Over the years, affiliate marketing has emerged as one of the popular methods for making money online. It is a setup where an affiliate marketer earns commissions by promoting products of brands, while brands benefit from the sale.
Here are some numbers by Demand Sage that’ll give you a sense of the ongoing expansion of the affiliate marketing industry
- Affiliate marketing has a market value of over $17 billion as of 2023.
- It is estimated that affiliate marketing spending in 2023 will be around $13 billion.
- 16% of online orders in the United States come through affiliate marketing.
- Affiliate marketing is used by 83% of marketers to raise brand recognition.
- 80% of brands have an affiliate program.
- Bloggers and review sites are the leading channels for affiliate marketing.
So the numbers clearly depict that affiliate marketing is a highly lucrative business that generates revenue using the internet. However, to achieve substantial success it is essential to find the best affiliate marketing that is highly profitable and helps you differentiate from the competition.
This article is all about finding the best affiliate marketing niche to kick-start your journey and make some huge bucks by recommending products.
What is Affiliate Marketing?
Here’s the perfect definition of affiliate marketing by Pat Flynn:
“Affiliate marketing is the process of earning a commission by promoting another person’s (or company’s) product. You find a product you like, promote it to your audience, and earn a piece of the profit for each sale that you make.”
The affiliate marketing model focuses on three important components:
- Advertiser: Refers to the business that will be paying out the commission.
- Creator/Publisher: It refers to an individual or business that will sign up for the program and earn the commission.
- Consumer: Lastly, the final piece of the puzzle is the consumer. When a consumer buys a product or service using an affiliate link, the creator earns a commission paid out by the advertiser.
Are you a budding content creator, planning to make money online?
Then, here are some must-read guides:
- 6 Practical Ways for Content Creators to Make (More) Money
- 10 Must-Have Social Media Tools for Creators
- How Creators Are Using Coupons To Boost Sales
Top 7 Affiliate Marketing Niches: Most Profitable in 2023
Do you know there are over 10,000 affiliate marketing-related services and companies available globally belonging to different niches?
Hence, picking one of the many available affiliate marketing niches can be intimidating. For picking the winning niche one has to work on several key factors, such as keeping up with global trends, identifying the audience interest, and many more.
But you do not have to worry, because we have done the hard part for you of analyzing and aggregating the best 7 niches for affiliate marketing in 2023. If you want to explore additional lucrative niches, feel free to check out our affiliate niche finder tool for more ideas.
Okay, so without further ado, here is a list of profitable niches -
As per an article by Techjury, globally there are approximately 1.35 million tech startups around the world, and there will be 50 billion smart devices by 2030 that’ll collect, analyze, and share data.
All these stats definitely prove that technology has penetrated deep into our lives. As humans, we are dependent on various smart devices to conduct our daily activities. Therefore, without any doubt, technology is one remunerative affiliate niche.
Technology is an ever-evolving industry where innovations are happening every day and there will always be something new to explore. It offers a large market and as a creator, you can cover topics like mobile applications, software development, website development, and much more, the list is endless.
- The biggest advantage of technology as an affiliate niche is that it has several topics and opportunities to cover.
- Digitalization is at its peak since the Covid breakout, resulting in new requirements.
- You will need excellent technical expertise for promoting products within this niche.
- Since it is such a wide industry, there’s a lot of competition therefore, you’ll need a strategy to outrank the big players in the market.
2. Beauty and Fashion
Beauty and fashion is a mainstream niche and just like technology, it has several sub-niches to offer. For example, you can create content on vintage dresses and accessories while keeping fashion as the primary focus.
Again let’s crunch some numbers to explore the potential of this industry as an affiliate marketing niche -
The beauty industry generates over $100 billion in revenue worldwide. (Source: Statista)
- Men's personal care market is projected to hit $276.9 billion by 2030. (Source: Allied Market Research)
- Skincare is projected to generate up to $177 billion by 2025. (Source: Statista)
Cosmetic retailers report $17.09 billion in online sales. (Source: Digital Commerce 360)
The world of beauty and fashion is a lively and dynamic niche, where new developments and trends are constantly emerging. You just have to keep yourself updated with what people are looking for and follow the latest and emerging trends. It will also help you in planning your content and attracting your target audience.
