Pros and Cons of Using Amazon Associates for Affiliate ...

Alternative Affiliate Marketing Methods Subscribe Sharethispost ShouldYouMoveYourAffiliateMarketingAwayFromAmazonAssociates? HomeBlogDigitalMarketingShouldYouMoveYourAffiliateMarketingAwayFromAmazonAssociates? PostedonNovember3rd2021 RonStefanski | 14minread EversinceAmazonmadechangestothecommissionstructureofitsaffiliateprogramin2020,alotofaffiliatemarketershavebeenconsideringwhetherornottomoveawayfromtheAmazonAssociatesprogram.  AlthoughAmazonisoneofthebiggestretailersintheworld,it’scertainlynottheonlyonewithalucrativeaffiliateprogram.  Thereareotheralternativesavailableoutthere,eachofwhich(likeAmazon)comeswithitsownsetofbenefitsanddrawbacks.  Ifyou’vebeenconsideringwhetherornotyoushouldmoveyouraffiliatemarketingawayfromtheretailgiant,readtherestofthisarticletodiscovermoreaboutthedifferentmethodsofaffiliatemarketingavailabletoyou,aswellastheprosandconsofeachsoyoucanmakeabetter-informeddecision. TableofContents: WhataretheBenefitsofAmazonAssociates?WhataretheDrawbacksofAmazonAssociates?ShouldYouMove?ThingstoConsider:AlternativeAffiliateMarketingMethods WhataretheBenefitsofAmazonAssociates?  AmazonAssociateswaslaunchedin1996,makingitoneofthefirstsuccessfulonlineaffiliateprograms.  Herearesomeofitsmainbenefitsthatmaketheprogramsoappealingtoalotofaffiliates:  FreetoJoin:TheAmazonAssociatesprogramisfreetojoin.Youcanstartearningmoneyfromtheaffiliatelinkswithouthavingtoinvestasinglecentofyourownmoney. SimpleJoiningProcess:Theprocessiseasyandstraightforward.Ifyouarefocusedonbloggingorcreatingaffiliatesitesandbuildinganonlineaudience,AmazonAssociatescanbeagreatoptionforyou. Source:OneHourProfessor MassiveSelectionofGoods:YoucanpickandchoosetheproductsyouwanttopromoteonyourAmazonaffiliatewebsitefromamassivelistonAmazon’scatalog. TrustworthyBrand:Amazonisoneoftheworld’slargestonlineretailersandistrustedbymillionsofusersacrosstheglobe.BysellingAmazonproducts,yougiveyourselfahigherchanceofmakingconversionsbyridingonAmazon’sbrandpromise. UniversalCookie:Theretailgiantleveragesuniversalcookies,whichmeansthatwheneveravisitorclicksonanylinkonyourwebsite,yougetpaidacommissiononeveryitemtheypurchaseonAmazon,notjusttheproductmentionedinthelink. Inadditiontothesebenefits,Amazonisalsowellknownforofferingunwavering,best-in-industrypaymentsecurityfeatures.Theyprovidetop-notchsecurityandensureaffiliatesalwaysreceivetheirpaymentontime. WhataretheDrawbacksofAmazonAssociates?  TheAmazonAssociatesprogramcomeswithalotofundeniablebenefits.However,italsohasafewdrawbacks,notleastofwhichistherecentcommissioncut. PayoutCuts:AfterthemajorchangesmadetoAmazon’saffiliatecommissions,whichwentfrom3–8%persaleto1–3%persaleformanyproductcategories,mostmarketershavehadtotakeamassivepayoutcut. Theimagebelowhighlightssomeofthecompany’smajorcommissionchanges:  24-hourCookie:Amazon’scookieisonlyvalidfor24hoursfromthetimeauserfirstclicksthelink.Foraffiliates,thisisn’talotoftime,especiallywhenconsideringthattherearelotsofothercompaniesthatpayyouforsalesmadeupto90daysaftertheinitialclickofyouraffiliatelink. Tomakemattersworse,AmazonhasahighpaymentthresholdandyouwillonlybeabletogetyourmonthlypaymentifyouraffiliateaccountmaintainsAmazon’sminimumthresholdbalance.  