Amazon Operating Agreement Update - RE: Free Kindle Books

6 replies
I woke up this morning to an email from Amazon regarding an update to their operating agreement effective from March 1st.

There are a few additions, but this one in particular bothers me...

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Associates Program Advertising Fee Schedule - Limitations on Advertising Fee Rates for Certain Products

March 1, 2013 version

The following is added at the end of the sub-section:

"In addition, notwithstanding the advertising fee rates described on this page or anything to the contrary contained in this Operating Agreement, if we determine you are primarily promoting free Kindle eBooks (i.e., eBooks for which the customer purchase price is $0.00), YOU WILL NOT BE ELIGIBLE TO EARN ANY ADVERTISING FEES DURING ANY MONTH IN WHICH YOU MEET THE FOLLOWING CONDITIONS:

(a) 20,000 or more free Kindle eBooks are ordered and downloaded during Sessions attributed to your Special Links; and
(b) At least 80% of all Kindle eBooks ordered and downloaded during Sessions attributed to your Special Links are free Kindle eBooks."

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Why on earth would Amazon implement this new rule?

I send about 50,000 clicks a month to free Kindle books - traffic that Amazon otherwise wouldn't of had.

Many of these visitors go on and buy other Kindle books or other products earning revenue that Amazon otherwise probably wouldn't of had.

Am I right in thinking that affiliates are permitted to send MORE than 20,000 free Kindle book downloads as long as more than 20% of total book downloads have been paid?

If so, how can you see how many free downloads have happened via your special link?

James
#agreement #amazon #books #free #kindle #operating #update
  • Profile picture of the author cashcow
    It does seem like a crazy rule, doesn't it?

    I'm wondering how it's going to effect all the books sites that announce free books. Whenever I offer one of mine free, there are several sites I announce at and I think it really helps.

    Many of those sites have paid features so there is money being made by announcing free books but maybe those sites won't care about losing their Amazon affiliate earnings since they are making money with the paid ads?

    Should be interesting!
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    Gone Fishing
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    • Profile picture of the author Sandra Martinez
      I think THIS

      Originally Posted by cashcow View Post

      Whenever I offer one of mine free, there are several sites I announce at and I think it really helps.
      is why Amazon is jumping.

      When they released KDP, they probably thought on having small self publishing authors who would take those days to give the books to friends and family... in exchange of being the only ones publishing for 90 days. That was brilliant (for them).

      But there are many sites organizing around those free promotions. And there are many authors making sets of related products. So with a three days cookie and readers in a frenzy, they are probably losing money.

      I remember some years ago when affiliates could use ppc to send traffic to Amazon, and even use the keyword Amazon. When it started gaining popularity and the keyword price went up, well.. they changed the rules, and left a lot of people whining.
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  • Profile picture of the author Nail Yener
    As always, FREE is not good.
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  • Profile picture of the author Nicola Lane
    I have a feeling that sites are going to be vetting the ads that they accept for free books.

    They are going to be vetting to make sure that there are at least two more books that are closely related - and aren't free - that are likely to be purchased at the same time.

    Good news for fiction authors - bad news for non-fiction authors!
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    I like to keep an open mind, but not so open that my brains fall out

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  • Profile picture of the author J Bold
    Wow, that is somewhat strange.

    I guess they feel too many freebie downloaders are eating into possible sales or are costing them too much in bandwidth.
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    • Profile picture of the author JohnMcCabe
      Here's a thought...

      When Amazon conceived their Associate Program, there were no free downloads or other products. If you wanted to play, you had to promote something that Amazon made money from selling. Any added purchases were just gravy.

      Enter KDP.

      Now you have sites dedicated to sending freebie hunters to the site and relying on that gravy for their money. Sales Amazon may or may not have made anyway. I'm betting that there's a guy in a boardroom somewhere complaining about having to pay commissions on sales that they might not have to. I'm not saying that's right, but it is how many bean counters think about marketing.

      Young Mr. Penn believes he is sending people to Amazon they would not have had otherwise, but there's no way to prove that.

      Another possible flaw in the ointment...

      Do "sales" of Kindle books, actually free downloads, count toward the performance structure? If so, such "sales" may be viewed as a way to game the commission structure. Again, there's no way to know for sure without being a fly on the wall, but that's how bean counters think.

      And when those bean counters have millions of bosses to answer to (aka 'stockholders'), the wails of a few marketers aren't very loud.

      I would look for more adjustments in the future aimed at making associates earn their sales. No offense intended, James...
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