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soliddata
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You guys are both right really (I am a bit of a fence-sitter, sorry)

The key does seem to be niche marketing on the web. The first part of a web presence, the contact and info site, is useful (necessary) to aid existing marketing, but to really make a web shop work now, without competing constantly on price, is to niche (or multiple niches).

With the tools for evaluating searches and keywords you can quickly find out what niches to search for.

Kev