Until 2017, Amazon offered a stepped commission structure so that affiliates who sold a lot of products were paid a higher commission than those who sold little. However, Amazon eliminated this structure and began using flat commission rates for different types of products. While this is likely to continue evolving, examples of the commission structure in 2018 are as follow:
Hey Chris – great post. Just a question – We have got about 80 stores affiliated to Amazon Associates. As I understand from your article, it appears that the blog site is a foundation for making a successful Amazon Income. In this regard, we don’t have a blog site but we just have those stores (websites) which have a show case of products. What do you think the strategy would be to drive sales? Of course, we have got Social Media Marketing currently in place.

For example, let’s say that we want to promote Drip as the better alternative to Infusionsoft… We would write up a comparative article that shows all of the reasons we like Drip better. We would then login to Google Adwords and create an ad campaign that links to our article and targets anyone who searches for “Infusionsoft” or “Infusionsoft Alternative.”


b) All legal or other fees incurred in collecting returned checks or declined credit cards or any other lack of payment related to a sale made by an affiliate will be payable by the affiliate. Any sums not collected from the affiliate or affiliate’s customer are not commissionable, and any fees incurred during processing or handling of sales made by the affiliate will be deducted in whole from any commissions due to the affiliate. Further, in the event that the commissions due the affiliate are insufficient to cover any sums, the affiliate agrees to pay the full amount to the Program Operator.
Affiliate marketing is also called "performance marketing", in reference to how sales employees are typically being compensated. Such employees are typically paid a commission for each sale they close, and sometimes are paid performance incentives for exceeding objectives.[21] Affiliates are not employed by the advertiser whose products or services they promote, but the compensation models applied to affiliate marketing are very similar to the ones used for people in the advertisers' internal sales department.

This Marketing Affiliate Agreement (the “Agreement”) is entered into this 8th day of May 2014, by and between BIRCH FIRST GLOBAL INVESTMENTS INC., a corporation incorporated in the U.S. Virgin Islands, with its main place of business located 9100 Havensight, Port of Sale, Ste. 15/16, St. Thomas, VI 0080 (referred to as “Company”) and MOUNT KNOWLEDGE HOLDINGS INC. and/or assigns, a corporation incorporated in the State of Nevada, with its main place of business located at 228 Park Avenue S. #56101 New York, NY 10003-1502 (referred to as “Marketing Affiliate” or “MA”).
Each affiliate acts as an independent contractor and as such is responsible for any or all United States, state, or foreign income taxes and any other tax liabilities that affect or concern the sales of the products or services, in your state or location. If you are NOT a resident of the United States, the Program Operator will withhold the appropriate U.S. income tax applicable to foreign nationals, prior to your receipt of any commissions. The Program Operator does so pursuant to the United States Internal Revenue Service laws (also known as the United States Tax Code) and other applicable laws. It is the affiliate’s sole responsibility, and not the responsibility of the Program Operator, to take any steps necessary to recover these sums under the Tax Code and other applicable laws.

Meeting the standard can be complicated enough if you are running direct linking campaigns as an affiliate. It becomes even more complex if you are building an email list or running another complex funnel that requires you to collect personal information. Make sure you have a simple way of collecting data reports and deletion requests so you can respond in a timely manner.
8.3 The provisions of this Agreement and instructions as may be provided by us to you from time to time hereunder constitute the entire agreement between us with respect to the subject matter thereof. Save as to the instructions and notifications as may be provided by us to you from time to time hereunder, this Agreement shall only be modified or amended by a document in writing signed by us.
The people that you refer too did not master amazon, they merely mastered the value they offer to visitors. If you are able to engage/connect with visitors, then you got a winner, some people merely have better skills then others, which may include offering high value content, coding/custom skills. Do you agree that these people brought something to the table? If they did not, then visitors would not continue to visit their sites, right? You can put up all the content in the world, you can get all the backlinks you want, but if you can not engage/connect with your visitors, then all is lost. These site most likely did not start off with custom sites; they started off just like everyone else, some rag/tag site. I ran across an affiliate site a few months ago, and the content on his site would just blow your mind, and let me tell you,this guy had affiliate links from all major affiliate networks, his site has so much authority that he is listed right up under amazon, and some actual product manufacturers; how did he do this? He brought solutions, and value to his visitors, he knew what they were looking for, and knows how to engage, and connect with them. If you can not figure out how to blow your visitors mind, then what do you really have to offer? His avg reviews were between 7k-10k words? how about you? 500-1000 words? at the end of the day, which site will google find more impressive, yours, or his, and i assure you, he had far more affiliate links on his site then you have on yours as you could not skip-a-paragraph without seeing affiliate links.
I started using Amazon Affiliate Program. But i am using amazon.in, which means only people from India can buy through my reference link. So what if my visitors from other countries click on that link? They purchase the product, on getting redirected to amazon.com or amazon.co.uk. Is there any way by which I get benefit from users worldwide? Please help. I am too new to this.
Once your platform is live, you need a product to promote. However, you should avoid the temptation to do this early on. Get that emotional investment going before you attempt to do this. If you begin too early, you run the risk of losing a large portion of your audience. Take the time to first create insatiable content and deliver enormous amounts of value before you attempt to sell your audience anything.
Note from Justin & Joe: We will be repricing ALL of the Amazon Associates sites on our marketplace to reflect this change. Our methodology for this will include using the seller’s earning report from Amazon. We have created a formula using historical sales that adjusts the commission percentage based on the new rates that Amazon has rolled out. These rates are adjusted in every category and accurately updated with the historical earning amounts. Since every item is in a different commission category, we will take every category that the website is selling in into account for the new adjusted valuation price.
It’s hard to predict exactly what Amazon’s new rates will mean for those participating in the program, but there’s plenty of reason to be nervous. The most immediate change will be the end of Amazon’s “variable standard program fee” rates, which gave sites a higher cut as they drove more business to Amazon. The scale ranged from 4 to 8.5 percent, depending on how many products visitors bought in a given month. Robey says she never had trouble selling enough products to earn an 8 percent rate.
Most of the traffic for your affiliate website will come from product related searches, and product reviews. Generally, these will be more long-tail terms such as, “Blendtec 570 vs Vitamix 5300”, or “greenworks mower vs black and decker”. The traffic coming from keywords like these will be very targeted, as the searcher has the intention to purchase something.

