First things first, what is a niche website? It is basically a site that targets a very small niche, like “pinot noir wines” or “sample resumes.” Such websites usually have a small number of pages, say 10 or 20, and their main goal is to rank in the first page of Google for a specific keyword. Once they achieve that, they will receive a lot of organic traffic (i.e., traffic from search engines), and they will monetize such traffic with CPC ads like Google AdSense or
with affiliate marketing.
I prefer to call these sites “mini websites,” but many people refer to them as “niche websites,” so we’ll be using both terms interchangeably here.
A couple of years ago some online marketers started to criticize niche websites, saying that they were doomed to vanish, being replaced in the search results by large content portals that covered a wide range of topics.
Guess what? This didn’t happen, and niche websites are still going strong. In fact, recently Google implemented a change in its algorithm that favored them even more. The change basically made it harder for large websites to rank for narrow keywords with their internal pages, especially if those pages are not content rich.
Want an example? Consider the keyword “starcraft 2 download.” With the change in the Google algorithm it is now easier for a mini website called StartCraft2Download.com to appear in the first page for that search query, and it is now harder for a large website like Mahalo.com to do the same simply by publishing an internal page talking about that topic.
Another criticism that mini websites receive is that they are more unstable than large, authority websites. In other words, one day they could be in the first page for a specific keyword, and the other day they are gone.
This can happen if you use black hat techniques to get your mini website ranked, but otherwise the above criticism is not true at all.
If your mini website has all the information about a specific niche or keyword, and a decent amount of quality backlinks, Google will consider it an authority inside that small niche, and hence it will give high rankings for the mini website.
This is the point that most people miss. A mini website can also be an authority site, although an authority on a very small niche.
Now don’t get me wrong. Building a mini website that ranks high for a competitive keyword is not easy nor fast. You’ll need to work on the content, promote it and get a good amount of backlinks.
But, if you know how to do these things, developing a mini website when you have some time available could be a smart investment.
Source
Daniel Scocco