Business

ALL ABOUT AFFILIATE PROGRAM

Affiliate marketing

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts. The industry has four core players: the merchant (also known as 'retailer' or 'brand'), the network (that contains offers for the affiliate to choose from and also takes care of the payments), the publisher (also known as 'the affiliate'), and the customer. The market has grown in complexity, resulting in the emergence of a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third party vendors. Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization (SEO), paid search engine marketing (PPC - Pay Per Click), e-mail marketing, content marketing and in some sense display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner. Affiliate marketing is commonly confused with referral marketing, as both forms of marketing use third parties to drive sales to the retailer. However, both are distinct forms of marketing and the main difference between them is that affiliate marketing relies purely on financial motivations to drive sales while referral marketing relies on trust and personal relationships to drive sales.
Affiliate marketing is frequently overlooked by advertisers.[1] While search engines, e-mail, and website syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers' marketing strategies.

History


Origin


The concept of revenue sharing—paying commission for referred business—predates affiliate marketing and the Internet. The translation of the revenue share principles to mainstream e-commerce happened in November 1994,almost four years after the origination of the World Wide Web. The concept of affiliate marketing on the Internet was conceived of, put into practice and patented by William J. Tobin, the founder of PC Flowers & Gifts. Launched on the Prodigy Network in 1989, PC Flowers & Gifts remained on the service until 1996. By 1993, PC Flowers & Gifts generated sales in excess of $6 million per year on the Prodigy service. In 1998, PC Flowers and Gifts developed the business model of paying a commission on sales to The Prodigy Network. In 1994, Tobin launched a beta version of PC Flowers & Gifts on the Internet in cooperation with IBM, who owned half of Prodigy. By 1995 PC Flowers & Gifts had launched a commercial version of the website and had 2,600 affiliate marketing partners on the World Wide Web. Tobin applied for a patent on tracking and affiliate marketing on January 22, 1996 and was issued U.S. Patent number 6,141,666 on Oct 31, 2000. Tobin also received Japanese Patent number 4021941 on Oct 5, 2007 and U.S. Patent number 7,505,913 on Mar 17, 2009 for affiliate marketing and tracking.In July 1998 PC Flowers and Gifts merged with Fingerhut and Federated Department Stores.Cybererotica was among the early innovators in affiliate marketing with a cost per click program. In November 1994, CDNOW launched its BuyWeb program. CDNOW had the idea that music-oriented websites could review or list albums on their pages that their visitors might be interested in purchasing. These websites could also offer a link that would take visitors directly to CDNOW to purchase the albums. The idea for remote purchasing originally arose from conversations with music label Geffen Records in the fall of 1994. The management at Geffen wanted to sell its artists' CD's directly from its website, but did not want to implement this capability itself. Geffen asked CDNOW if it could design a program where CDNOW would handle the order fulfillment. Geffen realized that CDNOW could link directly from the artist on its website to Geffen's website, bypassing the CDNOW home page and going directly to an artist's music page. Amazon.com (Amazon) launched its associate program in July 1996: Amazon associates could place banner or text links on their site for individual books, or link directly to the Amazon home page.

When visitors clicked from the associate's website to Amazon and purchased a book, the associate received a commission. Amazon was not the first merchant to offer an affiliate program, but its program was the first to become widely known and serve as a model for subsequent programs. In February 2000, Amazon announced that it had been granted a patent on components of an affiliate program. The patent application was submitted in June 1997, which predates most affiliate programs, but not PC Flowers & Gifts.com (October 1994), AutoWeb.com (October 1995), Kbkids.com/BrainPlay.com (January 1996), EPage (April 1996), and several others.

Historic development


Affiliate marketing has grown quickly since its inception. The e-commerce website, viewed as a marketing toy in the early days of the Internet, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. According to one report, the total sales amount generated through affiliate networks in 2006 was £2.16 billion in the United Kingdom alone. The estimates were £1.35 billion in sales in 2005. MarketingSherpa's research team estimated that, in 2006, affiliates worldwide earned US$6.5 billion in bounty and commissions from a variety of sources in retail, personal finance, gaming and gambling, travel, telecom, education, publishing, and forms of lead generation other than contextual advertising programs.


In 2006, the most active sectors for affiliate marketing were the adult, gambling, retail industries and file-sharing services.[16] The three sectors expected to experience the greatest growth are the mobile phone, finance, and travel sectors. Soon after these sectors came the entertainment (particularly gaming) and Internet-related services (particularly broadband) sectors. Also several of the affiliate solution providers expect to see increased interest from business-to-business marketers and advertisers in using affiliate marketing as part of their mix. 


Web 2.0

Websites and services based on Web 2.0 concepts—blogging and interactive online communities, for example—have impacted the affiliate marketing world as well. The new media allowed merchants to become closer to their affiliates and improved the communication between them. Web 2.0 platforms have also opened affiliate marketing channels to personal bloggers, writers, and independent website owners. Regardless of web traffic, size, or business age, programs through eBay, Google, LinkShare, Clickbank and Amazon allow publishers at all levels of web traffic to place contextual ads in blog posts. Forms of new media have also diversified how companies, brands, and ad networks serve ads to visitors. For instance, YouTube allows video-makers to embed advertisements through Google's affiliate network.[17][18] New developments have made it more difficult for unscrupulous affiliates to make money. Emerging black sheep are detected and made known to the affiliate marketing community with much greater speed and efficiency.[citation needed] 


Compensation methods 

Predominant compensation methods 

Eighty percent of affiliate programs today use revenue sharing or pay per sale (PPS) as a compensation method, nineteen percent use cost per action (CPA), and the remaining programs use other methods such as cost per click (CPC) or cost per mille (CPM, cost per estimated 1000 views).[citation needed] 

Diminished compensation methods

Within more mature markets, less than one percent of traditional affiliate marketing programs today use cost per click and cost per mille. However, these compensation methods are used heavily in display advertising and paid search.

Cost per mille requires only that the publisher make the advertising available on his website and display it to his visitors in order to receive a commission. Pay per click requires one additional step in the conversion process to generate revenue for the publisher: A visitor must not only be made aware of the advertisement, but must also click on the advertisement to visit the advertiser's website.


Cost per click was more common in the early days of affiliate marketing, but has diminished in use over time due to click fraud issues very similar to the click fraud issues modern search engines are facing today. Contextual advertising programs are not considered in the statistic pertaining to diminished use of cost per click, as it is uncertain if contextual advertising can be considered affiliate marketing.


While these models have diminished in mature e-commerce and online advertising markets they are still prevalent in some more nascent industries. China is one example where Affiliate Marketing does not overtly resemble the same model in the West. With many affiliates being paid a flat "Cost Per Day" with some networks offering Cost Per Click or CPM. 

Performance/Affiliate marketing

In the case of cost per mille/click, the publisher is not concerned about a visitor being a member of the audience that the advertiser tries to attract and is able to convert, because at this point the publisher has already earned his commission. This leaves the greater, and, in case of cost per mille, the full risk and loss (if the visitor can not be converted) to the advertiser.


Cost per action/sale methods require that referred visitors do more than visit the advertiser's website before the affiliate receives commission. The advertiser must convert that visitor first. It is in the best interest for the affiliate to send the most closely targeted traffic to the advertiser as possible to increase the chance of a conversion. The risk and loss is shared between the affiliate and the advertiser.


Affiliate marketing is also called "performance marketing", in reference to how sales employees are typically being compensated. Such employees are typically paid a commission for each sale they close, and sometimes are paid performance incentives for exceeding objectives. Affiliates are not employed by the advertiser whose products or services they promote, but the compensation models applied to affiliate marketing are very similar to the ones used for people in the advertisers' internal sales department.


The phrase, "Affiliates are an extended sales force for your business", which is often used to explain affiliate marketing, is not completely accurate. The primary difference between the two is that affiliate marketers provide little if any influence on a possible prospect in the conversion process once that prospect is directed to the advertiser's website. The sales team of the advertiser, however, does have the control and influence up to the point where the prospect signs the contract or completes the purchase. 

