The Amazon Affiliate Business Model Explained

Amazon is a leader in the e-commerce industry that everyone loves and uses. However, not many people know that Amazon was actually one of the first websites to offer affiliate programs for its users. Affiliate programs, or associate programs, are basically arrangements between online merchants and customers. The online retailer pays a certain commission to a customer to send more traffic to the website. There are three parties involved in this process:

  • The customer
  • The online retailer
  • The affiliate website

Affiliate programs can be a very lucrative business for individuals who are good at networking and marketing. However, Amazon is the master of the game, and its affiliate program is a lot different and more advanced in comparison to thousands of other affiliate programs. This article will explain how it works and how you can become a part of this business model.

How Can You Become an Amazon Affiliate Partner?

To become an Amazon affiliate, users will have to create an account and go to Amazon’s Associate Program page. The sign-up process is entirely free. However, Amazon demands that users already have an established website that they can use to market the products. Once the user’s account is approved, they will gain access to a separate platform that acts as headquarters for all affiliate partners. On that platform, affiliates will be able to create personalized tracking links, track their statistics, analytics, and a lot more.

How Can You Earn Money as an Amazon Affiliate?

By becoming an Amazon affiliate, users will get an opportunity to sell any of the products that are offered on Amazon and receive a commission for each product they sell. The most important thing is the personalized tracking link. It acts as identification that is personally connected to a particular user’s affiliate account, and it creates cookies each time a customer accesses that link. These cookies last for 24 hours and, even if a customer doesn’t buy a product, affiliates will receive a commission for the duration of that cookie.

Amazon pays its affiliate partners on a sliding scale, which is based on how many general products a person sells every month. The basic rule of thumb is – the more products an affiliate partner sells, the more money they will earn. When they sell over six products, they move up from 4% commission to 6%.

Although affiliate marketing can be tricky in the beginning, with enough determination and dedication, it can become a very lucrative business. One great example is SurvivalLife.com, which makes money from Amazon affiliate links, among other means, and it currently earns about $1 million in gross revenue every year. However, it never hurts to try – it’s free! Who knows, affiliate marketing could potentially be your hidden talent.