Affiliates are forever searching for innovative programs. however, this should not spread panic and people should seek to understand why. The Amazon Associates program has historically awarded affiliate commissions on a volume-based model.
The more you sell, the more you earn, starting at around 6%, it increased to 8.5%. As a general goods retailer, Amazon sell everything and for a general goods retailer, 6% is pretty high, let alone 8.5%.
Though, that high percentage is a strategic move from the general goods giant, as if Amazon attracts the most affiliates, it makes the most money. Still, many categories have significantly lower margins in comparison to others.
This can be said for electronics, which are far less profitable than luggage. Thus, at the turn of the year, Amazon made the executive decision to adjust its affiliate commission rates based on the profitability of each category.
Whilst many categories remained intact, staying at that mid 8% mark, some received a boost but a lot got cut, being reduced to 4.5% or lower. Wine on the other hand was hit fatally with commission rates being lowered to 0%.
Digital video games, luxury beauty and Amazon coins received the biggest boost with commission rates now standing at 10%. This means there is a sudden and strong incentive for affiliates to seek programs outside of Amazon.
It is not just an old wives’ tale that combining and testing affiliate programs can make you more money than using Amazon. The reason Amazon attracted such a large share of affiliates is due to its ease of use in comparison to its rivals.
In addition to this, the product selection on Amazon is huge and you really can uncover a lot of bizarre items to sell. The massive selection, huge customer base, host of residual sale and huge holiday spikes are just a few positives of using Amazon as an affiliate.
However, whilst the commissions for a range of categories remain great, the likes of wine, PC components and televisions were hit hard in the latest update and will make you nil. As well as this, their terms of services can prove difficult to understand and it’s no surprise that some support representatives do not even understand the rules.
Obviously, Amazon is not the only affiliate program out there. Online casino operators pay big money for first time depositors to their online roulette games and the like. However it should be remembered that conversion rates are low in this highly competitive niche.
EBay is also a popular choice for affiliates. Their commission rate for parts and accessories is as high as 70% whilst electronics still sits high at 50%, though it is important to remember this is through auction only.
There a ton of plus points in teaming up with eBay as an affiliate, there is a high emotional input from customers and some pretty incredible product diversity. Unfortunately, there also comes some cons in teaming up with eBay, many reports of EPCs are low and many readers of you site are likely to not like auctions. As well as this, the site itself can prove frustrating as a product they desire may not be available at all times.
Whilst Amazon and eBay exist online, companies that exist both as brick and mortar and online also host affiliate marketing programmes. The highest commission percentage for Walmart is business and personal checks at 18%.
The giant is also among the highest commissions for toys and sports a three-day cookie. However, many of their commissions are lower than most of their rivals and as it’s a popular brand, many readers of your site are likely to have an opinion on Walmart and that opinion may be negative.