The use of digital technology and online shopping has opened up new opportunities for people who want to start their own businesses on the internet. While the competition is fierce in English-speaking markets, there are other languages where the competition is not as strong. One big opportunity currently exists in the Dutch affiliate marketing industry.
Recently on the Opportunity Podcast by Empire Flippers, they featured Niels Zee, an affiliate who has found success by operating several profitable websites in Dutch. Niels is the co-founder of Traffic Family, a company that manages a portfolio of affiliate websites. He has purchased and developed websites that earn six-figure incomes by targeting Dutch internet users. Through his experience, he has learned valuable lessons about the opportunities, risks, and strategies involved in entering this emerging foreign market.
In this guide, we will explore Niels' perspective on the Dutch affiliate industry and provide strategies for entrepreneurs who want to enter this market. We will discuss the characteristics of the Dutch market, how to create a Dutch SEO website, the considerations for choosing a niche, monetization options, tactics for growth, and approaches for acquiring websites. This information will be helpful for those who want to build a sustainable online presence in the international market.
Niels Zee
The state of the Dutch affiliate market
The Dutch affiliate market is relatively new compared to more established English domains. According to Niels, who is familiar with the market, most major product affiliate sites have only been operating for three to four years. This means that there is still significant opportunity for growth, as competition and overall quality levels are currently low. Niels notes that the standards set by existing affiliate sites are not very high.
In the Dutch market, most local SEOs work individually and primarily focus on link building. They often resort to using questionable private blog networks to generate backlinks. The content on their websites is typically outsourced and of questionable quality, and they do not put much effort into optimizing for conversions.
While there are over 700 affiliate programs in the Netherlands, many of them offer poor commissions or lack owner support. However, established retailers like Bol.com, which is often referred to as the Dutch equivalent of Amazon, offer solid affiliate programs that are on par with major English brands.
The potential for earning through affiliate marketing in the Dutch market is still high, thanks to the engaged online audience in the country. However, as the industry matures, it will be important to raise the overall standards by demonstrating expertise, conducting thorough testing, and creating high-quality custom content.
Email marketing has less impact in the Dutch market compared to other places. Dutch consumers are generally less receptive to email marketing efforts, creating an opportunity for marketers to find the right approach that resonates with the target audience.
Overall, Niels sees the Dutch affiliate market as "promising but immature." Many competitors heavily rely on tactics that are susceptible to algorithm updates. As the dynamics of the market continue to evolve, there will be opportunities for agile marketers who can adapt quickly.
Comparison between the English affiliate market and the Dutch affiliate market
Compared to more developed English-speaking markets, the Dutch affiliate industry is still in its early stages and offers potential for those who are knowledgeable about the field. Here are some key points about the current state:
These characteristics create a highly promising environment for individuals who are well-versed in SEO best practices and are willing to raise the standards through quality content, technical skills, and marketing knowledge. The overall opportunity presents a wide-open field for ambitious individuals in the affiliate industry.
Benefits of targeting the Dutch market
Why did Niels choose to target the Dutch market instead of pursuing English domains? According to him, there are several distinct advantages that made it a compelling choice:
Considering these benefits and the opportunities that come with localized approaches, Niels saw the Dutch market as an ideal testing ground to refine his skills. This notion has been supported by his ongoing success in his portfolio.
Niche considerations for the Dutch market
When it comes to choosing niches for the Dutch market, Niels has found that certain categories tend to perform better than others based on his direct experience. Here are some niches that showcase strengths:
On the other hand, there are niches that may be riskier or already saturated:
While opportunities exist across various categories, focusing on broad necessities and passion verticals aligns best with the typical mindset of Dutch searchers, according to local market leaders.
Strategies for success in the Dutch affiliate space
If you want to succeed in the Dutch affiliate market like Niels, there are some key strategies you should consider. These strategies are focused on playing to your strengths and addressing your weaknesses. Here are a few tactics that Niels recommends:
1. Prioritize Informative, Educational Content: With so much AI-generated content out there, it's important to stand out by offering expertise. Instead of just listing products, create detailed guides, how-tos, and analysis that demonstrate your knowledge in the field. Niels suggests testing niche products and seeking expert opinions to provide valuable insights that AI can't replicate easily.
2. Focus on Conversion Optimization: Rather than just focusing on generating links, prioritize optimizing your conversion rates. Even small changes, like removing prices, can have a big impact on click-through rates and help you grow faster. Make sure to integrate affiliate programs effectively, build trust with your audience through testing and recommendations, and refine your sales funnels based on completion metrics. At the end of the day, conversions matter more than rankings.
3. Standardize Operations for Scalability: To support your growth, create a standardized site architecture, content formats, and onboarding processes. This will make it easier to expand your portfolio efficiently. Delegate repetitive tasks to virtual assistant teams while maintaining control over the editorial process. Consistency in your operations will streamline your workflow and make it easier to integrate new acquisitions into your existing systems.
