Well, it’s official. Amazon has updated its affiliate program and has moved from a tiered commission structure to a fixed-fee structure effective March, 1, 2017.
You might have noticed recently that when you logged into your Amazon Associates affiliate dashboard that things looked a little different. Now, your earnings were broken down by category as opposed to purchases just being listed out.
Let’s take a look at what our commission looks like now!
Other bloggers I know suspected that Amazon was moving away from the tiered commission structure and moving to a flat-fee type of structure, where you earn a fixed rate of commission depending on the type of item you sell.
What does this mean for you?
Well, it means that some of you will see a decrease in earnings and others will see an increase – and it all depends on the type of products you promote.
Amazon’s UK program already had this structure in place and it looks like we’ll see how well it’ll work for us.
Here’s the bummer – depending on how you look at it: your commission rate does not increase if you sell more items. What you sell, you sell, and you’re paid X% based on the type of products sold…period.
What’s the Deal, Amazon?
Well, Amazon is a business and wants to make money. As affiliates, we get a sweet piece of that deal by being rewarded for promoting products. I’ve always been a happy Amazon affiliate and will continue to use their program.
We get to sign up – for free – and earn income for sharing products with our audience. That’s a great opportunity.
So why is Amazon paying out more for some products and less for others? Because they want to encourage us to promote the products that do the best for their bottom line. 4% for product X vs. 8% for product Y…which one are you more likely to lead readers to – or even build a business around?
Sure, if you’re anything like me, you’re going to promote what you know, like, love, and use, but if you’re going to build an affiliate review site, you’re going to pay attention to those commission rates.
In fact, with the new structure, one product I was considering for promotion down the road is completely a non-issue for me now as it relates to my site. I might include these products as a service to my reader, but knowing full-well that I don’t make a dime from purchases in that category.
However, if someone uses my link to purchase said products and then buys from a category that does make me money, that’s still a win-win.
What are Your Thoughts?
You can get the detail straight from the horse’s mouth over on the Amazon site. What do you think about these new changes? Will you be changing anything in your business because of this update? I’d love to hear your thoughts in the comments!