Huge Amazon Associates Pay Cut

70 replies
Amazon just posted an announcement that starting on April 21 commissions will be reduced...

Furniture, Home, Home Improvement, Lawn & Garden, Pets Products, Pantry From 8% to 3.00%

Headphones, Beauty, Musical Instruments, Business & Industrial Supplies From 6% to 3.00%

Outdoors, Tools From 5.5% to 3.00%

Grocery From 5% to 1.00%

Sports From 4.5% to 3.00%

Baby Products From 4.5 to 3.00%

Health & Personal Care From 4.5 to 1.00%

Amazon Fresh From 3.0 to 1.00%

This is going to be a big hit if you are in one of these niches and/or if you get a lot of spillover commissions!
#amazon #associates #cut #huge #pay
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  • Profile picture of the author Kay King
    Disappointed but not surprised. Amazon is so busy they have trouble filling orders right now...that's not going to end any time soon.

    There is no motivation to Amazon to pay higher commissions - I think they are bumping the FBA fees, too.
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    • Profile picture of the author Janice Sperry
      Originally Posted by Kay King View Post

      Disappointed but not surprised. Amazon is so busy they have trouble filling orders right now...that's not going to end any time soon.

      There is no motivation to Amazon to pay higher commissions - I think they are bumping the FBA fees, too.
      I agree. I am almost surprised that they haven't suspended or cancelled ALL commissions indefinitely. The one thing Amazon has always been good at is crunching numbers. They will only keep paying commissions at a rate where they net profit the most.

      It won't affect me since I have been scaling back anyway.

      I feel bad for those that may have been putting a lot of effort into a niche only to find out they are now getting 1%. Even with a lot of good traffic it is hard to make much money with low ticket items at 1-3%.
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  • That's to be expected!

    Even fuel prices are being dropped in some economies, to make ends meet. So don't be surprised if commission structures get adjusted by website owners, to help them keep the lion share of each online sale during this global crisis.
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    • Profile picture of the author whateverpedia
      Originally Posted by Internet Trillionaire View Post

      Even fuel prices are being dropped in some economies, to make ends meet.
      Err, no they're not. The fuel price is dropping for a number of geo-political reasons, plus the fact that demand for oil has plummeted since there's very little air traffic, and very little commuting going on at the moment. The current crisis has reduced demand by over 20 million barrels per day meanwhile production has been cut by 10 million barrels a day.

      It's a simple supply and demand equation. Too much supply, not enough demand.
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      • Originally Posted by whateverpedia View Post

        Err, no they're not. The fuel price is dropping for a number of geo-political reasons, plus the fact that demand for oil has plummeted since there's very little air traffic, and very little commuting going on at the moment. The current crisis has reduced demand by over 20 million barrels per day meanwhile production has been cut by 10 million barrels a day.

        It's a simple supply and demand equation. Too much supply, not enough demand.
        Hence the point I made. Less people are driving/flying around due to the pandemic and lockdowns almost everywhere. The demand has dropped, therefore the prices have to drop to stimulate sales.

        Even interest rates are being cut to record lows in some countries. So why is it surprising that website owners won't adjust commission structures to increase their profit margins. It's all about their bottom line.
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  • Profile picture of the author tumblia
    Do you think this is a temporary cut, due to Covid, or a permanent cut? This could legitimately half the revenue for thousands of websites.
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  • Profile picture of the author Nail Yener
    @Janice Do you have a link to that announcement or was it an email?
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  • Profile picture of the author writeaway
    I am not sure Amazon will completely get rid of its affiliate program

    Amazon still gets tons of traffic from REVIEW sites

    It needs the content... if anything to set CONTEXT for the tons of products it carries
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  • Profile picture of the author Bjarne Eldhuset
    That sucks for many website owners. But I don't think they will cut affiliate commissions to zero. It does give an incentive for all the people who rely on Amazon earnings to check out other types of income channels, so maybe this will give a boost to some other parties?
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  • Profile picture of the author Nail Yener
    Thank you for the links and the table Jeffery. I had checked that long fees schedule page but it didn't have the new % rates; hadn't seen the other page though.

    It looks they cut the commissions on categories which are sought the most during the stay-home period, except maybe Outdoors.

    Some categories have over 50% reduced commissions. Though, 3% for some categories is still not a very bad figure. But I would think less affiliates would be inclined to specifically promote those 1% categories.