Youalsoneedtocompleteyourtaxinformationbeforeyoucanreceivepayment.Furthermore,thereisnoPayPalintegration,andsincethisisoneofthemostpopularpaymentmethods,thisisahugedrawbackthatcanbeapotentialdeal-breakerforsomeaffiliates. ShouldYouMove?ThingstoConsider:  KnowingtheprosandconsofAmazonAssociatesdoesn’tactuallyhelpyoudeterminewhetherornotyoushouldmoveawayfromtheprogram.  Yes,theremaybeotherprogramsthatofferbetteraffiliatecommissiontermsandplans,suchaslongercookielengths,etc. But,thereareafewotherthingstokeepinmindbeforemakingyourdecisionsoyoucanmakesurethatyou’reactuallygettingthebestdeal.  Youmustassessyourbusinessmodel,andtohelpyoumakeamoreinformeddecision,I’velistedafewoftheimportantfactorstoconsiderbeforedecidingwhetherornotyoushouldconsideradifferentaffiliateprogram. 1. ConversionRate Asanaffiliate,yourbusinessisbasedonaperformance-basedleadgenerationmodel,whichmeansthatyouneedtodiversifyvariouscomponentsofit,thefirstofwhichisyourconversionrate.  Sinceyouaresendingtraffictoyouraffiliatewebsite,yoursuccessdependsonbeingabletoconvertacertainpercentageintoactualbuyers.  WhetheryouuseAmazonoranyotheraffiliateprogram,youmustbeabletogetgoodconversionrates,otherwise,youreffortswillbeinvain. 2.AverageOrderValue Theaverageordervalue(AOV)istheaveragedollaramountspentpercustomerwhenevertheyplaceanorderonyourwebsiteormobileapp.  Tocalculatetheaverageordervalueforyourbusiness,simplydividethetotalrevenuebythetotalnumberofordersmade.  Knowingyourbusiness’sAOVwillprovideyouwithmetricsformeasuringthelong-termvalueofindividualcustomerssoyoucanevaluateyourpricingstrategy,aswellasyouronlinemarketingefforts. 3.AverageCommissionRate Unlessyouaresellingnicheproducts,you’lllikelygetacommissionwheretheamountyoumakevariesacrossdifferentproductcategories.  Byaddingtheseupanddividingbythenumberofcategories,you’llbeabletogetyouraveragerate.  WhenworkingwithplatformslikeAmazon,whereyouhavesomanyproductcategoriesavailabletoyou,theaveragecommissionrateisanimportantmetrictokeeptrackof. Thebottomlineis,thesethreefiguresoutlinedaboveareessentialwhenitcomestothediversificationofyouronlineaffiliaterevenue.  Youcanmultiplythethreeofthemtogetrealvalue,andthiswillhelpyouwhenitcomestimetolookfornewincomeopportunitiesandevaluatepotentialcommissionstructures.  Inotherwords,bylookingatthesethreeimportantfactors,you’llbeabletominimizetheriskofswitchingtoanewaffiliateprogram. 4.DigitalMarketingStrategiesYou’reAlreadyUsing Anotherimportantconsiderationiswhatdigitalmarketingstrategiesyou’realreadyusing.ManyofthesecanbesuccessfullyintegratedwithAmazonAssociatesbutmaybebetterappliedtootheraffiliatemarketingchannels. Forexample,someofthebestemailmarketingservicescanbeusedinconjunctionwithaffiliatemarketingtoincreasesales.Youcanincludeaffiliatelinksintemplatedemails,directuserstoablogpostwithaffiliatelinks,orboth. Additionally,Whensharingimages,memes,videos,orsimpletextualpostsonsocialmedia,youcanincludeaffiliatelinksordirectuserstoyourwebsiteaspartofamarketingfunnelwheremultipleaffiliatelinksmightbepresentedaspartofablogarticleorlandingpage.  WhendecidingwhetheryourcurrentdigitalmarketingstrategiesarebetterdesignedforAmazonAssociateoradifferentaffiliatemarketingprogram,you’reassessingdifferentfactorssuchasfees,easeofuse,variableexpensesincurredfromnewsoftware,andoverallreputationoftheprogram. AlternativeAffiliateMarketingMethods NowthatyouknowtheprosandconsofusingtheAmazonAssociatesprogram,andthefactorstoconsiderbeforemakingthemovetoanotheraffiliatenetwork,let’stakealookatsomeoftheviablealternativesoutthere. We’llalsoincludetheprosandconstomakeiteasierforyoutodecidewhetherornottomoveyouraffiliatemarketingawayfromAmazon. Butfirst… It’simportanttounderstandthatAmazondidnotslashitsaffiliatefeesineverycategory.  