You will often hear from many gurus how to avoid competitive niches when you first start out trying to make money online but you will find yourself jumping into niches you have no interest in.
Isn't it more gratifying to give all your effort to building an Internet business at something you are passionate about and put your Internet marketing efforts into succeeding at that? Side Note: Competition is natural and without it there would be no money to be made, so don't be afraid and embrace it.
Here are 3 valuable reasons why not to be scared of competition: 1.
Passion - if you are passionate about what you are promoting people will get that vibe.
  Hypothetically, if you choose to sell pogo sticks but have absolutely no interest in it, how many sales will you make?  Make your choices based on passion and not the competition factor.
2.
Popularity - if you choose a competitive niche it only means that is where the traffic is going and it's where the money is at.
  If you can corner the market on something minimally popular then I encourage you to go after it but don't settle because of the competition do it because you are totally excited about it.
  3.
Possibilities - the great part about entering into a competitive market is the opportunity to put your personal stamp on it.
  In the end, people will buy from you because they trust you.
  Building relationships through blogging, email marketing, social networking will put you on that path.
Another side note: I wasn't dissing pogo stick enthusiasts, I'm sure there are a bunch of PASSIONATE people making a bundle selling pogo sticks!