    I can only guess but increased online shopping and people purchasing more items on Amazon after the affiliate click could also help with loss of income due to lower commissions. I'm sure we will be hearing reports from fellow affiliates as to how this change affected them in the following months.

    The change looks to be not temporary, but, well, no change is ever permanent either.
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    • Profile picture of the author Jeffery
      Originally Posted by Nail Yener View Post

      Thank you for the links and the table Jeffery. I had checked that long fees schedule page but it didn't have the new % rates; hadn't seen the other page though.

      It looks they cut the commissions on categories which are sought the most during the stay-home period, except maybe Outdoors.

      Outdoors was cut from 5.5% to 3% for a difference of -2.5%. Here in the U.S. Starting April is a strong month to traditionally sell outdoor products.


      Originally Posted by Nail Yener View Post

      Some categories have over 50% reduced commissions. Though, 3% for some categories is still not a very bad figure. But I would think less affiliates would be inclined to specifically promote those 1% categories.

      I can only guess but increased online shopping and people purchasing more items on Amazon after the affiliate click could also help with loss of income due to lower commissions. I'm sure we will be hearing reports from fellow affiliates as to how this change affected them in the following months.

      The change looks to be not temporary, but, well, no change is ever permanent either.
      Amazon site portfolios are pretty much like Adsense site portfolios wherein a couple years of website deployment earns a substantial income. The trick is to create as many niche sites as you can afford to earn a minimal of $20 daily from each product category.

      Eample: There are 8 categories that will have commission cuts for a total of 25,5%. Consider your site portfolio earns a minimum of $20 daily per each product category or $160.00 daily per the portfolio before the commission cuts. Now subtract 25.5% and that works out to almost $14,000.00 less per year.

      Yes, the affiliate link will carry over to additional sales and may skew the math, but unless it is high ticket item(s) the math will not skew too much to make a significant difference. At least in my own experience which is not everyone's experience.

      It is times like this, commission cuts and low sales volume, that we marketers need to put our heads together and come up with different ideas or simply expect and accept lower yearly earnings.

      Think start a real LLC, pay your taxes and research unearned income.
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    • Profile picture of the author vphoner
      I am not sure this is permanent. Amazon stopped advertising on google. This to me was because they were already overloaded with too much business. Then they cut influencers and others. Now they cut commissions. This was all to slow down the order flow because of Covid 19. Now when things setting down, will they reinstate the commissions? Possibly.
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      • Profile picture of the author Jeffery
        Originally Posted by vphoner View Post

        I am not sure this is permanent. Amazon stopped advertising on google. This to me was because they were already overloaded with too much business. Then they cut influencers and others. Now they cut commissions. This was all to slow down the order flow because of Covid 19. Now when things setting down, will they reinstate the commissions? Possibly.

        You are absolutely correct according to this article:
        Coronavirus Impact on Google Ads and Affiliate Sales
        SEJ March 18, 2020


        Not sure if they will reinstate the commissions based on their history of not reinstating commissions. However, since they had to significantly increase their employee force to 100,000 just to cover the demand for essential consumer orders, owed to the virus, it would not surprise me when the demand is reduced some of the affiliate commissions may see a change.


        Problem is we don't know when the virus will be neutralized if ever. Some people say years. Time will tell.
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      • Profile picture of the author Stephen Crooks
        Originally Posted by vphoner View Post

        I am not sure this is permanent. Amazon stopped advertising on google. This to me was because they were already overloaded with too much business. Then they cut influencers and others. Now they cut commissions. This was all to slow down the order flow because of Covid 19. Now when things setting down, will they reinstate the commissions? Possibly.
        If I were a betting man, this would be classed as an extreme outside bet.
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  • Profile picture of the author myob
    This may be only temporary because of the current economic conditions, I don't know. But vendors have been getting hit too by Amazon squeezing their profit margins. If you've been getting decent traffic, consider contacting vendors for private deals.

    I started doing this three years ago when Amazon discontinued their performance-based commission slabs, where top affiliates were earning up to 10% commission in the highest tier.

    Although I am still doing quite well as an Amazon affiliate, my focus actually has been to use Amazon to find trending niches and hot products, with commission secondary.

