Now, let’s consider the term "affiliate marketing." An affiliate marketer sells other peoples products for them in return for a commission. An affiliate marketer does not work directly for the person who has the right to retail the product or service but, rather, as an independent contractor who only gets compensated for making a successful sale. The affiliate marketer can elect to vend just one type of item (as a specialty) or a large assortment of separate kinds of services or products. In either instance, the objective of any successful affiliate marketer would have to be to market to a niche or niches that had high demand and low competition. "High" and "low" are relative terms and so, in the real world, the marketer may never unearth the "perfect" niche but always endeavour to be as close to that objective as possible.
The initial thing an affiliate marketer has to do is to get hold of a source of affiliate offerings to sell and then find out which of those products are aimed at the best niches. "Best", in this sense, means those niches most closely approaching an ideal niche as defined above. To do this, the marketer must first do away with all products that aren’t selling very well and concentrate, rather, on items that demonstrate sufficient, proven sales volume so as to be worth the time, effort and funds that it will take the affiliate marketer to promote them profitably. From this list, the smart affiliate marketer then does away with all items that show a lot of competition. If 100,000 purple studded poodle collars are present on the globe and there are one million marketers trying to sell them, this would no longer be a money-making niche by reason of high competition.
Our example of the thirsty man stumbling across the desert may not be a worthy niche either, as it turns out, for the reason that there is only one customer and he is located very far from civilization. Putting it differently, the niche is too small to be profitable considering that the expenses to provide the desired item to that niche are too high. If this is making it appear that niche affiliate marketing is a bit more complicated than your first thought, you are right.
The difficulty with fad items like purple studded poodle collars is that they will 1) soon go out of popularity and 2) that when the word gets out that they are "all the rage," every company from here to Timbuktu will soon be manufacturing then in sufficient quantities to swamp this single, unique, money-making market, thus drowning it with competition. The affiliate marketer must, therefore, seek out products or services that would appear to possess a long lifespan. Toilet paper and dog food would qualify as products with a potentially long lifespan but they would be banned from the list for reason of high competition. All of these problems will quickly reduce the affiliate marketers list to a small number of products, perhaps no more than 100 to pick from. The good news is that all of these hundred products are at least, potentially, money-makers.
As an online affiliate marketer, there are really two, broad product categories to consider:
1) physical products that must be boxed and shipped to the consumer and
2) informational products such as e-books and software that can be delivered straight away over the net at reasonable prices with no freight or storage costs. For the purposes of this discussion, I’d like to focus on the second kind because of the advantages just stated.
While there are multiple web sites where you can locate informational and software products to promote as an affiliate marketer, I’d like to focus in on just one of them, as an example. That source is ClickBank and I mention it for the reason that it has several marked advantages to a web-based affiliate marketer. The most significant advantage of these is the capacity to show which of the thousands of offerings listed there the best sellers are. The best tool for this is a figure provided by ClickBank for every product called "gravity" which is a quantifiable, ever-changing number representing the quantity of recent sales. The larger the price the higher the sales.
So, your final job, then, in the selection process is to unearth keywords that represent niches with low competition and high demand. Using a keyword research tool you can detect which keywords have the greatest number of recent searches (highest demand) and, by utilizing a standard Google search using each of these keywords, one by one, you can determine the number of competing pages that exist for each particular keyword.