From luxury brands to small businesses, there are many profitable affiliate programs that you can sign up for. For example, Shein’s affiliate program offers a 10%~20% commission on each referred sale.
- Firstly, fashionable products are and will always be in demand, therefore, making it a highly profitable affiliate marketing niche.
- Secondly, as I earlier mentioned, there are numerous sub-niches within the broader fashion niche, providing ample opportunities to explore and promote products.
- Competition can be intense in the beauty and fashion niche, requiring careful research and strategy to stand out.
- Creating a unique and appealing sense of style is crucial for success in promoting fashion products, which may require specialized skills and knowledge.
3. Health & Wellness
Health and fitness is an evergreen industry and people are ready to pay unhealthy amounts. This is an industry that gained significant attention after the coronavirus pandemic. Here are some of the rewarding verticals of health and wellness in terms of affiliate marketing:
- Personal care
- Preventative medicine
- Ayurvedic supplements
- Mental health
- Weight loss
and many more.
As per Statista, the health and fitness industry’s total revenue is expected to show an annual growth rate (CAGR 2022-2027) of 6.56%, resulting in a projected market volume of US$10.26bn by 2027.
- Health and wellness is a niche that appeals to a wide range of people, making it easier to find potential customers.
- As people become increasingly interested in leading healthier lifestyles, the demand for health and wellness products continues to grow.
- In some cases, you might need to be a subject matter expert, for instance recommending your audience pharmaceutical products.
- Health and wellness is a sensitive topic, and promoting certain products or services can be controversial. Affiliates must be careful not to make false claims or give medical advice.
4. Wealth Building
The pursuit of wealth is a universal desire, yet few possess the knowledge or expertise to achieve it. As a result, there is a growing demand for solutions that can guide individuals on their path to financial success.
This need presents a range of opportunities for wealth builders to capitalize on and offer valuable solutions to those seeking to improve their financial standing.
What is wealth building?
Here’s the perfect definition of wealth-building by FortuneBuilders
“Wealth building is the process of generating long-term income through multiple sources. This refers to more than active income and instead includes savings, investments, and any income-generating assets. The wealth-building definition relies on proper financial planning and insight into one’s future financial goals.”
Quick stat check:
The global financial advisory services market was valued at $79.4 billion in 2020 and is projected to reach $135.6 billion by 2030, growing at a CAGR of 5.8% from 2021 to 2030.
While wealth building has immense potential as an affiliate marketing niche, it is also a complex and challenging field that requires a significant learning curve. After all, you'll be guiding individuals on their journey to achieving financial success and stability.
Some common sub-niches in this area include stock portfolios, real estate, mutual funds, precious metals, peer-to-peer crypto loans, forex, etc.
Okay, let's see some of the pros and cons if you’re planning to recommend financial products to your audience and earn affiliate commissions in exchange.
- While technology and fashion are heavily saturated affiliate marketing niches, wealth building stands out as an exceptional option due to its relatively lower competition and the potential for high commission rates per lead.
- A prime example of this is the Coinbase affiliate program, which offers affiliates an impressive 50% of trading fees for three months.
- With increasing numbers of individuals seeking ways to improve their financial standing and build long-term wealth, the market for wealth-building products and services is substantial and is continuing to grow.
The primary drawback of this niche is its complexity, demanding a significant learning curve.
When promoting products in this niche, it's crucial to ensure that they will be beneficial for customers over the long term, which requires an understanding of the products and services being offered.
Due to the nature of the products and services offered in this niche, the sales process can be more prolonged than in other niches. This is because potential customers may be hesitant to invest in products that promise to make them wealthy, and building trust and credibility with them can take time.
Lifestyle is a massive niche that encompasses several topics that people are constantly searching for ways to improve their lifestyle. This extensive domain includes many evergreen sub-niches like productivity, education, self-development, sustainable living, ecological products, etc.
As Instagram continues to explode in popularity - over 1.3 billion users in 2023 - so does the visibility and reach of lifestyle influencers. In recent years, Instagram influencers have successfully attracted a large, engaged audience by promoting their lifestyle.
