Choose the best niche in the affiliation marketing

According to Statista, the affiliate marketing industry is now worth about $8.2 billion, not bad huh?

So you’re looking at a huge pie and to get a piece of it, you’re going to have to choose a niche that is both profitable and lucrative without being too competitive.

In this article, we will go over the concept of a niche, how to choose it and how to avoid the pitfalls.

What is an affiliate marketing niche?

Unless you are Amazon, Rakuten or Ebay, it would be wise to focus your affiliate marketing efforts on something specific. That means it’s a good idea to tailor your blog or website to a limited number of topics. Can you imagine the reaction of your subscribers who expect to receive the latest news about motorsports, and instead you send a newsletter that features the best NFT collections of the moment?

Well, you may be passionate about both topics, but your readers are not. Too much diversity on a blog can make your readers feel like they’re in the wrong place.

So, a niche, which is a specialized segment of the market, in affiliate marketing means that you only focus on a select group of affiliate products to customers who are themselves interested in that kind of product.

For example, I decide to create a site around dating, so my audience expects to receive content around dating and therefore, I promote affiliate programs in dating.

How to choose a niche in affiliation?

Typically, a niche itself includes smaller sub-niches, and even tiny micro-niches. If we take the health and beauty niche for example, then this includes fitness, weight loss, hair care, skin care, etc. And if you choose home remedies for skin for women under 40, it is already a micro-niche because you are targeting the intended audience even more.

The most important thing to understand is that the more you fit into a “micro-niche”, then the higher the conversion rate will be, as this image shows:

Best niches for affiliate marketing in 2022

Tech and SaaS, quite simply.

It’s a giga-niche that includes a lot of sub-niches and therefore micro-niches. We can find mobile applications, VPNs, video games, B2B software and so on.

It’s an environment where commissions are very generous and can often be of the “recurring” type with revshare.

If we take SaaS for example, they generally adopt a business model based on subscriptions and therefore you will receive a commission on each sale, but also each month as long as the user remains a subscriber. I explain more about the concept of this type of commission here.

Dating

We wrote a complete article about this niche, but I’m putting it back here simply because it’s a niche that offers very high percentages of commission and recurring.

But beware, this niche is ultra competitive and to make a place for yourself it may be complicated, even if you focus on micro niches.

I therefore recommend this niche to our most experienced publishers with a network of sites already in place.

CBD

My favorite of the moment, the CBD. It is a niche where everything is to be done simply because the market is ultra recent and many are the new uses of CBD for example with CBD for animals, which is beginning to make an important place in this market.

And if we talk about figures, it is a market with an annual growth of 20% in 2021 which represents a total of 3.4 billion dollars.

Pitfalls to avoid when choosing a niche

Don’t focus all your efforts on one product.

Focusing on a niche is fine, but focusing on a single product in the niche is to be avoided. Indeed, selling a single product through affiliate marketing does not usually generate much profit, no matter how viral the product is on the market.

Working with several products, without being too generalist, is to be safe. If visitors to your affiliate site are not interested in one product, they may be interested in other related products. Also, if one product does not show promising results, you can move on to other products.

Obviously, this advice does not apply to SaaS as well as products where product = niche.

Do not choose a niche by interest (well not too much)

Many people get into affiliate marketing and choose a niche out of interest and this is normal because building a business in this field can be a difficult and long work.

Choosing a niche that matches your interests can be a great way to keep your business going in the long run, but many people forget to look at the market related to their niche.

Betting everything on a niche with an average shopping cart of 20€ is like panhandling.

Don’t forget the pattern, low traffic, high conversion and that, even on products at 10K€.

Do not ignore the competition

Don’t rush into it. If the niche seems profitable to you, chances are other people feel the same way. Study the competition to see if you can generate enough income for yourself.

This will allow you to avoid entering a niche where it will be impossible for you to make a name for yourself, and conversely, you will be able to draw inspiration from the same competition to launch your sites.

Do not be too generalist

As mentioned above, consider defining not only a niche, but also a micro-niche. This will facilitate your positioning and product selection.

Conclusion