgeable on your topic, visitors to your website will perceive you as an expert and someone they can go to for advice and purchase from. The information you will be providing on your blog must be helpful and informative in order for you to build up your credibility and make money from your efforts. People will only pay for information that is genuinely useful to them.

However, you do not actually have to be a qualified expert in your field, just as long as you know just a bit more than the average Joe or the average Jane. Even if you're unsure whether you are someone who can come across as being knowledgeable and credible on your topic, it's nothing that a little online research won't fix.

So the first thing you should do is think about your interests and what you are passionate about. Something that is a big industry, that has a lot of money in it e.g health, weight loss, fitness.

Next, you will need to break this down into a sub-topic. For example, the health and fitness niche is very profitable, however it is swamped with high competition, so you might want to narrow it down to a smaller sub-niche such as 'raw food diets' or 'pilates for rock climbers' etc.

Even if the niche is small and obscure, it can still be extremely profitable and under-monetized with big potential. However, it is not a good idea to go too small into sub-niches with absolutely no competition because chances are there's not much money in them.

Topics that are always popular and profitable are:

Making Money Online
Relationships and Dating
Health and Fitness
Self Help

Niche Research ...

Remember this: People will pay for solutions to their problems. It is really just as simple as finding out what your target market wants, what they need, and giving it to them. Here is a 3 step process:

1) Identify your market's problems.
2) Find solutions for their problems.
3) Give them your solutions to their problems.

So, the first thing to do is to go out into your niche and do a little research either online or offline. You should look for:

What kind of people are they?
What are they passionate about and why?
What do they spend most of their time talking about in regards to this niche?
What are their main concerns?
What are they currently doing to solve their problems?
What can you do to offer a solution to these problems?

The best places to go to find this information out is the places where your niche/target market hang out; forums, popular websites, social sites etc.

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