Generating ideas for niche marketing is where affiliate marketing begins. The concept, and process can seem confusing when we first begin, but with time good niche ideas just flow naturally.

Even though niche marketing might seem to be a daunting task at first, you must learn the process to be a successful internet marketer. Your painstaking research will eliminate markets that are too competitive, or just too large.

Niche Marketing Is Finding Smaller Categories

Since the entire process of generating niche ideas is an exercise of drilling down to smaller and smaller categories, just first consider that a market is a large category of anything that a group of people are interested in buying.

Markets are usually large and include categories such as automobiles, golf, fishing, pets, woodworking, photography, sports, computers, fashions, and on, and on, and on.

If you were opening a physical place of business you might have a 2 acre store with everything you could imagine within a single market for sale, but this is too broad to build an internet business on.

Micro Niches Make Niche Marketing Profitable

To be successful and profitable in affiliate niche marketing you will need to start generating niche ideas that are much smaller, and more specific to a need.

If you were interested in the wood working market, and wanted to drill down to some more specific and profitable niche ideas, you could begin breaking the market into micro categories.

You could first consider wood working, and then power saws, which is a niche of wood working, right? But that is still a pretty large market, so lets get smaller. Since the category, power saws, includes many different types of saws, let’s break this down further into circular saws, and then 7 1/4″ circular saws.

Then a smaller niche could be 7 1/4″ circular saw blades, or 40 tooth 7 1/4″ circular saw blades of a particular brand. These examples show you that with niche marketing, your job is to break it down into smaller micro niches.

Each time the niche market gets smaller, fewer people are selling the product and more visitors are buyers. A person might be just browsing around a wood working shop, not really intending to purchase anything, but when he is looking for a particular saw blade of a particular size, he is ready to purchase.