Multi-tier programs

Some advertisers offer multi-tier programs that distribute commission into a hierarchical referral network of sign-ups and sub-partners. In practical terms, publisher "A" signs up to the program with an advertiser and gets rewarded for the agreed activity conducted by a referred visitor. If publisher "A" attracts publishers "B" and "C" to sign up for the same program using his sign-up code, all future activities performed by publishers "B" and "C" will result in additional commission (at a lower rate) for publisher "A".


Two-tier programs exist in the minority of affiliate programs; most are simply one-tier. Referral programs beyond two-tier resemble multi-level marketing (MLM) or network marketing but are different: Multi-level marketing (MLM) or network marketing associations tend to have more complex commission requirements/qualifications than standard affiliate programs.[citation needed] 

From the advertiser's perspective 

Advantages for merchants

Merchants favor affiliate marketing because in most cases it uses a "pay for performance" model, meaning that the merchant does not incur a marketing expense unless results are accrued (excluding any initial setup cost). 

Implementation options

Some merchants run their own (in-house) affiliate programs using dedicated software, while others use third-party intermediaries to track traffic or sales that are referred from affiliates. There are two different types of affiliate management methods used by merchants: standalone software or hosted services, typically called affiliate networks. Payouts to affiliates or publishers can be made by the networks on behalf of the merchant, by the network, consolidated across all merchants where the publisher has a relationship with and earned commissions or directly by the merchant itself. 


Affiliate management and program management outsourcing


Main article: Affiliate manager

Uncontrolled affiliate programs aid rogue affiliates, who use spamming,trademark infringement, false advertising, cookie stuffing, typosquatting,and other unethical methods that have given affiliate marketing a negative reputation.


Some merchants are using outsourced (affiliate) program management (OPM) companies, which are themselves often run by affiliate managers and network program managers.[23] OPM companies perform affiliate program management for the merchants as a service, similar to the role an advertising agencies serves in offline marketing. 

Types of affiliate websites

Affiliate websites are often categorized by merchants (advertisers) and affiliate networks. There are currently no industry-wide standards for the categorization. The following types of websites are generic, yet are commonly understood and used by affiliate marketers.

  • Search affiliates that utilize pay per click search engines to promote the advertisers' offers (i.e., search arbitrage)
  • Price comparison service websites and directories
  • Loyalty websites, typically characterized by providing a reward system for purchases via points back, cash back
  • Cause Related Marketing sites that offer charitable donations
  • Coupon and rebate websites that focus on sales promotions
  • Content and niche market websites, including product review sites
  • Personal websites
  • Weblogs and website syndication feeds
  • E-mail marketing list affiliates (i.e., owners of large opt-in -mail lists that typically employ e-mail drip marketing) and newsletter list affiliates, which are typically more content-heavy
  • Registration path or co-registration affiliates who include offers from other merchants during the registration process on their own website
  • Shopping directories that list merchants by categories without providing coupons, price comparisons, or other features based on information that changes frequently, thus requiring continual updates
  • Cost per action networks (i.e., top-tier affiliates) that expose offers from the advertiser with which they are affiliated to their own network of affiliates
  • Websites using adbars (e.g. AdSense) to display context-sensitive advertising for products on the site
  • Virtual currency that offers advertising views in exchange for a handout of virtual currency in a game or other virtual platform.
  • File-Sharing: Web sites that host directories of music, movies, games and other software. Users upload content to file-hosting sites, and then post descriptions of the material and their download links on directory sites. Uploaders are paid by the file-hosting sites based on the number of times their files are downloaded. The file-hosting sites sell premium download access to the files to the general public. The web sites that host the directory services sell advertising and do not host the files themselves.

Publisher recruitment


Affiliate networks that already have several advertisers typically also have a large pool of publishers. These publishers could be potentially recruited, and there is also an increased chance that publishers in the network apply to the program on their own, without the need for recruitment efforts by the advertiser.


Relevant websites that attract the same target audiences as the advertiser but without competing with it are potential affiliate partners as well. Vendors or existing customers can also become recruits if doing so makes sense and does not violate any laws or regulations (such as with pyramid schemes).


Almost any website could be recruited as an affiliate publisher, but high-traffic websites are more likely interested in (for their own sake) low-risk cost per mille or medium-risk cost per click deals rather than higher-risk cost per action or revenue share deals

Locating affiliate programs


There are three primary ways to locate affiliate programs for a target website:

  1. Affiliate program directories,
  2. Large affiliate networks that provide the platform for dozens or even hundreds of advertisers, and
  3. The target website itself. (Websites that offer an affiliate program often have a link titled "affiliate program", "affiliates", "referral program", or "webmasters"—usually in the footer or "About" section of the website.)

If the above locations do not yield information pertaining to affiliates, it may be the case that there exists a non-public affiliate program. Utilizing one of the common website correlation methods may provide clues about the affiliate network. The most definitive method for finding this information is to contact the website owner directly, if a contact method can be located. 

Past and current issues

Since the emergence of affiliate marketing, there has been little control over affiliate activity. Unscrupulous affiliates have used spam, false advertising, forced clicks (to get tracking cookies set on users' computers), adware, and other methods to drive traffic to their sponsors. Although many affiliate programs have terms of service that contain rules against spam, this marketing method has historically proven to attract abuse from spammers. 

E-mail spam

In the infancy of affiliate marketing, many Internet users held negative opinions due to the tendency of affiliates to use spam to promote the programs in which they were enrolled. As affiliate marketing matured, many affiliate merchants have refined their terms and conditions to prohibit affiliates from spamming. 

Search engine spam


As search engines have become more prominent, some affiliate marketers have shifted from sending e-mail spam to creating automatically generated webpages that often contain product data feeds provided by merchants. The goal of such webpages is to manipulate the relevancy or prominence of resources indexed by a search engine, also known as spamdexing. Each page can be targeted to a different niche market through the use of specific keywords, with the result being a skewed form of search engine optimization.


Spam is the biggest threat to organic search engines, whose goal is to provide quality search results for keywords or phrases entered by their users. Google's PageRank algorithm update ("BigDaddy") in February 2006—the final stage of Google's major update ("Jagger") that began in mid-summer 2005—specifically targeted spamdexing with great success. This update thus enabled Google to remove a large amount of mostly computer-generated duplicate content from its index.

Websites consisting mostly of affiliate links have previously held a negative reputation for underdelivering quality content. In 2005 there were active changes made by Google, where certain websites were labeled as "thin affiliates". Such websites were either removed from Google's index or were relocated within the results page (i.e., moved from the top-most results to a lower position). To avoid this categorization, affiliate marketer webmasters must create quality content on their websites that distinguishes their work from the work of spammers or banner farms, which only contain links leading to merchant sites.


Some commentators originally suggested that affiliate links work best in the context of the information contained within the website itself. For instance, if a website contains information pertaining to publishing a website, an affiliate link leading to a merchant's internet service provider (ISP) within that website's content would be appropriate. If a website contains information pertaining to sports, an affiliate link leading to a sporting goods website may work well within the context of the articles and information about sports. The goal in this case is to publish quality information within the website and provide context-oriented links to related merchant's websites.


However, more recent examples exist of "thin" affiliate sites that are using the affiliate marketing model to create value for Consumers by offering them a service. These thin content service Affiliate fall into three categories:

  • Price comparison
  • Cause related marketing
  • Time saving

Consumer countermeasures


The implementation of affiliate marketing on the internet relies heavily on various techniques built into the design of many web-pages and web-sites, and the use of calls to external domains to track user actions (click tracking, Ad Sense) and to serve up content (advertising) to the user. Most of this activity adds time and is generally a nuisance to the casual web-surfer and is seen as visual clutter. Various countermeasures have evolved over time to prevent or eliminate the appearance of advertising when a web-page is rendered. Third party programs (Ad-Aware, Adblock Plus, Spybot, pop-up blockers, etc.) and particularly, the use of a comprehensive HOSTS file can effectively eliminate the visual clutter and the extra time and bandwidth needed to render many web pages. The use of specific entries in the HOSTS file to block these well-known and persistent marketing and click-tracking domains can also aid in reducing a system's exposure to malware by preventing the content of infected advertising or tracking servers to reach a user's web-browser.[citation needed] 

Adware

Although it differs from spyware, adware often uses the same methods and technologies. Merchants initially were uninformed about adware, what impact it had, and how it could damage their brands. Affiliate marketers became aware of the issue much more quickly, especially because they noticed that adware often overwrites tracking cookies, thus resulting in a decline of commissions. Affiliates not employing adware felt that it was stealing commission from them. Adware often has no valuable purpose and rarely provides any useful content to the user, who is typically unaware that such software is installed on his/her computer.

