Welcome to the first lesson: How To Start An Affiliate Marketing Business For Free.
In this lesson you are going to learn the following:
What is a niche ?
A niche is a group of individuals that have the same problem and that are looking to solve them.
The term niche market represents a sub section of a larger market. Let’s take a domain in order to understand better. Suppose a general domain such as Electronics.
Now, Electronics is a large market. A sub section of this market can be Laptops.
In general we have to look for something more specific than Laptops. Therefore, we need to look for a sub section of the niche market. A sub-section of the Laptops niche market can be Toshiba Laptops and this is also known as a sub-niche market.
So if we draw the line, we have: A large market = Electronics; a niche market = Laptops; a sub-niche = Toshiba Laptops.
Large market= Beauty products; Niche market= Hair products; Sub-niche market = Anti hair fall products.
Large market= Cooking Recipes; Niche Market= Chicken Recipes; Sub-niche = Chicken salad recipes.
How To Start An Affiliate Marketing Business For Free
Choosing a good niche is one of the most important things you need to do for your business. Many people will tell that in order to succeed you need to choose a niche that you can relate to or one which you know it pretty well.
There are a lot of marketers that have business around their hobbies. Some have about Traveling, other about classical music or painting, books, coins, bikes, or other similar stuff. I even saw a few individuals that have sites about astronomy and even witchcraft.
I would suggest you to take a few piece of paper and a few minutes and write up to 10 ideas of what you can discuss right now for a full 45 minutes.
However, having a domain around your hobby is not all. There are a few extra steps that you need to take in order to assure that you will have a profitable business:
Choosing an active niche.
You need to choose a popular niche. Indeed, there are a lot of people that search for a problem online. In fact, there are over 3 billion internet users.
However, you have to realize that you will not be the only one that works within the same niche. You will have a lot of competitors within your niche.
Try to think about something popular. A few examples can be:
Very popular: Weight Loss, Make Money Online, Relationship advise.
Popular: Martial arts, Astronomy, Travel, Movies, Pets, Gambling.
Perfect: Men’s Suits, Yoga clothing, manual lawnmowers, snowboards, scuba diving and so on.
Now, since I am in a very popular niche, MMO, I could tell you to never go for a very popular niche. It is very hard to get into this market. I believe that I literally have thousands of competitors and if I didn’t master SEO, I don’t think that I would have get a visitor to my website.
If you choose a very popular niche, be prepared to either invest a lot of time in order to see have success or to invest money in ads.
A popular niche is still pretty hard to get into for a newbie. Of course, there are not the same amounts of monthly searches for them as for the very popular niches. However, those can be considered as “niche market”.
In order to be able to see success fast, you will need to choose a sub-niche market. You can choose anything similar to the niches from the category Perfect.
Choosing a profitable niche.
When it comes to choosing a niche, selecting a sub-niche is not everything. Now, you need to make sure that you will earn money from that niche.
So, how do you select that?
Well, you earn money by promoting a product to a person and if they buy it you will get a commission, right?
A lot of people tend to promote the products from places like Clickbank or Shareasale since they earn more money from it. However, I suggest you to take a look and promote the products from Amazon, since it is the most popular e-commerce store and nobody has any hold backs when purchasing from it.
Now, if you remember from my intro, I mentioned that Amazon gives you a different commission based on the category of the product that you advertise. Here is the table with all the commissions:
Don’t think small. If you will work hard, you will end up having more than 1000-2000 orders per day. The nature of your niche defines how much you will earn per month.
Let’s take a product with a price of $40.
Now, if your niche is in the category of 1% commission, per 1000 orders per day you will earn: $400 per day or $12,000 per month(for a month of 30 days).
If you get in a niche of 8%, you’ll get: $3200 per day, $96,000 per month.
See how significant this commission can be.
Make sure to select a niche category that has a good commission from Amazon.
*Of course you will be able to promote products from other places as well. But if you decide to promote only from Amazon, it is important to take this % commission into account from the very beginning.
Creating a Business Plan
To have a business plan is one of the most important things. You need to set a few goals from the very beginning. Therefore, I would advise you to take the same piece of paper and to write down the answers to the following questions:
What is the minimum amount of money that you want to make per month?
How much time would you invest in order to achieve it?
In how many months do you believe that you will achieve it?
What is the ideal amount of money that you want to make per month?
How many hours per week will you invest and for what amount of time in order to achieve it?
Treat those answers with seriousness. Try to look at it like a real world business. I know that some of you have seen those Youtube videos of guys claiming that you earn $100,000 in 90 days or stuff like that.
Indeed, it is entirely possible if you spend $60-80k in ads. Otherwise, it is impossible to earn so much money while starting from scratch.
For instance, for my website, I set different milestones from month to month. Milestones such as:
- Receive twice the organic traffic from the previous month;
- Create with 10-20% more posts than in previous month;
- Spend 2-3 days per month to promote on social media;
- Create 2-3 Youtube videos and so on.
What is important is to give yourself small tasks like I do.
Don’t jump and give yourself an impossible task like make $1000 on the first month on a website with 100% organic traffic. I will explain the following lessons why it is impossible to do that.
That was all on today’s lesson: How To Start An Affiliate Marketing Business For Free. If you have any questions, feel free to share them in the comment section below!