New Q3 Tiers For Amazon

[Timo]

New email from AZ

Much better. No easylink requirements, lower # of media items I think. Too bad AZ still has google listings and isn't P3P compliant or I would have gone for it.

Dear Associate,

We continue to evaluate new payment compensation structures that allow you
to generate increased referral fees. For Q3 2003, we've made changes that
make the new "Tiered" structure even more compelling:

* We've eliminated the Easy Links requirement! However, to entice you to
keep Easy Links in place, or even add more Easy Links to your site, we
increased the base referral fee rate to 6% on all qualifying Amazon items
sold through Easy Links.

* We've relaxed the non-media items requirements. The number of non-media
items as a percentage of total items has been lowered for each tier.

* We've made the tier levels more attainable. In addition, this quarter we
are offering growth target earnings bonuses ranging from 40% to 200%.
Associates qualified for the growth target earnings bonus by posting a
strong performance history, generating more than 250 items in Q1 2003.

* We've created extra ways for you to earn higher referral fees for Q3
2003. Along with the 6% Easy Link promotion, you can earn an 8% referral
fee rate on all qualifying items found in our Home and Garden, Kitchen and
Housewares, and Tools and Hardware stores. (Formerly, the items in these
stores earned a referral rate of 5%.) You can also earn a 7% referral fee
rate on qualifying Apparel items. (Formerly, Apparel items earned a
referral rate of 2.5%.) We have even created new apparel graphics for the
promotion.

It is not yet possible for you to choose your compensation structure for Q3
2003. On July 1, you will receive another e-mail from us that will include
a detailed explanation of the Q3 2003 compensation structure, and
instructions on how to opt in to either the "Classic" or "Tiered"
structure.

We hope you find this advance notice helpful.

Sincerely,

The Amazon.com Associates Team
--------------------------------------------------------------------------------

The Fine Print: More Details about the Q3 2003 Compensation Structure

--------------------------------------------------------------------------------

Base Referral Rate for Qualifying Amazon items:
Classic structure: 5%
Tiered structure: 5%

Tier Earnings Bonus:
Classic structure: N/A
Tiered structure: Up to 30%! See below

Qualifying Book Links Items:
Classic structure: 15%
Tiered structure: 15%

Qualifying Kitchens and Housewares, Tools & Hardware, and Home and Garden
items:
Classic structure: 8%
Tiered structure: 8%

Qualifying apparel Items:
Classic structure: 7%
Tiered structure: 7%

Qualifying Amazon Items Sold Through Easy Links:
Classic structure: 6%
Tiered structure: 6%

ToysRUs, BabiesRUs, and Imaginarium items:
Classic structure: 5%
Tiered structure: 5%

3rd Party Items:
Classic structure: 2.5%
Tiered structure: 2.5%

Non-media Requirement:
Classic structure: N/A
Tiered structure: See Below

**Tier Earnings Bonuses:

Tier 1:
Total Items Shipped: 1-25
Tier Earnings Bonus: -20%
Effective Tier Rate: 4.0% of qualifying shipped items
Minimum Non-Media Items Shipped: 0

Tier 2:
Total Items Shipped: 26-75
Tier Earnings Bonus: 0
Effective Referral Rate: 5.0% qualifying shipped items
Minimum Non-Media Items Shipped: 2

Tier 3:
Total Items Shipped: 76-150
Tier Earnings Bonus: 5%
Effective Tier Rate: 5.25% qualifying shipped items
Minimum Non-Media Items Shipped: 5

Tier 4:
Total Items shipped: 151-400
Tier Earning Bonus: 10%
Effective Tier Rate: 5.50% qualifying shipped items
Minimum Non-Media Items Shipped: 15

Tier 5:
Total Items Shipped: 401-1000
Tier Earning Bonus: 15%
Effective Tier Rate: 5.75% qualifying shipped items
Minimum Non-Media Items Shipped: 50

Tier 6:
Total Items Shipped: 1001-2500
Tier Earning Bonus: 20%
Effective Tier Rate: 6.0% of qualifying shipped items
Minimum-non Media Items Shipped: 150

Tier 7:
Total Items Shipped: 2501-5000
Tier Earning Bonus: 25%
Effective Tier Rate: 6.25% qualifying shipped items
Minimum Non-Media Items Shipped: 400

