In a nutshell, affiliate programs pay you for referring clients their way. All you have to do is include recommendations for specific products on your site, and you’ll earn a small commission on any sales generated by people who click on the links you provide. Affiliate programs provide you with an easy way to monetize your site, especially if it’s aimed at a niche audience that is likely to be interested in specific kinds of products.
It's hard for a marketer to build a sustainable, scalable income from affiliate marketing. As payable actions take place on the merchant's site, customer details are held by the merchant, not by the affiliate so the affiliate cannot easily build a relationship with the customer. Combined with short cookie lengths, this means the affiliate is constantly having to find new sources of traffic for each offer. Although some forms of sale, such as memberships, may provide lifetime commissions, most are one-time payments. Conversion rates for online sales are typically low, in the range of 1 to 3 percent, providing limited potential for income and growth for all but a few successful affiliates.
I am afraid this is just the beginning and we will see more drastic decrease in commission in the next few years. My main revenues are usually from Toys and Home. I’ll need to check and do some calculation to see what I’ll loose. Might have eventually to change some links and go through other affiliate programs that may pay more. Again, will have to check that out. I love Amazon because I find all the product from them instead of having to deal with multiple affiliate sites. No headaches about sites closing their affiliate programs, no stress about getting paid on time etc..
Most successful affiliate marketers, however, do not have a large number of funds available so they tend to develop a website and use their website as the main advertising source for their business. Starting a website is very cheap (or even free), you don’t need to know any computer code, and it will attract FREE visitors that can be turned into paying customers relatively easily. This is the affiliate marketing business model that most people start with. 

Amazon Associates is one of the first online affiliate marketing programs and was launched in 1996. The Amazon Associates program has a more than 12 year track record of developing solutions to help website owners, Web developers, and Amazon sellers make money by advertising millions of new and used products from Amazon.com and its subsidiaries, such as Endless.com and SmallParts.com. When website owners and bloggers who are Associates create links and customers click through those links and buy products from Amazon, they earn referral fees. It’s free to join and easy to use.
Meeting the standard can be complicated enough if you are running direct linking campaigns as an affiliate. It becomes even more complex if you are building an email list or running another complex funnel that requires you to collect personal information. Make sure you have a simple way of collecting data reports and deletion requests so you can respond in a timely manner.

I’m curious – how are Amazon affiliate sites faring after the Google Panda update. With the keyword density of the content articles needed for these types of sites, have you or any of your Niche Profits members experienced a major decline in traffic or rankings? If so, what are your recommendations for creating better backlinks and showing more authority/relevancy for these types of sites?


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