Amazon Q4 Commission Structure

**ianm** · 17-09-04

From Associates homepage -

For upcoming Q4 2004, we would like to offer a Performance Fee Structure as an alternative to the improved Classic Fee Structure. What this means for you:

Performance Fee Structure

Complete Referral Fees (up to 10.5%), now also available on Marketplace items
All caps on all product lines removed
Tiered referral fees determined by unit volume, retroactive to the first unit. Up to 10.5% possible.
5% Referral Fees (minimum) also on Electronic & Photo items

Improvements to the Classic Fee Structure

All caps on all product lines removed

Premiums

Easy Links Premium (1%)
Direct Link Premium (2.5%)
Both Premiums also on Marketplace Items - only within the Performance Fee Structure.

Premiums will be added to your Referral Rate. If you get 6.5% in the Performance Fee Structure and sell an item via a Direct Link, you will get a 9% Referral Fee. (6.5% + 2.5% = 9%). Up to 10.5% possible. No Caps.

Also you can choose which plan to go with throughout the quarter rather than just in the first 20 days. Although I'm not sure why they still carry on with the Classic structure - no one in their right mind would choose to be in it.

**Rich** · 17-09-04

It looks to me like it will be the end of growth bonuses, with Performance Fee Plan tiers replacing Tier Thresholds and Growth Target Thresholds.

I haven't yet worked out what I would earn on the new structure using my Q3 sales, but I know it will be way down as I'm currently thru my max growth target so am getting over 20%

. Having said that, I know any growth targets for Q4 would be unreachable so I think it will probably work out better for me.

At least having it say ship 51 items and get 5.50% is better than ship 51 items and get 5% and 10% bonus. Makes it a lot simpler to understand.

**ianm** · 17-09-04

I had the same problem this quarter - I hit my max growth target in Q2 and won't even hit the lowest this quarter.

I've done a quick calc and based on this quarters sales and the commission I've got on them I'd be 30% better off on the new structure (I sell a fair amount of Marketplace stuff, so I'll be more than doubling the commission on that)

**Rich** · 17-09-04

If you enter your current Amazon UK stats in to the attached spreadsheet (just Number Dispatched, Base Fees and Tier Earning Bonus from the front page of the stats) it will show your projected end of Q3 total along with what the total would have been if the Q4 structure was in use.

1000 items, base fees=£500, bonus=£100 works out as a total of £600 on Q3 structure and £640 on Q4

edit: ianm just reminded me this only takes ito account the new tier structure and not the fact you can get more on marketplace and some caps removed, so take the Q4 figure as a worst case.

**KieronD** · 17-09-04

I've said it before and I'll say again, Amazon is probably the best affiliate program in the world. No other affiliate program I know of incentivises and rewards affiliates as well as Amazon.

I am now on 30% tier earning bonus and 150% growth target bonus as I've really pushed Amazon this quarter. What this means to me is that yesterday for example I earned £262.23 in straightforward commissions, but I also earned another £295.91 in bonus commission. Now can someone show me another affiliate program that pays so well in bonuses etc? Absolutely brilliant, a big well done to Amazon; and their Q4 structure looks even better now that they have removed all caps. Bring on Christmas!!

Kieron

**Aquanuke** · 18-09-04

Amazon is probably the best affiliate program in the world. No other affiliate program I know of incentivises and rewards affiliates as well as Amazon.

Its all swings and roundabouts, what you lose in a session cookie you get back in bonuses.

**Azam.net** · 19-09-04

"Now can someone show me another affiliate program that pays so well in bonuses?"

We get 15% commission on certain core products at Amazon that we sell via another merchant. No matter what bonuses they offer to the big hitters, the base commission at Amazon is low. They pay something like 40p/50p on the sale of a DVD or video. 4% commission is not much (remember, they deduct 17.5% VAT before determining commission, whereas some other merchants don't).

And the 24 hour/session cookie is one of the shortest around.

Despite that, I agree that Amazon are being slightly more generous than they used to be. And the ability to incorporate their products via webservices is incredible.

Hope that Amazon.co.uk don't go the way of Amazon.com who have one of the most difficult-to-surf and confusing sites around, as well as stacks of links that don't earn affiliates commission.

**Dynamoo** · 19-09-04

Even with the tiered structure and bonuses, earnings can be pretty low on Amazon.

I'm currently on about 5.7p per visitor. With luck and enough orders actually getting delivered, that would maybe rise to 7.5 p per visitor.

Now, that's really about the same rate as I earn from Kelkoo which isn't saying much.

**ianm** · 19-09-04

It can vary wildly depending on the type of site. I've got 1 site that averages about 8p per visitor and another that averages over 20p per visitor.

**KieronD** · 19-09-04

Originally posted by ianm
It can vary wildly depending on the type of site. I've got 1 site that averages about 8p per visitor and another that averages over 20p per visitor.

Very true, I tend to promote higher ticket items and on average earn 70p per visitor.

Kieron