Going "niche" market means to be specialized to one particular product. And if the product you sell has enough of a following, it sells itself just by brand alone.

Selling a new PC is tough because you simply cannot compete with Dell. They will always be able to sell for less than you can. And if not Dell, some other big name PC maker will always have better prices than yours.

A vintage computer on the other hand is a collectible item, and selling collectibles eliminates having to fight with big PC maker corporations because that’s not their business.

Concerning yesteryear computers, there’s an ever-growing following for older computers, and in particular, 8-bit and early 32-bit systems. And its not just for the old folks either. People in their teens and twenties are seeking old computer gear because "retro" is "cool".

The best place to find what’s selling and for how much is to see the Apple and Vintage Computing Categories on eBay. To get there, go to Computers & Networking, and choose either Vintage Apple from Apple Computers & Components or the Vintage Computing category.

Check out what’s listed and see how much it’s going for. You’ll be surprised to find that some old clunkers command $500, and in some cases over $1,000. Take note of the ones that command higher prices.

Where do you find vintage systems on the cheap that you can resell for higher prices later?

The two best places are computer recycling centers and the tried-and-true good ol’ flea market.

Computer recycling centers will usually only sell what they can get rid of quickly and normally don’t deal with vintage stuff whatsoever. For whatever they receive that’s over 5 years old, that usually goes straight to destruction so it can be stripped of all its precious metals for reselling later. You will almost never see a recycling center post eBay listings for vintage computer gear.

You have to call the recycling center and ask specifically if they have any ancient computers. Most of the time they’ll say yes and will be more than happy to sell them to you just to get it off the floor, because they will make more off that compared to the metals. From there you just drive on over, walk the warehouse and see what’s there. Bring a truck or van, you’ll most likely need it. If what they have looks like something you could sell, take it.

And if you’re wondering where the computer recycling centers are, they’re in the phone book. Or just search on Google Maps for one local to you. They’re not difficult to find.

You will, without fail, always find vintage computers at flea markets. And some are in darn fine condition or can be restored easily. You will never find these vintage units at vendors specifically selling computers, but rather the guy or girl that is selling potpourri-style. You may find that sought-after VIC-20 in the box. What’s worth more, the computer or the box? The box, of course. This is back in the day when computers came in full-color print laminate boxes (see here for a photo of the one the VIC-20 came in).

Sometimes specific components are worth just as much, if not more

The best example I can give of where the component is worth more than the computer is the Commodore 1581 floppy disk drive. Sure, Commodore 64 computers are a dime a dozen. It was the best selling computer of all time (still to this day). But the 1581 drive is tough to locate. In mint condition they sell for around $200. If you see one at a flea market with its power supply for $15, grab that sucker.

Chances are you’ll make more cash with collectibles

With the right acquisition of vintage computer gear you know that sells (via eBay research), all you need to do is acquire the goods, clean them up, make sure they work and then sell them. Whether it’s entire systems or specific components, there’s a market for it. And you’ll probably make more from vintage computing than you ever would with building new units.

We touched on this subject back on Day 8 of this series. No matter what business you are in or how you want to pursue profits from the Internet, everything hinges on finding a good market to cater to.

You can, of course, cater to multiple markets at the same time using different parts of your business, but you have to find a group of people with a particular need and want, then provide them what they ask for in exchange for money.

The rules are the same online as they are offline when it comes to these basics.

So, how do you go about finding a market niche? Here are some potential ideas for you, starting out with the ones I listed on Day 8:

• Keyword research. Using a site like WordTracker, research what keywords people are searching for on the major search engines.
• Google Trends. Google provides graphical trends on keywords so you can see if activity if increasing or decreasing over time. A great way to see what areas are getting hotter and have buzz.
• Looking For Goals. 43Things is a social network focused on goals. See what people are trying to accomplish in their lives. It can be great idea fodder for an information product to help them accomplish their goals.
• Use Forums. Yes, you need to participate in forums. See what kinds of questions are being asked.
• Run Surveys
• Investigate Other Sites. There are, many times, hidden data on other sites that can provide valuable insight. Well, it isn’t really hidden, but it might be data that you never thought of using as market research. For example, go do Download.com and look at the types of software being most often downloaded. That will give you markets where there is strong demand.
• Participate in Social Media. Building up a network on sites like Facebook and Twitter can be very valuable in market research. You obviously don’t want to spam these sites (they will revolt like crazy), but asking people questions is a great way to do informal surveying.

When looking for a niche, there are two schools of thought on how to choose:

1. Find a niche where there will be little competition.
2. Find a niche with high demand (and probably lots of competition).

Your choice is up to you. It surely is a lot easier to compete in some hidden niche with very little contenders. You can more or less write your own rules. The tradeoff, of course, is that the potential audience is typically a whole lot smaller.

On the flip side, choosing a popular niche might mean you have a lot of competition, but it also means you have proven high demand for what you’re selling. So, at that point, it isn’t about finding something that will sell. It is about out-marketing and providing better value than your competition.