Are they biting the hand that feeds them? Possibly. We will have to wait and see. Maybe Amazon gave the higher commission %’s to the products that have the highest markup…? i.e. their Amazon coins. I do believe tho they have reduced the incentive their own “affiliate employees” previously had to push their products-and maybe, just maybe this new commission structure will not last long.
The Amazon Associates affiliate program uses a tiered commission structure to pay out to affiliates. The more you sell, the more you will earn. That’s why many affiliates will attempt to promote two different types of products – cheap and expensive. By promoting cheap products under $10, you will likely receive a lot of purchases. For example, many affiliate marketers will promote e-books that may only cost $5. Since Amazon only pays up to 8.5% commissions, you’re not going to earn much by selling a $5 e-book. However, making a lot of sales of smaller items helps to boost your sales count in the, which also boosts the amount of commission you receive. Here is the current Amazon Associates Affiliate Program commission structure:
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.
Whatever you choose to do with this monetization and marketing technique, take time to plan your strategy. While it is very easy to get started and to add Amazon affiliate links to WordPress, the key to success is in how well you execute those links and promote them to your visitors. Affiliate marketing takes time to excel at, so be patient and don't give up!
To visualize this, think about an employee at a department store. They get paid hourly, but they also get commissions when they make sales (depending on where they work). Ever notice how when you walk into a department store employees begin hovering around you? This is because they’re waiting for you to ask for help, so they can help you complete a purchase and make a commission. This “commission” is the core essence of affiliate marketing.
The easiest way to find affiliate programs to promote is to check if the people selling products and services you love have an affiliate program – assuming those products and services would be relevant to the visitors to your blog or website. There are also multiple ways to find new quality products or services to promote to your audience based on their interests. You'll find more information on how to do this here.
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.
(a) For purposes of the Local Associates Program, “your Site”, as referenced in the Associates Program Operating Agreement, includes the Local Associates Facilities and any other location where you market Products to Amazon customers. For avoidance of doubt, if you use any Site (as defined in the Associates Program Operating Agreement) or other online presence to market Products to Amazon customers, that Site will be subject to all provisions of the Associates Program Operating Agreement as “your Site.”
Thanks for sharing your experience. It was a real eye-opener for me. I am new to affiliate marketing and am looking for ways to make a steady income. Your affiliate program seems to fit my needs. If you have the time email me with your affiliate link to signup and I hope you can help me get started the right way. Any assistance would be greatly appreciate. Be Blessed.
Since I do not live in the U.S., I would have to get paid by check or gift certificate. Obviously only getting paid in gift certificates isn’t that great, so that leaves the check. However, checks are not used here in Sweden at all basically, so cashing one comes with huge fees, I think maybe 30-40USD for a check. So my question is, can you choose to “save up” the money you make at Amazon and only get a check sent when you want to, or is it automatically sent at certain amount? I know Adsense has/had a feature that let you “block” payments until you released them. If Amazon has a feature like that, it’d make the check-fee less of a problem.
Media reporter Mathew Ingram tweeted, "Not great for media who rely on affiliate revenue[,]" potentially a nod to popular gadget reviews The Wirecutter, which was acquired by The New York Times. Technology journalist Michael Morisy quipped, "Amazon reworks affiliate program, cutting commissions 50% for electronics. Guess they think Jet threat has passed?" in a reference to up-and-coming Amazon rival Jet.com, which sold to Walmart in a deal largely regarded as a failure for the startup.
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.”
Short Summary: Basically what the plugin does is allow you to quickly insert a text based affiliate link, the image of the product as an affiliate link, a product information grid, convert US Amazon links to UK, GR etc. via link localization etc. etc. and have all those things be affiliate links to Amazon.com so it does a great job of improving click through rates.
Although I am an “uber-experienced newbie” in the Internet Marketing world, I was an Amazon-phobic, having been only familiar (and seen some success) with ClickBank products, not venturing into anything outside CB. The low commissions and lack of knowledge on how to correctly promote the products and inner workings of their affiliate program was another deterrent in getting started.
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