A common question and topic of discussion among Internet marketers is, “What market should I go after?” The number of answers to this question are as varied as there are grains of sand in Sahara, but there is one thing that I have noticed in my eight years marketing online: people tend to shy away from and even be scared of ultra-competitive markets.
What type of markets am I talking about? Well, there are quite a few. Industries like travel, web hosting, and dating come to mind. One just has to look at typical commissions being offered to marketers to promote these types of products to realize that there is quite a large mark-up on these services, and therefore mounds of competition.
However, there is one industry that trumps them all: financial industry. Whether it is mortgages, loans, or investments, there is simply no other market that even comes close to amount of fierce competition and ultra-high commissions than financial products. The financial market that I'd like to discuss in this article is credit card market.
"In Short, It's Where The Money Is... Literally."
Credit card companies have been marketing their cards online since early days of affiliate marketing. Back then, they had affiliate programs that would pay out anywhere from $10 to $20 per completed credit card application. With increased competition, and more people putting their trust into web than ever before, this situation has drastically changed.
Now, online marketers can pull in a commission of around $30 to $40 for each referral and completed application. This is more than double commissions being made as recently as five years ago, and more accurately reflects high profit margins and lifetime value of customer to credit card company.
With such high commissions, hordes of marketers flock to push these offers on PPC networks such as Google Adwords and Overture, skyrocketing bid levels up to astronomical heights. It is for this reason that many less brazen marketers shy away from this market, and may even feel intimidated by it. But rest assured, even with such a high level of market penetration, there is ample opportunity for a savvy marketer to experience very handsome profits.