Pick a niche that you know something about, otherwise you will make plenty of mistakes. Failing that do what I did: Pick a niche that you know very little about but that makes good money, then surround yourself with people who do know about that niche and can advise you!
Also look in the General Business Board for a post by G which lists the most popular pages on LOR. Avoid all the niches he mentions. Sure, these have twice, three times, or even four times as many buyers as other niches, but they also have ten times as many webmasters fighting for the trade. So in the long run you loose out.
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