The affiliate
marketer's
power guide to niche
product evaluation
If you
built and sold the
first teleportation device you would make some serious money. But... If
you built the network that connected the teleportation devices and
charge
a subscription fee to use it, you're set up for a future of
enormous
passive income.
This
is the view many entrepreneurs
are taking in the 21st century. Passive income can only be derived from
niche products with a sustainable market. We love niche products
because
they inherently don't have many competitors and solve the problems of
people
who have money to spend. It is no wonder affiliate marketers fall over
themselves in a rushed "grab-for-cash" type frenzy whenever a niche
product
with affiliate income opportunities launches. Unfortunately many are
too
late and end up scraping the bottom of the barrel for the last few
customers.
If we
analyze niche products
closely we can divide them into 2 distinct categories:
Un-Sustainable
Niche and
Sustainable Niche
Unsustainable
niche products
may or may not make money. If they do make money, they only do so for a
short period of time, then they need to be re-invented to become new
niche
products. Affiliates who get in early stand to profit. But sales
usually
diminish quickly once new competitors or hot products arrive to
saturate
the market. Take for example a car or a DVD player, when first released
the manufacturer sales margin would have been massive. Only the rich
would
have been able to afford one. But as competitors enter the market,
margins
start to reduce drastically and there is no longer much profit to be
made.
Mobile phone handsets are an example of this. The market is so
saturated
that the phones are often given away for free.
Sustainable
niche products
are those products that grow in value the more people know about them.
Drawing on the mobile phone example, the telecommunications network
would
be a sustainable niche. The more people on the network the more
valuable
the phone becomes to the owners. Affiliates of sustainable niche
products
stand to profit considerably more using this long-term strategy
compared
to the possible quick profit from unsustainable niche products.
Sustainable
niche products
can be sold to each individual in the market. They are inherently viral
as every individual who has the product can derive greater value when
they
convince others to use it. For example a fax machine has greater value
when everyone has one. With subscription or disposable services, there
is generally no market saturation. You can re-sell the same niche
product
back to the same customer again and again.
So
before you invest your
time, effort and money promoting another merchants product, ensure the
niche product passes the following checks:
#1)
Does the product meet
a continuous need of consumers? Can you sell it 10 years from now?
#2)
How viral is the product?
Will people rave about it or keep it as their secret weapon?
#3)
How big is the market
that would use this product? Is it likely to shrink in the next 10
years?
#4)
Does the product lend
itself to a subscription based, limited license, or a disposable
user pays model? Can you re-sell it to the same customer again and
again?
#5)
Do the product benefits
grow exponentially for every user that purchases it?
Here
are some examples of
sustainable (past-niche) products:
#1)
Internet Telephony
#2)
Online Auction
#3)
Online Dating Service
#4)
Customer Acquisition
Exchange
#5)
P2P file sharing services
If
you're an affiliate marketer
looking to derive sustainable passive income, make sure you market the
right kinds of product.
Author-Bio:
Michael Lever
Digital
Women ® is Registered Federal Trademark
Celebrating
11 Years
Rebecca
Hubbard
3800
Boquillas Cr - Granbury,
TX - 76048
817-914-4665
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