Thereductionshavebeenfocusedonproductcategories,suchashomeimprovement,lawn,andgarden,groceries,etc.  Othergroups,suchashealthandbeauty,physicalbooks,music,etc.remainedunchanged.  Whatthismeansisthatifyouweresellingproductsintheunchangedcategories,thenyouweren’tgreatlyaffectedbythenewcommissionrates.  However,forthosesellingtheproductswiththeaffiliatecommissiondecrease,youmaywanttolookatthealternativeaffiliatemarketingmethodsoutlinedbelow.  Theaffectedcategoriesareasfollows: Furniture,homeimprovement,home,petproducts,lawnandgarden,pantry(8%to3%).Beauty,headphones,business,industrialsupplies,musicalinstruments(6%to3%).Outdoors,tools(5.5%to3%)Grocery(5%to1%)Sports(4.5%to3%)Babyproducts(4.5%to3%)Healthandpersonalcare(4.5%to1%)AmazonFresh(3%to1%) Ifyouareanaffiliatethatwaspreviouslymakingmoneythroughrecommendationsforanyoftheproductsinthesecategories,you’llbeabletogeneratesalesbyjoiningoneormoreoftheaffiliatecompanyprogramslistedbelow. 1.AffiliateNetworks(Shareasale,CJ,Clickbank,etc.) Source:YouTube AlthoughAmazondoesconvertalotbetterthanmostoftheprogramsoutthere,it’snottheonlyaffiliateprogramavailabletoyouandyou’llstillbeabletofindmanyothersthatofferlucrativedealsforrecommendingtheirproductstoyouraudience. Shareasale,CJ,andClickbankarejustafewofthehundredsofdifferentaffiliatenetworksavailabletochoosefrom.  You’llfindalotofaffiliateplatformsthatareextremelylarge,offeringawiderangeofproductsandservicesfromwhichyoucanimmediatelystartearningaffiliateincome.  Shareasale,inparticular,isagreataffiliatenetworkthatcarriesabroadvarietyofproducts,bothdigitalandphysical.  There’salargenumberofcompaniesandpopularbrandsforyoutopromoteinsidetheplatform.  ThisisahugeadvantageoverAmazonAssociateswhichisonlyfocusedonAmazonproducts.WithShareasale,youcanchoosefromover4,500merchants,bigandsmall. Pros:  Thousandsofmerchantstochoosefrom,mostofwhicharewell-knownandestablished.Atrustworthyplatformthat’sbeenaroundformanyyearsandworkswithbigbrands.Theplatformhasover1,000exclusivemerchantswhowillonlyworkwithShareasale.Thereisabookmarkletthatmakesitextremelyeasyforaffiliatestogeneratecustomlinks. Cons:  Shareasalehasaclunkydashboarddesignthatcouldbeimproved.Thesheernumberofavailableproductscanseemoverwhelmingtobeginners. 2.NicheAffiliatePlatforms BigaffiliatenicheplatformsmakeagreatalternativetoAmazonAssociates.Althoughtheywon’tbeperfectforallthewebsitesoutthere,ifyousellproductsinanyoftheniches,thenyoustandtocontinuemakingmoneyfromyourcontentsitesifyoudecidetomakethemove. Hereareafewexamplesofnicheaffiliateplatforms:  Chewy.com:ThisisaneCommerceplatformfocusedonpetproductswithafairandlucrativeaffiliateprogram. HomeDepot:Ifyourwebsiteisfocusedonhomeanddecortopics,thiscanbeagreataffiliateplatformforyoutojoin. Wayfair.com:Thisisyetanotherbigplatformwithaffiliateproductsincategoriesincludingfurniture,lighting,rugs,decor,storage,bedandbath,etc. iHerb:Thishealthplatformoffersover30,000productsthatyoucanpromoteandearncommissionsfromasanaffiliate.Theplatformprovidescontentin13languages,whichmakesiteasytomarkettoaglobalaudience. BHPhotoVideo:Thiscompany’saffiliateprogramletsyoumonetizeyourcontentbypromotingawiderangeofphotographyandvideographyequipment,aswellasmobiledevices,computers,TVs,optics,surveillancecameras,andmuchmore. ProsofNicheAffiliatePrograms:  