Amazon Is Making Me think

10 years ago

Amazon is a bizzare one... I use to have lots of these type of sites but now I just use amazon to to compliment my main business model.

The commission on 400 is pretty bad but you get commission on eeverything you sell so uts not all doom and gloom :-)

Danny

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AffiliatingAlan

10 years ago

Originally Posted by Danny Cutts

Amazon is a bizzare one... I use to have lots of these type of sites but now I just use amazon to to compliment my main business model.

The commission on 400 is pretty bad but you get commission on eeverything you sell so uts not all doom and gloom :-)

Danny

Lol on what planet would you sell something without a commission? Thats like saying but you get paid for every hour you work lol.

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Danny Cutts

10 years ago

No what I am saying if you are promoting a bbq and that person buys a pencil you do still get commissions...

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Danny Cutts

10 years ago

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ernawati

10 years ago

Originally Posted by Danny Cutts

By the way I am a full time marketer who makes a large proportion from ebay and amazon :-)

Danny

Hi Danny,

Just wondering how you promote amazon and clickbank product, do you use plugins such as wprobot, amaniche, wpzon etc.... or writing manual review of product.

Thanks

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Danny Cutts

10 years ago

Originally Posted by ernawati

Hi Danny,

Just wondering how you promote amazon and clickbank product, do you use plugins such as wprobot, amaniche, wpzon etc.... or writing manual review of product.

Thanks

Hiya

In the old days I use to have/use wprobot and reviewazon and also was a massive BANS builder as well :-)

Now a days I just create high content sites with images and text links :-) These convert a whole lot better for me :-) I also put ebay banners in the sidebars and what not :-)

Danny

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Hannah Gardner

10 years ago

”Wouldnt it be easier for me to sell one person a 60$ product from a squeeze page than it would to sell two people a 400$ product from amazon?”

It seems to me you already got your answer, didn't you?
What makes you more content about your work?

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Mark Singletary

10 years ago

One thing to consider is that a lot of people trust Amazon - more so than Clickbank.

Not sure the last time I saw Clickbank mentioned on the front news page for example. Also many people know the CEO of Amazon's name and how it all got started but have no clue about Clickbank's story.

Not taking anything from CB - I trust them but just saying when talking about what's "easier" you may want to take this aspect into consideration.

Mark

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JRJWrites

10 years ago

Originally Posted by AffiliatingAlan

I am starting to think how low the margins really are. Starting off at 4% if I sell this product of 400$. That earns me 16$ in commissions.

Versus selling a 60$ product on clickbank and earning 30-45$ commission.

Simple solution: do both.

Originally Posted by AffiliatingAlan

Wouldnt it be easier for me to sell one person a 60$ product from a squeeze page than it would to sell two people a 400$ product from amazon?

Depends on the product, the website, the copy, everything. Conversion rates on Amazon, compared to Clickbank, are significantly higher.

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wayneh

10 years ago

Originally Posted by AffiliatingAlan

Wouldnt it be easier for me to sell one person a 60$ product from a squeeze page than it would to sell two people a 400$ product from amazon?

If all other things were equal you would be right. But that won't be the case - especially when comparing a physical product and a digital product, or Amazon vs Clickbank. It might be easier to sell 6 $400 Amazon products that one $60 Clickbank products due to less buyer resistance for all the reasons stated by jrjohn

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jan roos

10 years ago

It is much easier to sell that $400 BBQ or whatever on Amazon than a Clickbank product.

Think conversion rates which Amazon blows CB out the park.

So if you send 300 visitors to the Amazon product you might sell 8 BBQ's at the low end and 15 at the high end which will make you around $160 for 8 sales at 8%.

If you send 300 visitors to CB with an average conversion rate of 1% you will make 3 sales on the low end and 10 sales on the high end.

3 sales would give you around $90.

See the difference?

I am not dissing CB as I make good money from them but when people say 8% commission on a physical product from Amazon is crap I have to disagree.

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pdrs

10 years ago

Originally Posted by jan roos

It is much easier to sell that $400 BBQ or whatever on Amazon than a Clickbank product.

Think conversion rates which Amazon blows CB out the park.

So if you send 300 visitors to the Amazon product you might sell 8 BBQ's at the low end and 15 at the high end which will make you around $160 for 8 sales at 8%.

