Please change this MINDSET

"This market has big competition, I cannot survive in this, better look for something less crowded!"

I have now a good reputation on my family/relatives and friends, they all know I work online and make big money from it. Every once in a while closest of people seek my help into getting started on the internet.

I don't mind spending my time for these people and try to teach them what ever I know. One of my closest relative asked for my help in freelancing at odesk.

I personally tuition him on this. Later I heard from some1 else, he said that he will overtake me in my work and it will take no more than 2 months to find an online job from odesk.

6 months have been passed and when I met him, I asked about odesk. He said you are a designer and have plenty of opportunities, but in my market (VA/data entry) there is way too much competition and this is not for me.

All of my efforts for him went to the drain.

This was just a real life experience from my life.

Now my friends what do we have to learn from here? Go for crowded niche and work it out, or search small niches where there is no demand?

You are missing the whole point; out of all the competition, there are only handful of real competitors. Like me and you, we all are LAZY. We have built a site, did some content and links but within few months we have quit the whole thing. In the end who stays, takes the prize away.