Reader Q&A: What Are The Most Profitable Niches For Affiliate Marketing?

Filed in Affiliate Marketing, Niche Market Ideas by on January 9, 2014 41 Comments

I received an email from a reader named John asking a fairly common question so instead of just replying to him personally (which I did as well) I've decided to write the answer up as a post so anyone reading can benefit.

John asked "What Are The Most Profitable Niches For Affiliate Marketing?"

It's one of those questions that is kind of tricky to answer as almost any niche that has a lot of buyers and affiliate products to sell can be insanely profitable if done correctly.

However we will look at 3 different 'niche types' in this post which are VERY profitable for affiliate marketing purposes....

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 1. The big evergreen markets health, wealth and romance.

These markets are evergreen and profitable and forever will be.

The health market includes niches such as diets and weight loss, embarrassing problems, quit smoking and medical issues to name but a few.

See these niche 'hacks' on the paleo diet and the hot new Mediterranean diet

Wealth covers internet marketing, forex, gambling, affiliate marketing, multi level marketing, business opportunities and more.

Romance obviously refers to online dating, attracting members of the opposite sex, pick up, finding a husband / wife, getting your ex back and many more.

All of these major markets have near endless sub-niches to be explored and are definitely VERY profitable because people are desperate for solutions to their problems and willing to pay for them.

Most of the consumers are looking for a 'magic bullet' (or magic pill in the case of weight loss) and aren't really willing to put the effort into loosing weight, building an online business or improving their confidence so they can meet the opposite sex for example.

So when they inevitably fail (even though they didn't really try) you can go ahead and sell them another product that they can fail with all over again.

There's no end of affiliate products to promote both digital and physical either.

So definitely highly profitable as I'm sure you can see.

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2. Hobby and activities that people spend lots of money in.

Hobbies and activities are also stupidly profitable if you target the ones where the customers have a lot of money to spend on their passion.

When something makes someone feel happy or gives them pleasure they will spend money on it over and over again.

Hobbies, sports and other activities fit into this category perfectly. Think of expensive activities like golf, sailing, fishing, travel, hunting.

People are forever buying new equipment, tools and gear for their passions. They need accessories, they are willing to pay for training and guides or things that promise to make them even better at their activity of choice.

Endless sub-niches to be explored and no shortage of both digital and physical products available to promote as an affiliate.

Which is why hobby and activities are crazily profitable.

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3. Affiliate products and services which have high payouts.

This includes pay day (and most other type of) loans, private jet charter, yacht rental, online casinos, luxury goods such as watches, handbags and jewelry, travel and an almost endless list of others.

It takes just as much time and effort to promote a $7 ebook as it does a luxury yacht program or private jet charter that pays hundreds to thousands of dollars in commission per sale and you don't need to make many sales to make a serious profit.

The refund rate on high end products is much lower than on $7 ebooks too. People don't make rash decisions when spending thousands so if they buy something they usually plan to see the purchase through.

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People who buy high end goods don't have money problems so they've no problem spending their cash on luxuries. These are recession proof niches.

With products like pay day loans there's no shortage of people needing money and those who borrow once are likely to do so again. If you're bad with money you're likely forever bad with money. Poor people usually stay poor so they always need help.

Gamblers rarely quit so they'll be back time and time again to hunt out the new 'lucky' casino and grab that new bonus and with many casinos paying affiliates a percentage of a players life time losses you continue to get paid month after month.

If you'd prefer to follow money over passion then definitely pick a niche that fits into one of the criteria above.

All have endless customers, are high ticket, and are hugely lucrative.

Conclusion....

The big evergreen niches of health, wealth and romance will never be out of demand as people ALWAYS have problems they want solved and rather than work hard at it they'd prefer to buy a product and hope it performs magic for them.

People will never give up things that make them happy so hobby and activities are always going to be around and there's always some new equipment or gear to buy that promises to make them better.

You'll forever have both rich people who have an endless amount of money to spend on high end goods and poor people who are constantly seeking money who turn to loan companies and gambling.

So whilst there's no 1 niche that is the 'most profitable' for affiliate marketing (or any other) purposes if you want to get involved in big money niches then pick one of these three niche types.

Hope that answers your question John!

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Comments (41)

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  1. Gjaggi says:

    Hello,

    These ideas opened my mind. I am looking to try affiliate marketing for a long-time, but stuck on adsense. I am now looking to decide a niche for affiliate, I know how to SEO sites to rank high. I have a question; how do we decide the best niche/sub-niche based on competition? Because SEO is the only method I can rank my sites, and bring traffic, and if there is less competition on top, then only we can rank the sites. How do we know which site has less competition/good traffic? and could you suggest some niches which match this criterion?

    thank you so much.

