Step 1. Find a hungry market

In any business, if you want to make money, the easiest way to do it is to find a need and fill it. So the first thing you need to do is find a group of people who are looking for information and solutions that will make their life easier or more enjoyable. This is generally known as "Niche Marketing" and it is the quickest and easiest method of achieving success in online marketing.
                                                         
One way to do this type of market research is to visit some of the forums and discussion groups targeted to your business. Pay attention to what they are talking about and even looking for.
                                                         
Find out their needs, wants, frustrations and desires. When you see that the same topic is being discussed over and over again, you've got it.
                                                        
Another way to find out what people in your target market want to buy is to use Wordtracker and Wordtracker Magic or Adwords Analyzer. You can also use Overture's "Search Terms Suggestion Tool"  (or any other keyword research tool) to see what your target audience is searching for.
                                                         
Type in your keyword and it will show you how many times it was searched on within the past month. Keywords tell you what people search for on the Internet. It's a great way to find out what people are interested in.
                                                         
Once you successfully target your audience and understand exactly what they want, you must now find products that solve their problems.