I find the easiest way to find a niche is to start with subjects you know, and then lookup things around the fringe of that area in Googles keyword tool at:
https://adwords.google.com/select/KeywordToolExternal
Another good source of inspiration is the daily newspapers. I read a couple online each day, and get a lot of ideas for niches from those, especially in the health sections.
The net is so vast that there are a huge number of niche areas out there just waiting to be tapped! A couple of hours hunting round and you should find at least a couple.
I wouldn't personally call ringtones a nicheas there is masses of competition. You need to look at areas which have few search results so you can easily get into number 1. Even 40 / 50 visitors a day can give you a decent income, especially if you have a number of niche sites.
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as there is masses of competition. You need to look at areas which have few search results so you can easily get into number 1. Even 40 / 50 visitors a day can give you a decent income, especially if you have a number of niche sites.

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