What Is A Niche Market In Affiliate Marketing?
Often times in affiliate marketing or in the whole topic of making money online you’ll hear people say “find a niche market to get involved in.”
So you might be wondering what that means?
It’s rather simple and we first need to determine something else first.
What Is A Niche?
A niche is basically a smaller part of a larger part or subgroup of a larger group.
In Biology you may have heard the term “niche” before. In biology it means an area where an organism inhabits.
While we aren’t discussing biology here, the topic is rather similar.
So in short a niche is simply a smaller portion of a larger portion.
Then What Is A Niche Market?
A niche market is a smaller market of a larger market. Let me give you an example.
Let’s start with a large niche topic:
Pet supplies is a niche market of the pet market.
Pet shampoo is a niche market of pet supplies.
Dog shampoo is a niche market of pet shampoo…
…and organic dog shampoo is a niche market of dog shampoo.
We can keep drilling down here of course but by now you get the idea.
Here is my attempt at a visual example.
Why Are Niche Markets Important To Affiliate Marketing?
For a number of reasons.
#1. More Targeted
Niche markets are extremely targeted. You might be thinking, so what?
Well, let’s take our pet supplies example again.
If you owned a store and a customer walked in and said;
“What is your best pet supply?”
That would leave a heck of a lot of options wouldn’t it? You probably wouldn’t even be able to help them without asking them what type of pet they have. Right?
But, if a customer came into your store and asked:
“What is your best organic dog shampoo?”
Not only would you know exactly what they wanted, but you’d also probably have an immediate recommendation for them.
Likewise, in niche affiliate marketing, narrowing a website down to the niche level let’s us more easily show them exactly what they want.
This leads to my number 2…
#2. Higher Converting
These types of websites are typically so targeted that they convert much better. Since we know what our potential visitor is looking for it’s much easier.
This leads to a high sales ratio.
#3. Less competition
This is critical for early success. If you were to build a website about a broad topic like “weight loss” you’d likely encounter some stiff competition right out of the gate.
However, if you were building a website about weight loss for women over 60, not only would you be more targeted, but there won’t be as much competition.
This means it’s easier to rank in the search engines and make money in the field than a broader niche.
So basically getting involved in a niche market in affiliate marketing allows you to get into a market that:
- Is Targeted
- Converts Well
- And has limited Competition
Win. Win. Win.