Capitalizing on an Affiliate Marketing Niche

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Capitalizing on an Affiliate Marketing Niche: How an Affiliate Marketing Niche can Impact a Website’s Success 

An affiliate marketing niche is a key element in the success of an affiliate marketer’s website.  Far too many upstart affiliate marketers will post a generic website advertising high demand products or services, and yet still flop after months without so much as a single click-through.  What are they doing wrong?  One of the most common mistakes affiliate marketers make when establishing their site is using a business model that puts them in direct competition with larger, more credible websites.  By broadly covering a common topic (an area that is already saturated with competition), an affiliate marketer will capture only a fraction of the traffic they could have if they had seized a well defined niche within that same market (an “affiliate marketing niche”).  This is how, in affiliate marketing, niche utilization can play a crucial role in a website’s success.

A Niche is an area within a market that has not yet been filled.  Niches develop with changes in the marketplace (i.e. when new products or services become available) and they fall out of favor when too many companies compete for that same niche market.  While, granted, new and exciting subject matter can be a fantastic niche for an affiliate marketer to focus on before other websites catch on, some of the strongest and longest lasting niches can be found as very specific topics within a popular market that has only broadly focused competition. 

A hypothetical example of a well defined niche would be having an affiliate marketing website about Contextual Advertising when most other sites cover the far broader topic of Affiliate Marketing in general (i.e. Contextual Advertising ? 10,000 in Global Monthly Search Volume vs. Affiliate Marketing ? 370,000 in Global Monthly Search Volume (Google AdWords Keyword Tool, Jan, 2010)).  If there is still too much competition at that initial level, an experienced affiliate marketer would then explore deeper within that same niche to where there is negligible amounts of competition (i.e. Contextual Advertising Services ? 500 in Global Monthly Search Volume [Google AdWords Keyword Tool, Jan, 2010]).

While many affiliate marketers may argue that such a low demand market is hardly worth the effort when the Affiliate Marketing market itself is so large, a shrewd affiliate marketer could have a relative monopoly of the search engine traffic looking for information on that particular type of affiliate marketing – Contextual Advertising Services.  Even if that specific niche is only 1/100,000th of the overall market, that is still a monopoly of a segment of the market that could represent several thousand consumers over a period of time.  It would produce levels of traffic that, while low, would still be otherwise unobtainable if that same affiliate marketer went into direct competition with all the other well established companies competing for the Affiliate Marketing market as a whole.  And if that niche keyword represents a specific service that is offered by highly specialized and well paid professionals, then not only has that affiliate marketer established the next level of their niche within the online marketplace and found the keyword that will serve as the foundation for their affiliate marketing website (Contextual Advertising Services), but they have also found their target market of affiliate advertisers that will pay for ad space on their site. 

This hypothetical affiliate marketer has achieved a level of success that far exceeds the inevitable failure of being an upstart website in a broader market flooded with larger, stronger companies and their websites.  It has accomplished this by delving deeply into a low competition niche, having a website that focuses on a specific niche keyword so as to perform well on search engines, and establishing a strategic business contract with affiliate advertisers whose services directly match the subject matter of that website’s content.

An affiliate marketing upstart can be tempted to use a business model that goes after the high traffic subject matter, but in doing so they can set themselves up for a fall by putting themselves in direct competition with established websites that will only outcompete them on search engines.  By pursuing a well defined niche, that same affiliate marketer will essentially circumvent the competition and monopolize a market segment that still represents thousands and thousands of individuals, despite being a smaller percentage of the market as a whole. If there is an affiliate advertiser with a product that they are willing to advertise on your website, then these professionals quickly become profitable clientele producing profit margins that would otherwise have been impossible for an upstart. In a highly competitive marketplace, it can pay to be an upstart affiliate marketer who simply has their resources focused in all the right niches.

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