How to Choose a Profitable Niche for Affiliate Marketing – 4 Step Formula

Selecting a niche is probably one of the most important decision you have to make for your affiliate marketing business.

If you don’t get this right, right from the start, you are going to face a lot of problems going forward.

You do not want to choose a niche that nobody is interested in, and you never want to choose a niche that you can’t profit from.

The myth about every niche is profitable is kind of untrue, especially for affiliate marketing.

Not every niche has affiliate products, and not every affiliate product is profitable.

So, in this article, I am going to share with you the 4 step formula to pick a winning niche.

Without further ado, let’s dive in…

#1 Step: Determine if there are Many People Interested in Your Niche

In this step, you’ll need to use a keyword research tool to help you determine if there is a size-able amount of people interested in your niche.

Tools like Google Keyword Planner, Long Tail Pro, and Jaaxy, are great keyword research tools.

So, what I’ll normally do is when I have a niche idea, I will pen it down somewhere.

And, think of some relevant keywords that people will search for if they are interested in the niche.

It would help you a lot if you create avatars to deeply understand the people in your niche.

With that, I will put those keywords into the keyword research tool and you will see some results like this:

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What you are looking for in this step is the “Average number of searches per month”.

Generality is key in this step, because you don’t want to think of keywords that are too niche.

You want to think of broad keywords, like those that starts with a “How to”, “Ways to”, “Steps to” or “Tips to”.

Here’s an example…

Make Money Online Niche

Keywords

Average No. of Searches

How to Make Money Online

156,866

How to Start an Online Business

3,831

How to Make Money Online From Home

5,534

Total

166,231

Weight Loss Niche

Keywords

Average No. of Searches

How to Lose Weight Fast

50,126

How to Stop Overeating

864

How to Lose Weight with Exercise

651

Total

51,641

These are just some of the popular niches that are highly profitable and competitive.

But, you need to know that competitive doesn’t mean that you’ll not have a chance to succeed.

The chances are equal for everyone, whether you are a newbie or a veteran. You just need to have the patience and the perseverance to pursue in what you are passionate about, and what you believe in.

There are many elements that makes up a profitable affiliate marketer, and a competitive marketplace isn’t one of the element.

Now, I would say that if there is a high volume of search (> 1,000 searches per month) on several generic keywords (5 keywords and above).

Please note that this is just a guide and by no means a hard and fast rule. You have exercise your judgement.

So, if there are many people searching for those keywords, you can move on to the next step.

#2 Step: Choose the Right Kind of Affiliate Products

Now, it boils down to the numbers…

If you intend to earn $3,000 this month, and you are promoting a product that pays you only $2 per sale…

You’ll need to sell 1,500 products in order to achieve your goal, right?

That is quite a crazy amount of products you have to sell.

Now, on another scenario, if you were to promote a product that can earn you a $500 commission per sale.

You’ll only need to sell 6 products, right?

So, how profitable you are as an affiliate marketer, really boils down to what affiliate products you promote.

I am sure as an affiliate marketer, you want to create a business that will help you get out of the rat race, right?

So, it is super important that you select the RIGHT kind of affiliate products to promote.

I would recommend promoting either one or both of these affiliate products:

Affiliate Product Type 1: Recurring Commissions

The first kind of affiliate products you should promote are those that pays you recurring commissions.

These recurring commission affiliate programs are very common on membership sites.

Normally, membership sites will provide some kind of subscription based services like a course or a software tool.

So, as long as you refer someone to the membership site, and that person stays as a paying customer, you get paid.

This is a very good way for you to grow your affiliate business from the ground up.

Because, as you send more people to the membership site, and as the size of the members grow, your income will grow as well.

Affiliate Product Type 2: High-Ticket Commissions

The second type of affiliate products that you should promote are high ticket products.

If I sold a product for $997, and I profit 50% commission of that sale, I am going to earn around $500.

But, you need to know that this kind of products, does not get sold as frequently as those low ticket products.

So, I recommend promoting a combination of the 2 types of affiliate products I’ve mentioned above.

