But where there is competition there is profitability. And I would rather sell to people who are used to being sold to and used to being marketed to than in a niche that isn't.
Yes, there is a lot of competition in those markets but it can be easy to stand out from the pack. Most people try to take the easy way out so you can easily stand above the competition by providing value to the people you are selling to.
Most people wont, most will go for the quick buck. This gives you the opportunity to quickly stand out and start building an audience.
What is your opinion on competition? Do you go after niches with lots of competition?