Top 7 verticals in affiliate marketing

You probably have a lot of questions if you’re new to affiliate marketing. One of the primary questions is: what is a vertical or niche, and how can I pick the best one? Your prospective earnings are directly impacted by this decision. Additionally, the industry’s entrance barrier is influenced by the specialization you choose. For this reason, in today’s 888STARZ Partners topic we’ll define what is vertical and take a detailed look at the most popular affiliate marketing niches!

What are verticals in affiliate marketing and why is it important?

When it comes to earning money online, the first key element in the formula is the product. Essentially, an offer is that of goods or services, and advertisers are willing to pay for their sales.

A vertical or niche is a group of offers that share certain similarities. This market segment can have common interests, needs, and challenges. Beyond the type of products, a vertical also defines the methods and approaches used to promote them, as well as the traffic sources.

Structuring a large number of products and services into affiliate marketing verticals helps in:

1. Reducing competition: instead of competing across all niches for affiliate marketing at once, webmasters can select a certain vertical and concentrate their efforts on it.
2. Focusing your efforts on researching the mechanisms of promoting a specific group of products: for instance, a campaign to promote mobile applications is constructed significantly differently from one to attract visitors to a casino or sports betting website;
3. Delivering expert information to the customer: consumers will be searching for information in a particular niche rather than the market as a whole.

The consistency of offers within a vertical allows webmasters to develop streamlined models — strategies that enable them to quickly launch campaigns by adjusting a few variables to personalize a specific product or service.

White and grey offers — what’s the difference?

In affiliate marketing, all offers and verticals can be divided into three categories:

• White;
• Grey;
• Black.

These names are quite conditional, but they reflect the essence of the types of products to be promoted.

Thus, white offers are legal, beneficial to consumers, and don’t mislead them. For example, traditional products often fall under this category — except those that don’t correspond to their declared characteristics. If you’re promoting, say, Apple tech, you can be sure that:

1. You won’t need to find workarounds to create and place ads.
2. Your offers will pass moderation, there’s no need to resort to cloaking or some other manipulations.
3. Your advertising account will be viewed by platform algorithms as safe and reliable, so you may use it for other campaigns, which automatically will add credibility to your account.

White offers may not yield the highest profits, but it’s honest work. Additionally, you will be able to experiment with grey verticals in your early work on projects of this kind. However, it’s preferable to use separate ad accounts for such purposes.

Working in white verticals is the simplest option, and even if the promoted product is challenging from an affiliate marketing perspective, it still carries lower risks than conditionally-legal offers.

So without too much talking, let’s get into it. Such offers represent a wide range of products actively advertised by webmasters of various skill levels, and often produce huge earnings. This is obvious, since working with grey verticals involves added risks, bigger costs, and more complex challenges that can be difficult for beginners to handle.

Grey offers include products and services that:

• May violate legal requirements of certain countries;
• Bypass the terms of use of the advertising network;
• Inflate consumer expectations to draw more attention.

This area, for instance, has a lot of health and wellness items. Manufacturers may make claims like quick weight loss or hair growth, but these claims may not work as claimed or only produce placebo effects.

Additionally, online Gambling and most iGaming products fall under the grey category. On one hand, casinos or bookmakers may promise winnings that can confuse a novice player; on the other hand, there are thousands of real cases when players have profited from betting and slots, or received promised bonuses. Moreover, many gambling websites operate in a limited legal field, and although their services are available in many countries, not everywhere they comply with local laws.

As for black offers, we will not discuss them for ethical reasons.

How to choose best niches for affiliate marketing — key criteria

Many beginner webmasters think they need to choose a direction for promotion once and stick to it forever. However, this is a misconception — most experts in affiliate marketing have experience in multiple verticals, and some even work across several ones at the same time.

Nevertheless, the effectiveness of a narrow specialization is undeniable, which is why many webmasters work exclusively in a single niche. Below, we’ll give you a few recommendations to help you make an informed decision when choosing a vertical:

Do some market research

Before diving into affiliate marketing, it’s essential to research the market to assess its potential. Examine the size and growth rate of the niche, current trends, competition level, and profitability. Also you need to analyze the target audience for that niche: their needs, preferences, behaviors, and pain points. This information will help you select the optimal vertical and avoid risks tied to a lack of key insights.

