Niche finding is the base on which you build your whole affiliate marketing business upon.
Getting it wrong will have a devastating effect on your affiliate marketing business that would be hard to recover from.
Put simply, the niche you are in will determine:
- Which affiliate products you choose to promote
- what topics to write about on your affiliate website
- how much traffic you can expect
- How many sales you could potentially make
With that in mind, I will be guiding you through this article on how to find the most profitable niche for your affiliate website and how to find those gem niches.
What is a Money Niche
There is a great distinction between money niches and free niches, as an affiliate marketer, you will be always looking for profitable niches.
But to find those profitable niches you need to be able to analyze any niche and determine yourself if it will be lucrative for your affiliate website.
I myself few years ago fell into the trap of not knowing how to research my niche probably before jumping in and putting a lot of time and money in it.
The result for me was devastating and I ended up closing my affiliate website and losing 1 year of hard work on it.
But after I realized that my niche wasn’t a money niche it was too late, and that’s why I want to teach how to tell good and bad niches apart.
There are two types of niches, free and money ones.
Free niches are usually those markets where people are looking for articles to read.
The problems they are seeking solutions for are not of high priority for them or not something they are willing to invest in a product to solve it for them.
If a niche has too many articles and less number of products then it means it’s a free niche and something you should avoid basing your affiliate marketing website on.
For example, the “weight gain” niche (which was my niche by the way) is not a money niche; people there are looking for recipes and general understanding of the problem.
See what a Google search return for this niche:
The majority of results (and all the top 10) is bunch of forums and blogs that give advices.
Now imagine you trying to rank your website for this main keyword “how to gain weight” (which has 1000s of monthly searches).
Anyone browsing through the top 10 results will read at least two articles and find the answering satisfying for them, which makes it harder for you to sell your affiliate product.
But a “muscle gain” niche which is a subset of the “weight gain” niche is profitable, and later on I will show you that segmentation can help you turn any niche into a money one.
The Importance of Niche Segmentation
Niche segmentation is about dividing the main niche into smaller ones called “micro niches”.
Let’s for example segment the weight loss niche:
As you can see, each segment is a market in itself with different types of products being sold.
When you segment your niche you get to stay away from intense affiliate competition, and you also can build your affiliate website to be highly relevant and specific to your micro niche.
Entering a micro niche doesn’t mean you will limit your profit potential because you entered a smaller market, in contrast, many micro niches have tens of thousands of people in them.
Even micro niches with just couple of thousands (market size) can be very profitable if you picked the right niche segment to target.
Local niches are a great example of micro niches with small market size and yet very profitable.
For example, if you are an affiliate for SEO Company that provides services to a certain city, local people who search for this service will eventually find your affiliate website.
They will most likely buy from you since you are one of the very few websites that offer help.
In the end, if you can segment your base niche into very smaller parts and picked the part that is known to have high buyers number, then there is no reason to ignore that micro niche.
And there will be no reason for you not to create another affiliate website and target another micro niche.
Your work will be less since all your micro niches (subsets of your main niche) will be related somehow.
How to Find a Profitable Niche
When it comes to finding niches in general, people tend to go for something they are familiar with.
And that is a good strategy, because after all you will only succeed if you target a niche you have immense knowledge in.
This way you can establish your authority to the market and gain trust, and trust is what sells in affiliate marketing.
So for your main niche find what you are really good at, may be a hobby of yours or a life experience (like quitting smoking or losing weight or even fishing).
And using that main niche I will show you how to segment it and find out if it is a money niche or not.
First let me show you how to actually segment your niche.
Go to Google and type in your main niche plus a,b,c,d and up to Z:
From what you can see in the above screenshot, Google’s auto-complete feature generates a list of micro niches for you.
You need to browse through them all and find which segment you can provide the most value in.
Now let’s take for example the “lose weight pills” segment and see if it is profitable or not.
One thing you should know though, profitable niches tend to have multiple products competing among each other.
That’s because many vendors have already studied the niche and found that there is a great demand on products there, so many of them created products to satisfy this need.
Our niche’s profitability factor will be to look for paid-products while also trying to figure out the market size.
First do a simple Google search for your micro niche to find out if there are any paid-products there:
We can see that there is no shortage of paid-products in this micro niche.
You can also go further and do Amazon search to see the types of products that are offered in the niche (ebooks, software or physical products).
Now the last step is to try and determine how big your micro niche is, because if your micro niche is big then the potential for affiliate sales is also big.
There are many ways to find this out, but for starters you could use YouTube.
When you enter your micro niche keyword and search for videos on YouTube, you get to the video views on these videos.
High video views mean that there are many people in the niche:
As you can see, over 430K views for a video that has been around for just 8 month is an indication of a large market.
And since this is an already segmented market; it is certainly the right niche choice to make.
Always try to be creative with your niches and don’t just read a list of profitable niches somewhere and blindly start promoting products in that niche.
Every person has his own niche that suite his knowledge and expertise, try to find yours by doing a good niche finding research like I discussed in this article.
Even some affiliate marketing courses will teach you advanced techniques of finding the right niche and some may even give you some tools that make your research a bit easier.