    • NicheHacks says:

      Hey Gjaggi, thanks for commenting.

      Well if you are confident you can rank sites and that is what you plan to do find low competition keywords with buyer intent and focus on them.

      How do you find your keywords for your Adsense sites? Do the same process for these affiliate sites too.

      I wouldn't recommend all your traffic just being from search engines though as they are unpredictable. Bring in traffic from more sources to diversify.

      • Gjaggi says:

        Hey,

        Thank you so much! You've been an inspiration throughout. The way you wrote about TIWIB, and how they drive insane traffic from social media is mind blowing. I am amazed that even going viral on a social site like pinterest for one day can build our brand identity huge. Am I correct? Now I need to get going with my first affiliate site, come up with a unique idea and learn how to drive traffic from each source. I feel Adsense is not so rewarding.

        Btw, I mainly work on upcoming smartphones and rank on top to drive traffic from GOOGLE, And yes SEO is unpredictable sometimes, if not done in the right manner.

        Hey thanks again and I hope I will have your full support while I go on a new online journey of affiliate marketing, changing the lives of people for better.

        Best regards,
        Gaurav

        • NicheHacks says:

          Hello again Guarav,

          Yes sure if you go viral across the web or a certain platform it can cause your brand to be recognized in your niche overnight. As pointed out TIWIB went viral overnight thanks to someone posting about them on the first page of Reddit and it took off from there.

          I used to do similar to what you do now around 2 years ago - use Google news to find about upcoming but unreleased products and rank sites or YT video reviews before launch then cash in when they were finally released with Amazon affiliate links.

          I found it was getting harder and harder as Google changes their algorithm constantly so I moved onto other things.

          Seems to me you can continue doing what you do but swap the adsense for affiliate links.

          • Gaurav says:

            Thank you so much mate. I deeply appreciate your honest help and suggestions for your readers. There are very few people online who are generous and helpful like you. Keep the great work up!

            I will kick myself harder and hope that one day I will reach there.

            Hey I really like the whole concept of your website, your knowledge and may I ask, how you started and what all have you done step by step to get you here? Have you written a post on that like most other successful bloggers do>

          • NicheHacks says:

            Hey Guarav, thanks for letting me know you enjoy my work. I haven't written a post on that subject yet but there's more info on the about me page. The blog is only around 3 months old so not sure it's a success quite yet but it's going well.

  2. jake says:

    I like the way you don't sugar coat the realities surrounding the motivations (or lack thereof) of the buyers. It's not a put down of them on your part, just a very accurate description of human behavior. You tell the truth, and I appreciate that very much. Thanks.

  3. Finding a good niche within the hobbies category is a great idea because even though I don’t have many hobbies of my own, there are a lot of hobbies I would have liked to have gotten involved in. So I can sort of experience the hobby vicariously through being an affiliate in that area, learning everything there is to learn about it and sharing that knowledge with others. And if it turns out to be not very lucrative as an affiliate niche, well, at least I will have learned a lot about the hobby! :-)

  4. Darmi says:

    Hi Nick
    I am newbie and looking to start a niche. I do not have luxury to spend more money because I have debt.
    Any help where do I start finding good profitable niche than I will have website and on ..an on.
    Thanks
    D

  5. David says:

    Hi Stuart, Thanks for all the great info here. I have a strategy that maybe you could be kind enough to advise upon?

    Let's take your info regarding the Yoga niche - I am thinking of making a main Word Press page myself and then build individual pages using software mentioned on your blog called "speedxxx" (can't remember full name 555) These pages can be quickly constructed and easily linked to each other via contextual links. Obviously making sure each page-product are closely related plus the normal traffic generation techniques, do you think this is a viable way to build an authority site Stuart and also overcome this idea that some Amazon products sell whereas some don't?

    Any advise would be much appreciated : )

    • NicheHacks says:

      Hi David,

      Sounds like you're trying to mix together 2 totally different methods that don't really compliment each other.

      It doesn't sound like an authority site to me - an authority site is a site which is one of the best, if not THE best, website in it's niche. A hub for people in that niche to find out everything and anything on the topic. High quality content, a team of writers, a site so good that everyone is talking about it and linking to it. Etc.

  6. David says:

    Thx for reply Stuart much appreciated. I'll go with an authority site, use long tail words initially, get traffic and hopefully build up site which will be found on various search terms. Any advise upon this and do you think wp sites load slowly?

    • NicheHacks says:

      WP can load slowly if too many plugins etc used but they are fine if you don't over do it and I wouldn't persoally work with any other platform. So easy and powerful.

