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End of the Amazon Associates Era? What Might Be Coming Next

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by Jesse Lakes

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End of the Amazon Associates Era? What Might Be Coming Next

  1. 1. End of the Amazon Associates Era? What Might Be Coming Next Jesse Lakes CEO/Co-founder, Geniuslink
  2. 2. Interest in Amazon Associates appears to have peaked...
  3. 3. Google Trends
  4. 4. Google searches for “amazon associates” and “amazon affiliate” U.S., 2004-2020 Google Trends, January 2020
  5. 5. Google searches for “amazon associates” and “amazon affiliate” Global, 2015-2020 Google Trends, January 2020
  6. 6. Google searches for “affiliate marketing” and “amazon affiliate” Global, 2015-2020 Google Trends, January 2020
  7. 7. BuiltWith
  8. 8. Sites employing Amazon Associates links, 2011-2020 https://trends.builtwith.com/ads/Amazon-Associates, January 2020
  9. 9. High traffic sites employing Amazon Associates links, 2011-2020 https://trends.builtwith.com/ads/Amazon-Associates, January 2020
  10. 10. https://blog.geni.us/just-big-amazon-associates-program/, January 2018
  11. 11. 2017 12 programs “...over 900,000 members” - From the meta data of the Amazon Associates page. 2019 16 programs “Amazon affiliate program... works with millions...” - From Amazon job description
  12. 12. 2017 148,255 websites PublicWWW 5.2% of websites W3Techs: https://w3techs.com/technologies/details/ad-amazonassociates 2019 82,128 websites PublicWWW 2.6% of websites W3Techs: https://w3techs.com/technologies/details/ad-amazonassociates
  13. 13. Similarweb Dec, 2017 22% Dec, 2019 6.3% SimilarWeb, 2019 -- https://www.similarweb.com/website/amazon.com#referrals Geniuslink, 2018 -- https://blog.geni.us/just-big-amazon-associates-program/
  14. 14. Mixed Signals
  15. 15. Amazon Associates: The Good and the Bad
  16. 16. ● 38% of US web sales* ● Massive affiliate program** ● (Fairly) easy to use ● Good conversion rates Amazon Associates: The Good ● “Halo” commissions ● Large tool / plugin ecosystem ● International stores and programs ● Significant consumer trust*** * eMarketer: US Ecommerce 2019 -- https://www.emarketer.com/content/us-ecommerce-2019 **Geniuslink 2018 -- https://blog.geni.us/surveying-affiliate-landscape/ *** Morning Consultat: Most Trusted Brands 2020 -- https://morningconsult.com/wp-content/uploads/2020/01/Morning-Consult-The-State-of-Consumer-Trust.pdf
  17. 17. Amazon Associates: The Bad ● Declining commission rates ● Increasing compliance issues ● Limited support ● Single point of failure
  18. 18. “I feel like a frog that is slowly being boiled alive, so I don’t jump out.” Amazon Associates: The Bad
  19. 19. Declining Amazon Commissions Before April 2017 Volume-based fees 4% - 8.5% After April 2017 Flat rates, based on category 1% - 10% Amazon Associates: The Bad
  20. 20. Amazon Associates: The Bad Declining Amazon Commissions Before After
  21. 21. Amazon Associates: The Bad For example... A site earning commission on TV products would see commissions drop at least 50%. Associates generating 31 or more sales per month would see their commissions drop by at least 39% for “4% or less” categories.
  22. 22. Amazon Associates: The Bad Part of a larger trend since 2009: ● 19 of 54 categories had commission rates lowered ● Most were reduced by 50-60%
  23. 23. Amazon Associates: The Bad End of the “halo effect”? (Currently EU-only)
  24. 24. “An account belonging to you has been closed for violations of the Operating Agreement…” Amazon Associates: The Bad
  25. 25. Amazon Associates: The Bad Confusing and scary rules “You will not cloak, hide, spoof, or otherwise obscure the URL of your site containing Special Links...” “We noticed that you are not using tags associated with your store in any of the Amazon Special Links you have created on your Site.” “We have been unable to verify that the means through which you are referring customers to the Amazon Site are in compliance with the terms...” “...violations include the following: You are automatically sending users directly to the Amazon Site without requiring the user to click on a Special Link”
  26. 26. Amazon Associates: The Bad Relying solely on Amazon has its risks
  27. 27. Multi-Retailer
  28. 28. A case study: Boosting commissions with choice
  29. 29. Results: ● +160% in Associates commissions ● Became top affiliate for B&H A case study: Boosting commissions with choice YouTube, Double your YouTube Income with this Simple Technique -- https://youtu.be/1H7XH_ig2og Geniuslink, 2019 -- https://blog.geni.us/how-one-client-doubled-his-commissions-by-giving-consumers-a-choice/
  30. 30. Questions? What percentage of your revenue is from Amazon? How much does this hurt if it disappeared over night? What have you done to diversify your revenue?
  31. 31. Jesse Lakes CEO/Co-founder, Geniuslink jl@geni.us @jesselakes Thank you!

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