Affiliate marketing is a real way of life for hundreds of thousands around the globe. March 1st, 2017 marks a change in the Amazon affiliate commission rates and some are upset.
I think you’d agree that when you’re a creature of habit, any kind of change is met with resistance.
When commission rates change, and these commissions are what is putting food on the table for your family, it’s understandable that there would be concern.
Many claim they’ll be losing revenue because of the changes to the Amazon affiliate commission rates. But are the new Amazon affiliate commission rates something you should be upset about?
This article is going to show you exactly why you should be celebrating these new rates and exactly how to take full advantage of them.
Amazon Affiliate Commission Rates
Affiliate marketing is a $5 billion/year industry. If you don’t quite understand what affiliate marketing is and how it works, read this article first. After you’re up to speed, come back here. It’s ok, I’ll wait.
All Caught up? Good. Back to our story.
Before March 1st, 2017, Amazon had two different commission rate structures for their affiliate program: fixed rates and volume based rates. With fixed rates, the commission an affiliate receives is always the same. With volume tiers, commissions increase depending on the volume sold.
As an example, let’s use the Amazon affiliate program to promote electronics. Here’s a table showing the Amazon affiliate commission rates in place before March 1st, 2017:
As you can see, an affiliate’s commission rate on all electronics was 4%. So a commission on a $500 item would be $20. This may not sound like much but those $20s sure can add up fast.
With products that fit under the “general” category (see table below), as the number of sales went up, so did the Amazon affiliate commission rates.
However, as of March 1st, 2017, volume tiers will be removed. As you can imagine, Amazon affiliates with high volume sales are upset to see volume tiers go. At 631 sales, their commission doubled from 4% to 8%.
Let’s take a look at the new Amazon affiliate commission rates:
At first glance, some would notice drops in commission rates. And as I touched on, Amazon has removed the volume tiers.
People hate change. We’re creatures of habit. When touch screens became popular on smart phones I didn’t understand it. “Why are they taking away the buttons?!” Thankfully, I adjust quickly.
Sometimes a good change comes along, and it just takes time to better understand the benefits.
Why You Should Be Celebrating the New Amazon Affiliate Commission Rates
Amazon has been hinting about changing their commission structure for a while. Looking at the new commission rates, this isn’t a bad thing.
First, the changes to the commissions rates aren’t drastic. Several categories still retain their same rates.
Also, Amazon is going to continue pushing instant shipping across their platform. What does extremely fast shipping mean for Amazon affiliates? It means more people are going to be spending more money on Amazon.
As the average purchase increases, the affiliate benefits more and more.
Additionally, some of the categories have gone up with their commission rates. Pantry products (previously “groceries”) are now at an 8% commission, doubling from their previous 4%.
This is of particular interest, because trending of late is people buying their groceries online. Further, with Amazon pushing instant shipping you have yourself a profitable niche. People spend trillions on groceries every single year. Ladies and gentlemen, let’s make some money.
Don’t Put Your Eggs All In One Basket
Amazon has almost 500 million products and services to promote. Because of this, affiliates can promote just about anything and make money using the Amazon affiliate program.
It’s important to understand though that there are also tens of thousands of other affiliate programs you can use and turn a major profit with.
Some are huge affiliate networks, while others are independent affiliate programs. And sometimes it’s within these smaller programs where you can find the biggest consistent commissions.
(If you’re serious about making money in affiliate marketing check out my #1 recommendation for an affiliate marketing platform to join . It offers an incredible amount of training in all things online business. It’s free to start and has its own affiliate program that offers an average commission of $100 per customer retained. Yes, I said $100).
In conclusion, in online business we must roll with the changes. Sometimes what seems like a bad thing on the surface may actually be to your benefit. Affiliate marketing isn’t going anywhere, and choosing the right programs is the key to creating consistent revenue from a tool like the internet.
How do you feel about the changes made to the Amazon affiliate commission rates? Are you a current Amazon affiliate? What independent affiliates do you use that have high commission rates? What are your highest affiliate commission rates currently? Share your experience in the comments below. And as always, feel free to share this article. Sharing is caring.