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 Amazon.com 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.
- 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.
- 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.
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!