 Affiliates discussed the issues in Internet forums and began to organize their efforts. They believed that the best way to address the problem was to discourage merchants from advertising via adware. Merchants that were either indifferent to or supportive of adware were exposed by affiliates, thus damaging those merchants' reputations and tarnishing their affiliate marketing efforts. Many affiliates either terminated the use of such merchants or switched to a competitor's affiliate program. Eventually, affiliate networks were also forced by merchants and affiliates to take a stand and ban certain adware publishers from their network. The result was Code of Conduct by Commission Junction/beFree and Performics, LinkShare's Anti-Predatory Advertising Addendum, and ShareASale's complete ban of software applications as a medium for affiliates to promote advertiser offers. Regardless of the progress made, adware continues to be an issue, as demonstrated by the class action lawsuit against ValueClick and its daughter company Commission Junction filed on April 20, 2007. 

Trademark bidding

Affiliates were among the earliest adopters of pay per click advertising when the first pay-per-click search engines emerged during the end of the 1990s. Later in 2000 Google launched its pay per click service, Google AdWords, which is responsible for the widespread use and acceptance of pay per click as an advertising channel. An increasing number of merchants engaged in pay per click advertising, either directly or via a search marketing agency, and realized that this space was already occupied by their affiliates. Although this situation alone created advertising channel conflicts and debates between advertisers and affiliates, the largest issue concerned affiliates bidding on advertisers names, brands, and trademarks.[32] Several advertisers began to adjust their affiliate program terms to prohibit their affiliates from bidding on those type of keywords. Some advertisers, however, did and still do embrace this behavior, going so far as to allow, or even encourage, affiliates to bid on any term, including the advertiser's trademarks. 

Compensation disclosure

Bloggers and other publishers may not be aware of disclosure guidelines set forth by the FTC. Guidelines affect celebrity endorsements, advertising language, and blogger compensation. 

Lack of industry standards

Certification and training


Affiliate marketing currently lacks industry standards for training and certification. There are some training courses and seminars that result in certifications; however, the acceptance of such certifications is mostly due to the reputation of the individual or company issuing the certification. Affiliate marketing is not commonly taught in universities, and only a few college instructors work with Internet marketers to introduce the subject to students majoring in marketing.


Education occurs most often in "real life" by becoming involved and learning the details as time progresses. Although there are several books on the topic, some so-called "how-to" or "silver bullet" books instruct readers to manipulate holes in the Google algorithm, which can quickly become out of date,or suggest strategies no longer endorsed or permitted by advertisers.


Outsourced Program Management companies typically combine formal and informal training, providing much of their training through group collaboration and brainstorming. Such companies also try to send each marketing employee to the industry conference of their choice.


Other training resources used include online forums, weblogs, podcasts, video seminars, and specialty websites. 

Code of conduct


A code of conduct was released by affiliate networks Commission Junction/beFree and Performics in December 2002 to guide practices and adherence to ethical standards for online advertising.

Marketing term


Members of the marketing industry are recommending that "affiliate marketing" be substituted with an alternative name. Affiliate marketing is often confused with either network marketing or multi-level marketing. Performance marketing is a common alternative, but other recommendations have been made as well.

Sales tax vulnerability


In April 2008 the State of New York inserted an item in the state budget asserting sales tax jurisdiction over Amazon.com sales to residents of New York, based on the existence of affiliate links from New York–based websites to Amazon.[38] The state asserts that even one such affiliate constitutes Amazon having a business presence in the state, and is sufficient to allow New York to tax all Amazon sales to state residents. Amazon challenged the amendment and lost at the trial level in January, 2009. The case is currently making its way through the New York appeals courts.

Cookie stuffing


Cookie stuffing involves placing an affiliate tracking cookie on a website visitor's computer without their knowledge, which will then generate revenue for the person doing the cookie stuffing. This not only generates fraudulent affiliate sales, but also has the potential to overwrite other affiliates' cookies, essentially stealing their legitimately earned commissions.

Click to reveal


Many voucher code web sites use a click-to-reveal format, which requires the web site user to click to reveal the voucher code. The action of clicking places the cookie on the website visitor's computer. In the United Kingdom, the IAB Affiliate Council regulations  have stated that "Affiliates must not use a mechanism whereby users are encouraged to click to interact with content where it is unclear or confusing what the outcome will be."

Source : www.en.wikipedia.org

 
Start Affiliate Program 

1. Research affliate programs. 
Find out which trending product products and  most popular and what is its conversion rate. Broswse and find to forum most benefit program with little effort and  the seller's website usualy looking for sales to generate their product. A conversion rate of 5% is reasonably good. This means that for every 100 people landing on your merchant’s website, 5 visitors will place an order.

2. Join an affiliate program.
 
Learn about the system, strategy and money feedback. Calculate how much cost of money and return because we don't know what happend later. Ask to master and browse internet to gain more information and strategy to do that.


3. Promote an affiliate program through a website. 
You will have more options in sending potential buyers to your affiliate programs if you create a website to promote your affiliate programs. Visiting other professional websites of your niche is a good way to get some ideas on how to design your website.Buld reputation in online marketing with the best design web. Active in every article directory, link directory, forum, backlink, and enlarge the connection with social media.

4. Make your website content relevant. 
For example, if your affiliate sells e-books, you can write a review or make a YouTube video for each e-book with an affiliate link to the sales website.Fill every media with your best content.
 
5. Drive targeted traffic to your website. 
To earn affiliate commission you need to drive targeted traffic to your website. The more traffic your website gets, the more likely you’ll generate sales. There are several ways to drive targeted traffic to your site in short period of time:
  • Pay-per-click (PPC) Advertising. You can get a lot of targeted traffic from PPC advertising programs. The two most popular and effective PPC advertising programs are Google Adwords and Yahoo Search Marketing. These programs allow you to bid for top rankings on the keywords of your choice. When someone enters a search term matches your keyword in the PPC search engine and press the search button, your contextual ad will appear on the sidebar of the search result page. If the visitor clicks through your ad to your website, you’ll be charged based on your bid amount. Also, PPC advertising programs will distribute your ads to websites of their content networks also.
  • Article Marketing. Write an article related to your affiliate products with a link to your website in the article’s resource box and submit it to credible article directories. To get more and continuous targeted traffic, you need to write more articles, however make sure that the articles are quality. Try to publish a new article every week. Doing this for a year can drive truckloads of free traffic to your website.
  • Post Messages on Forums. Post messages on community forums with a link to your site in the signature of each message. Make sure your forum profile includes your website link within the signature option. Spend a few hours navigating the pages of the forums. You can ask questions and post informative and helpful replies to other peoples’ questions or messages to build your status. The more people trust you, the more likely they will click your link.
  • Post videos on youtube about the product. These video reviews are the quickest and the most effective way to build trust by showing the benefits of the product in real time. Since Google owns youtube your videos can even rank high in the google organic search.You can even provide a link under the video and you can encourage your visitors to purchase the product through your affiliate link.

