Affiliate marketing can be a blogger and marketer’s dream. When done correctly it can generate a substantial passive income, allowing you to pursue other projects while letting the revenue continue to pour in.
However, getting to that comfortable stage takes time and key decisions. Very few affiliate marketers are truly successful. One of the main reasons for this is they don’t choose a niche with enough potential. There are plenty of niches out there, but many are saturated with affiliate marketers, leaving newcomers with slim pickings.
Here are the four steps to take to identify a profitable affiliate marketing niche and begin turning a profit on your affiliate site as soon as possible.
Before you choose your niche, it pays to understand how affiliate sites make money. An affiliate agreement involves a company paying you for referring customers to their site. For every customer you refer to them, they will give you a percentage of the sale price.
It sounds straightforward. However, simply building a site and setting up a few links won’t get you very far. You need people to trust you and value your recommendations before they will purchase the products you recommend. This comes from becoming an authority in the given field and only recommending products you know are good.
You may already be an authority in a field but you just don’t know it. If, for example, you are a bitcoin enthusiast and already have extensive knowledge of cryptocurrencies and crypto products, you may be able to build a successful affiliate site with minimal work. Simply construct your website and create engaging and informative blog posts and, once you have a large enough following, become a bitcoin affiliate and start earning money.
Start with a list of your hobbies, then explore their earning potential. Once you have identified several with affiliate networks with strong potential, do some research to see if the niche has enough interest to drive traffic and turn that potential into revenue.
Armed with your shortlist of profitable niches, you will now need to assess the competition. If, for example, you have identified sneakers as a highly-profitable niche, you might want to Google your search terms. You would quickly see that there are literally thousands of blogs dedicated to sneakers out there. This will severely impact your ability to break into the niche.
Try and refine your niche even further at this point. If, for example, you identified cooking as a popular niche, it might be worth identifying a cuisine with less competition, for example, Creole cuisine or Venezuelan cooking. These will help you break into a profitable niche without being pushed out by stiff competition.
The next question to ask is ‘is the niche evergreen?’ This means, is it likely to die off soon or does it have long-term ongoing value. For example, the Bernie campaign in 2016 was a lucrative niche. Bernie supporters were spending money on campaign merchandise in 2016, but today, the niche is not profitable. It was time specific. You want to find a niche that will continue to be profitable for years to come. One that people come back to and buy from again and again, that's evergreen. That might mean making some adjustments to your shortlist.
Finally, you need to assess whether or not the niche has sufficient depth. You will need to stay active on your blog and produce new, engaging content regularly. If your niche does not have sufficient depth, this will be difficult to maintain.
The more in-depth, resource rich blog posts you can produce with useful keywords, the better your blog will rank in search engines, the more traffic you will receive, and ultimately, the more money you make. So it pays to opt for a topic with sufficient depth.