Do some due diligence on your selected niche, and find out whether or not it has the 2 types of affiliate products.

And, if there is, then you can move on to the next step.

Step #3:  How Comfortable are You with the Niche?

This is probably the most important step!

Because, as an affiliate marketer, you are going to build an authority in the niche.

Which means you are going to be the “go to” person for information related to your niche.

And, if you find it tough to think about topics to talk about every single day, you are going to struggle with the niche.

99% of the time people quit, because they just don’t know how to progress with the niche.

Let me give you an example…

Example #1: The Feng Shui Lady

There was once a nice lady who seek for advice on her niche idea, “Feng Shui”.

She was very passionate about it, and she can’t wait to get started with that niche.

And, when I ask her if are any profitable affiliate products to promote, she said yes!

But, she was a beginner in that niche, so her learning curve is really steep.

And, because she is a beginner, she find it tough to provide any value to the people in her niche.

That was the reason why she failed in that niche, and shifted her focus somewhere else.

Example #2: My First Fail in Affiliate Marketing

You see, I studied economics and finance in my university days, and to be honest, I have a lot of knowledge about investment.

But, I have only slight interest in the investment niche, and I am not an avid investor.

And, I don’t aspire to be an investor until I have huge capital to invest.

So, I couldn’t bring myself to create content around the niche.

Which led to my first failure in affiliate marketing.

Honestly…

If you want to be successful in affiliate marketing, you have to be consistent.

Which means that you have to constantly post useful content on your website or your social media channels, at least once or twice a week.

And, if you struggle to find good topics to talk about, you are most likely going to fail.

A good exercise for you is to think of at least 30 – 50 topics related to the niche.

Before you jump in to create the content, ask yourself, are you comfortable talking about those topics you’ve thought of.

If your answer is yes, then you can move on to the last step.

Step #4: Are there Worthy Competitors in Your Niche?

Contrary to the believe that when there are a lot of competitors in your niche, the market gets saturated.

While this may be true, but this is an indicator that shows your selected niche is profitable.

Think about it for a minute, if a niche is not profitable, and there is not many people interested in the niche, will entrepreneurs go into the niche to build a business?

I don’t think so!

So, having a lot of competitors in your niche actually shows that it is profitable.

Of course, you will competing with many entrepreneurs, but there are many ways to beat them at their own game.

Even if it means that they are an expert in their field. There is an equal chance for anyone to succeed.

However, most people just do not have the patience and the determination to see their business through.

That’s probably why more than 90% of the people fail in affiliate marketing.

Who are your real competitors?

You have to be careful of the meaning “competitors”.

If you enter a niche where there are many publication houses and magazine websites, plastered all over the internet.

That is not a good niche for you.

You are basically competing with corporations that have hundreds of content creators, and you know that’s not going to work out for you.

You should be looking for individual affiliate marketers, someone just like you who have succeed in the niche.

Someone who has created a successful website or a social profile with lots of content.

They are the competitors that you should mimic for your business at the start…

Because, they have already found the success formula!

What works for them, is probably going to work for you, for as long as you are in the same niche.

If you can find 5 to 10 successful affiliate websites in your niche.

You know that your selected niche is going to be profitable.

And, if your selected niche passes through the 4 steps I’ve mentioned above, you have yourself a winning niche.

Final Word

There you have it!

The 4 step formula I use to pick a profitable niche.

I hope this article can help you safely pick a niche and know that it is going to work.

Like and share this article on Facebook and Twitter, and do subscribe to my YouTube Channel to get my latest updates.

If you have any questions, or any suggestions to improve the formula, feel free to leave it in the comment section below.

Thank you and all the best to your affiliate marketing business!

Your friend,

Jack

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3 thoughts on “How to Choose a Profitable Niche for Affiliate Marketing – 4 Step Formula”

    • I would recommend to target only one niche for each website. And, if you are just starting out, I would suggest that you focus on just one niche.

      Make it a success, employ people to run your website, and when you have more free time, you can start another.

      Hope this helps Wiebren!

      Your friend,
      Jack

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