 

How to Make Money as an Affiliate Marketer

Everyone seems to be on the Internet. Affiliate marketing is one way to make money online for those who want to combine Internet time with an income. An affiliate marketer promotes specific products. If the recommendation from an Internet affiliate leads to a sale, the affiliate earns money. While there are no successful get-rich-quick schemes, many people have found success doing Internet marketing as an affiliate. A big advantage is not having to create a product. Follow these steps in order to get started in Internet marketing as an affiliate marketer.
1. Have an Internet presence with high traffic. 
Affiliate marketers tend to already have a readership on a web site, blog or forum.
  • It helps to make money on line if your readers are looking to buy products.
2. Assess what type of products you would be interested in promoting. 
For example, if you're known as a technological authority, then technological products would probably be a good fit for Internet marketing.
  • Affiliate marketing is more successful if you have a trusting relationship with your readers.
  • Beware of destroying that trust by pushing inferior products.
3. Approach a business with products you would like to promote.
  • Look to the heads of small companies or the marketing department of larger companies to assess whether they would be interested in forming a business relationship with an Internet affiliate.
4. Learn the company's terms for affiliate marketing.
  • Will you be paid per click or per sale?
  • Will the company track referrals from you with an embedded code in the link or perhaps a coupon for your readers to use?
  • Does the company have pre-written copy for you to use or will you write your own?
5. Make your Internet marketing personal by doing your research.
  • What keywords does a product bring to mind? If keywords rank high in search engine optimization (SEO), how can you use them in your promotion?
  • Know your readers and potential customers that may be interested in the product.
6. Check the keywords and product name in reviews, such as those found on Amazon, forums and YouTube.
  • Seeing what other people are saying helps you understand what is important to potential buyers.
  • Turn on the creative juices for your Internet marketing campaign.
  • Develop interesting content that keeps the attention of readers.
  • Add affiliate links to your content.
  • Consider combining your work as an Internet affiliate with a blog.

7. Make combination of platform (web, blogger, wordpress) , youtube , forum and popular social media to gain organic visitor.

8. Persist as an affiliate marketer. 
It takes time and hard work before you see any success. 


Amazon Affiliate

How to Make Money With Amazon Affiliate Program

1. Begin an online effort. 
The best Amazon Affiliates are bloggers or websites that add links to Amazon along with quality content on their own site. Consider starting one of the following online sites:
  • Start a free online blog using Blogger, WordPress or a similar site. Since you start these blogs for free, the cost is only the time you spend designing and adding content. Choose something on which you are passionate so that you can add interesting content and develop followers.
  • Set up a website. Professional or business websites can also use the Affiliate program. However, they are best used with people who do not sell similar products on their website, since Amazon's marketplace can drive business away. If you have a website promoting different products, a club, a non-profit or a service, then you can recommend quality products on your site and make money doing it.
  • Set up social media accounts for your blog or site. This is a great way to improve search engine ranking, stay in touch with your readers and increase the amount of links that you share. You can post Amazon links on Facebook, Twitter or LinkedIn when you want to make a recommendation.


2. Post quality content consistently. You garner readers by the value of your content, so post at least once per week on your blog/website.


3. Gain loyalty. 
People who think they are being pitched to are unlikely to return. Include affiliate links as recommendations, best of lists and preferred vendors, rather than an obvious pitch to make money off readers.
  • The more fun you have with posting links, the more likely you are to get sales. For example, you may want to post a best-of blog for the year's most innovative new products or the best non-fiction books of the year. You can include links to Amazon products and people will use the link as a reference and as a way to buy.


4. Go to affiliate-program.amazon.com. 
Read through the information carefully before signing up. You should understand what products are eligible, how to post and how to get paid before starting an account.
  • Amazon Affiliates rewards advertising fees, or commissions, that vary depending upon the type of product. Your advertising fees can also increase after you start to refer more than 6 purchases every month.


5. Click on the "Join Now for Free" button when you are ready to start.


6. Sign in using your Amazon username and password. 
Select your official payment address from a list or input it at this time.


7. Fill out the information about your website, web traffic and online monetization. 
You will be asked to enter all of the sites you will use to post Amazon links. Verify your identity before continuing.


8. Start looking through products on Amazon's Associates Central.


9. Choose a few products to integrate into your blog posts. It is a good idea to use the "Bestseller" filter to find the bestselling products in any category.


10. Post the link inside your website. You can choose to post an image, an image and text or a text link, depending upon how you want it to look.


10. Use the Amazon Associates site stripe, the toolbar at the top of the page, to capture links for products you want to post.


11. Optimize your earnings by posting links regularly. 
This means that you should look for creative ways to incorporate product recommendations into your blog posts while still letting the reader know you are offering them expertise on your website subject.
  • Amazon Affiliate links, once clicked on by a potential buyer, are active for 24 hours. This means that they expire for that particular user after 24 hours. Fresh links means new chances to earn money.


12. Build links to many different types of products over time. 
Amazon pays you an advertising fee based on the entire purchase that the person makes, not just the product you advertised.
  • The important thing is getting to people to Amazon using their link, so that they can make all the purchases they have been waiting to make using your referral link.


13. Use your referral link when sending information via email or to family members. 
You can receive commission on anyone's purchase, except your own, if they use the referral link within 24 hours.
  • Trade Amazon Associates referral links with a friend or family member. Make your own purchases using their link, so that they can reap some benefits and ask them to do the same. Although this is not likely to be your main way of making money, it can improve your commission structure at times.


14. Add widgets to your site. 
Amazon Associates has widgets and online stores that you can add to your website template. List several recommended products in your sidebar.


15. Advertise products over $100. The more expensive the product your reader buys, the more commission you will make, so make sure you recommend higher priced products with good value.


16. Use lists. Most online stores keep lists of popular products. Make your own recommendation lists every month or quarter on a new topic, because they are valuable to you and your readers.


17. Post seasonal content with Amazon Associate links. 
People buy more near Christmas, so post recommended products before Thanksgiving to take advantage of sales that Amazon is going to make anyway.
  • If you haven't started creating a seasonal schedule for your blog posts and marketing, start now. There are dozens of holidays, such as Halloween, Easter, St. Patrick's Day and Valentine's Day that can produce more sales, if the advice and links are timely and interesting.

18. Optimize your blog or website. Adopt search engine optimization practices, such as keyword density, short URLs, and backlinks to increase web traffic to your site. The more people who read, the more clicks you will have on your Amazon Associates links.

 Source : www.wikihow.com 

 

The Ultimate Guide to Making Money with the Amazon Affiliate Program  

 

http://www.problogger.net  

 

My Start with Using Amazons Affiliate Program

I first heard about Amazon’s Affiliate program in April 2003. I had been blogging for 6 months and was beginning to realise that this new hobby of mine was going to cost me a little money (for hosting, design etc).I was newly married at the time and on a very tight budget. I realised that if I wanted to keep blogging, I needed to find a way for my blogs to pay for themselves. So began my hunt for ways to do just that. I began to experiment with two methods of making money from my blogs – Google’s AdSense program and Amazon’s Affiliate program. Of the two, AdSense has certainly earned significantly more money – however, Amazon’s Affiliate program has also been an important income stream.

10 Years and $420,000 later…

I’d love to be able to calculate exactly how much I’ve earned from Amazon in that time but their current reporting system only goes back as far as 2008. However – after doing some reconstructing of my earnings I’ve put together the following chart of (the years 2003-2007 are based upon earnings numbers mentioned in previous posts here on ProBlogger but are not exact).
 
Amazon Earnings 2003 2012
This years earnings look to be tracking along at around the same rate as the last two, for the same point in the year.

Overall I estimate my Amazon earnings, since 2003, are around the $420,000 mark (USD) – although, as you can see, the bulk of it has been in the last 5-6 years.  

So while it’s nowhere near my #1 income stream Amazon’s Affiliate program has certainly been important to me.

I share these results not because I’m the biggest Amazon Affiliate going around. I have no doubt I’m in the middle of the pack and that there are a lot bigger than me*. I share these results because, over the years, I’ve heard many many bloggers write off the Amazon Affiliate program as not being worth the time.

*I make this assumption based upon the fact that I’ve never ever been contacted by Amazon directly and I know a few other affiliates who have regular contact with Amazon and who’ve been assigned account managers over the years because they do so well from the program.