Once your platform is live, you need a product to promote. However, you should avoid the temptation to do this early on. Get that emotional investment going before you attempt to do this. If you begin too early, you run the risk of losing a large portion of your audience. Take the time to first create insatiable content and deliver enormous amounts of value before you attempt to sell your audience anything.

I have never earned a penny on the internet but that is because I am looking for but have not yet found anything.  My problem is that although no knowledge or expertise is needed, so it is said, there are statements that I simply cannot understand.  For example, in No.4 above on making money in affiliate marketing, the statement goes "Build back links and get others to do it for us and rank in the search engines for various key words based on our market."
Amazon has been my second-best earner after Adsense. I am still in the start-up stages of IM in general but I do get a check from Amazon every month. I agree fully with the reasons you give and I have found that the small commissions is far outweighed by the points you list above. I make far more with Amazon than I do with any other affiliate program though they might have higher commissions.
Commission and Payment. Requirements for Payment; Forfeiture. In order to receive payment under this Agreement, you must have: (i) agreed to the terms of this Agreement (generally completed through the Affiliate Tool); (ii) completed all steps necessary to create your account in the Affiliate Tool in accordance with our directions, (iii) have a valid and up-to-date paypal account and updated the Affiliate Tool with such account (iv) completed any and all required tax documentation in order for HubSpot to process any payments that may be owed to you.
3.4 The number of New Players per individual household computer is strictly limited to one. Our measurements and calculations in relation to the number of New Players and Gross Revenues shall be sole and authoritative and the same shall not be open to review or appeal. We shall make the number of New Players and the relevant Gross Revenues figures available to you through our Affiliate program information site. To enable accurate tracking, reporting and commission accrual you must ensure that the Links between your site and the Sites are properly formatted at all times throughout the term of this Agreement.
His blog became wildly successful. At roughly the same time, V2 Cigs informed him of their affiliate program where they paid out 50% commissions. That was Henry's "aha" moment. Almost immediately after adding those affiliate links onto his blog, his income exploded. He was making over $30,000 per month and it was passive income. He was on top of the world.
Today, Henry is one of the foremost affiliate marketers, winning contests and awards (he even recently won a Lamborghini in a ClickFunnels affiliate marketing contest) at nearly every turn. And he's built up a devoted tribe that is so emotionally attached to him and his message that it's reached a mass-hysteria level that I would only liken to a internet celebrity, earning him upwards of three-hundred-thousand dollars per month on autopilot.
An example of this business would be to create a blog in a particular niche. Let’s say you’re an audiophile. You could create a headphone review blog. On this blog, you write articles on your favorite headphones and tell people where they can buy it on Amazon. You then place your referral link for those headphones in your article. When people read the article and decide to buy the headphones, you get paid. Simple right?
My biggest frustration is how to drive my target to my site and links. I have to do YouTube videos as part of what I told the publisher I would do. I have cards in my YouTube videos to try to steer the traffic to my site where they can look at the offerings in a very organized fashion (which really is one of two places on the web that provide this for this publisher). I just want to work smarter instead of harder. I have had so many people thank me for the videos but it is not converting through the affiliate links. I can’t stop the YouTube videos because it is part of the agreement. Also posting the reviews on Amazon.com in the product reviews. I don’t think I can add a link to my site in product reviews.
You hereby agree to indemnify and hold harmless FatCow and its subsidiaries and affiliates, and their directors, officers, employees, agents, shareholders, partners, members, and other owners, against any and all claims, actions, demands, liabilities, losses, damages, judgments, settlements, costs, and expenses (including reasonable attorneys' fees) (any or all of the foregoing hereinafter referred to as "Losses") insofar as such Losses (or actions in respect thereof) arise out of or are based on (i) any claim that our use of the Affiliate Trademarks infringes on any trademark, trade name, service mark, copyright, license, intellectual property, or other proprietary right of any third party, (ii) any misrepresentation of a representation or warranty or breach of a covenant and agreement made by you herein, or (iii) any claim related to your Affiliate Site, including, without limitation, its development, operation, maintenance and content therein not attributable to us.
(v) You will not cloak, hide, spoof, or otherwise obscure the URL of your Site containing Special Links (including by use of Redirecting Links) or the user agent of the application in which Program Content is displayed or used such that we cannot reasonably determine the site or application from which a customer clicks through such Special Link to an Amazon Site.
Affiliates were among the earliest adopters of pay per click advertising when the first pay-per-click search engines emerged during the end of the 1990s. Later in 2000 Google launched its pay per click service, Google AdWords, which is responsible for the widespread use and acceptance of pay per click as an advertising channel. An increasing number of merchants engaged in pay per click advertising, either directly or via a search marketing agency, and realized that this space was already occupied by their affiliates. Although this situation alone created advertising channel conflicts and debates between advertisers and affiliates, the largest issue concerned affiliates bidding on advertisers names, brands, and trademarks.[35] Several advertisers began to adjust their affiliate program terms to prohibit their affiliates from bidding on those type of keywords. Some advertisers, however, did and still do embrace this behavior, going so far as to allow, or even encourage, affiliates to bid on any term, including the advertiser's trademarks.

