Don’t Be Afraid of Big Niches

Payday Loans, Weight Loss, Credit Reports, etc are considered Big Niches, although a lot of affiliates will call these “Saturated Niches”.  What they mean by this is that there are a ton of people promoting these niches currently and that creates a lot of competition and makes it harder to compete as bid prices are normally higher!

Most affiliates are told by other affiliates (often time other new affiliates) that they should avoid these niches because there is too much competition in them and they are too saturated! This is completely and utterly false, thus my reason for this post today…

saturated-niche

Long Tail Keywords actually have Volume!

Big niches are more saturated and there is more competition, but there is also a ton more volume and keywords that work in these niches.  In smaller niches, if you start getting into the long tail keywords of 3 or more words, you very quickly realize that you’re just not able to get any decent volume, while in bigger niches, you are able to go into these long tail keywords and still rake in the volume because there are just that many more people searching for these products or services!

There are also several other big advantages to bigger niches that most affiliates don’t take the time to think about…

More Offers to Split Test

Another great feature of bigger niches is the fact that there are tons more offers to split test within that niche.  The reason that this benefits you as an affiliate is that it allows you to have more companies that are competing against each other and really trying to make sure their offer landing pages convert really well.  Because of this, it’s very easy in these bigger niches to have Offer landing pages that convert extremely well!

In a lot of smaller niches there may be only a handful of offers and normally out of that handful of offers, there will be one big player and a couple small players in the niche.  This means that normally you’re running the same offer as most affiliates (the big player) and they have no real competition thus they aren’t constantly working on their landing pages to increase the conversion rates and stuff!

Higher Payouts!

Because most bigger niches have more advertisers wanting you to promote their product or service, the payouts tend to be quite larger than smaller niches.  This isn’t actually an advantage but what it does is that even though bid prices may be higher in “saturated” niches because the payouts are larger, it normally works out pretty decently, now I’m not saying it allows you to jump right into the short tail keywords and walk away profitable, but it does give you as good of a chance as anyone else entering the niche!

Long Term Earnings

Another nice feature of bigger niches is the fact that most of them have been around for a while, and they are going to continue to be around for a while!  Smaller niches come and go and sometimes they come and go very very quickly!  Bigger niches also tend to be a little more stable in terms of the profit they make then smaller niches for the most part!  Jonathan Volk actually wrote a little post about this today, so instead of talking about it a lot, I’m just gonna link to his post about how niches that have been around a while are longterm.

Conclusion:

So while, a lot of affiliates recommend to new affiliates to stay away from the big over-saturated niches, I say go for it, in fact, in my one on one mentoring sessions that I occasionally do, I almost always recommend new affiliates to jump into a couple big niches as their first niches!  I know you’re shocked…aren’t ya?

Comments

  1. While some big niches are worth jumping into, I think a new affiliate marketer should try a balance of 1 or 2 low competition niches and 1 or 2 higher competition niches. With a very competitive niche, you may find it difficult to get traffic even with long tail keywords. PPC is often not worthwhile for an affiliate in a competitive niche. You would be competing against the actual companies selling the product/service. Since these companies make more than you per sale, they can afford to spend more per click. If you also mix in a low competition niche, you at can stay motivated by seeing search engine rankings that are attained easier.

  2. You forgot to mention something. Profit margins in most of the big niches are low, so if you don’t know what you are doing and don’t have some good cash flow it’s not very recommended to go into them.

  3. Hey Derek, good post, but you didn’t address the ad spend budget that a large affiliate will have compared to a small or new affiliate getting into the same large niche. An affiliate with a large budget can afford to pay more per click per keyword, get more impressions as a result, see CTR increase as a result and get rewarded with a higher ranking and low CPC as a result of that – Not that same for a smaller affiliate with a smaller ad budget. Thoughts? Out of curiosity – how can I join your one on one mentoring sessions?

  4. You are correct, that affiliates should have a balance, however, most new affiliates don’t do this, instead they seem to only stick with smaller niches, which have a habit of not always lasting very long…

  5. I still recommend going into them. Even though the profit margins are low, the volume more than makes up for it, also, if you go long tail enough in these niches to get started, you’ll find that there are plenty of keywords that have high profit margins.

  6. This doesn’t matter, how much you have to spend versus how much another affiliate has to spend doesn’t really play much into if you can make it profitable or not. Now of course they may have higher payouts which allows them to bid more which is what I think you meant, but even so, there is still ALWAYS room to get in to a big niche.

    These guys that are the big affiliates had to start out on the bottom as well!

  7. Interesting theory, I like your arguments especially the higher payouts. Your right when you say advertisers are concerned with the views their ads will receive, so naturally they will target larger niches. The tough part is distinguishing yourself from competitors in that larger niche.

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