Why Many People Don’t Use the Amazon Affiliate Program (and Why I DO)

The usual reasons I hear people giving for not being an Amazon affiliate include:

  • The commissions are too small. They start at 4% and for most products can go as high as 8% depending upon how many products you see sold.
  • Because most people on Amazon buy low priced products like books, so 4% of a $10 product doesn’t add up to a worthwhile commission.
  • Because people have to make a purchase from you within 24 hours otherwise your affiliate cookie stops working.
The above reasons are all valid. There are other options that pay higher commissions (although not so many for the type of products Amazon sells), you can promote higher value products and there are programs that have longer cookies… but there are also some things I like about Amazon.

In 2007 I wrote a post titled 9 Reasons Why I AM an Amazon Affiliate and while the post is old, most of the points still are relevant today.
The main reasons I still am an Amazon Affiliate (apart from the obvious fact that it converts for me) are:

  • Amazon is a trusted brand – everyone knows Amazon. If someone were going to buy online, Amazon would have to be one of the safest options.
  • Commissions on higher value products – while 4% on a book isn’t a high commission, if you promote a high value product (like a camera) the commission can be decent.
  • People buy more than one item at a time – when you send someone to Amazon you earn a commission on whatever they buy, whether they end up buying what you sent them to or not. Many people load up their cart with numerous items so commissions can add up.
  • Easy integration – Amazon provides some good tools and widgets to help you integrate the sales channel into your website.
  • Holidays are boom times – Amazon runs some good seasonal sales. Thanksgiving to Christmas can be a particularly profitable time to promote.
  • Amazon has a wide array of products – Amazon is so much more than books these days. There are so many promotional options that most niches would probably find something relevant to their audience.
Obviously I’ll never argue that Amazon’s Affiliate program (or any other income stream for that matter) is perfect for every blog – but I do think it is worth considering.

20 Practical Tips to Make Money with the Amazon Affiliate Program

Over the years, I’ve written numerous Problogger posts on making money with the Amazon’s Affiliate Program.

Below is a compilation of some of these most powerful tips – based upon my experience  of working with Amazon’s program over last 10 years. I’ve updated them to make them as relevant as I can for 2013.
I’d LOVE to hear your tips and experience of using Amazon’s Affiliate Program in comments below, as I’m certain there is a lot more that I could learn!

1. Traffic Traffic Traffic

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Let’s start with the most obvious point – one of the biggest factors in the upward swing in my Amazon Affiliate earnings (in the chart above) has been the corresponding upward swing in traffic.

As with most methods of making money from blogging, the more eyeballs that see your affiliate promotions – the better chance you have of them converting.  Of course, this is a generalisation as not all kinds of traffic converts – but more of that in the next point.

Does that mean it’s not worth experimenting with Amazon’s Affiliate program if you don’t get much traffic?

I think it’s definitely worth using early on. While you won’t earn a heap, you will learn a lot and earning a few dollars (or cents) is better than none.

In the first 3 months of using Amazon I earned a whopping $31.80 (around 30 cents a day). Sure, it wasn’t much but I often wonder what would have happened if I’d let that minuscule amount discourage me and stop my from trying!?

So yes, experiment early but if you’re just starting out your main focus needs to be on creating great content and building traffic to your blog. In the long run, that is what will help you earn more from Amazon (and other income streams).

2. Loyalty and Trust Convert

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Another major factor in the increase in earnings has been the type of readership I’ve gathered on my blogs.

While I do get a fair bit of search engine traffic, I’ve found that in most cases (and there is an exception below) search visitors don’t sign up to the affiliate programs on my blogs. Loyal and repeat readers do.
The main reason for this is that readers who connect with you on a daily basis, over the long haul, begin to trust you (and your blog). When you make a recommendation, or do a review, they’re more likely to take that advice that someone who has give arrived from a search engine link.

3. The Intent of Readers Matters

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Another big factor in the equation of Amazon Affiliate conversions is the intent your readers have when they visit your blog.

Why are they there and where are they in the ‘buying cycle’?

I began to understand this in the early days of Digital Photography School. I looked at the growing traffic to the site but realised that my Amazon affiliate earnings weren’t keeping up with the traffic growth I was experiencing.

I realised that DPS was a blog that largely shared ‘tips on how to use a camera’. As a result, it wasn’t really attracting readers who were in a ‘buying mood’. In fact, I ran a survey and found that many of my readers had recently purchased a camera and were on my site because they wanted to learn how to use it.

So I began to add to the mix of content on the site with more articles relevant to people buying a digital camera. I wrote tips with advice on buying cameras, reviews of digital cameras and equipment etc. This culminated in a whole new section devoted to ‘cameras and gear‘.

Slowly this has attracted a new type of reader to the blog: readers who are researching their next camera purchase, readers who are more likely to click a link to Amazon and who, once there, are more likely to make a purchase.

If you want to attract search traffic that is more likely to convert, consider creating content that attracts people in a ‘buying mood’.

4. Relevancy Matters

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This is another common sense tip that many of us mess up. The more relevant your products are to your audience, the better chance you’ll have of converting.

  • Promoting iPods on a blog that largely talks about spirituality and you’re unlikely to make a lot of sales (believe me, I tried). Try promoting relevant books, CDs and DVDs instead.
  • Rather than promoting perfume on your travel blog try travel books, luggage and other travel products.
Amazon doesn’t work with every topic and sometimes it is hard to find a product that matches your topic. Try different products related to your topic and track which products convert best for your audience.

open-door1.jpg5. Get People in the Door then Let Amazon Do What They’re Good At

One of the great things about Amazon is that it is a site people are familiar with and trust and they’re very good at converting visitors into buyers. Amazon has honed their site to present people with products relevant to them (based upon previous surfing and buying habits) and over many years they have tweaked their site so converts really well.

As a result, I find that if you can people to visit the Amazon site (pretty much for any reason) a percentage of them will naturally end up buying something. The cool thing is that whether they buy the thing you linked to or not – you still earn a commission!

I have found that one size doesn’t fit all. Rather, specific types promotions of particular products work well with Amazon. I have also had some success by getting people in the Amazon door for other reasons. For example I’ve experimented a couple of times on dPS with running a posts that gave readers a hypothetical $1000 to spend on photography gear and asked them to surf around Amazon and choose what they wanted to buy. The result was 350 comments (a fun community building exercise) and quite a few sales and commissions!

While a ‘get people in the door’ strategy might seem to grate a little with my ‘Relevancy’ tip above – the key is to get people in the door in a relevant way.  In my case, I was getting my photography readers to go window-shopping on Amazon, for cameras.

Once they are there, the purchases they make might not be ‘relevant’ to your blog but their motivation to visit should be.

NYT-extended-list-715372.jpg6. Social Proof Marketing 1 – Best Seller Lists

People are more willing to make a purchase if they feel, they’re not alone – that others have and are buying with them. I’m sure there is an insightful psychological reason for this but from where I sit, buying seems to have become a communal activity.

One of the most powerful social proof marketing strategies I’ve used, when promoting Amazon affiliate links, is creating ‘Best Seller’ type lists for readers. These lists show readers what is currently popular, in terms of purchases in our community.

A good example of this technique in action is my Popular Digital Cameras and Gear page on DPS. I update this page every few months and prominently link to it on the blog. Those two actions together, convert readers to buyers really well.

To construct the list, I simply go through the Amazon affiliate reports/stats and find which products are selling the best from within my community. I then categorise those results by product and ‘Waahlaaa’ – we have a best seller list that shows what readers of my site are buying in the last few months.

Bestseller lists convert well because readers know that others in their community are buying these products too. I guess it’s Wisdom of the Crowd mentality but it works!

Another quick example of this was a post, 23 Photography Book Reviews [Ranked], where I ranked the top selling photography books in order of sales. I additionally linked each book to reviews we’d done on the blog.

Note: the key with these ‘best seller’ lists is to drive traffic to them. Two ways to do this is to prominently link to these pages from within your blog plus linking to them from within other posts. This second method means your post doesn’t just convert for a day or two.

Also be sure to promote them through social media channels because these lists of what is hot are often shared well.