    Many product manufacturers are on multiple platforms, and often are even open to consider private deals if you can show them you can drive consistent traffic.
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  • Profile picture of the author Monetize
    Affiliates didn't learn from some of the previous Amazon changes,
    but they will eventually figure out that they should not have all their
    eggs in Amazon. People need to stay flexible, adapt and pivot.
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  • Profile picture of the author Working jose
    I am a little uncomfortable, but in the face of seeing it is fine, it can still be solved with the rest of the year.
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  • Profile picture of the author IGotMine
    It's a simple supply and demand equation. Too much supply, not enough demand.
    I'm seriously considering investing in a thousand-gallon tank and filling it at the current price. When the price goes up to $4-5 per gallon in a couple of months I can sell it to friends and neighbors at half-price and make a little pin money.
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  • Profile picture of the author Jeffery
    It's a simple supply and demand equation. Too much supply, not enough demand.
    Originally Posted by IGotMine View Post

    I'm seriously considering investing in a thousand-gallon tank and filling it at the current price. When the price goes up to $4-5 per gallon in a couple of months I can sell it to friends and neighbors at half-price and make a little pin money.

    What makes you think the price of will go up to $4.5 per gallon in a couple of months?
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    • Profile picture of the author IGotMine
      Originally Posted by Jeffery View Post

      What makes you think the price of will go up to $4.5 per gallon in a couple of months?
      History? An educated hunch?

      meanwhile production has been cut by 10 million barrels a day.
      Backlash?

      I predict the prices of many things will skyrocket due to this "virus" debacle. I also foresee breadlines and homeless and unemployment numbers that will make the 1930s Depression look like a Sunday picnic.

      More damage will be done by the insane over-reaction than by the virus, and many others agree.

      The "fun" has only just begun.
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  • Profile picture of the author George Flm
    3% commission, a short lived cookie... well I think their affiliates had it coming.
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    • Profile picture of the author Kiwigal
      Originally Posted by George Flm View Post

      3% commission, a short lived cookie... well I think their affiliates had it coming.
      Just out of curiosity can you qualify your statement a bit more.
      Did you mean affiliates should have seen it coming or they deserved to have had their commission rates cut and why?
      It does annoy me that Amazon can change it's terms of service in the blink of an eye without any consideration for it's affiliates when it was affiliates who helped build the company to what is is today.
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  • Profile picture of the author Ged3
    I think this is a great shame for all of the Amazon affiliates - especially those who rely on this as their main source of income.
    With jobs being cut back at the moment it will hit them quite hard.
    It is always good to have be an affiliate of more than one company.
    There is quite a lot of choice for affiliates - so now is probably a good time to look at other companies.
    Ged
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    • Profile picture of the author GordonJ
      Originally Posted by Ged3 View Post

      I think this is a great shame for all of the Amazon affiliates - especially those who rely on this as their main source of income.
      With jobs being cut back at the moment it will hit them quite hard.
      It is always good to have be an affiliate of more than one company.
      There is quite a lot of choice for affiliates - so now is probably a good time to look at other companies.
      Ged
      NOW is probably a good time to examine other venues, look to something other than affiliate marketing, which makes you dependent on other people for your income.

      NOW is a good time to be a product developer, creator and to become self reliant, sure, keep affiliate income alive as long as you can, but don't depend on it.

      GordonJ
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    • Profile picture of the author myob
      Originally Posted by Ged3 View Post

      I think this is a great shame for all of the Amazon affiliates - especially those who rely on this as their main source of income.
      With jobs being cut back at the moment it will hit them quite hard.
      It is always good to have be an affiliate of more than one company.
      There is quite a lot of choice for affiliates - so now is probably a good time to look at other companies.
      There is a very sound business reason for commission rates. It is not an entitlement for affiliates. Companies that pay "great" commissions generally suck at marketing and making sales themselves.
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  • Profile picture of the author Medon
    And again, you need to remember that most of the buyers are now finding their ways to Amazon given the peculiar situation they find themselves in so amazon wants to keep most of the profit.
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  • Profile picture of the author CTServices
    I goofed with my previous post by putting an 'illegal' link in it. Apologies to anyone that got caught up with it. Still learning here.

