If you depend on Amazon referral link’s to make money, you need to read this.
Although many sites depend on Amazon affiliate links to generate their cash flow, ones like The Wirecutter, use store links, front, left, right and centre.
This news will mostly be relevant for them, since today Amazon has made some significant changes which could potentially make the site owners a rather anxious lot.
Amazon’s U.S. division, has switched to a system wherein affiliates get a sales cut based on the category of products rather than the volume of referrals. Although it’s not necessarily a disaster for the site owners, it could however amount to a significant loss of revenue for many websites.
Furthermore, the changes made in Amazon’s U.S. division will soon be mirrored on its divisions abroad.
The crux of the matter is, depending on Amazon’s percentages, you may make a hefty 10% cut on a video game download and luxury beauty product while making just 1% from the sale of physical video games or 2% from TVs.
Furthermore, there is no longer a cap on income from PC products: you may make more money from someone who buys a high-end laptop with the reduced 2.5% cut.
As you might expect, Amazon prefers the sale of its own hardware, such as Echo speakers or Fire tablets, over others.
Amazon has described this move as a simplification of its link system, saying ultimately, its link partners will be better off.
But as you might have guessed, this could hurt YouTube vloggers, regular bloggers and others who focus products that no longer bring in as much cash every time someone makes a purchase.
This essentially is a hard lesson on the risks of depending too heavily on one single company for your daily bread.