Amazon.com will cut Associates referral fees beginning in April. The new commission plan eliminates premiums for “direct links,” but raises referral rates for affiliates bringing in more than 20 sales per quarter.
Amazon’s Associates program — called an “affiliate” program by many Internet companies — rewards Web site owners who link to Amazon’s site. When those links result in purchases, Amazon pays a referral fee.
In the past, Amazon has paid higher referral fees when Associates linked to a specific book or other product, and this resulted in sales. Web site owners who made most of their commissions from these “direct links” will probably earn less during the next quarter. Meanwhile, smaller Web sites who send Amazon untargeted traffic generated through banner adds or search boxes might see their commissions go up slightly.
When Amazon launched its Associates program several years ago, it paid a 15-percent commission on sales resulting from direct links. But as the company continued its practice of deep discounting, it has reduced affiliate commissions as well. Now the top rate paid to high-volume Associates will be just 8.5 percent.
But sellers of consumer electronics are taking the biggest hit. Under the new structure, electronics sellers will earn just a flat 4 percent, regardless of unit volume.
“While keeping the new rate competitive, this decision was necessary to maintain a healthy Associates program over the long term,” Amazon said in a message sent to affiliates this afternoon.
Amazon cuts Associates compensation
Amazon.com will cut Associates referral fees beginning in April. The new commission plan eliminates premiums for “direct links,” but raises referral rates for affiliates bringing in more than 20 sales per quarter.
Amazon’s Associates program — called an “affiliate” program by many Internet companies — rewards Web site owners who link to Amazon’s site. When those links result in purchases, Amazon pays a referral fee.
In the past, Amazon has paid higher referral fees when Associates linked to a specific book or other product, and this resulted in sales. Web site owners who made most of their commissions from these “direct links” will probably earn less during the next quarter. Meanwhile, smaller Web sites who send Amazon untargeted traffic generated through banner adds or search boxes might see their commissions go up slightly.
When Amazon launched its Associates program several years ago, it paid a 15-percent commission on sales resulting from direct links. But as the company continued its practice of deep discounting, it has reduced affiliate commissions as well. Now the top rate paid to high-volume Associates will be just 8.5 percent.
But sellers of consumer electronics are taking the biggest hit. Under the new structure, electronics sellers will earn just a flat 4 percent, regardless of unit volume.
“While keeping the new rate competitive, this decision was necessary to maintain a healthy Associates program over the long term,” Amazon said in a message sent to affiliates this afternoon.