    This will be an abbreviated version of the lost comment.
    Several years ago I made a serious attempt to us Amazon FBA sourcing product from China and shipping it in. Had some challenges and learnt a lot.
    However I felt that over time fees increased a little or new ones were added like the long term storage fee. And you were always being encouraged to use their advertising or some other system they controlled.

    After a few years of trying to make a profit I took advantage of an Amazon offer for free shipment to remove stock from their warehouses. Once it was shipped out I closed my Sellers Central account for good.

    Lots more could be said but I think the bottom line is that you are never really fully in control of your own destiny using systems that are owned by another party.
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  • Profile picture of the author Kay King
    Lots more could be said but I think the bottom line is that you are never really fully in control of your own destiny using systems that are owned by another party.

    Of course you aren't - nor should you be. Whether Amazon or social media platforms - or a forum's marketplace - you are advertising on a platform you don't own and don't control. It can work great...until it doesn't.
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  • Profile picture of the author writeaway
    This is great news for marketers who know how to craft deals with dropshippers
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  • Profile picture of the author JPs copy
    Totally not surprised. He who has all the gold, makes all the rules.
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  • Profile picture of the author joaquin112
    It's time to diversity. There are many affiliate programs other than Amazon. When you rely on one source of income, bad things happen.
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    • Profile picture of the author Stephen Crooks
      Originally Posted by joaquin112 View Post

      It's time to diversity. There are many affiliate programs other than Amazon. When you rely on one source of income, bad things happen.
      Agreed, but diversity should be part of your strategy from the start to be fair.
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      • Profile picture of the author Jeffery
        Originally Posted by Stephen Crooks View Post

        Agreed, but diversity should be part of your strategy from the start to be fair.

        ^ This ^


        Very true. And a solid backup plan I might add. There is an old saying something like "Don't build just one.. build two" and it is a strategy for diversity.


        Examples:


        Maintain your own server on host A and a backup on host B.


        Maintain an offline business that can quickly be transformed into an online business and visa versa. Especially during times like today.


        In the ice cream business? Always have a backup ice cream machine, etc.
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    • Profile picture of the author DABK
      It has always been.

      Having your income come from 10, completely unrelated, sources always puts you in a bettet position than having it come from one.

      Selling t-shirts on amazon or ebay us better than doing it just on amazon.

      But not as good as selling office furniture and t-shirts on amazon and ebay.

      I am afraid many will start using 2 platforms to sell the same thing and feel they have diversified aplenty.


      Originally Posted by joaquin112 View Post

      It's time to diversity. There are many affiliate programs other than Amazon. When you rely on one source of income, bad things happen.
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      • Profile picture of the author qwikaddotcom
        I agree. A friend of mine has listings on four sites (ebay, amazon, poshmark, etsy). It's taxing, of course, to joggle all four, but it gives him peace of mind that stuff will sell. I couldn't do that. I prefer to concentrate on two (at most) projects at a time. But if someone can handle two or more projects they definitely should do that.

        Originally Posted by DABK View Post

        It has always been.

        Having your income come from 10, completely unrelated, sources always puts you in a bettet position than having it come from one.

        Selling t-shirts on amazon or ebay us better than doing it just on amazon.

        But not as good as selling office furniture and t-shirts on amazon and ebay.

        I am afraid many will start using 2 platforms to sell the same thing and feel they have diversified aplenty.
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  • Profile picture of the author agmccall
    Personally, I have always been a member of several affiliate networks and tried to find unique products that are not offered on Amazon. Although they are few and far between, they are there.

    One thing to keep in mind right now is many people are going to be more inclined to buy from smaller companies as opposed to the giants even online. And, you can add this as part of your marketing strategy. (this is just my personal opinion)

    For me a good start for an alternative to Amazon would be Share-A-Sale, real easy to search and find vendors and real easy to get approved

    al
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    • Profile picture of the author Bruch
      Originally Posted by agmccall View Post

      Personally, I have always been a member of several affiliate networks and tried to find unique products that are not offered on Amazon. Although they are few and far between, they are there.

      One thing to keep in mind right now is many people are going to be more inclined to buy from smaller companies as opposed to the giants even online. And, you can add this as part of your marketing strategy. (this is just my personal opinion)

      For me a good start for an alternative to Amazon would be Share-A-Sale, real easy to search and find vendors and real easy to get approved

      al
      How to find unique products that are not offered on amazon?

