The nice thing about those popular niches is that even though there's a lot of competition, there's also a lot of interested consumers! That's better than a smaller market where there are also a lot of sellers competing, but fewer potential customers. If you can find a way to differentiate yourself or offer a unique perspective on a particular niche, you should be fine!
File-Sharing: Web sites that host directories of music, movies, games and other software. Users upload content to file-hosting sites and then post descriptions of the material and their download links on directory sites. Uploaders are paid by the file-hosting sites based on the number of times their files are downloaded. The file-hosting sites sell premium download access to the files to the general public. The websites that host the directory services sell advertising and do not host the files themselves.
GOOD - A technique I've seen used quite a lot is the "Check Price On Amazon" link. Instead of displaying the product price, they display a hyperlink with anchor text of Check Price. This makes the buyer more curious to click the link and see how much the product is. And remember, Amazon have a 24 hour time limit before your affiliate cookie expires, meaning if the potential customer buys anything on Amazon within that 24 hour period of clicking your link, you're going to get a commission!
The easiest thing to do is to sign up for an affiliate marketing network like Commission Junction. They provide a marketplace where your affiliate program will be advertised to other affiliate marketers. They also provide the tracking software for your affiliates so you don’t have to build your own tracking system. In some ways this is better because it takes care of the trust issues. Affiliates are always suspicious of whether or not they’re getting credited for the sales they generate. By having an intermediary take care of transaction tracking and payments, the fear of being cheated is alleviated. 

This “free course” offer is a variation of what we saw in the last site: it’s a newsletter signup box. By offering people something concrete (the "FREE Texting Mini Course"), as opposed to something vague (for instance “our informative newsletter”), you essentially reduce people’s anxiety about signing up for something. This is why you’ll see so many “mini-courses” littered around the Internet - not only is it a mini-course as opposed to a newsletter, but the visitor only needs to commit to a small number of lessons, as opposed to a potentially unending subscription. By lowering the perceived commitment involved in signing up for something you’ll find that people are more willing to give you their email address.
So combine a review site and something people everyone loves, like babies. Imagine all the confusion new parents have when they bring a new baby into the world. What do they do, what do they need, what is the best? BabyGearLab solves that by reviewing baby stuff and helping parents understand it and buy it. This site has been around since 2011 helping parents through the impossible decisions of what is best for your baby. 

Many affiliate programs run with last-click attribution, where the affiliate receiving the last click before the sale gets 100% credit for the conversion. This is changing. With affiliate platforms providing new attribution models and reporting features, you are able to see a full-funnel, cross-channel view of how individual marketing tactics are working together. For example, you might see that a paid social campaign generated the first click, Affiliate X got click 2, and Affiliate Y got the last click. With this full picture, you can structure your affiliate commissions so that Affiliate X gets a percentage of the credit for the sale, even though they didn’t get the last click. 
Anyway, my guess is that this site ranking at #8 in Google for this keyword and the high CPC, probably pulls in between $500 to $1000 per month.  In fact it could actually be much more that that just depending on how much traffic they really receive.  This is with the assumption that they receive traffic from more than just this keyword (which is the case with every single website I have ever owned).
The truth is much more complicated. It’s true that affiliate programs can be sources of phantom revenue and off-brand promotion. But managed properly, they can also make up 5-15 percent of online revenue and have an ROI among the highest of any online channel. CMOs are realizing that affiliate marketing can be an important part of their arsenal and are integrating the channel into their overall marketing strategies.
Cost per click was more common in the early days of affiliate marketing but has diminished in use over time due to click fraud issues very similar to the click fraud issues modern search engines are facing today. Contextual advertising programs are not considered in the statistic pertaining to the diminished use of cost per click, as it is uncertain if contextual advertising can be considered affiliate marketing.
I know someone who created an Amazon affiliate site back in 2008. The site was making around $5,000/month when the owner decided to sell the site through Flippa. It was sold for $109,000 on June 2013. For some reason, the site has been down for several months now and I have no idea what the new owners are thinking. The domain was about iPhone reviews.
Focus on reviewing products that fall within your niche. Then, leveraging the rapport you have created with your audience and your stance as an expert, tell your readers why they would benefit from purchasing the product you are promoting. It is especially effective to compare this product to others in the same category. Most importantly, make sure you are generating detailed, articulate content to improve conversions.
This doesn’t mean you only sell one product. This means you build out a brand by selling varying yet adjacent products. Over time, your consumer network might consider you a go-to for which type of vacuum they should buy. Additionally, some industries pay more than others. Especially if the product is a harder sell, affiliates may get a higher cut than they would for a product in higher demand.
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