[manmanic]

Here are 3 ways I've identified highly profitable ideas:

a) Having a problem that needs solving. It's OK if it's a focused need, so long as you're not addressing a market which is too small. The world of people who research online is big enough. The world of Web 2.0 developers is not.

b) Careful listening to user feedback. Often users of one of my products have given me an inkling of the need for another. This will happen if (1) the original product works well, (2) the new product appeals to a similar audience, (3) you make it easy for people to give you feedback, and read it religiously and with empathy.

c) Being in-the-know about breaking trends. Make sure you regularly read (or at least skim) some high quality international publications. I read The Economist cover-to-cover every week, along with BusinessWeek. Worth every minute.

For me, each of these methods has been the catalyst for creating at least one successful online business.