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It's best to know the niche. Not only the affiliate but also the sponsor. And you're right but you also have to make sure the sponsor CONVERTS. I've thrown the same traffic to a certain unnamed sponsor's niche site and did worse than 1:3,000 meanwhile a site from a different sponsor did 1:400 consistently. No competent microniche affiliate is going to tolerate a microniche site from a sponsor that converts at 1:2,000.
Also microniche may be where it's at now but common sense tells you that eventually it will get saturated too. It's already happening (has been for several years - example: CFNM) but I think often the sponsors don't have a clue so they tend not to make as much headway in the microniche as they could. Surfers often don't like the sites and the established affiliates in the microniche get better conversions elsewhere so they promote the old guys.
Good luck to you guys.
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