Tier 8:
Total Items Shipped: 5001 +
Tier Earning Bonus: 30%
Effective Tier Rate: 6.5% of Qualifying Revenues
Minimum Non-Media Items Shipped: 1000

By way of example, assume the following scenario:

* You hit the 1,001-2,500 item tier (20% Tier Earnings Bonus) by generating
1,200 shipped items

* You have $1,000 in Pre-Bonus Earnings (Pre-Bonus Earnings are calculated
on revenue from all items shipped, including 15%, 5%, 2.5% items, 6%
qualifying shipped items generated through Easy Links, 7% qualifying
Apparel items and 8% for Home and Garden, Kitchen and Housewares, and Tools
and Hardware)

* $900 of your $1,000 pre-bonus earnings is Eligible for Bonus (Earnings
Eligible for Bonus exclude earnings from 15% items, 3rd party items and
items that have been capped at $10)

Here is how your Total Earnings would be calculated:

* Pre-Bonus Earnings: $1,000

* Earnings Eligible for Bonus: $900

* Tier Bonus on Eligible Earnings: $900 x 20% = $180

* Total Earnings: (Pre-Bonus Earnings) + (Tier Bonus on Eligible Earnings)
= $1,000 + $180 = $1,180

[Rhea]

Yeah, I got one of those. Nice lining for the bird cage if you ask me.

What I want to hear from Amazon goes like this:

1. We kicked out the parasites.
2. We implemented a system to track affiliate commissions for 'pick up in store' purchases.
3. We resolved the IE 6 issues that prevented cookies from being set properly.
4. We removed the cap on commissions.

Timo, what'd I forget?

[joma]

No Easy Links on the homepage requirement! That was a nonnegotiable showstopper for me.

Any other reason I shouldn't switch to the new commission structure? I'm not really concerned about non-media requirements.

[Timo]

Geeze Rhea,

Here we go bashing Amazon again

1. Suppress google when affiliate cookie is present
2. Supressing used books unless new books are available.
3. AZ, if you want us to flog your apparel, keep the ASINs consistent. Stop switching in and out.
4. Give me a real cookie. 24hrs?
5. I want to see the number of sales as well as number of products sold so I can see true conversion rates. Comparing EPC is nice but doesnt indicate the kind of information I need.
6. I want to be emailed about new books in my categories of interest.

ummmm I'm sure there's more

Joma: If you qualify for the non media then you may as well. Before promoting non-media items look elsewhere first for higher commish.

[Nintendo]

Amazon let's us be in AdSense, so we shouldn't complain for them being in the program!!! Look at Google, they don't let you have other text link programs up. So if there is any one that we should be mad at, it's Google.

[Jack]

Amazon let's us be in AdSense, so we shouldn't complain for them being in the program!!! Look at Google, they don't let you have other text link programs up. So if there is any one that we should be mad at, it's Google.

The reason why people are mad at Amazon for inserting Google Adwords is they are using our traffic and leaking it out to something that pays us nothing while they do receive revenue for it. You want to work with partners who do their best to convert your traffic and respect it, not leak it out.

(Sidenote: I have noticed that the conversions on Adwords I do get from Amazon are very high. Looking at stats, I'm getting 83 cents of revenue per visitor from Amazon's adwords for one of my sites which is much higher than from the standard ones shown on Google. This isn't too surprising considering they are a pure shopping focused site).

To add a few more suggestions for Amazon's program:

- More competitive commissions. Some of their areas have hideous commissions compared to other programs on the Net.

- Something better than quarterly payments. At least monthly.

- No caps on commissions.

Of course, I doubt Amazon will change their program too much. They have so many sites promoting them that they must feel their program is a success.

[Timo]

Amazon let's us be in AdSense, so we shouldn't complain for them being in the program!!! Look at Google, they don't let you have other text link programs up. So if there is any one that we should be mad at, it's Google.

Nintendo, that is the most ludicrous statement I have ever heard. Who cares what google is doing? We are discussing leakage at Amazon from an affiliate site perspective.

As for Amazon "letting us into their Adsense program". Sorry I refuse to take part in that program and potentially divert others affiliates sales. No better than being a parasite as far as I am concerned.

pssst...Steve if you are listening I'd love to see you invite a Barnes and Noble AM here and see if we can talk some sense into the guy or gal to drop shopping toolbar programs like ebates.