Affiliate Marketing - Finding the Right Niche

Your success in affiliate marketing is largely determined by the niche you choose to direct your efforts toward. A niche is just a small area of an existing market that hopefully you will be able to fill.

There are two schools of thought on finding the right niche. One school of thought argues for "being a small fish in a big tank," while the other argues for being a "big fish in a small tank." The question is whether you want to hop into a market that is already awash in affiliate marketers but is proven to have a lot of money circulating or to go into a market where there are few, if any, affiliate marketers but a small amount of money in circulation. Both of these ideas have strengths and weaknesses, so it really depends on your personal preference.

If you opt for the "small fish" option, it means you will be going into a market that already has a lot of competition for affiliate marketing, so you will have to find a way to carve a niche out for yourself. You can easily research what the other marketers are doing, and either join them or work out some unique angle or method to help you stand out from the crowd. You will need to do a careful analysis of the current trends and techniques and determine what is appropriate for you.

If you take the "big fish" option, you are moving into uncharted waters that may give you the opportunity to make a fortune, but just as likely will result in a complete bust. Introducing the concept of affiliate marketing in markets that do not already use this sales method can be risky. This risk is because so many affiliate marketers have used "black hat" (unethical) techniques elsewhere that the entire industry is viewed skeptically by those who do not use it. Further, even if your initiative is welcomed, it may turn out that there is very little money to be made in that particular market. The opposite is also true, you may suddenly open an entirely new market to affiliate methods and usually the first one in is the one that makes the most money.

As is the case with most things in life, your potential reward is directly tied to your potential risk. The "small fish" option carries little risk, but also means that you will have to struggle or be very innovative to make significant amounts of money. In the "big fish" option the opposite is true; there is a much greater risk of failure, but if you succeed the rewards can be much more than you would get elsewhere.