Apart from lifestyle and self-improvement blogs, the niche includes a myriad of online programs, courses, training, books, videos, etc. In fact, we believe that lifestyle is a noble affiliate niche where you get to help people in increasing their confidence and self-esteem, achieve goals, succeed in their careers, and overcome obstacles.
- Lifestyle products and services are always in high demand, as people are constantly seeking to improve their quality of life.
- The niche can be a bit challenging for new affiliates to establish themselves and gain a foothold in the market.
- The lifestyle niche is heavily influenced by trends and fads, which can quickly come and go. This means that affiliates operating in this niche must keep up with the latest trends.
Many aren’t aware but gaming has long become a mainstream industry. Nowadays gamers are not just buying video games but a ton of in-game items such as weapons, equipment, accessories, cosmetics, and materials or resources. As a result, creating a huge opportunity to capitalize on the niche if gaming is your thing.
To give you an idea of how big the gaming industry is, here are some stats by Truelist:
- Approximately 3 billion people worldwide play video games.
- There were around 14.1 billion mobile game downloads in the Q1 of 2021.
- By 2025, the PC gaming sector alone will accumulate $46.7 billion.
- 83% of video game sales happen in the digital world.
The gaming niche is highly scalable and gaming digital retailers like 2GAME offer a lucrative affiliate program that empowers you to earn money by spreading the word to other video game fans out there.
Gaming influencers are popular on YouTube, making real profits while playing and reviewing games online. Gamer enthusiasts look up to these content creators for personal recommendations before buying a new console or video game.
- Gaming offers some highly profitable sub-niches such as gaming equipment, collectibles, PC or console-exclusive game reviews, etc.
- This niche represents a very popular hobby, making it a highly scalable niche for affiliate marketing.
- The gaming niche may have restricted options for partnering with companies and are only limited to gaming-related companies.
One of the recent emerging niches is gambling, a niche that benefited from the existence of the Internet. As per a report by Grand View Research, the global online gambling market size was valued at USD 63.53 billion in 2022 and is expected to grow at a CAGR of 11.7% from 2023 to 2030.
These numbers clearly indicate that the gambling industry is growing at a rapid pace. More and more people are throwing their money to try their luck and the trend shows no signs of slowing down. In short, gambling is a potentially profitable and exciting affiliate marketing vertical.
There are two ways in which the commissions are paid out to the affiliates in the gambling niche:
- Firstly, on player losses.
- Secondly, on player activity
With that being said let's see some of the pros and cons associated with the gambling affiliate niche.
- Gambling is a slightly narrower niche with great potential.
- Online gambling affiliate programs often offer high commission rates, which means you can earn more money per sale or lead compared to other niches.
- Online gambling is a highly regulated industry and there may be legal concerns associated with promoting certain types of gambling websites.
- Gambling can be a controversial topic, and some people may view it negatively. As a result, the promotion of online gambling products is extremely difficult.
How to Choose the Best Affiliate Niche in 2023?
So finally you know the best niches for affiliate marketing in 2023 and make money while sleeping. But with so many options available it could be quite difficult to make a wise decision and run an effective affiliate marketing business.
Again, we’ve something special for you, we will be sharing a list of common best practices that’ll help you in identifying the perfect affiliate marketing niche to begin your journey with.
Know Your Interests
To begin with, think of the products that you’re passionate about or products you use on a daily basis and would love to recommend. Take proper time in researching your proposed topic and always remember that trial and error will be an integral part of this step.
To stand out from the competition doesn’t mean that you should go after a unicorn affiliate marketing niche that no one is searching for. Better keep up with the latest trends, follow the buzz, and hunt for opportunities where the trending topics intersect with your interests or expertise.
Look For Profitability
The best marketing niche should also be profitable and help you earn decent commissions on promoting the product and facilitating its sales. Therefore, the next step is to determine the potential of a niche in terms of generating revenue. While signing up for an affiliate program make sure to read their commission schemes.
If you believe that a niche can bring in high revenue, chances are that you’re going to face cut-throat competition. It often happens with mainstream niches such as technology. To keep your affiliate marketing efforts still in the race we recommend choosing a niche with high search volume and lower competition.