Another Note: Another way to create a bestseller list is to look at the ones that Amazon creates. For every category on Amazon, you can rank products based on how they are selling (popularity).

For example – here’s the Camera and Photo best selling page (affiliate link) that ranks the best selling cameras and gear. You can even drill down further to look at best selling DSLRs, Flashes and Lenses.

These lists give you hints as to what products are hot to promote but you could easily pull them together into a list of products to feature on your own site.

7. Social Proof Marketing 2 – Reader Reviews

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I used to review all the photography books featured on DPS. It was mainly because I couldn’t find anyone else to do it and partly because I’m a control freak.

However, one day I had a reader offer to write a book review for me. I knew the reader so I was confident the review would be OK to publish. As with all my reviews, it had an affiliate link to Amazon in it. I was a little skeptical about whether the review would convert. I thought my readers might not respond as well to a stranger’s review of the book. I was wrong.

The review not only converted as well as my normal reviews – it did even better than normal!

This could have been for many reasons but one reason I suspect came into play was the way I introduced the reviewer. I didn’t build them up to be an “expert”. I introduced them as a ‘DPS reader’, a regular reader who wanted to share some thoughts on a book that had helped them.

I suspect the social proof concept came into play a little here. Readers saw another reader recommending something in a genuine way and wanted to get a copy for themselves.
Note: interestingly Amazon themselves uses reader reviews as a fairly major feature of their site. Why? They work!

8. Genuine Recommendations and Reviews

bookrev_600.jpg
Apart from my ‘best seller lists’ mentioned above, there are two main ways that I promote Amazon affiliate links.
The first is in ‘Reviews’ for products (the second I’ll cover below in the next point). These links are where I, or one of my writers, will genuinely test a product and give it the once over.

I insist my writers actually read the books, test the cameras and use the software products they are reviewing. I encourage them to be as genuine and unbiased as possible, to point out both the pros and cons of the product. While there’s some temptation to hype up a product and only talk about its positive points, a real review will help your reader relationship over the long haul and I find actually helps promote sales.

Review links work well because it’s usually people who are considering buying a product who really read reviews. It comes back to capturing readers with the buying mood/intent mentioned in point #3.

9. Informational Links

information.png
The other type of Amazon affiliate link I use is when I’m mentioning a product in passing and/or a new product is announced. For example, when Nikon announced the Nikon D300s we immediately posted about the news because it was a notable and anticipated camera announcement. The camera was not yet available in stores and we were not able to get a review sample yet – but it was available for Pre-Order on Amazon so we linked to it.

There was no recommendation or review attached to the link but it was a relevant link for readers who wanted to know more (price, specs, pictures etc). Some readers even pre-ordered the cameras from that link.
Similarly, if we’re writing about Photoshop or another photography post-production software we’ll usually include a link to the software. Again it’s not a review link but rather an informational/contextual type link.

These don’t tend to convert as well in terms of sales but they do get people ‘in the door’ at Amazon that can help with sales from time to time.

10. Contextual Promoting is King

contextual.png
One of the biggest reasons my initial attempts with Amazon simply didn’t convert was that I thought it’d be enough to slap a button on my sidebar, featuring a product or Amazon.

Amazon gives publishers a lot of these type banners or widgets but despite trying almost all of them, I had little or no success with using them. Instead – 99% of my conversions have come from links to Amazon from within blog posts about the products themselves.

By all means experiment with the widgets and buttons Amazon gives you. If they do convert, then more power to you but every blogger I’ve talked to that has had success with Amazon tells me that contextual links, from within blog posts, work best.

11. Promote Specials, Promotions and Discounts

sale2.gif
Amazon has hardly any products that don’t have a listed discount. Most books are as much as 30% off the recommended retail price and at different times during the year, Amazon runs other special discounts and promotions on different products or product categories.
Keep an eye out for these kinds of promotions because they can be well worth promoting (if relevant to your readership). In fact, last time Amazon had cameras on special, I promoted the sale to my newsletter readers and had readers emailing me to thank me for letting them know about it.

Another related tip is that when you’re writing a product review and Amazon has a listed discount – include a note about the discount. For example, in this recent photography book review I link at the bottom to Amazon and note that it is currently 36% off.

11. Multiple Links Per Post

When I used to write product reviews, I used to include just one affiliate link. For some reason, I thought that a single link would be enough and I didn’t want to run the risk of annoying readers with more links. However, one day it struck me that the reviews I was writing were quite long and by the time people got to the end of them, the link to Amazon was no longer visible.

At this point I started to experiment with a link at the top and tail of the review. I did some heat map tracking to see which links were the most clickable and also used Amazon’s tracking codes to see which one would ‘convert’ to a sale more often.
The results were interesting:

  • Both affiliate links were clicked quite a bit but the link under the article was clicked slightly more than the link at the top (despite being under the fold)
  • The link at the end of the review resulted in more conversions than the link at the top
  • The people who clicked on the top link still purchased (although not as many) but interestingly it wasn’t always the product I reviewed.  It was often related products
I concluded that having read a product review, people felt more informed to make a purchasing decision. As a result, if they did click a link after reading the review they were more likely to buy the product. Those clicking on the top link seemed to be more in a ‘surfing’ mode. They clicked on the link less because they wanted to buy it but more out of interest to learn more. Some bought the product and some bought other products once they were ‘in the door’ at Amazon.
These days I generally (but not always) use two links per review post.

  • The first link is usually on the first time I use the product name
  • The second link usually has a stronger call to action e.g. ‘check it out on Amazon’ or ‘get a price on XXXX’ or ‘buy your own copy of XXXX here’.
Live Example: Let me illustrate it with a quick video (from a few years ago) that also picks up my next point.

12. Link Images to Amazon

While doing some heat map tracking of where people were clicking on my reviews I learned that there was quite a bit of ‘click activity’ on images of the products, even when those images were not linked to anything.

Note: I use CrazyEgg for creating heatmaps – it has the option to track clicks on all areas of your page, even where there’s no link to click.

There’s something about an image that people are drawn to and that makes them click. I began to experiment with linking images to Amazon with my affiliate links, setting up a tracking code to test whether they converted. While they didn’t convert as well as text links, they did convert in some instances and to this day I still use this technique most of the time.

13. Buy Now Buttons

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This is a technique I’ve heard others having real success with but one I need to experiment with more.

It basically involves using a ‘buy now’ button in your post. I suggest placing it below a review as a starting point. I’ve written more about the technique here but the first time I heard this being applied, the blogger actually used the yellow Amazon Buy Now button in his posts. The familiarity of the button seemed to help increase conversions.
Again – it’s not something I’ve done much of but it could be worth a try!

14. Multiple Promotions Per Campaign

I’ve talked about using multiple links in a post but another way to increase conversions on a particularly hot product is to promote it more than once, over time. I only do this on very popular or highly anticipated products but it certainly works well.

The key is to find a number of different ways to talk about the product over a few weeks (or longer). I wouldn’t do all of the following for a single product but here’s a few ways I’ve done it on occasion in the past.

  • If a highly anticipated camera is announced by one of the manufacturers, I immediately publish a post announcing it. Amazon often has advance notice of these announcements and will usually have a page up for it where it can be pre-ordered on the same day it’s announced. I link to it immediately in my announcement post.
  • A few days later I might post a post asking readers what they think about the camera or one of its features. For example, I recently wrote a post asking readers what they think about the idea of a camera with an inbuilt projector after the release of the Nikon Coolpix S1000pj.
  • When the camera hits stores, I might post a short post announcing that it’s available.
  • When we get a review product, we’ll post a review of it with our recommendations.
  • We might, at some point, post some other reader reviews of the product if enough of our readers have it.
  • We might also compile a list of quotes from other sites that have also reviewed the product.
  • We might pull in and embed some videos from YouTube that show the products features.
Again – I would NEVER do all of these things with a single product but if it’s a significant product release and newsworthy over a month or so around its release we might cover it in 2-3 posts.
You know your readership best so tune in to where they’re at and whether you’ve posted too much on the same product. You don’t want to over do it but if it’s a product your readers are discussing and are interested in there’s plenty of ways to bring it up (and promote it on Amazon) more than once.


