In affiliate marketing, niche finding and research is probably the most important thing you will have to do. Of course there are other areas of affiliate marketing which are also of high importance like:
- Finding profitable affiliate products to sell as an affiliate
- Building a quality affiliate website to sell products from
- Getting traffic to generate many sales
But what makes niche finding of higher importance is that it affects which products you will promote.
It also has an effect on the amount of sales you will be able to generate.
For example selling an affiliate product in a small niche will mean that you have limited number of sales you can make.
In large niches there are many people that can buy your affiliate product and in turn, many potential affiliate sales.
My goal in this article is to show you various techniques to find niches which can make you not only high sales volume but also high affiliate commission rates.
Where to Get Niche Ideas for Your Affiliate Website?
Before you think about finding profitable niches, you need to first compile a list of niches and then find out the most profitable one among them.
Since your niche will affect your product selection, you need to decide if you want to sell physical products, ebooks, software or services.
If you want to promote physical products on your affiliate website then you can browse Amazon’s marketplace to find potential niches.
Getting niche ideas for ebooks products can also be done by browsing Amazon’s Kindle store.
Amazon Kindle is a marketplace for selling ebooks, by browsing it you can find a good list of categories/niches to choose from.
To find ideas for software products you can use Google.
Google “software to a” and put “b,c,d…etc” instead of the “a” to find more niche ideas
Using this technique you can build a big list of software niches.
And finally to find niches for services products, you can search Google for “subscription monthly money back”
Visit each website returned by Google to find out the niche of the service product.
The above are all techniques to find niches by product types.
This is something which can give you a list of niches without considering how profitable they are.
I am going to show you a technique to find niches that pay affiliates over $100 as commission.
Search Google for “$100 site:.com/affiliates”
What happened here is that we told Google to return to us affiliate programs pages which offer affiliates $100 commissions.
You can change the “$100” in your search to any amount.
You then browse through those affiliate programs and find out the niche of each one.
Comparing Different Niches and Product Types:
Niches and products are born unequal; each one of them has its own pros and cons.
The aim of my comparison here is to show you that there is no single niche or a single product type that is the most profitable one.
One affiliate can find it very profitable to promote an eBook product while another one can find it totally a failure and can’t generate enough sales.
It all comes down to finding out your strengths and then pick your niche and product based on that.
So let’s compare physical products, services, software, eBooks and examine their pros and cons.
Pros: Low refund rates
Many people who buy physical products like TVs; they don’t refund it since there is usually a long warranty period.
Physical products are almost 100% guaranteed to work when you first buy them so there will be no refunds based on technical failures.
Pros: Highly profitable
Since most physical products are high priced and easily sell for $1000s, it will affect your affiliate commission.
Getting paid a commission of 4% or higher on a $4000 product will earn you a minimum of $160.
Many physical products can even cost 5 figures which is something most common in electronics equipments.
Cons: Hard to Sell
Physical products are not something that people buy online very frequently or at least not as frequent as other types of products.
And since they are high priced, the person’s decision to buy will not be instant and he will have to do more research first.
That means that the person visiting your product review page may not end up buying the same day.
Service providers are those companies/people that offer recurring or one-time services.
Niches like Web hosting, SEO services…etc is known to have many services providers with lucrative affiliate programs.
Pros: Very profitable
Promoting services as an affiliate marketer is the best type of product you can promote for few reasons:
- Monthly affiliate commission from the same client
- High satisfaction rate for clients
Cons: High affiliate competition
Since providing services is a very lucrative business model; many companies started offering them.
Many of the high quality companies are established for long time and they have an army of affiliates who are working for years to build their reputation.
As a beginner affiliate; competing with those established affiliate will be hard but not impossible.
Cons: Can be Local
Many services niches only accept local clients, and that can limit the number of available customers to you as an affiliate.
And if they have other affiliates promoting the same local service provider, then your task gets a little bit tougher.
Selling software on your affiliate website is another profitable product and niche type.
Pros: Very Profitable
Software can be profitable for different reasons:
- Many upsells (you get paid for selling the main product and any product purchased with it)
- High affiliate commissions (software owners usually provide generous affiliate commissions that reaches up to 75%)
- In high demand (software solve problems no human can do as efficiently; thus the demand is high and the alternatives are low)
Cons: Low quality products
The problem with software products is that not all of them are of high quality or deliver what they promise.
Plus the nature of software is that it can have many technical failures and bugs, something that can lead to a low quality product.
So make sure your affiliate product is of high quality.
Pros: Low refund rates
Since ebooks usually sell for an average of $20, it is hardly worth to refund it and people don’t in most cases.
Pros: Easy accessible
Ebooks are information products and people love to read.
With the spread of technology and PDF viewing tools, people can now buy ebooks to read on their spare time, even from their mobile phones.
Cons: Not very profitable
Giving the nature of ebook prices; getting an affiliate commission of 30% on a $15 product is hardly a real profit.
Your profitable only comes when you sell in mass amounts.
My Final Thoughts
Finding your affiliate niche should be based on your passion.
Don’t enter a niche you know very little about, because selling something you are expert on will yield better affiliate sales.
There are many affiliate tools offered that can help you find and judge the niche profitability.
Those tools can be found in many affiliate marketing courses (like Affset).