If you still plan on going with a highly competitive niche, follow the famous influencers in that niche and try to find an angle that they haven’t covered before.
Here are some must-read articles:
- Top Instagram Coaches to Follow in 2023
- Top Indian Gaming Influencers on YouTube in 2022
- Top US Gaming Influencers on YouTube in 2022
- Top UK Gaming Influencers on YouTube in 2022
Begin your Affiliate Journey with Shopper
Congratulations on taking the first step towards starting your journey in affiliate marketing by choosing the right niche. It can be overwhelming to navigate through the nearly 10,000 affiliate-related services and companies available.
But fear not, because there's a way to skip the tedious process of signing up for an affiliate program and waiting for approval, only to repeat the process again and again. With Shopper, you can bypass all of that and get started right away.
What is Shopper?
Shopper is a platform designed for creators that streamlines the entire affiliate marketing process.
By creating a free Shopper account, you can easily become affiliates of 25,000 brands without any delay, and manage all their affiliate links in one centralized location. In addition, the platform offers pre-designed product displays that have been proven to generate 25% more sales, enhancing the earning potential.
Shopper is incredibly user-friendly, and includes a range of powerful features to help creators optimize their earnings.
Shopper offers various resources and application programming interfaces (APIs) to content creators, which enables them to conduct e-commerce on any platform.
In simple terms, Shopper.com is a platform that allows creators to create a store connected to over 25,000 affiliate accounts. Users can customize their stores with custom domains and logos. The platform offers a lifetime deal that includes access to thousands of brands, API access, one premium store, one custom domain, three user accounts, unlimited products, and a lot more.
Prominent Features of Shopper.com
Let’s see some of the prominent features of creating your online store for your affiliate products.
1. 25K brand partnerships
Shopper plugin offers several impressive features, which include the ability to quickly become an affiliate with 25,000 brands without manually signing up for each program. This saves time and effort, making it more convenient for creators.
2. Centralized link management
Another feature is centralized link management, which allows for easy organization of multiple affiliate links in one place, simplifying the tracking process.
3. High-converting product displays
Shopper's free WordPress affiliate plugin includes high-converting product displays that have been tested and proven to generate 25% more sales than standard links, providing users with the potential to earn more revenue with the same amount of traffic.
4. Fully Customizable Themes
Shopper creators get an opportunity to create a fully personalized eCommerce website with fully customizable themes. With the customization feature, you get options for personal branding like adding your logo as the background image for your product pages.
5. Enable Blog
Shopper platform lets you create a blog for your store that allows you to curate rich content to attract organic traffic. For generating affiliate sales you need to stand out in the crowd and drive traffic and sales to your business, with blogging you can definitely achieve that.
6. Dedicated Analytics
Shopper comes with a dedicated dashboard that gives you a detailed report of your traffic, earnings, sales, clicks, and all-time revenue. All these stats are available to you in a concise visual summary with a graphical representation. As a result, it makes it easier for you to analyze changes to metrics over time and can help you get a clear picture of how your products and collections are performing.
7. Broken Link Notifications
One of the biggest problems that affiliates face is broken links, leading to revenue loss and even bad user experience. But Shopper.com creators get an exclusive solution for this problem too. The platform’s broken link feature alerts you whenever an affiliate link or product URL breaks.
8. Tag Coupon Codes or Deals
Shopper allows you to add a discount code, deal, or limited offer associated with a product. You can easily tag a coupon or deal to a product which makes it convenient for your customers to avail them.
All-in-all Shopper.com makes affiliate marketing more manageable, especially for creators. Best part you can start with the platform absolutely free! So whatever you promote just sell more of it.
Over to You
Generating revenue through affiliate marketing is a popular way of earning passive income. However, it is crucial to select the appropriate niche for your affiliate marketing business. Picking the right affiliate niche will help you stand out from the competition and allow for scalability in the long run.
After identifying the niche that aligns with your business goals, partnering with platforms like Shopper.com can provide you with the necessary tools to enhance your marketing strategies and improve revenue generation.