      Thank you.
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  • Profile picture of the author myob
    Usually any product sold on Amazon can be found elsewhere. This is only one of many outlets used by wholesalers and manufacturers.

    I have made a fortune leveraging the Amazon affiliate program for my MLM company over nearly 25 years, and there has been about 4 major reductions in commissions during this time.

    So this is nothing new, and we should expect further commission reductions as Amazon grows. But I have no intention of leaving the Amazon affiliate program just yet.

    Playing off this unique business model is perhaps now more than ever an "unprecedented" opportunity, as wave after wave of Amazon affiliates abandon ship.

    Other companies are suddenly offering their own affiliate programs, as well as legacy affiliate platforms (CJ, Shareasale, Rakuten, etc) experiencing a new "gold rush" in filling the vacuum.

    But there is no other company with Amazon's name recognition, nearly universal trust, and unbeatable conversion algorithm. As much as half of all e commerce is through Amazon.

    In my not so humble opinion, Amazon is a priceless tool for building lists, cold market conversion, and quickly identifying best selling products.

    They're still the best whore the world has ever seen.
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  • Profile picture of the author awledd
    Sad to hear that but I stopped all my Amazon affiliate sites. So it's not much of a concern to me. But I am afraid the trend will continue to Amazon Merch POD too. That is where I am doing something nowadays. Be nice Amazon!
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  • Profile picture of the author AdmanMrWoo
    AMAZON treats you like an employee, while over at ebay, you're still an entrepreneur.


    Maybe we should buy from EBAY sellers, instead of bowing down to Bezos.


    "richest man in the world" indeed.


    I think Paul Salvadge (sp?)

    ... warrior forum name: savidge4
    has some ideas on how to make $100,000 a year selling on ebay.

    Maybe he can start a thread called
    AMAZON SELLERS VS. EBAY SELLERS.

    Just thinking
    Linwood

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  • Profile picture of the author dsimms
    I can honestly see Amazon Affiliate Program diminishing more in the future if not discontinued.

    Amazon is a world recognized online retailer, and as such, has the authority to tell their sellers to create high quality content for their listings instead of those vague listings you still see from time to time.

    Amazon is their own authority today, and I am pretty sure if they shutdown their affiliate program today, I think amazon would be just fine, and amazon could be testing this theory by implementing cuts on commissions.

    and I am sure none of this has anything to do with amazon building brand new plants, ROFL.
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    • Profile picture of the author myob
      Originally Posted by dsimms View Post

      I can honestly see Amazon Affiliate Program diminishing more in the future if not discontinued.
      They have been adjusting and reducing affiliate commissions for years, and every time there has always been a huge backlash and outcry by affiliates. This is free advertising for Amazon.

      Most likely, the affiliate program will never be discontinued. Just expect more changes to come. The affiliate teasing by this genius marketing machine will always continue.
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      • Profile picture of the author myob
        Originally Posted by Profit Traveler View Post

        Back when Amazon had that issue with Sales Taxes for each State I have been cold to take that path but I have seen people making serious bank with it.
        Some Amazon Affiliates are still doing amazingly well, mostly by targeting highend and luxury products. Personally I would never abandon Amazon Associates, at least in the foreseeable future. Their name recognition and conversion rates are off the charts over anything else out there.

        The monthly sales reports alone showing buying patterns and product interest are priceless. Usually the product manufacturers and wholesalers on the Amazon platform have their own affiliate programs or may be open to private deals or even jv if you can bring in the traffic and sales.

        Originally Posted by Profit Traveler View Post

        I saw someone just sell a eCommerce Amazon site at auction the day before the announcement for a great price. Hope they are both equally happy.
        You can find great bargains for these sites because most Amazon affiliates don't have a clue what they're doing, and don't realize they are sitting on a goldmine. The Amazon marketing and customer massage machine is still by far the best whore the world has ever seen.
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        • Profile picture of the author Profit Traveler
          Originally Posted by myob View Post

          Some Amazon Affiliates are still doing amazingly well, mostly by targeting highend and luxury products. Personally I would never abandon Amazon Associates, at least in the foreseeable future. Their name recognition and conversion rates are off the charts over anything else out there.

          The monthly sales reports alone showing buying patterns and product interest are priceless. Usually the product manufacturers and wholesalers on the Amazon platform have their own affiliate programs or may be open to private deals or even jv if you can bring in the traffic and sales.



