Competitive vs. Obscure: Which Approach Have You Had Better Luck With?

[MasterOfNone]

Here is what I mean. It seems to me that there are two theories for selecting a niche to go into. One is to go for a big, popular product that you know tons of people are buying on the internet. The problem is, you will have many, many competitors competing for the same customers. However, it seems to me that it the volume is high enough, there will be plenty of customers to go around for everyone.

The other approach is going really narrow in your focus. This way, you have fewer competitors, and you can dominate your niche more. However, it seems to me even if you get every customer looking for, say, charcoal aquarium filters, clicking through your affiliate link, thats not a huge amount of money even at the best of times. However, it is possible that your dominance will allow you make a good income even off a really obscure product.

So, which approach to you guy generally take in selecting a niche? The small fish in a huge, but resource rich pond? Or the huge fish in a smaller, poorer pond? I myself have been focusing on very small, narrow niches, but I've just started on a site for a much more competitive niche, to see how that works out. What do you guys think?

[beric]

Hi there.
That's an interesting question. In my view you are probably going to be more consistently productive with the not too popular scene. Today's opportunities and demands tend to make us very impatient and we tend to snap at the obvious.
It stands to reason though that if everyone is all over an opportunity, it is not going to last for too long giving productive returns. That's why there is always the encouragement to "get in early."

So, for me a true niche is the 'not beaten path.'

Beric

[Linda Buquet]

Well here's part of the issue with the big competitive niches...
It's not that there aren't enough customers to go around - that's not it.
It's that there is only so much room at the top. Plenty of buyers but if you end up on page 432 of the search engines no one will ever ever find you.

Additionally in highly competitive markets you are typically going to be up against stronger marketers. Let's take insurance for example - you'd be up against actual ins agents that do this for a living and know more than you, and there are tons, brokers tons more, plus insurance keywords in the news and on Dr and hospital sites PLUS all the strong affiliates that have been running insurance offers for years and already have a strong presence.

So I recommend STARTING with a smaller less competitive niche. Note I used the word STARTING. Once you learn to build sites and market and start to make sales and you know it all, you can go after the bigger markets if you want.

One of the most important things IMHO is for affiliates to experience their 1st sale and feel some sense of accomplishment fairly early on. Otherwise many just give up. So if you go after insurance or make money online markets, work hard, learn all you can and after 6 months you don't make a dime - are you going to keep going?

If you start with smaller niche while you are LEARNING it's easier to get started, easier to write content because it's more targeted and easier to market. Then later you can step it up.

[Niche]

It takes a really big fish to make noticable waves in a big pong

The beauty of obscure niches is you can quickly conquer that niche with some hard work and dedication.

A few websites in a few obscure niches could generate a very respectable income

[gallito89]

Personally I go after the smallest niches I can find, and then I start my domination plan until I get to the top of google for my keywords. The niches I pick are typically small enough that I only have 1 other competitor and it makes it more fun, the sole reason that I am doing affiliate marketing at my age is because I love the challenge. When I am going up against super affiliates making millions per year then there is nothing I can do about it, I will lose with my current resources. But if I find another relative newcomer to the field a little friendly competition can lead to more customers for both of us