A niche website basically focuses on one specific aspect of a field or one product out of a range of products. Unlike over-arching websites that cover a wide range of topics, a niche website focuses on a small topic only.

The idea behind niche websites is to attract users who are interested in a very specific topic and then have them buy something. For instance, a health website would cover most topics related to health and therefore, the traffic it would receive would be very diverse.

However, if you focus on hair loss and hair growth, you would get users who are looking for something very specific. This targeted traffic means it would be easier to convert them into a paying customer.

This is the true beauty of a niche website. The traffic you receive, however little, is very interested in the topic.