Affiliate and Niche marketing is the latest trend. Before you decide to follow the crowd, you need to understand what is a market and a segment. Then, you will need to ask yourself several question. Is it profitable? How to find a profitable market?

What is a niche market?

A niche market is a smaller market within a big one, it is a segment of this market. As an example, let's take the sport and recreation market. It's really big, and you find everything from football to golf and scrapbooking inside.

You don't want to market to all these people at the same time... it won't work and you won't make any commission.

What you need is to segment this market and go deeper until you find a hungry crowd with the same aspirations, desires, needs and problems.

In our example, I would choose martial arts. Still, this market is too big! How can I understand all these people at the same time? How I will promote to a karateka, a kung fu student, and and aikido student? All these people are different.

Let's go deeper... I'd choose modern mixed martial art (as apposed to traditional martial arts) because these people are proven to buy online. Let's go deeper... I would build a specialized site about the ultimate fighting championship.

Now, I have my niche site. Do you see how I got it?

Now I need to develop a loyal customer base deliver the good to my buyers, prospects and subscribers in this niche. Why?

Like this, they will speak about me in forums, bookmark my site and blog in social media sites.

Don't try to fake it because it won't work. You really need to speak those people language. You need to know their heros, what they are dreaming about before they sleep, where they hang out online and offline.

It's not easy, but when you finally get it, you are going to make an insane amount of money.

Although the big markets are dominated by big companies, a small affiliate can take a big share of the pie if he takes the right steps.

Now here are three secrets that will increase your profits:

1. Be first in the niche because when you are the first in someone's mind, he never forget you.

2. Over deliver and build a community web 2.0 site in the niche. Let people come back to your site over and over, let them tell to their friends.

3. Give a lot of free stuff (better than what over are selling) and embed your affiliate links

Later on, you will be able to dominate your own products with all the feedback you receive and make a small fortune

If you are serious, you can dominate a niche and become a major player. It seems difficult when you are getting started, but once you understand how it works, I'm sure you will like the game.