Thursday, October 9, 2014

Can You Make Money With the Amazon Affiliate Program?

People spend millions of dollars on Amazon each year – and you can get a "piece of the pie" by incorporating Amazon’s affiliate program as part of your website content.

If you have been looking at the Amazon Affiliate Program and wondering if it is right for you, the only person that can answer that question is you.  But we are going to give you some details which can help you make your decision when considering the Amazon Affiliate Program.

This Post is the first in a series of posts regarding the Amazon Affiliate Program.

Products - Amazon has over a million products which you can select, promote and sell for an advertising fee.

Commissions - Amazon has 3 different advertising fee rates (subject to change from this post) which they pay to an Affiliate:

1.  Performance Fee Structure
  • When you join the Amazon Affiliate Program, you are automatically enrolled in their Performance Fee Structure which allows you to earn higher fees when you generate a sufficient volume of referrals that result in qualifying purchases at during a given month.
  • Under the Performance Fee Structure, Amazon will pay you an advertising fee rate which ranges from 4% to 15%.  This is based on the total number of qualifying shipped items from both Amazon and third-party sellers, not including those product categories that pay out at a specific fixed advertising fee rate. The same rate will apply equally to both Amazon and third-party items and will apply to all referred items shipped during the month.
2.  Fixed Advertising Fee Rates
  • See the Associates Program Advertising Fee Schedule for a list of product categories that have fixed advertising fee rates and are excluded from Volume-Based Advertising Fee Rates for General Products.
3.  Volume-Based Advertising Fee Rates for General Products Referral Rates
  • These 4% - 8.5% rates are based on the number of products shipped during a given month.
  • Many don’t think the 4% commission is adequate, but consider the difference it makes between a $10 disk, which is .40 cents, and a $5000 camera, which is $200 – suddenly the 4% doesn’t seem all that bad. In addition, it’s pretty easy to take the 4% to 6%. All you need to do is sell seven items. Now consider this – if you make your seven items, using low ticket items that sell fast, that puts you in place for the high ticket items at a higher price. You can earn as much as 8.50 percent when you reach the higher end of the selling scale.
People Purchase More Than a Single Item - One thing that is great about Amazon is that it is like ‘one stop shopping.’ You send them to the site – they buy ‘your’ advertised item and then they shop some more – you get paid extra if they buy. Or if they leave the site but come back within 24 hours you still get your commission. So let’s look at an example. You send a potential customer to the site because they are going to buy a ‘book’ you promoted.  When they get there, they not only buy the book, they buy a headset, and then finish their purchases with a new phone. Now you’ll get paid commission on all of those items.

Remember That Every Little Bit Adds Up - Initially the commissions may seem small.  You may think how can you possibly earn a living with small commissions – after all 4% on a $10 item is .40 cents.  Celebrate these little payouts because in a short time, one item can be ten items and ten items can be a thousand items for which you get an advertising fee. And to go with the ten dollar items may be items that cost hundreds of dollars. Soon your commission checks will grow and you will enjoy the benefits of a steady income. So be patient.

I hope this initial information will help you to make your Amazon Affiliate Program decision.

You can get more help here:   How to Make Money as an Amazon Associate

Watch for post #2 in this series on Amazon Affiliate marketing!

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