Spam is the biggest threat to organic search engines, whose goal is to provide quality search results for keywords or phrases entered by their users. Google's PageRank algorithm update ("BigDaddy") in February 2006—the final stage of Google's major update ("Jagger") that began in mid-summer 2005—specifically targeted spamdexing with great success. This update thus enabled Google to remove a large amount of mostly computer-generated duplicate content from its index.[29]

Hi Art, we have the disclosure on the footer of virtually every page, but you can do things like make a link to Amazon on phrases such as “Crest Whitestrips” or even “Get a great deal on Crest Whitestrips” – This article is a good read where Sara asked Amazon to clarify these exact questions: http://marketingwithsara.com/amazon/warning-to-all-affiliate-marketers

Hi Spencer, I remember the post where you said your site was penalized and you we’re convinced it was due to too much affiliate links. bestsurvivalknife site… i also remember you had (i asume) the same link twice everytime, once as an image and once as a textlink. Whenever i check a site’s outbound links i notice that each link only gets counted once , it seems to ignore duplicates, so even tho a site might have an image and a textlink pointing to the same productpage/url it would only get counted as 1 outbound (affiliate)link This is what i see when i check outbound links with seoquake. Do you think Google sees it like that as well? I’m asking cause up to this point ive been very cautious with placing affiliate links and avoided placing them in my images to keep it at a minimum.

After finding your blog, a couple weeks ago, I finally setup a carousel on one of my blogs. After reading your blog, I had a bunch of different ideas on how to use my Amazon affiliate account across a handful of my blogs but as of April 15th, Amazon is closing the affiliate program for all Illinois residents. The Illinois governor signed a tax law that requires Amazon to charge tax on affiliate sales in Illinois even if the retailer doesn’t have a presence here. 

Affiliates discussed the issues in Internet forums and began to organize their efforts. They believed that the best way to address the problem was to discourage merchants from advertising via adware. Merchants that were either indifferent to or supportive of adware were exposed by affiliates, thus damaging those merchants' reputations and tarnishing their affiliate marketing efforts. Many affiliates either terminated the use of such merchants or switched to a competitor's affiliate program. Eventually, affiliate networks were also forced by merchants and affiliates to take a stand and ban certain adware publishers from their network. The result was Code of Conduct by Commission Junction/beFree and Performics,[31] LinkShare's Anti-Predatory Advertising Addendum,[32] and ShareASale's complete ban of software applications as a medium for affiliates to promote advertiser offers.[33] Regardless of the progress made, adware continues to be an issue, as demonstrated by the class action lawsuit against ValueClick and its daughter company Commission Junction filed on April 20, 2007.[34]
Still, as Amazon shifts its attention to new ventures in streaming and personal assistant hardware, many see it as an ominous sign for the affiliate program. “Amazon has done such a great job taking all their profit and dumping it back in to their business. And investors are now asking Amazon to show a profit,” says Lakes. “I’m not surprised that they’re whittling a few percent here and there.”
×