Monday, April 21st, 2008

Thoughts On High And Low Competitive Niches

If there is one thing that is important about a competitive niche it’s that it HAS GOT TO BE profitable. Now you’re probably saying well if it’s competitive then it’s profitable right? Not necessarily. A lot can go on in a niche, especially with large companies coming to play for branding purposes. Sure in the end it’s probably profitable for them but if you’re at the top of the chain promoting with/against them then you could stand to lose a substantial amount of capital. The reason is because a lot of these companies have millions to spend to brand themselves and we as affiliate marketers do not or will not engage in spending that much of our capital.

It comes down to two things ultimately here folks. There is no need to over-analyze things because you can sit around and think about this for years and you’re still going to come out with the exact same equations.

  1. Lots of competition most likely means profitable markets
  2. Low competition means it’s 50/50 with no guarantee

Simple as that.

The more competition you’re facing, the harder you have to work. I really hate hearing about PPC Marketers who tell people they spend 1-2 hours monitoring their campaigns and the rest of the day stroking their meat. Honestly, I’ve met markets where I could do this and while it is nice, that’s a surefire way of getting a big case of the lazy ass. It’s not real hard with someone who is NOT dominating the market to come along and knock you off your high horse. The reason it’s so easy for them is because you have more motivation when your NOT making money than you do when you ARE making money. I know this first hand and that’s why it’s important to always be moving forward. Stationary and reverse are two speeds in which you basically just give your place up for grabs. It’s not their fault for whooping your ass, it’s yours.

Your plan to put into action has got to be more diverse than theirs. Survey your market, then survey your competition. Pay close attention to what the market wants, pay even closer attention to what your competition is giving, then go 10X above them in terms of what you have to offer. With MOST big name companies, it’s actually easier than you think OTHER THAN beating their brand name.

No matter how much effort and work you put forth, a brand is hard to beat. That’s not to say that you cannot carve yourself out a real lucrative spot in that industry though. The fact is people, in my opinion, it’s getting easier everyday as the Internet gets larger. The most important fact though is that you have to work harder than ever to attain it.

It takes, time, money and resources but just one niche alone can make your life better than you can possibly imagine. Nobody SMART says it’s going to be easy. The ones that do, got no fucking clue what they are talking about. Work hard, get paid, that’s the goal. Worker harder, make more, is the dream. Which do you want?

Low competition can be a godsend or a demon. This is where most marketers are taught to attack and apply everything they learned. While I dont suggest shying away from low competition markets, you should understand one very crucial concept here. While working low competitive niches you’re still going to put forth a lot of time, money and effort. The only difference here is that WITHOUT proper market research you are entering a crap-shoot where nothing is certain. The worst thing to happen to an affiliate marketer is spending all this dedication only to find out that there is no payoff. Maybe, you get lucky and dominate the next big thing but let’s face it, this rarely happens. It does happen though. It’s a game of chance, one that in my opinion takes a load of skills, intuition and MOTIVATION.

With low competition though you have many options at your disposal. You dont have to work quite as hard to establishing profitability, hopefully. You may not be pulling in the thousand dollar days but testing these low competitive markets gives you an advantage to testing markets that can yield hundreds a day. I dont have to tell you how fast finding just a few of those can quickly increase your bank account, moral and hopefully your desire to work even harder.

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9 Responses

April 21, 2008

I’ve learned early that the highly competitive keywords are more lucrative and pay out better. It may require more work to comptete for these keywords but the payout is worth it.

I try to maintain a balanced portfolio of low and high KEI keywords.

April 21, 2008

Agreed Troy. I try to keep a balanced portfolio of not only low and high KEI keywords but industries that I get involved in as well. It’s really whatever everyone can handle but diversification leads to multiple streams of income and allows flexibility to work or put off things in certain markets.

April 22, 2008

Hey Ruck, do you think its smart for beginners to enter competitive niches, especially those with new adwords accounts? I blew a $100 adwords voucher in 2 hours a while ago entering a tough niche with high bids and i didn’t get a single conversation. I half assed creating the campaign which is the main reason why i failed, but do you think a newbie with a fresh adwords account can enter a tough niche and still come out on top?

April 22, 2008

Interesting question and a very tough to answer. I’ll try not to be vague but are we talking about a new marketer, or someone new to PPC advertising with Google?

I wont say it’s dumb but it really depends on the person. Everyone is unique in their own way of learning and picking up on things. I would almost have to say that a new person to Adwords would have it tough for them with competitive niches just because of all the variables that Google sets forth on Adwords accounts, especially new ones.

But half assing a low competitive niche can yield the same crappy results as you experienced as well so educating yourself on everything about Adwords and your market is critical. If you can get that education or answers to questions then you will be better prepared to long tailing high competition. I like long tailing high competition because it allows me to spend a bit less in my testing phase.

April 22, 2008

I find it hard to work all day… there’s so much that to even begin to think about

April 22, 2008

“stroking their meat”… lol that is a nice way of putting it

April 23, 2008

Low competition just makes me bitter when people find my hidden gem. If I get whipped in a high competition niche, I take it much more in stride.

April 25, 2008


Allow me to tell u the usually psychology of a typical Newbie Internet Marketeer. Most of them r suffered form “Analysis of Paralysis”. As Ruck truly said “The reason it’s so easy for them is because you have more motivation when your NOT making money than you do when you ARE making money.”

But does it mean u should buzz ur self off. NOPE. But yes after a certain limit of analysis.

I do not hear to most PPC Gurus coz the always teach newbies to penetrate into Highly competitive markets. As i think a newbie stats PPC to learn first and to egt habitual to losses lil it of money not to earn from the beginning, But as Mr. So-called guru told u to penetrate “Ipod” niche. Boom…………… u burned ur budget, ur ass, ur Hope……

Ur so depressed to now do any sort of testing, tracking to learn form ur misters, u know Y………. Coz thoes so-called GURUs have programmed ur subconscious mind that PPC is a magic button to fill ur pocket till it torn away.

All Newbies…………..We desperately need a Gr8 Brain Wash………… Thats what Ruck is doing…….(I guess).

I have spent almost a year in IM. Now i have stooped learning new things. And now concentrating on What not to learn. And trust me sometimes Brainwash is far more important than Learning new things.

Have a rocking day.


April 28, 2010

I’m actually against working on low competition niches. I know that i may have a better chance to monetize them, but as long as i have nothing to offer to the niche, i will not go for it just for the sake of it.

Moreover, i believe that smart bloggers(and marketers, most times they are both), understand that internet is not about competition. It’s about collaboration and networking. People who grasp that idea, prosper.