If you send 300 visitors to CB with an average conversion rate of 1% you will make 3 sales on the low end and 10 sales on the high end.

3 sales would give you around $90.

See the difference?

I am not dissing CB as I make good money from them but when people say 8% commission on a physical product from Amazon is crap I have to disagree.

Cheers

Exactly this but don't forget about one other HUGE problem with Clickbank - refund rates.

For me, amazon refund rates are *almost* non-existent, whereas when I had a fairly successful clickbank site running they were huge.

Plus you get commish for everything that a person buys on amazon after clicking your link, not just the product in question and that's where the real power lies.

I'm sure many other marketers can back this up.

Amazon FTW!

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GuruGazette

10 years ago

Once you factor in refund rates, cb roi usually drops even further.

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myob 10 years ago

Amazon's "low" sales commissions are really not out of line at all, when you consider their very powerful suggestion and conversion algorithm. You will earn commission even if a prospect decides to buy a $30,000 grill instead of the $400 BBQ being promoted. That type of conversion will never happen on Clickbank.
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- mattierocks 10 years ago
  
  Not to mention Amazon helps you close why they send follow up emails and such when people put stuff in the cart but don't finish checking out, etc.
  
  Like a lot of people have said, do some Amazon, some CB and maybe some sites where you combine the two. They are too different to really say one is better than the other. They both have strengths and weaknesses depending on your goals.
  
  Good luck with whichever way you decide to go!
  
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johnben1444

10 years ago

Amazon is winning here..

Another advantages of amazon are:

1. It has a 90 day cookie

2. It's a brand almost everybody know and trust.

3. A good number of people don't just buy that item you are promoting. They might not even buy the item you promoted but will settle for something completely different..

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thelawlessone

10 years ago

Amazon has a 24 hour cookie, not a 90 day cookie that was mentioned above. However, it is still winning for me because of how they close sales.

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Danny Cutts

10 years ago

ebay aff program for me is still super :-)

I love ebay :-)

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UncleDearest 10 years ago

Originally Posted by Danny Cutts

ebay aff program for me is still super :-)

I love ebay :-)

Either you are into something unaffected by the new pricing structure or it didn't go into effect in the UK. EPN used to be a very lucrative affiliate program for me until Oct when the new pricing came into play (24 hour cookie on auctions) and plummeted my earnings by 70%.
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seobro

10 years ago

PLEASE um read the fine print in amazon.

"Notwithstanding the advertising fee rates described on this page, the following limitations apply: (a) advertising fees for all Qualifying Purchases of Products that are personal computers (including without limitation desktops, laptops, notebooks, tablets, and netbooks) are limited to a maximum of $25 per personal computer, regardless of the Qualifying Revenues received from the sale of that Product"

$25 dollar max! Yeah, that is sour news guys. Try to not sell too many expensive gizmos. Oh wow, less than 4% even. Yeah, read it and weep.

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myob

10 years ago

Originally Posted by seobro

$25 dollar max! Yeah, that is sour news guys. Try to not sell too many expensive gizmos. Oh wow, less than 4% even. Yeah, read it and weep.

Because of the way Amazon is structured, you would be leaving a whole lot of money on the table by taking this advice. :rolleyes:

In my own experience, nearly 30% of orders consist of additional products or entirely different products from what was being promoted.

For example, buyers of "expensive gizmos" maxing out at $25 commission may also load up on several other qualifying products for higher tiered commissions in the fee schedule.

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AffiliatingAlan

10 years ago

Originally Posted by myob

Because of the way Amazon is structured, you would be leaving a whole lot of money on the table by taking this advice. :rolleyes:

In my own experience, nearly 30% of orders consist of additional products or entirely different products from what was being promoted.

For example, buyers of "expensive gizmos" maxing out at $25 commission may also load up on several other qualifying products for higher tiered commissions in the fee schedule.

Yes however I dont see too many alternative purchases in 24hrs when ordering a 400$ bbq

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Mark Singletary 10 years ago

Originally Posted by AffiliatingAlan

Yes however I dont see too many alternative purchases in 24hrs when ordering a 400$ bbq

Take this grill: Amazon.com: Weber 47510001 Spirit E310 Natural...
The price is $519

The "frequently bought together" = $576.73

Adding some common items from "customers who bought this item also bought" can easily add another $200.

