Often it is difficult to figure out what people are spending their money on when everyone is tightening their belts and cutting back on spending.  While it is a little more difficult to make money during a recession, all you really need to do is shift your thinking.  To find a profitable niche during a recession, consider the following five key factors - where people need to spend money, where can people save money, essential problems to be solved, niches that don't require people to spend money and highly emotional issues that will override monetary expenditures.

Niches where people need to spend money on are staple products that people have to buy regardless of what is going on.  For example, students have to buy college textbooks, pencils, pens and calculators.  Individuals with chronic health problems are going to spend money on their medications despite the economic forecast. 

When you can save someone money in a downturn, they will be very grateful.  Figure out how to show that your product will help someone save money and you have a goldmine on your hands.  For example, VOIP or calling cards to save money on phone bills.

Check out niches where there are essential problems that need to be solved or fixed.  One example of this might be a computer software or hardware problem th needs correcting to keep their computer from breaking.  A solution would be anti-virus software.  Demonstrate to your target market why they need to have the product in their lives. 

Find a niche that doesn't require people to actually spend money.  For example getting an auto quote or signing up for a free credit report service.  You can generate a mailing list and sell the relate services.  Most people will sign up for something free, and if they discover a need for a related service, they might spend some money on it. People will always spend money on highly emotional issues regardless of the economic environment.  While weddings may be scaled down, people are still going to get married.  People will also get divorced or need legal help during an economic recession. The following are just a few recession proof niches to look into.

• AutoPartsWarehouse - People might go online to save money on high ticket parts to fix their car.
• BeautyChoice - Ok, some of these are luxury items...but many are essential staples as well.
• BetterHealthInnovations - Again, back to people who purchase necessary items to deal with health issues.
• BiggerBras - Hey, when you need a bra...you need a bra. It's obviously a specialty item too...which drastically increases the motivation to purchase online.
• Homegain - With such a tough housing market, people are probably looking for all the help they can get with a home purchase or sale.
• CashAngelsOnline - Emergency Cash Advance service...enough said there.
• DentalPlan.com - Again, kind of a necessity to prevent big unexpected expenses.
• EZDoze - Help with Insomnia.
• NetQuote - Auto insurance...necessity.
• TheDebtTeam - Help with debt relief

There are ways to make money as an affiliate marketer during a recession.  The key is to chose a profitable niche and demonstrate to people how it will help solve their problem, save money or improve their lifestyle.