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Picking a niche for your affiliate marketing business

How do I select a niche?

Find a target audience, or a particular subject, that you know and love (-ex- football fans, college students, the vacation cruise industry, young professionals, etc.)
Do a google search on the niche, topic, product or service that you feel comfortable talking about on your web site: type "+topic +affiliate" into the google search box (where topic is your potential niche. -ex- travel with kids, or soccer skills.
Research popular search terms on sites like WordTracker, or Google AdWords. In AdWords, look for keywords with a lot of search traffic, and a lot of advertisers. Competition from advertisers in this case is a good sign - it means there are profits to be made on these particular search key words! Still, if you pick a niche with a lot of competitors, that means HIGH DEMAND but also HIGH SUPPLY. Try to go narrower within the niche, to find your own sweet spot. OR, look for a completely different nich with HIGH DEMAND but LOWER SUPPLY.
LinkShare is a good tool to use for determining which product(s) to market. They show you price/sale, commission/sale, and gravity (# of affiliates who have earned money from that product)
Register to become an affiliate
Advertise or review the product on your web site. Your web site should have rich and up-to-date content that is relevant to your target audience.
Sit back and receive your affiliate commissions.

Not sure what product to select? Here are some ideas to start the brainstorming process for you: