Amazon.com: New referral fee structure, or classic?

[demae]

I got the following from Amazon.com. Which do you think is better?

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For Q1 2003, we're giving you the choice of two different referral fee options. Please carefully review both of the options listed below, and then choose the option that will work best for you.

Option #1 is the "classic referral fee structure" that was in place in Q3 2002.

- 5% of the sale of Amazon retail items
- 5% of the sale of products sold by ToysRUs.com, BabiesRUs.com, and Imaginarium.com
- 2.5% of the sale of all other Marketplace products sold by third parties
- 15% for qualifying book links

Option #2 is a "tiered referral fee structure" that compensates you for the number (and type) of items sold through your links, and for putting an "Easy Link" on your homepage.

- You will earn between 4.5% and 8% on Amazon retail items
- You will earn 5% of the sale of products sold by ToysRUs.com, BabiesRUs.com, and Imaginarium.com
- You will also earn 2.5% of the sale of all other Marketplace products sold by third parties
- You can still earn 15% for qualifying book links
- You agree to add an Easy Link to your homepage(s)
- You agree to sell a minimum number of non-media items. See the table below for details

Total Items      Amazon Items    Minimum Non-Media
 Shipped         Referral Fees     Items Shipped
          1-25   4.5%                 0
         26-75   5.0%                 2
        76-250   5.5%                 8
     251-3,500   6.0%                35
  3,501-10,000   6.5%               500
 10,001-75,000   7.0%             1,400
75,001-175,000   7.5%            10,000
       175,001+  8.0%            20,000

[jkcity]

can anyone tell me what an "easy link" is?


I also don't like the starting off on 4.5% on the second tier system as it just seems stupid to me considering that they require you to do more stuff.

edit after reading amazon site:

"If you want the tiered plan, you need to opt in by January 20th! "

Ok is this the one and only time I get to opt-in?

if so they might be using it as a way to get alot of people to switch thinking they may eventually get to these higher commission rates but end up only earning 4.5% they have just reduced the amounts they pay ou to small affilates which I am sure there is many.

I also think its the worng time to ask people to switch as anyoen who gets under 75 sales will not be getting a better deal, but after christmas season many people will have gone over this and they may presume they can do this next quarter as well.

I think i am just going to choose the first tier for now, cause I don't make enough sales from them now to make it anywhere beneficial to be locked into having todo certain things, but I suppose anyone who can get enoughs ales to push into the 6% commission rate it will probably be worth it, as long as you sell enough non-media items, which I also don't, I have sold toys recently but I don't expect to sell many come january.

[jkcity]

ok sorry for the two posts but I have already added something to the other one .

I just seen them easy links they require you to have on your pages, I assume every page, no way will I make one of them appear on every page.

the esay links come in

468x60 banner
120x600 skyscaper
120x240 mini skyscaper
180 x 150 box

this should be pointed out as well

"Also, please note that the table above is only a summary of the two fee structures we intend to offer for the first quarter of 2003. Other terms and conditions will apply, which will be detailed in an updated Associates Program Operating Agreement that we intend to publish on the site on or about December 31, 2002. In the event of any conflict or inconsistency between anything on this page and the Operating Agreement, the terms of the Operating Agreement will control."

so they are allowing us to chose our plan before we evan know the full details, so I would suggest nobody choose a plan till they release all info in case the selection is set in stone.

also

"Please note that in order to qualify for any "tier" of referral fees, you have to satisfy both the minimum unit sale commitment AND the minimum non-media (i.e., non-book, music or video (including VHS and DVD) unit sale commitment. "

is that just me or does that say that music and video's are classed as non media?

[rbacal]

They've really done something so stupid, I think they might yet change their minds.

easylinks are a small selection of absolutely hideous creatives for non-media.

Also, non-media items are like toys. CD's, DVDS, videos are all media, as are book.

The firestorm i just beginning.

Unless you actually sell a lot of non-media items you HAVE to go classic, because in order to reach higher tiers you have to sell BOTH items total, and non-media items.

I was planning on getting in bed a little more with them, since we've had a great quarter. Now, if this continues, we'll probably be cutting back since there is now no incentive for us to sell more items.

...and our visitors aren't there to buy toys or garden gnomes.

I suggest concerned folks take the time to give their opinions on the amazon comment boards.

