Amazon Associates is unarguably the most widely used affiliate network in the world. Having said that, their commission rates (starting from 4%) doesn’t look very attractive. So one might wonder – why anyone would even consider promoting inexpensive products for pennies? And if it wasn’t for promoting products that would make at least $10 per sale, how are we supposed to make profits?
Answer for both this question lies in the compensation policy of Amazon Associate program.
The Amazon advertising fees is intelligently structured in a way so that it favours affiliate marketers who bring in more sales on a monthly basis. Which means you earn double the commissions per product if you are to bring in hundreds of sales as opposed to one or two. The vast majority of product categories on Amazon follows this very same ‘volume based’ advertising fee rates.
Here comes the role of inexpensive products. As a $10 selfie stick is no difficult sell compared to a $500 lawn mower, the easiest way to crack into higher tier of commission rates is to sell more of those cheap products.
So the quick answer to this question would be to sell a combination of both cheap and expensive products.
Focus on Products That Sell Easily
Make sure you promote the kind of products that sell easily. Not only does this help you increase the overall no. of products sold, but also bring in ‘accidental sales’. People very often add several other products to their cart before checking out, and you could be the one earning all that commission!
You might think this is naive, but guess what? I don’t remember promoting half of the products I sold this quarter on Amazon. People most often end up buying more stuffs than what we send them to.
Highly Priced, not the Highest Priced
Focus on highly priced items too. But not the highest priced. Amazon has certain limitations on advertising fees for selected categories like Electronics, for which the commission cap is $25 per sale. This effectively means that if you sell a gaming laptop for $500 or $1500, you are going to end up earning the same commission per sale. Guess I shouldn’t point out which one is easier to sell. Of course the $500 one. So make sure you don’t get carried away by the huge pricing. Not only are they tough to sell, they might just be earning you the same bucks as the mid-ranged ones.
Hope this article gave you an idea of what range of products you should be promoting. Did I miss something? I’d absolutely love to hear your opinions in the comments.