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What's the best fee structure for Amazon Associates?

I've been a part of the Amazon Associates [affiliate] program for months, but have never really figured out the nuances of the different fee structures. Inn particular, should I switch over to the "performance" fee structure on Amazon. You're an Amazon affiliate, what's your fee structure?

Dave's Answer:

You're not the only one who finds the different Amazon Associate payment structures more than a bit baffling. For years I've just left it as the default fee structure and it's cost me some percentage of transaction value too. From everyone I've talked with, however, the performance fee structure really is the best, regardless of your transaction level.

As my pal Anne Mitchell says: "Why would anyone not opt-in to the Amazon associates performance fee structure (fees start at 4%, and increase as you sell more), versus the older original (flat 4%) structure?"

The next question is: how do you pick a different fee structure. Turns out it's not too hard. You need to log in to the Associates Program (I always just go to the Amazon.com home page and search for "Associates", personally) and click on "YOUR ACCOUNT" on the top right:

Now you'll see your Payment Information choices, including the one we want, about your fee structure:

Amazon Associates: Your Account: Payment Info

No surprises here, click on Change your fee structure and you'll be able to not only see that Anne's exactly right, but see how to change it too:

Amazon Associates: Your Account: Select Fee Plan

Needless to say, to switch from Classic -- which you don't want -- to Performance, just click on the orange Select Performance button.

Done!

I'll state the obvious one more time: if you are part of the Amazon Associates program, you should immediately ensure that you've selected the Performance, not Classic fee structure!

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Categorized: Auctions and Online Shopping (Article 7204)
Tagged: affiliate programs, amazon affiliate, amazon associates, maximizing affiliate pay
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Comments

I have a range of books, mp3s, Cds and downloads on my site. I need to drive traffic but I have a very small budget. What is the best way to promote my website, please?
Thank you
John

Posted by: John at March 20, 2007 9:14 AM

In the UK, the Performance option has a £7.00 cap on fees for anything listed in the Electronics section. I only learned this yesterday, and was also baffled until then.

If you sell a lot of electronics, a £7.00 cap might reduce your profits. Personally I'm using Performance.

I think you may be able to change as many times as you wish up until the last day of the month - if that's the case, you can always switch back and forth comparing the two figures before deciding!

Posted by: Danny Tuppeny at August 13, 2007 6:49 AM

Thank you for clarifying Amazon's bizarre fee structure. I thought it wasn't reading their commission structure correctly.

Posted by: Mike at March 9, 2008 4:16 AM

Seems almost silly that they make it an option. You can make 4% in any of the two plans, I just don't understand why someone would not want to be able to increase their rate for the better.

The performance payment structure should always be your first pick when it comes to Amazon Associate payment types.

Happy Selling!,
Genesis Font

Posted by: Genesis Font at April 23, 2008 12:59 PM

is amazon associates free to join? I just wanna make sure that i don't have to pay anything for me to join and to ad some ads for them. Are there no hidden fees or something that I should worry about?

pls. reply quick

Aoi

Posted by: Aoi at January 22, 2010 9:01 PM

It is quite funny to look at amazon fee structure. Classic is stoned at 4% forever but the other one (performance) increases according to quantity of sales. Guess which one to choose? :))

Posted by: Antalya at January 29, 2010 12:58 PM

I have something to say, now that you mention it, but ...

I do have a lot to say, and questions of my own for that matter, but first I'd like to say thank you for all your efforts on this Web site by buying you a cup of coffee!

I do have a comment, now that you mention it!