So first off I just want to answer your question as quickly as possible before getting into a lengthy explanation.
No, affiliate marketing is not saturated.
There, you have it.
Nothing more to see here.
I know that if you think about it logically, then any one would come to the conclusion that the marketplace would be saturated.
And if you were to perform a few random Google searches, on some of the main keyword phrases, for example, weight loss, or make money online, then the results that get returned would probably strengthen your hypothesis.
However, that is the reason why so many people think that affiliate marketing is saturated, because they all perform the “obvious” keyword searches when exploring a potential niche.
So of course this would put off any novice.
There are a ton of related keyword phrases that get a lot of traffic, but doesn’t have as many people competing for them.
Moreover, these keyword phrases are not picked up by some affiliate marketers because the appear to not yield as much traffic to them.
But, I would rather rank on the first page of Google for 10 pages that only get 10 visitors per month, than to rank one page that gets 100 visitors a month that would rank on the 2nd page of Google.
There are just so many other related keyword phrases that do not have any competition at all in the search engines.
These are the phrases you should be targeting in order to compete in the same marketplace.
That’s the smart way to approach it.