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Is Amazon Reducing Affiliate Commissions?

by Alan Daniel
Amazon Associates Reduction

The short answer here is, yes Amazon is reducing Amazon Associates commissions for select consumer segments on its platform.

Amazon Powers Businesses Through Advertising Earnings

Amazon powers many different businesses and is a significant part of the world wide web. This makes sense as Amazon has built up a commerce infrastructure for over two decades.

Now, when I say that Amazon powers a variety of businesses, it means that they use the platform to earn. They can earn by selling on Amazon, and they can do so by referring links and earning on Amazon products.

Amazon Reduces Commissions on Select Segments

But what happens if we turn off the Amazon firehose or decrease the quality of earnings? Businesses will have to adjust and look elsewhere for revenues. In a recent turn of events, Amazon notes that it will reduce commissions for members of Amazon Associates. This applies to a wide variety of commerce segments on Amazon.

It will affect sellers and those who advertise on behalf of Amazon sellers through the Amazon Associates program. It is tough being a media brand these days. Everyone is angling for attention. The recent change makes it slightly tougher for media entities to earn via Amazon. Media giants will see a decline in revenues, and niche sites that entirely focus on Amazon commissions will see a dip in earnings as well.

Associates should expect to see changes to their commissions by April 21st.

Diversify Revenue Streams

Giants can flip the switch and change your revenue potential on a whim. This is yet another reason why businesses must implement several ways to earn while providing value to their end audience. 

What are different ways that brands can earn and diversify revenue streams?

Well, according to the content marketing institute, there’s advertising and sponsorship programs. This is where you turn to your hard earned audience and provide relevant offerings that make sense to their lives. The better you are able to align your content with their needs and wants, the more you stay relevant. Remember this when working with sponsors as well, they must align your brand and overall value. Sponsored advertising and native ads also fall in line with this principle, they must represent a real value to your audience.

Brands such as Vice, Redbox, and other entities use these to gain more revenues. Depending on your brand, companies might pay you upwards of $20,000 a month to advertise on your platform.

Where else can you earn income?

The next one is conferences and events. You’ll also notice that brands like Forbes, Inc 500, and a variety of other media companies host events where they charge upwards of $50 to attend the event. These brands can target a small portion of their audience, create value and earn after all expenses are accounted for. Events are popular with larger brands and with smaller brands that range from Coindesk to others.

Again, I’ll stress the importance of having a concentrated brand that caters to a growing and focused population of people.

Pay Walled Content

Then there’s pay walled content that means even more to your user. Readers of BusinessInsider can see this with BI Prime. Readers of Business Insider can gain knowledge into the innerworkings of the industries like Fintech and other growing segments. Again, it is able to do so because it caters to a specific audience.

There’s more options to turn to but these are a few of the most common ways that media brands generate value online.

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