          You can find great bargains for these sites because most Amazon affiliates don't have a clue what they're doing, and don't realize they are sitting on a goldmine. The Amazon marketing and customer massage machine is still by far the best whore the world has ever seen.

          Just that Bezos clocked in 25 New Billions since Jan this year. Am I playa Hatin?
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      • Profile picture of the author Jeffery
        Originally Posted by Profit Traveler View Post

        Just that Bezos clocked in 25 New Billions since Jan this year. Am I playa Hatin?
        Originally Posted by myob View Post

        Don't be a Bezos hater. Tap into the genius and leverage the brand.

        Heck, just marry the guy and problem solved.
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      • Profile picture of the author Kay King
        The 'littile guy' has nothing to do with it. Amazon is managing IT'S OWN business - and when you have all the sales you can handle...you don't need to pay commissions to affiliates.


        Amazon could have easily canceled it's affiliate program but it didn't. Years ago you could make money sending people to ebay or to paypal, etc. No longer the case because those businesses closed their affiliate programs.



        My guess is in 2-3-4 years Amazon will change commissions again - when it needs to to make inroads in a new sales sector (can't imagine what that would be but wouldn't surprise me).


        It is not Amazon's responsibility to 'provide for the little guy' - it's the little guy's responsibility to sell where the money is.
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        Due to the current pandemic I will no longer be shaking hands or giving hugs. You may wave, bow to me or give me the finger...your choice.

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      • Profile picture of the author myob
        A whole generation of "little guys" have become very wealthy because of Amazon. And even now Amazon is perhaps one of the top affiliate tools especially for newbies to learn marketing and find top selling products in their niche.

        This pervasive attitude of entitlement that somehow Amazon owes their affiliates something for "building" the company is unbelievable. Bezos did not achieve his success by complaining or whining, but spent a decade or more paying affiliates without even making a profit.
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      • Profile picture of the author Jeffery
        Originally Posted by DURABLEOILCOM View Post

        I really do believe Amazon is trying to get rid of the little guy.
        Originally Posted by Kay King View Post

        The 'littile guy' has nothing to do with it. Amazon is managing IT'S OWN business - and when you have all the sales you can handle...you don't need to pay commissions to affiliates.

        Amazon could have easily canceled it's affiliate program but it didn't. Years ago you could make money sending people to ebay or to paypal, etc. No longer the case because those businesses closed their affiliate programs.

        My guess is in 2-3-4 years Amazon will change commissions again - when it needs to to make inroads in a new sales sector (can't imagine what that would be but wouldn't surprise me).

        It is not Amazon's responsibility to 'provide for the little guy' - it's the little guy's responsibility to sell where the money is.

        Well done Kay.


        In this context, the sooner people nix the attitude that 'business owes them something' and is 'out to get them' adopt the attitude that 'business owes them nothing' and is 'going to take care of their own first' then their personal perspective of doing business will change for the better.


        Same applies to some of the people on this forum that heard from a different forum that heard it from a different forum that The Warrior Forum will teach you 'How to Make Money' and those people make statements similar to 'Nobody can tell me how to make $1.00 a day.' so there must be a hidden agenda, blah blah.


        When in fact nowhere on the home page does the Warrior Forum state "How to Make Money."


        Rather, "Find out and learn more about SEO, running an online business, etc.'


        Once people realize this forum is a place for people to 'Participate in Discussions, Discover and Learn, etc." and apply their newly gained knowledge to their particular business then their personal perspective of doing business will change for the better.
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      • Profile picture of the author Stephen Crooks
        Amazon will make whatever decisions they need to make and it is never to penalise the 'little guy'. Imagine how that meeting would have been in Jeff Bezos's conference room.

        AGENDA:
        1. Destroy the little guy because they are annoying.

        Joking aside, its just business and even though the timing from Amazon and the timeframe was appalling, we "the affiliates" have to adapt our businesses so that we can survive and even prosper!

        Bottom line.. If you still have buyer traffic coming into your site, then you have the power still. Adapt, Survive and Prosper!
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  • Profile picture of the author Bkelly301
    To me, this kind of makes the idea of being self-employed almost feel like a job again. The big company Amazon decided to cut your pay, and now you are at their mercy.

    This holds true for any business in which you rely on their platform and traffic to get paid.