[Nintendo]

The $10 cap is back, with Option 2 you have to sell more items to go up to the next tier, and the Easy Link has no content related to your site. If you look at the thread about it on the Amazon boards, you'll notice that we all hate the new system. *sniff* It was good while it lasted!!!!! I'll be at the Option 1.

[Timo]

I think Amazon will probably think things through (I hope?)

Unfortunately for us we have to take the classic option, because our users dont buy non media items.

With all the used books in the marketplace driving down the average commission, perhaps Yahoo had it right when it dropped Amazon and went with Barnes & Noble.

*just took a look at barnes and noble:

Books (including calendars, audiobooks, and out-of-print books):
Receive 5% when you sell up to $20,000
Receive 6% when you sell above $20,000
Receive 7% when you sell above $1,000,000

[Czar]

Originally posted by Timo
*just took a look at barnes and noble:

Books (including calendars, audiobooks, and out-of-print books):
Receive 5% when you sell up to $20,000
Receive 6% when you sell above $20,000
Receive 7% when you sell above $1,000,000

Boy. You'd hate to sell $999,999 worth of goods, wouldn't you? Just $1 extra in gross sales nets the referrer a bonus $10,000 in referral fees.

Then again, I suppose a $60,000 referral bounty wouldn't exactly be a disappointment.

Concerning Amazon, I'm most upset about the revival of the $10 cap. This hardly makes it worthwhile promoting higher-end products and services through the company.

[Timo]

I find Amazons move very frustrating. the $10 cap - ouch

The big bonus about B&Ns program is you can buy through your own links and still get commissions. if I get to the 999,999 you watch how fast I whip out the credit card lol.

I was looking at Chapters-Indigo in Commission junction, a Canadian company.


A 5$$$$ earner!
3 month EPC $14.94 (view trend)
7 day EPC $35.64
***Charge-back percent 17.50% (view trend)****

Commish: 15.0% of Sale

Remember this is in Canadian $$.
To the U.S. folks, $1 U.S. = about $1.54 cdn as of yesterday. I think we are close to on par with the AUS Dollar

[Rhea]

I've had a nice quarter with Amazon, but I've had a lot of frustration with their program. First, their stats are unreliable and aren't delivered in anything approximating real time. Second, they keep tweaking the commission structure and that makes me extremely uncomfortable. Finally, I don't like being offered this type of option. It sounds a bit like the 'lady and the tiger' puzzle. If I guess right, I'll be happy. If I guess wrong, I'll be unhapy. Sheesh...I don't have a stinking crystal ball!

Like Timo I've been experimenting a bit with chapters.indigo. They have a nice affiliate program, a good selection of products, and their website is affiliate friendly...which Amazon's is not. Methinks it's time for a change.

[emmzee]

I wonder what happens if you're on plan 2 and don't sell the required # of non-media items? Like say you sell 100 products, but only sell 5 non-media items. Do you lose all of the affiliate $$$ you've earned, or what? That would be quite the kick in the butt ..... I think I'll stick with plan #1 ... for now ... until I can find someplace else that has a better video games affiliate program

[rbacal]

My reading of the non-media issue is that if you don't meet BOTH of the media and non-media commission, then you go to the next lowest tier where you have met both requirements.

Let's say you sell 10,000 books and 0 other items. You get 4.5 percent, since you didn't sell the 2 required other items.

[demae]

If I read correctly, both plans give 15% on qualifying (I assume that means directly-linked and not out of print?) book links.

So, people who mostly link directly to books would make about the same amount of money either way, right?

[Rhea]

Demae wrote:

So, people who mostly link directly to books would make about the same amount of money either way, right?

Not necessarily. The only way you'd get 15% is if the visitor clicked on your link and immediately ordered the book. Amazon would shoot you down to the tiered amount if the visitor clicked on anything else prior to putting the book in his or her cart. And...the books has to meet the criteria of being discounted (I'm not sure about these numbers) 10 to 30 percent.

So if a competitor of Amazon's is offering 15 percent across the board, and if they convert as least as well as Amazon...then it's a better deal. I think I'll do better with chapters.indigo for direct product links. And direct product links are largely responsible for my sales on amazon, allposters, and CJ. I do very poorly with general links to subject types, best sellers, and banners.

[joma]

I'm likely going to go with the classic. The tiered payments they're offering are lower than this quarter's, and the additional commission won't be enough to justify putting those huge banners on my homepage.

[joma]

P.S. Is there even a way of finding out how many "non-media" items you sold in the current quarter? Do marketplace items count?