One of the most common mistakes affiliate marketers make is not researching a niche/market before choosing an affiliate program to join.
It is not until later, after time and money have been spent promoting the product that the affiliate finally realizes nobody wants what they are trying to sell. This situation can be avoided by doing a little ‘niche marketing’ upfront.
A niche is nothing more than a segment of a larger market (for example: the niche ‘search engine optimization’ is a segment of a larger market known as internet marketing; weight loss is a niche or segment of a larger market called ‘health and wellness’ etc.).
Some niches have a reputation for being more profitable than others but as a rule “hot” niches have three common elements (high demand, low supply and profit potential).
1. High Demand. The more people who are actively looking for the information within your niche, the more visitors you will be able to attract to your website which in turn increases your chances of getting more affiliate product sales.
2. Low Supply. The fewer websites targeting the same information or topic as you the better your chances are of ranking high for your main keywords and getting free search engine traffic.
3. Profit Potential. There must be money in your chosen market. You must know that people who search within your niche are willing to pay for the product you are promoting.
But the absolute best niches to enter are the ones that have an excellent chance of getting high rankings in each of the three major search engines (Google, Yahoo and MSN) and of course this means a bit of keyword research.