15. Focus Upon the Holidays

Amazon associates christmas
If you check out this I shared here on ProBlogger back in 2009 you’ll notice that the yearly 4th quarters were usually bigger than those proceeding them. The reason is simple – Christmas and Thanksgiving.

The only December that I saw a downswing was when Google temporarily de-indexed my first site for a few weeks. Every other year there has been healthy rises for the later half of November and all of December (the last few Decembers have been massive).

The upswing in sales around Christmas is partly natural as people are more in a ‘buying mood’ at that time of year. I like to take advantage of this by creating content that is specific to the holiday season.

Content such as buying guides, reader questions getting people talking about what they’re looking to buy or would like to receive for Christmas, lists of popular/recommended products etc.

16. Promote Related Products

One of the challenges I came up against when writing about cameras regularly was that while a certain percentage of my readers were actively shopping for a new camera, many readers already owned one. In fact, writing a ‘photography tips’ blog means you attract more people wanting to learn how to use a camera that they already own, rather than buying a new one.

As a result, I often do more promotions on ‘related products’ than cameras themselves. That means promoting lenses, flashes, memory cards and other photographic accessories as well as photography books (which is strongly related to my core ‘tips’ focus).

One great way to get ideas for related products to promote is to look at the stats/reports that Amazon gives you to see which products readers are buying. After a while you’ll start to notice that they’re not only buying the products you directly promote but other products as well. Some will be completely irrelevant to your niche – but many times trends will emerge that could signal other products that it might be worth promoting.

Let’s look at an example of this. Following is a screen capture of a small part of the orders on my Amazon account a while back. I have arranged them in order of how many were sold.

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What you can see in this screen grab is that the #1 electronic item sold in the period was a Canon 50mm lens. You can see that in the ‘product Link Clicks column’ that people came to Amazon directly through a link from my site to this item – it’s something I promoted on DPS.
However look at the next most popular item (the Tiffen 52mm UV filter). You can see in the ‘Product Link Clicks’ column that there is a ‘0’ figure. I never promoted this product directly on DPS – yet 44 people bought it.

The next two items were things I promoted but the next 8 were things that people bought in number by themselves without me promoting them at all. To me, knowing which items people buy without my prompting is GOLD!

It’s possible that Amazon is promoting them heavily or that one person is buying a lot of the one product, or they just could be great products that almost sell themselves for one reason or another.

Whatever the reason, I’ll look into them further and see if they could be products I should be promoting somehow.

You can bet there will be a post on dPS soon that highlights some of these ‘hot/best selling accessories’ among our readers!

17. Promote Pre-Orders

I’ve already mentioned this one above but one of the things that I do is promote the ability to Pre-Order products on Amazon.

It doesn’t happen for every product but I find that Amazon will sometimes create pages for new products before they’re even available for purchase.

pre-order.png
When I post an article announcing a new camera I always check Amazon first to see if they’ve already created a page for that product. If they have, I make sure to mention that the product is already available for pre-ordering on Amazon.

For example a couple of years ago when Canon Released the Canon EOS 50D DSLR I used this technique. This post generated 10 sales of the camera before it was even available in stores. While two of them cancelled their orders later 8 sales of a $1000+ product certainly add up!

18. Track Your Campaigns

Until a bit over a year ago, I just promoted every single Amazon affiliate link with the one tracking code. I was lazy and while I saw which products were selling, I never really knew what links on my blog were converting and what ones were not.

Eventually I decided that I needed to know more about what was working for me so I started tracking campaigns. Amazon allows you to create 100 tracking ids (once logged into Amazon Associates you manage them at this link).

I didn’t realize there was a limit until a few years back when I hit the maximum. I wish Amazon would increase it! To be honest, I find their tracking system pretty messy and think it needs an overhaul however, it is great for testing what works and what doesn’t. Most of what I’ve written about in other tips in these articles was learned through tracking.

Because there’s a 100 tracking code limit, I suggest creating a few general tracking codes, one for each blog and perhaps one for each category on your blog. Then use other codes for major promotions that you’re doing. This way not every Amazon link will be tracked but important ones will.

Note: I’m told that Amazon do give more tracking codes if you email them but it’s a bit of a drawn out process. If you need more it’s worth a try (I know I’ll be trying).

19. Small Ticket Items Add Up

One of the most common criticisms I hear about the Amazon’s Affiliate program is that there are just too many small commissions. Getting a commission of a small percentage on a $15 book just doesn’t cut it for many people.  Some people use this to justify not using Amazon at all while others just promote big-ticket items.

While I agree that these small commissions are not much on their own – they do add up.

Yesterday I earned $506.03 from Amazon. It was actually a pretty good day, higher than average. One might think the higher than normal figure came from selling some big ticket items but that wasn’t the case. The highest commission for the day was a $21.34 commission. The vast majority of the sales were books sold from my list of photography books, which we promoted on social media recently.

The other beauty of getting lots of smaller ticket sales is that they go towards increasing the commission tier you’re on. The more items you sell (not the more $’s you refer – but item numbers) the higher % commission you make from Amazon.

amazon-tiers.png
In the screen capture above you can see that when you go past 6 items referred, you move from a 4% commission to a 6% commission. If you keep referring more, the commission increases. The only category of product not included in this is consumer electronics (frustrating for a camera guy!).

This means that if you refer enough small ticket items you can double your commissions.

Note: Amazon lets you choose two types of payment structures – ‘Classic’ and ‘Performance’. The classic one has a 4% flat commission – while the ‘performance’ one has the tiers. I’m not sure why anyone would select ‘classic’ so make sure you choose ‘Performance’!

20. Big Ticket Items are the Cream on Top

While I strongly advise promoting small ticket items to help boost your sale numbers and commission figures, it’s also worth targeting some bigger ticket promotions too.

In my experience, they don’t convert anywhere near as well as cheaper items but when they do, they can give your revenue a real boost. As someone promoting cameras that can sell for several thousand dollars, I’ve had single commissions in the hundreds of dollars range (even when the commission is limited to 4% on consumer electronics).

For example, last month I saw the sale of the Nikon D800 36.3 MP CMOS FX-Format Digital SLR Camera (Body Only) (yes that IS an affiliate link). It sells for over $2700 and generated me a $111 commission.

Here are a few more smaller but still significant ones from the last week:

amazon-affiliate-earnings
While these bigger ticket items are certainly not selling in as great a number as books – they contribute a significant amount to the total earnings of the month.

10 More Tips on Using the Amazon Affiliate Program

To finish off this ultimate guide I want to share 10 more general, overarching tips and principles I’ve found helpful when making money with Amazon’s Affiliate program.

1. Time is a Major Factor

As I mentioned at the start of this guide, the $420,000+ that I’ve earned from Amazon has come over 10 years.

While the last 5 years seen me earn over $50,000 per year from Amazon, it took 5 years of building to get it to that level – with the first 3 years really not earning much at all.

That was partly due to increasing traffic. It was partly due to my regular inclusion of affiliate links in my posts. I don’t promote Amazon in every post but in an average week I’d say I link to Amazon in at least 4-5 posts. That adds up to 200-250 posts per year and around over 2000 posts in the last 10 years.

These posts act as a doorway to the Amazon site. As the number of posts has increased, my blogs have begun to rank higher in Google and my loyal reader numbers have grown, the number of people going through these ‘doorways’ has increase– hence the escalation in earnings.

2. Start Early

I recommend that bloggers start to use Amazon’s Affiliate Program early. In doing so, you’ll be populating your blog with links into the store that may not convert brilliantly early on but which can potentially convert for years to come as your blog grows in popularity.

The other good thing about starting early is that you’ll learn a lot about affiliate marketing. Most of the lessons and tips that I’ve shared in this series of posts have come directly from my own experimenting with Amazon’s Affiliate program.

