It will take the same amount of work to build a site about "model ships" as it would "Aruba vacations", but with the site about vacations, you would make more than three times more! If you have a real passion for a particular niche and it doesn't pay as well, you can still go ahead with building a site.
Sometimes income isn't the only incentive. If that's true for you, then by all means you can build a site in any niche you want. You might make good money from a lower-paying niche simply because you are able to stick to it and get more traffic than you would have from another niche.
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But I personally use CPC as my guide. If you're having trouble thinking of niches to try, here's a quick list of basic topics to get you started:
– Medical topics
– Alternative health topics
– Weight loss, exercise, fitness
– Travel topics
– Legal topics
– Credit and finance
These are generally good moneymakers. The more popular a topic is, the more you are likely to make, as long as a niche is profitable. You can't assume that just because a topic has a lot of traffic it will be profitable. How can you tell if a niche would be profitable?
Well, the main thing to do is figure out what people would be selling in a particular niche, how much it would make, and how well it would convert. You'll have to make some big assumptions, but you can usually make a pretty good guess.
Let's say Britney Spears has made a big comeback and she's more popular than ever. (Hey, it could happen!) Her name is suddenly being searched for in record numbers. You think, "Hey, this is the perfect time to put up a site about Britney!" Hold your horses! What would people sell with regards to Britney? Posters, t-shirts, CDs, and other fan merchandise might be good sellers. But these items usually have very low-profit margins. It probably wouldn't be profitable to pay PPC prices to advertise such small items!