    I find that it's best to try and "own" as much of my business as possible. If I create the product, host it on my own website, own the email list, etc...then I own all that.

    If, on the other hand, you rely on affiliates, adsense ads, etc...then you are kind of at the mercy of whatever they decide to do.

    Just food for thought.
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    • Profile picture of the author savidge4
      Originally Posted by Bkelly301 View Post

      This holds true for any business in which you rely on their platform and traffic to get paid.

      I find that it's best to try and "own" as much of my business as possible. If I create the product, host it on my own website, own the email list, etc...then I own all that.

      If, on the other hand, you rely on affiliates, adsense ads, etc...then you are kind of at the mercy of whatever they decide to do.
      I get what you are saying.. but lets throw this into an amount of context. The idea of getting paid by selling your own product vs getting a paycheck from selling someone elses.. comes down to what you can bring to the table.

      YOU Bkelly301 are an example ( that is few and far between ) of someone that can BRING VALUE. Its that VALUE that separates getting paid vs getting a paycheck.

      How many times here ( the WF ) have we read "Hey I just started IM this week and launched my first product on getting traffic.. How do I get traffic to my sales page?" There is obviously no value.

      So you either have experience... I have played guitar since I was 8.. or I have been developing websites since 1997 and with that experience there is VALUE. The opposite is losing your job as a shelf stocker and realizing you want more in life and deciding you are going to take on making money online... and creating a product. ( There is NOTHING wrong with stocking shelves BTW - it pays the bills and that in un itself is a good start )

      I would suggest the reality is there is this obvious 2 fold divide in terms of level of marketers.. the ones that have something to offer, and then the opposite being those that need to sell someone elses product in order to gain an amount of experience to turn around at a later point and have VALUE.

      I personally operate on a whole lot of platforms eBay, Amazon ( both selling and Affiliate ), Etsy, Facebook ( Marketplace and a facebook shop ) Craigslist, Selling my own services, services related to selling for my clients etc. To some extent I do all of these things to better understand for my clients the best PLATFORM to match my clients needs. I only provide what it is I KNOW... vs what I client says they want - and then faking it to make it.

      Understanding and being honest with the amount of value, or the need to educate yourself to create value is critical. From there understanding what you have to sell and where specifically or more specifically what platform to sell on is REALLY important.

      Success comes down to VALUE. how much do you have to offer, becomes the leverage between buying and selling. I don't know a thing about working on cars so I hire a mechanic vs I have all the tools and have worked on them for years and fix my own. This point of leverage exists in all aspects of life, not just "Online".

      When we look specifically at a platform like AMAZON... I wouldn't think it to hard to think about "Supply and Demand" and understand the supply of affiliates is actually greater than the demand of product. I could suggest that Amazon is reached a breaking point where the saturation of affiliates is disrupting in a bad way direct sales.

      And what I am suggesting here is not that Amazon is losing money by paying affiliates, they are losing conversions regardless of affiliate or direct because of the shadiness of many Amazon affiliates. How often have you ( the reader ) gone looking for something and seen amazon affiliate page after amazon affiliate page and finally went somewhere else and maybe paid more, just so you dont buy on Amazon? I dont know specific numbers... but i know this is happening at scale - and THIS is what Amazon is fighting with.

      just my $.02 and maybe a bit more lol
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      Success is an ACT not an idea
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  • Profile picture of the author Profit Traveler
    Back when Amazon had that issue with Sales Taxes for each State I have been cold to take that path but I have seen people making serious bank with it.

    I saw someone just sell a eCommerce Amazon site at auction the day before the announcement for a great price. Hope they are both equally happy.
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  • Profile picture of the author likemike
    All the big corps do this one way or another after they grow a big enough business and it leaves the little guy in the dust. One thing is certain -- CHANGE!
    The key is to find a new way to make a buck online by being creative. Good luck!
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  • Profile picture of the author ayomyde
    I am not suprised, considering the current econmic reality. It however calls for a rethink for those of us in partnership with Amazon.
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  • Profile picture of the author DURABLEOILCOM
    I really do believe Amazon is trying to get rid of the little guy.
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  • Everybody's being hit right now so there's not much shock in this change of commission. If you've been relying on Amazon's associate program for the bulk of your income, now is a good time to start selling your own products.
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