I knew so little in the early days and I made a lot of mistakes but each time I messed up I learned another lesson that has helped me to grow my Amazon earnings into a more significant part of my own business.

3. Experiment with Widgets and aStore

I’ve already mentioned that I largely rely upon contextual links to promote Amazon products. I find these offer the best conversion however, I do know of a few bloggers who’ve successfully incorporated a variety of the widgets that Amazon gives their affiliates to use.

amazon-widgets.png
Similarly – I know some readers who do pretty well with aStore, which is a tool whereby you create your own little online store using Amazon’s technology.
I’ve tried to use this a couple of times and have had a little success with my photography and ProBlogger bookstores but know I need to do more with it to take it to the next level.
I guess it comes down to experimenting with the tools and seeing what works best with your audience. If you’ve used some of these widgets I’d love to see examples of where you’ve had them work for you – please share links in comments below so we can all learn!

4. Transparency with Readers

There is always debate about the topic of transparency when affiliate marketing comes up. Should you disclose that your links are affiliate links or should you not?
The answer to this will partly depend upon your location. If you’re in the US, the FCC requires a disclosure – but in other parts of the world you are not required to do so.

Each blogger will ultimately have their own stance on this and it’s important to work out what sits well with your own ethics, the flow of your site and the law.

Being in Australia, I’m not required to do anything by the law (although I hear talk that there may be changes around this). I don’t disclose every single Amazon link on my photography blog in a direct way but do I have a disclaimer/disclosure page on the blog. When I’m doing a ‘best seller list’ always include a disclaimer on those posts as the whole page is filled with affiliate links. I have also written numerous times on DPS about how the links to Amazon earn us money and help the site to keep growing and be free.

I was nervous the first time I mentioned this to readers and expected a backlash however, what I found was that most readers not only accepted it, they encouraged us.

In fact, a few of our readers tell me that if they’re going to make some kind of purchase at Amazon that they always come to DPS to click on one of our links to do so! Transparency isn’t as scary as you might think (although this might depend upon your audience a little).
Here on ProBlogger I disclose Amazon affiliate links. That’s mainly because there are fewer of them and because my readers here are more savvy with the idea of affiliate programs (I don’t have to explain what an affiliate link is every time I mention one).

5. Don’t Hype – Put Your Readers First

When you engage in any affiliate marketing, always keep your readers’ best interests at heart.

I’ve been critiqued for taking this view over the years by groups of bloggers who seem to put the priority on ‘making money at all costs’. While you certainly can make money without a focus on quality content or building community and by hyping up the things that you promote – my approach has always been to put the reader first.

I do this because I want to build a solid reputation and a loyal readership of people who trust me. I’d rather make less money and still have a reader than make lots of money and never see the reader again. For me, this comes not only from my ethics but my belief that in the long term building a good profile and reputation leads to other opportunities for profit.
The problem with hype is that you set readers up with expectations that are beyond what the product you’re recommending can deliver. This might lead to a sale but it also leads to disappointment and anger – the loss of readers – damaged reputation etc.

6. Pick High Quality Products

This follows on from the last point but is worth stating on its own. The success (or failure) of your Amazon Affiliate Program hinges upon the products you choose.

When you promote quality, it is much easier to be both genuine in your reviews and recommendations which leads to conversions and commissions.

Wherever you can, test the products you recommend to ensure their quality (or find someone who can do it for you).

7. Be Bold

One of the recurring themes I hear from readers is that they worry about using Amazon links too much, asking “Won’t readers push back?”

I have always shared this concern but as you’ve probably picked up by now, the reader push back has been almost non-existent.

Perhaps this is because I carefully choose the products I promote or because I often promote these links in posts based upon reader feedback. I can think of less than 10 occasions when I’ve had people on my photography site question the links. In fact, as I said above, I’ve had more people give positive feedback about them than anything.

I guess there would come a point where too much promotion would get a negative reaction so you want to be a little subtle about your promotion but in general, I think readers can handle more than we might think they can.

Note: I think the line where readers will push back probably will vary from blog to blog depending upon their readership. For example here on ProBlogger I get a little more negative feedback from readers on affiliate promotions. I suspect ProBlogger readers are a little more tuned into the issue and suspicious of some of the affiliate marketing that goes on around the web.

8. Localized Audiences? Try Local Amazons

Another comment that sometimes comes is that Amazon.com doesn’t work brilliantly for blogs and sites with traffic from countries outside the USA.

A couple of reflections on this:

Firstly – it’s not completely true. I previously had a blog with almost completely Australian traffic and it converted reasonably well with Amazon. Amazon does ship some products to Australia and other countries (books, CDs etc) so if you’re promoting those products it can work.

Of course I always missed out on the bigger ticket electronic items that didn’t ship outside the USA. This was part of the reason I moved my efforts to starting Digital Photography School, which has a more global audience.

Secondly – if your traffic is localized to a country with its own Amazon store, join the affiliate program for that store and promote it. I know one of the UK photography sites does very well from promoting the UK version of Amazon. I also know one blog that adds two links to every post he does – one with the US and one with the UK store.

I’ve also heard that some people use geo-targeting tools to look at where a reader is from and serving them a localized link for them.

9. Topics Convert Differently

One forum I came across was discussing my previous articles and a number of people reported that Amazon didn’t work on their sites (doubting whether I was telling the truth about my earnings). When I delved a little deeper, and looked at their sites, the reason for their lack of success with Amazon became apparent – their topics.

Some topics will naturally fit with Amazon better than others. In the end, it comes down to the fact that Amazon is a product related affiliate program so it only works when people buy stuff. If your blog is on a topic that doesn’t have any natural connection to people buying stuff it is going to be an uphill battle.

In my experience, it’s product-related blogs that tend to do best with Amazon. Most blogs probably have at least some possibilities (for example here on ProBlogger I occasionally link to a book that relates or a computer or electronic tool that I think might be useful to bloggers) but the reality is that this blog will never convert as well on Amazon as my photography site.

10. Keep an Eye on Amazon

My last tip is to keep an eye on what Amazon is doing. I mean this in two ways:
1. Learn from Them – be a regular user of Amazon. You don’t have to be an active buyer but surf the site regularly and pay particular attention to the way that THEY are promoting products on their site.

Amazon has spent years perfecting the art of online selling and you’ll learn a lot about online marketing by observing how they do it. They constantly test different ways of promoting products and have evolved their site quite a lot over the years. See what widgets they use to promote related products, watch how they use reader reviews, and see the way that they describe products.

You’ll also be in a better position to pre-sell the products you recommend if you look at the page you’re sending people to before you do it.

2. Watch for Opportunities – earlier in this guide I mentioned that you could tap into a number of promotions Amazon on their site. Some of these are promote directly to their affiliates. For example, they send out emails to affiliates semi-regularly, promoting their latest promotions. They also have a blog where they do likewise.

If you read the blog and get the emails you’ll see promotions where they are offering discounts to readers but also where they’re giving bonus commissions for some items or categories of products. Not all of them will relate to your niche but over time some will.
However, there are other opportunities they don’t promote to us as affiliates but which you can still tap into. For example, today I was surfing on Amazon and came across their Camera Deals page.

The page is a sales page promoting any deals that they’re running on digital cameras. On the page are some pretty decent deals that are worth promoting on my photography blog.
This is just one of many promotions that Amazon is always running on their site. Keep an eye out on the site for what they’re doing that relates to your niche and you’ll find some good stuff to promote.

The more you keep an eye on how Amazon are promoting products to their readers the better informed you’ll be about how YOU can do the same thing.

Share Your Amazon Affiliate Program Tips

This brings to an end my ultimate guide to making money with the Amazon Affilate Program. I’ve shared everything that I’ve tried  but what about you? Got any tips to add
SHARE

Milan Tomic

Hi. I’m Designer of Blog Magic. I’m CEO/Founder of ThemeXpose. I’m Creative Art Director, Web Designer, UI/UX Designer, Interaction Designer, Industrial Designer, Web Developer, Business Enthusiast, StartUp Enthusiast, Speaker, Writer and Photographer. Inspired to make things looks better.

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