3 Ways To Move Forward From The Amazon Commission Cut
It was about 2 am last night, when I was about to sleep, when an email from Amazon caught my eye.
The greatest mistake that I've made is openning up that email that looks like this:
As my mind was shutting down, the whole thing sounds like a bad nightmare, and I wish that it goes off when I woke up.
Amazon Slashes Most Categories By More Than 50%
By now, if you're promoting Amazon products, you're aware that most categories suffeered a cut in commission by more than 50%.
I have a site promoting health products, which leaves me a miserly 1%.
I'm building a site on headphones, which goes from 6% to 3%.
An allergy site that's been gaining tracion is bound to lose more than 50% of revenue.
Like you, I've gone through the roller coaster of emotions. Vicious thoughts are hurled at Amazon.
But in the end, it's how the world works. It also reminds myself what being an online entrepreneur is all about.
Nothing personal, but purely business.
My Strategy In Going Forward
Dylan has give great advice in diversifying your affliate vendor. After all, Amazon isn't the only one out there.
Jay, in his quick training video, shows how easy it is to look for other affiliate network.
I've wasted no time in looking for alternatives for what I've promotting.
Popular Affiliate Networks That You Should Look Into.
- Rakuten Marketing
Many brands are offering their affiliate marketing program through these network. It's easy to setup an account at CJ.com. There's no approval in signing up, but an approval is probably needed for the different vendor affiliate program.
It's harder to sign up for ShareASale, as it'll vet your application. My first attempt failed, and I'm trying out with my 2nd site.
RakutenMarketing is also considerably easy to sign up.
The beauty with these platforms is that they have a search tool that let you find potential vendors, by typing the keyword of the product.
You'll also find all the necessary details (commission rates, cookies, etc.) within the platform)
Private Affiliate Program
Some brands are still sticking with their own affiliate program, which aren't hosted on these popular affilate network.
Just Google your 'product' + affiliate program and you'll find them. Chances are, most of these suppliers offer reasonably good commission.
2. Promote Digital Products
If you're in a niche where it's possible to offer related digital products, you'll want to do so.
Digital products often offer larger commission.A single sale will net you around 30% at minimum. There are some digital products that offer up to 75% in commission.
I have a site that's promoting wellness products. Instead of wasting time on phsyical products, I'll be focusing more on hypnosis downloads, meditation app and other self-development courses.
If you're promoting fitness products, maybe you can get your readers to sign up for fitness courses or yoga training?
3. Complement with DropShipping
If you've built a site that has been gaining traffic, and you have no options but promoting phsyical products, do consider doing dropshipping.
Dropshipping may take up more of your time initially, but you can eventually set up a team to manage customer service and fulfillment.
I've spent a few days learning how to dropship from Shopify, when my country went into lockdown.
Considering that Shopify is offering 90 days of free trial, it's foolish not to take up the opportunity.
Technically, it's possible to create a subdomain for your website and point to a Shopify store.
I'll be doing this for one of my site, to make up for the loss of revenue.
Affiliate Marketers Need To Be More Dynamics
If there's a lesson in this.
You can't put all your eggs in the Amazon basket or a Google basket.
Revamping the site, going thorugh the pages, applying for new affiliate programs, trying out new strategies.
They are going to be tough.
But building an online business is never easy. The only way forward is to plan, take action and persevere.
I'm done with frustration. I'm taking action. I hope you'll be too.
Don't give up yet.