Consider legal aspects

Pay close attention to laws and regulations related to your chosen affiliate marketing niches and traffic sources. When operating in certain GEOs or with specific products, this will help you avoid possible legal issues.

Test offers and traffic sources

Once you’ve identified a few potential verticals, start testing offers and traffic channels. It’s crucial to set up tracking and use analytics tools to measure the performance of each ad campaign. This way you can identify which offer delivers the best results and efficiently manage your budget.

Verticals are a fluid split of offers rather than a rigid classification system. The market evolves and responds to consumer demand, so certain categories may grow and form new high paying affiliate marketing niches within one industry. For instance, as part of its growth, the gaming sector today includes Betting, Gambling, and Gaming.

Top 7 niches in affiliate marketing

Now that we’ve figured out the concept of verticals in affiliate marketing, let’s talk about the most popular ones.

E-commerce

Globalization has amplified the reach of retail giants like Amazon and AliExpress, pushing smaller players out of the spotlight. According to Statista research, by the end of 2024, the total retail sales in electronic commerce will surpass $4.1 trillion. This vertical largely consists of affiliate sales for major and mid-sized brands.

Campaigns in this vertical aim to generate leads to the client’s landing page. Smaller businesses offering products with a niche appeal can be viewed as a “sub-vertical” within e-commerce.

Key features of e-commerce:

• E-commerce is still relevant today since it offers a wide range of goods and services, but it’s crucial to think about the details of each offer because many of them are seasonal or related to particular occasions;
• Requires a strong understanding of the portrait of the target audience and in-depth market knowledge;
• Offers in this vertical are exclusively “white,” meaning they comply with regulations;
• Usually requires premium traffic sources, such as SEO, ad networks, and social media;
• Offers typically use CPA payment models (Cost per Action), most commonly CPS/PPS (Pay per Sale/Cost per Sale);
• The entry level is regarded as medium.

Nutra

The “Nutra” (nutraceutical) is one of the best affiliate marketing niches. It encompasses non-medication products aimed at health improvement, immunity boosting, body care, and sometimes even decorative cosmetics. A key distinction is the absence of branded alternatives. This category includes various “enhancers,” “reducers,” and similar products made from natural substances, whose effectiveness is often unproven. For this reason, Nutra is considered a grey niche: a segment where products are marketed on the edge of legality or ethics, though not entirely illegal.

To better understand Nutra vertical, it’s worth considering its characteristics:

• Huge payouts for offers, due to the high price of products, making it crucial to emphasize product specifics in ads (for example, storytelling works well);
• The target demographic is wide in terms of age, and demand for certain nutraceutical products increased significantly during the epidemic;
• Predominantly grey offers, though some white ones are also available;
• Payment models are CPS/PPS;
• Requires a substantial budget for promotion.

Dating

This is an evergreen vertical in affiliate marketing, much like the ones mentioned before. According to recent Statista forecasts, dating market revenues will reach $3.05 billion by the end of 2024. Advertisers promote online dating, typically divided into mainstream and adult (18+) categories. Many work in both areas, depending on the customer’s interest level. Consequently, some dating websites offer multiple landing pages for different types of interactions. Creative content also needs to be adaptable: for social media, it’s more appropriate; for niche ad networks, more explicit options may be suitable.

Main aspects of the dating niche:

• A high-relevance vertical, as dating is popular worldwide. Advertisers mainly target Tier 1 clients, with some allowance for Tier 2, so ad quality should be high;
• The target audience is about ¾ male, primarily aged 20-30 (50%) and 45-60 (20%);
• The primary sources of traffic, which are above average, involves email marketing, ad networks, and social networks;
• Mostly white offers, with SOI/DOI (Single-Opt-In/Double-Opt-In) or CPI (Cost per Install) models for dating apps, and CPA for sites with paid subscriptions or VIP services;
• Might be challenging for beginners — it’s advisable to start with simpler offers that don’t have additional requirements.

Sweepstakes

One of the oldest affiliate marketing verticals, sweepstakes, also known as lotteries, is quite simple to enter. By 2032, the market share of sweepstakes is expected to reach $157.8 million, compared to $73 million in 2023.

There are two types of sweepstakes: the first offers participants the chance to win a cash prize by submitting user data. Obviously, later their addresses will receive tons of advertisements. The second type is more closely related to the gaming sector, as contests or quizzes offer gadgets, electronics, and accessories as prizes.