4. Target Underserved Audiences: Look for niches where major competitors are not meeting the needs of the audience. Explore adjacent verticals, target underrepresented demographic groups, or consider opportunities in specific regions. By focusing on these underserved areas, you can establish yourself as an authority and differentiate from the competition.
These strategies are based on expertise, optimization, scalability, and finding unique positioning. They have helped Niels succeed where others have relied on basic SEO techniques that are becoming less effective. With the right approach, the Dutch market can be accessible to foreign entrants.
Monetization options in the Netherlands
Even though display advertising may not be as strong in the Dutch market, there are still opportunities for monetization. Here are some options to consider:
For new websites targeting the Dutch market, it's wise to focus on monetizing through Bol.com and other relevant e-commerce platforms that align with your audience's buying habits. Additionally, consider additional monetization options based on your niche.
Remember, there are opportunities available, but they may vary depending on the major categories within your domain.
Growth tactics for success in the Dutch space
To increase your revenue and achieve success in the Dutch market, it's important to implement effective optimization tactics that set your website apart from competitors. Here are some proven approaches based on Niels' portfolio strategy:
By implementing these strategies, you can efficiently build volume while prioritizing user experience. These continuous tactics have been proven to deliver strong and sustainable results in the Dutch market, based on the experiences of current industry leaders. Acquisition of new customers further enhances your opportunities for success.
Buying into the Dutch affiliate market: Acquiring existing affiliate websites
For entrepreneurs who want to generate revenue quickly without starting from scratch, purchasing existing websites can offer significant advantages. Niels, who has successfully grown his portfolio through acquisitions, provides the following advice:
By using this framework to screen potential opportunities, foreign buyers who are prepared to optimize overlooked assets can achieve substantial returns through portfolio expansion. A single well-performing acquisition can fund multiple new projects.
Scaling acquired assets quickly
Once a website is acquired, successful owners distinguish themselves through rapid performance improvements. Here, Niels outlines his high-level scaling formula:
The Dutch acquisition landscape presents potential opportunities:
When evaluating Dutch properties, watch out for shallow machine-generated content, expired backlink profiles in need of updates, and declining performance from month to month, as these may indicate future issues. On the other hand, signs of stability and optimization potential include organic growth, engaged authors producing new value, and under-monetized opportunities.
Post-acquisition growth strategies
Buyers can achieve growth not just by acquiring other companies, but also by using the following strategies:
By optimizing operations, implementing these strategies, and staying ahead of industry trends, acquirers can gain long-lasting influence, achieve significant returns over the long term, and remain competitive. Taking a strategic approach is crucial.
Challenges and risk mitigation
Expanding internationally always comes with challenges, especially in the Dutch market. Some key risks to consider include:
To mitigate these risks, it's important to have experienced local advisors, invest conservatively based on potential returns, reinvest cashflow wisely, and focus on acquiring high-quality properties that are less vulnerable to market swings. Thorough due diligence is also essential.
AI's role in the Dutch affiliate space
AI has had an impact on content creation and SEO dynamics in the long term. While some people initially believed that AI would replace search, it has actually become a tool to enhance productivity when used responsibly.
Niels, for example, uses AI to streamline content generation by providing summaries, educational frameworks, and standardized introductory paragraphs for articles. Human editors then add their expertise and expand on the AI-generated content.
AI is also used to screen and verify content to ensure that no auto-generated material is published without proper oversight. This helps mitigate legal and ethical risks while still benefiting from the productivity gains of AI.
However, Niels believes that AI will not replace human-operated assets in the Dutch market. Bots struggle to build deep localized authority and lack the nuanced understanding of specialized markets that humans possess. Quality, experience, and specialization are still crucial for success in search rankings.
For now and the foreseeable future, search remains a meritocracy where human-operated assets have an advantage. Responsible use of AI can assist affiliate entrepreneurs rather than threaten them.
The path forward
As exemplified through the successes of pioneering operators like Niels Zee and Traffic Family, the Dutch affiliate industry presents attractive outbound opportunities for smart entrepreneurs, investors and multi-national businesses alike. With a younger competitive landscape, engaged local audiences and evolving monetization frameworks, the overall upside potential appears substantial.
For those willing to raise standards, apply tested growth strategies, and maintain a strategic long-view outlook even through transitional phases, the Dutch market offers a chance to establish leading footholds serving international audiences from a uniquely advantaged position. Proper cultural sensitivity, quality focus and risk mitigation further enhance chances of achieving sustainable wins.
As more talented global players enter and the space matures, opportunities will compress over time. But for the immediate future, the Dutch internet industry remains broadly open for capable teams seeking to establish new beachheads. With care, insight and experience, breaking into this emerging foreign language market presents a worthwhile strategic play for building a globally-scalable online media business.