Then there is the offer for 6 months interest free financing which is attractive to some customers that Clickbank doesn't have.

I'm not saying you are doing this but in the past when I have started questioning something AFTER I've bought the domain name and started the work on the site it normally was some sort of a mindset issue.

Mark
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myob 10 years ago

Originally Posted by AffiliatingAlan

Yes however I dont see too many alternative purchases in 24hrs when ordering a 400$ bbq

Amazon's product suggestion algorithm changes for each customer based on product(s) sold, previous purchases, browsing history, region-specific buyer behavior patterns, etc.

In addition, they often send emails to buyers for related offers. Consider doing likewise by building a list of buyers for future product promotions. That is how the really big bucks are being made with Amazon.
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wayneh

10 years ago

Originally Posted by seobro

PLEASE um read the fine print in amazon.

$25 dollar max! Yeah, that is sour news guys. Try to not sell too many expensive gizmos. Oh wow, less than 4% even. Yeah, read it and weep.

Yes you are right in this example but another single example I have had cases where I've had people click through on a 99 cent kindle book who have bought $200 of other stuff giving me a commission of $12 (not a lot I know) but much better than a 4% return.

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Teravel 10 years ago

Originally Posted by AffiliatingAlan

Wouldnt it be easier for me to sell one person a 60$ product from a squeeze page than it would to sell two people a 400$ product from amazon?

I think the real question is... "What's stopping you from selling both Amazon and Clickbank products on the same website?"

What about Contextual Ads?

List Building?

Why would you limit your business to one type of monetization? That's like walking into a local store and only seeing one type of product. Could you imagine if "Auto Zone" only sold Tires? Gas Stations only sold Gas? KFC only sold Chicken!?
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theteach

10 years ago

Personally, I don't think it is worth it.

Your commission on $10,000 from Amazon would be roughly $400-$700 depending on your commission rate. Factor in taxes and you might walk out of it with $200-$400 in total.

I think that, as an affiliate, getting people to purchase $10,000 is quite a task.

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Silas Hart

10 years ago

You are comparing apples to oranges. I could build homes for $32,000 per house, or I could open up a company that manufactures medical equipment for $250,000 a year. The two are completely unrelated.

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timpears

10 years ago

People going to Amazon are going to buy. You send ten people to Amazon, you probably get a sale or two. You got to send 100 people to Clickbank to MAYBE get a sale or two.

That is the difference.

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An Al

10 years ago

Originally Posted by timpears

People going to Amazon are going to buy. You send ten people to Amazon, you probably get a sale or two. You got to send 100 people to Clickbank to MAYBE get a sale or two.

That is the difference.

Nobody sends customers to Clickbank, lol. They send them to a product that uses Clickbank as a payment processor.

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Danny Cutts

10 years ago

yeah my earnings have dropped a bit since october but not massively :-)

Danny

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amuro

10 years ago

Originally Posted by AffiliatingAlan

Im in the process of creating an affiliate site using amazon. I just finished a review of a 400$ product. I am starting to think how low the margins really are. Starting off at 4% if I sell this product of 400$. That earns me 16$ in commissions.

Versus selling a 60$ product on clickbank and earning 30-45$ commission.

Wouldnt it be easier for me to sell one person a 60$ product from a squeeze page than it would to sell two people a 400$ product from amazon?

Im just wondering how much the amazon trust pays off when the commissions are so low.

Originally Posted by AffiliatingAlan

Anyone here have affiliating with both and can discuss the difference in there earnings? I know my friend was making 500$ sometimes per month from a sniper page selling a software program through clickbank. But that was way back in 08, where he could rank that page easily.

Yes, Amazon still pays off and even more so with the upcoming Black Fridays, Cyber Mondays and Christmas-New Year seasons.

Though the commissions are low at 4%, the conversions are much higher as compared to say Clickbank since most people prefer to buy things that are more tangible and they are more familiar with in terms of needs and wants.

Recently bought Dave Guindon and Chris Guthrie Ama 3-In-1 Suite and I must say their course on Amazon marketing is awesome.

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Amazon Is Making Me think

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