Mostoftheseplatformsarewell-establishedandtrustworthy.Theyhavegoodaffiliateprogramsthatareeasytojoinandofferfaircommissions. ConsofNicheAffiliatePrograms:  AlotoftheprogramsinthiscategoryhavelowerconversionratesthanAmazonAssociates.However,ifyoucansuccessfullyincreaseleadsonyourlandingpages,youmaystillbeabletoconvertvisitorstoyoursiteusingemailregardlessofwhataffiliatemarketingprogramyouchoose. 3.PrivateAffiliatePrograms Bigaffiliatenetworkscomewiththeirownsetofadvantages,butyoumayhaveyourownreasonsforsteeringawayfromthem.  Insuchacase,youmaywanttochoosethe“Boutique”routewhichmeansyouwanttolookupprivateaffiliateprograms.  Privateaffiliateprogramsarealotmoreaccommodatingwithregardstotrainingandpromotionalmaterialsprovidedtoaffiliates.  Tofindprivateaffiliateprogramsthataren’tassociatedwiththebigaffiliatenetworks,allyouhavetodoisconductasearchonGoogleusingtheseparameters: [Niche]+affiliateprogram Simplyreplacetheword“niche”withyourchosensectorandwillbepresentedwithalistofthebestaffiliateprogramsforthatparticularniche.  Youcanthensubmityourapplicationontherelevantwebsitetobecomeoneoftheiraffiliates. Pros:  WorkingwithprivateaffiliateprogramsmakesagreatalternativetoAmazonAssociatesbecauseitoftenallowsyoutogetbettercommissionratesforproductscomparedtothehugeaffiliatenetworks. Cons:  Althoughthecommissionratesaretypicallybetterthanlargeaffiliatenetworks,Theconversionratesdon’tcomeclosetotheonesyougetonAmazon. 4.SimilartoAmazoninEveryWay:Walmart,Target,eBay,etc. Source:CNBC YoumightoptforaffiliatenetworkslikeShareasaleandCommissionJunction,ornicheaffiliateplatforms,orevenprivateaffiliateprograms,butifthepointistoreplaceAmazon,thenyoumaybebetteroffchoosingaffiliateprogramsfromsiteslikeeBay,Walmart,andTarget. Walmart,inparticular,hasagreateCommerceplatformthatisbeingcontinuallyimprovedmakingitagreatalternativetoAmazonAssociates. Thebestpartis,themajorityofpeopleinherentlytrustWalmartsinceit’ssuchalargebrand.Also,WalmartcarriesthemajorityofproductsthatyoucanfindonAmazon,anditscommissionpercentagesareslightlyhigherthanAmazon’s–whichmakesittheperfectalternativeforAmazonAssociates. Pros:  HugeproductselectionFormostcategories,commissionsarehigherthanAmazonWalmartisawell-knownandtrustedbrandTheplatformofferslongeraffiliatecookiesthanAmazon Cons:  ComparedtoAmazon,Walmarthasahigherminimumpayoutthreshold($50)AlthoughWalmarthasahugeproductselection,itstilldoesn’tcomparetoAmazon Sharethispost RonStefanski RonStefanskiisawebsiteentrepreneurandmarketingprofessorwhohasapassionforhelpingpeoplecreateandmarkettheirownonlinebusiness.YoucanlearnmorefromhimbyvisitingOneHourProfessor.com. GuestBlogger@OneHourProfessor Beintheknow📥 SignupforTheMentionMemo Getthelatestandgreatestdigitalmarketing +socialmediatipseveryweek! Relatedposts HowtoConductaBrandVisualAuditofYourWebsite HowToUseZoomBackgroundsEffectively:7BestPractices 15ExamplesofCreativeB2BContentMarketingDoneRight 4UnskippableSocialRitualsforRemoteTeams BestPracticesforReachingGen-ZonTikTok,Snapchat,andMore ComprehensiveGuidetoAmazonMarketingin2021