Features of this vertical include:

• The target audience consists of two groups: youth under 25 years old and users aged 45-60;
• Participants mainly come from countries with medium and low living standards, so traffic costs from Tier 2 and Tier 3 geos are relatively low;
• Traffic sources involves ad networks and email marketing;
• Offers are typically considered as grey;
• Payment options include SOI/DOI and occasionally CC-Submit, in which the player’s card is charged each time they participate in a prize draw;
• This is considered an easy niche to start with.

Finance

With notable category variances, this affiliate marketing sector distinguishes out from the others. Offers from respectable brokerages and investment projects are included, along with those from banks that provide capital management, ratings, and a transaction security system. In addition to this, these are accompanied by the promotion of microfinance firms, which may have high loan rates but less stringent requirements. Consequently, the target geos and the webmaster’s rewards also differ.

Key aspects of the finance vertical:

• The vertical is moderately relevant, with the target audience primarily aged 25-40 years and Tier 1 geos for the first category of offers. For the second category, age is less of a factor, and geos are selected from Tier 2 and 3 countries;
• The cost of traffic also depends on the categories, with nearly all offers being white;
• Traffic sources include social networks, ad networks, and SEO with CPA payout models;
• Medium entry level in terms of difficulty.

Software and utilities

In 2022, the software market was valued at $4.94 billion, and between 2023 and 2030, it is expected to reach $9.1 billion. Promotional items in this area include specialized utility applications, many of which are designed to protect PCs and mobile devices against viruses or to conceal a user’s identity online (VPNs). Despite the widespread usage of smartphones, most offers are still made by software developers for desktops.

Main features of this niche:

• The relevance of the vertical is slightly below average, meaning competition is also lower;
• The target audience predominantly consists of age groups 15-25 (65%) and 25-35 (20%). The user base necessitates a serious approach to advertising efforts since those who are certain of their needs choose specialized software;
• Offers here range from white to black, as some category of products are considered malicious;
• Due to the chosen geo for advertising, the cost of traffic is often higher than usual. While there are many other geos in this sector, the majority of offers focus on CIS, Asia, India, and the United States;
• Traffic sources include SEO, ad networks, and sometimes social networks;
• Payout models are CPA, CPI, CPS (Cost per Sale);
• It is related to low competition niches for affiliate marketing, so the entry level is difficult. For this reason newcomers are not recommended to choose this niche.

iGaming (Gambling and Betting)

Gambling is a highly popular and one of the most profitable affiliate marketing niches. There will always be people eager to test their luck — according to Drive Research, this represents 26% of the total population. That’s why both traditional and internet casinos continue to draw millions of players worldwide: up to 4 billion individuals wager at least once a year, while 1.6 million play regularly.

Gambling ads promote online sports betting, casinos, poker or slots, and they all operate on the same principles as traditional ones. The main advantage, however, is that they allow players to experience thrills and attempt to get rich without leaving their comfortable chair.

Key aspects of the iGaming vertical include:

• The target audience mainly consists of men aged 25 to 45, who are the most financially capable and willing to spend money;
• Traffic cost depends on the selected region: in Tier 1 geos, such as the USA, advanced webmasters earn a decent amount of money. However, even beginners can gain experience and earn a solid profit from gambling traffic in Tier 3 countries.
• Traffic cost is slightly above average. The main sources are advertising networks, email marketing, and SEO.
• Offers are typically grey, with payout models like CPA, RevShare (percentage of revenue), and Hybrid (a mix of CPA + RevShare).
• This vertical is specific to start, requiring knowledge and financial investment.

Of all the mentioned verticals, iGaming stands out as the most promising and evergreen. However, the choice of niche depends on the webmasters’ preferences, their creativity, and budget.

Conclusion on top affiliate marketing niches

We’ve now reviewed the top verticals that can confidently bring in profits. To sum up, experienced webmasters usually try their hand in almost all profitable affiliate marketing niches, but they typically work expertly with just 1-3 verticals. Practice shows that it’s better to focus on a chosen vertical, as this makes it easier to find successful approaches and improve existing ones.

At 888STARZ, we specialize in the iGaming sector and have all necessary tools to generate traffic with the best sources. If you haven’t worked in this vertical yet, we suggest starting with some useful training materials. And if you already work with Betting or online casinos, we can assist you at any stage of your campaign’s progress. Cooperate only with trusted partners — global success starts with us!