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?
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:
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:
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!
I have recently joined it and it is showing me only Classic plan no any other option
That’s likely based on region, Vivek. Being based in India you’re likely seeing different options to me here in the United States.
Hey dave, i just joined the associates to see what it has for me. Thanks for the enlightment and the good guide
Anand Subramanian,
I don’t understand your logic of not always going with performance structure. What about if someone buys a product through your link which isn’t an electronic item, then you’d only get 4% commision. I can’t think of a scenario of where you would earn more using the classic structure.
Anyway, the option doesn’t seem to be there any more. It used to be in Account Settings.
I would not always go with performance structure. In my case, my sales are mostly electronics which has a cap of $25 max. So for some products I get a maximum of only $25 which may be less than 4%. At the end of every month I look at my earnings vs total sales amount, workout my percentage and switch plans. You can switch plans until midnight of the last day of the month. Choose the one that gives you the most earnings. You can always change the structure later.
thanks for the enlightenment
duh, the “performance” option is the way to go, its a no brainer 🙂
Yeah, it’s stupid isn’t it. I don’t see the point of them keeping the Classic one. Unless if they set Classic to like 5% or something different
Getting ready to make some major changes on my online store(not an astore).
I now sell books
1. Self published books by me
2. drop ship books by other publishers
I am switching from xcart to a WP store so I can use Amazon Associate links for some products and ‘buy it now” links for others.
Considering changing all links to Amazon for either
1. books by other publishers OR
2. All books
Can someone explain or send link to Amazon Associate fee structure? I’m not a numbers person and don’t “get” my Associate profit.
Lightning Source prints the books I publish. Amazon purchases these books directly through Lightning Source. If I direct my customers to Amazon instead of the fulfillment company I ma using I won’t have to deal with shipping charges and cash flow headaches. I will receive royalties from LS and Amazon Associates.
Appreciate any help.
Robin
Really I don’t understand why amazon keeps classic fee rate, is there any advantage for using it? Maybe in performance rate Amazon doesn’t count’s other items that aren’t linked with your site?
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? :))
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
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
Thank you for clarifying Amazon’s bizarre fee structure. I thought it wasn’t reading their commission structure correctly.
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!
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