Affiliate marketing is quite broad in a marketing sense, so in order to specialize in one area, it is important to concentrate your time and energy into developing an online strategy in a particular niche.
What is a niche?
Simply put, a niche is a segment of the place market that you want to target your marketing towards. It is a highly target group of people you identify as being the ideal candidates you want to market your products to.
Are All Niches Created Equal?
You could say that all niches are equal in terms of the audience they attract, however in most cases, a very profitable niche can be determined by the amount of interest there is in that marketplace.
For example, there’s probably a bigger market for iPhones, than for some unknown smartphone manufacturer. Therefore one could say that there is a lot more profit to be made in the iPhone market than the unknown brand.
Which means that not all niches are as profitable as each other.
Do You Have To Be Passionate About Your Niche?
You don’t have to be passionate about your niche, however it does help if you do have a intimate understanding of how your target group of people think.
Understanding their problems, wants and needs could help you to tap into that segment, because you know and understand what makes them tick.
How To Spot A Profitable Niche
As I mentioned earlier, one of the biggest ways to know whether you are tapping into a profitable niche is to understand how much interest there is in a particular niche.
And the way to do this is to get an understanding of how many people are typing in certain keyword phrases into the search engines that relate to your niche.
Is there Traffic?
Finding out how much traffic keyword phrases have for some of the common issues your niche faces will tell you whether or not you should spend time developing that niche.
If there is significant traffic, then that could point to there being a lot of interest in that niche.
Are there other affiliates in that market?
If there are other affiliates in that marketplace then this could mean that other people are making money in the niche, which means that if you can get a spot next to their in the search engines or through paid advertising then all you have to do is to create content that is more compelling than your competitors.
Are there a lot of products being developed by vendors?
If you find that the marketplace has a number of product creators then this is also a signal that the marketplace is profitable because product creation can be expensive.
But it is important to chose from the best affiliate programs out there. There’s no use in spending the time and effort developing the traffic for your niche to find out that payout is low.
So choosing from the top affiliate programs will help to ensure you get paid.
Are there Adwords ads displayed in the results?
An easy way to find out whether a product is profitable is to identify if the product creator is spending money promoting their product via Google Adwords? Also, to find out if there are other affiliates doing the same thing.
You see, if people are spending money on advertising, then it only makes sense that they are earning more money than they’re spending, otherwise they would be losing money.
So in Summary
Identify whether there is a lot of interest in your marketplace by performing keyword research and understand how much search volume main keywords have in your niche.
Look to see if there are a number of product creators in the niche and whether product owners and other affiliates are paying for advertising.