The majority of new internet marketers go about things completely backwards. And this is exactly why most businesses - especially online ventures - flop before they start.

Is this a familiar scenario?

You find a hot niche with a hot product. You're sure it's the best thing since sliced bread. So you invest time, money, and soul into building a business around this super gadget or idea, and THEN you try to find people to sell it to.

The above is exactly what 95% of newbies would do when starting an online business. And it's a perfect example of how to lose money, get frustrated, and completely fail to get your venture off the ground.

You should never find your product or service idea first and then look for your market. The interests of real people who are looking for a very targeted answer to their need or want should always be your first priority.

It doesn't matter how popular, fascinating or lucrative you think your niche is. If you're wrong or even partially right the end result will be the same. You'll be waiting for buyers with your "hot" niche product and not making a cent.

While that may sound a bit dramatic, the core concept is as sound as it can get. You should never invest time, money, or energy into a product launch until you are completely certain there is a reasonable demand for what you'll be selling.

For this very reason, big corporations spend millions of dollars on market research. They understand how important it is to get a verified estimate of demand before creating a supply.

Fortunately, because of the Internet, you don't have to spend a fortune on your research. You can find out a decent amount free, or for a small investment...

Using online keyword research tools you can find out what Internet users are actually searching for. Yahoo and Google can be your best allies in determining the viability of your new venture. And they're free to use! This incredible technology will give you a huge amount of data about what people are searching for and even the number and time frame of the searches.

And you can also do more informal research by just browsing online marketplaces, like Amazon.com and Ebay.com. You'll know what people are buying by the popularity of the products and services offered on these and other sites.

As a general rule, businesses don't continue to offer things for very long if they are poor sellers. So if you can find offers and advertisements on or off-line for products and services that have been around for some time you are on your way to finding a profitable niche for your business!

And thanks to the feedback posted on many sites these days, you can see what customers think about the items they purchase. These questions and comments can help you zero in on what people are looking for and spending their money on. And don't forget to pay special attention to problems that poeple report about the products and services they buy. If you can offer a solution, you may very well have just created a brand-new, money-maker!

Online forums and product blogs are fantastic research tools. Not only do you learn more about the product from the blog author, you get tons of user input at these sites. In fact you can participate in these forums and blogs by asking relevant questions and making your own comments. That way you can find out even more specifics about what consumers needs and wants are related to whatever niche you happen to be researching.

A little poking around combined with a dash of creativity and work can result in a niche business idea that has real market demand as its cornerstone. You can be sure that this niche concept will always outperform any venture based on product-first, market-last!