  7. Darmi says:

    Hi
    This is a very good tips to start with once I have decide with my niche I will buy domain , webhosting service and auto responder. Do you know any one can help me with setting up website and SEO process to rank site to build traffic.
    Thanks
    D

    • NicheHacks says:

      You can set up a website yourself, it's very easy, and all the information you need if you get stuck is free online.

  8. David says:

    Check out rankyaseoservices on youtube for seo and vids how to build a word press website.

  9. Darmi says:

    thank you david

  10. I am currently on adsense and two other affiliates. This information is very helpful especially after revenue from adsense had drastically dropped.

    Thank you for the tips.

  11. Rob says:

    Hi,

    Please re-send the AFFILIATE MARKETERS TOOLBOX. This email was not received for some reason.

  12. I think for internet marketing owners who want to success online should follow the steps of the experts who have already success online.
    In order to boost your online business, you should consider link building, SEO, participate in blogs and forums, write and submit your articles to ezines, make use of Facebook and other social media, and consider investing in paid advertisement to expose your site.

    • NicheHacks says:

      Hey Lawerence, yep following a proven business model and a tried and tested system flat out works. No point in trying to re-invent the wheel.

  13. sa seo says:

    Hi Stuart; thanks for all the work you do - makes my life a lot easier! Just one point though; I`m running Avast Antivirus, and it gives me a big red no-no while your site is opening up - hope you don`t have malware or trojans or something!!

    • NicheHacks says:

      Hi Sa, glad I'm making your life easier. :D

      I run Avast myself and I don't get any problems opening it. I'd check your machine. My web host also runs a test every week to check if there's any spam / hack problems and it's all clear.

      • john says:

        hi Stuart, thanks for the zippy comeback! yeah maybe there was something else trying to crap me out; had the same thing happen after I closed your site.

        One of these days I will be able to attack some niches - right now my back is to the wall, trying to make some money with web design and local seo - got my first nibble and it looks like it may happen; thanks again for your effort!!

        • NicheHacks says:

          You can create a site based around most niches pretty cheaply John. Don't let that put you off. Good luck with your web design and SEO services though.

        • sa seo says:

          ha ha, I know! My problem is that "cheaply" in your world is not cheaply in my world.
          Example: buy an expired domain for $9 (R110.00) 1$ hosting (R120.00 PA). Buy articles at say $5.00 each, need + - 20 (for web 2.0`s), $100= R1100.00, buy 5$ backlink packages from fiverr (for example), another R1100.00

          Etc, etc, so a really frustrating scenario - that is why I had to "find a job", or start a l`il bidness to make some dough to get going again.

          Thanks for caring!!

          • NicheHacks says:

            John most of those things you mention aren't needed.

            You don't need an expire domain to start a new site. Just buy a regular domain for $10 from NameCheap.

            Cheap shared hosting with HostGator for $4.99 a month (or maybe even less)

            Blog on a topic you know well and write the articles yourself. $5 articles are junk anyway.

            Never point backlinks from Fiverr or any other source you buy for so cheap at your money site, you'll end up deindexed from Google not ranking.

            You can be up and running for about $20 (domain and hosting) if you really wanted to be.

            I think offering a service is a great way to make money and build up your bankroll however.

  14. john says:

    hi again Stuart; yep, whether I go your route or mine (expired domain + super cheap hosting,) I can get going after Friday; however that cost is only the beginning because the REAL work starts after that - the backlinking process.
    My opinion (for what it`s worth) on this subject is as follows:

    Some linking can be done for "free" - directories, comments, but "pillowing needs to be done. This is where web 2.0`s come in. They are free to set up but require some backlinking to them to add "weight".
    Thereafter a PBN must be instituted and this is where the cost comes in.

    On a brighter note for me I have a corporate karaoke gig happening 1st Aug and will make the dollar equivalent + - 270 so I will have a bit of "seed' money

    so; - YAY!!

    Also it looks like my first web design job is happening soon.

    Still not sure what niche to go for because I will build only "Authority" sites; got my fingers burned with tiny niche sites, but looking into it - your ideas all solid, so thanks for that!!

    • NicheHacks says:

      Hi John,
      You don't need backlinks to get traffic to a site. Google is not the only source of traffic.

      You certainly don't want to be building forced links to your authority money site. Sure with small disposable niche sites it's OK as you expect to churn and burn or sell them on but with your main money site it's too risky.

      Real authority sites can easily get traffic from blogs, forums, social media, video, email, content marketing etc.

      And most of these things don't have to cost money.

      See these resources....

      http://nichehacks.com/increase-website-traffic/

      http://nichehacks.com/promote-blog-posts-blog-traffic/

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