In this very blog post, I’m going to show you that it’s possible to make $10,000 per year from Amazon Associates.
In fact, it’s not just possible… it’s pretty easily done!
I’ve done it myself. I joined the Amazon Associates program back in 2014 and by 2016 I was making $10,000+ per year.
In the crazy world of affiliate marketing, Amazon Associates isn’t particularly flashy or exciting. But it is a very reliable source of income that I think you’d be foolish to overlook.
Amazon Associates: The Basics
How does Amazon Associates work?
It’s very simple.
- You sign up to become an Amazon affiliate.
- You create unique affiliate links to Amazon products.
- You insert those links into your blog or website.
- You receive a commission every time someone you sent to Amazon makes a purchase.
The tracking is done via a cookie that’s stored in the customer’s browser. But it only lasts for 24 hours. If they take longer than that to make their purchase, you won’t get the commission.
How much commission do you earn?
When I first signed up, Amazon had a tiered system in place. The more items you sold, the better the percentage commission you’d receive.
Unfortunately, this has now changed and the commission percentage is based on the product category.
For example, on Amazon.com you receive 8% for categories such as; ‘Furniture’, ‘Home Improvement’, and ‘Pets Products’. But only 2.5% for ‘PC’ and just 1% for ‘Video Game Consoles’.
And these percentages aren’t uniform across the different Amazon localities.
The following affiliate link to my very own Eastfield Allround Table Tennis Bat will earn me a tidy 7% commission from Amazon.co.uk purchases. But a link to the same product sold on Amazon.com only delivers 4.5% (and this was further reduced to 3% in April 2020).
Amazon Associates: Crunching The Numbers
This blog post is all about how to make $10,000 per year, so let’s do some maths to figure out how to make that a reality.
Looking at my Amazon Associates earnings from last year (2018), I can see that I earned a commission rate, on average, of 4.6% from Amazon.com.
If my $10,000 affiliate earnings are 4.6% of the total sale price, then I’d need my customers to spend $217,391.30 during the year.
That probably seems like an insane amount of money. And it is. But people spend a lot of money on Amazon.
Divide that by 365 days, and it’s just $595.59 per day. Which feels a lot more doable.
But wait, there’s more…
There are multiple Amazon “regions”
I live in the UK. But that doesn’t stop me from earning affiliate income from Amazon.com, Amazon Canada, Amazon Australia, and all of the European Amazons as well!
In fact, Amazon.co.uk (my local Amazon) only accounted for 31% of my total Amazon Associates income in 2018.
So, if you’re serious about making $10,000 per year from Amazon Associates, don’t limit yourself to just your home region/locale. Sign up to all of them!
Don’t forget to localize your links
In order to ‘cash in’ from all of your international visitors, you’ll need to localize your Amazon affiliate links.
Localization (also known as geo-targeting) detects a visitor’s country and then routes them to the most appropriate Amazon site for them.
There are many ways of doing this. My favorite is Genius Link.
I only got round to joining Genius Link in November last year. Now I wish I’d done it years ago!
Before then, I was using Amazon.com links 90% of the time and then posting multiple links to all the different Amazons at the end of a blog post.
I did try EasyAzon (a competitor of Genius Link) a few years ago, but I couldn’t really get on with it.
Genius Link is free to use for your first 2,000 clicks per month, and then they charge you $5 per 2,000 clicks from then on.
It’s not much. Especially when you consider the amount of extra Amazon Associates commissions you’ll receive from sending all of your visitors to the correct Amazon site for them.
Genius Link estimates that I’ve gained an 18% ‘boost’ to my Amazon commissions from their software. Which is $150 per month if you’re making $10,000 per year!
“Ok, I believe $10,000 per year is possible. What now?”
Amazon Associates: How To Actually Do It!
What most people seem to do is buy a domain name like www.bestcheaplaptops2020.net and then copy and paste a load of generic product descriptions and stock images from the bestselling laptops on Amazon. It’s quick and it’s easy. But your new website is adding zero value.
Don’t do that!
Here’s what you should do instead…
1. Select an uncommon product category
Think long and hard about the products or product category you’d like to target. Laptops appear to be good because…
- They’re fairly expensive (so you’ll earn decent commissions)
- They’re popular and replaced regularly (so lots of people will be looking to buy them)
- They’re complex and varied (so customers need help understanding the differences between models)
But “laptops” are a super competitive niche. There are already so many affiliate websites reviewing and recommending laptops. You’ll need to create something very special in order to get noticed.
You’re much better off selecting a product or product category with as little competition as possible. Think of it this way…
It’s better to appear on page 1 of Google for a $1 million industry than page 100 of Google for a $100 million industry!
After all, 10% of $1 million is better than 0% of $100 million.
Think lawnmowers over laptops!
So, be smart and select an uncommon product category. And, ideally, pick something you actually know a lot about.
Which leads on nicely to my next point…
2. Be genuinely helpful
The majority of my Amazon Associates earnings come from sales of table tennis equipment. That’s not because table tennis equipment is the best product category to target. It’s because I’ve been playing and coaching table tennis for over 20 years!
I know a lot about table tennis equipment, and that means I can offer genuinely helpful insight.
Even before I started my website www.experttabletennis.com, friends and family would always come to me if they wanted to know which table tennis bat to buy or if they needed advice on choosing a table tennis table.
I could try and replicate what I’ve done with table tennis equipment for badminton equipment. The only problem is, I don’t know anything about badminton equipment. So, I would struggle to provide advice that’s even remotely helpful!
What do you know a lot about?
Once you’ve figured that out, it’s just a case of getting your helpful advice across in the best possible way.
If you’re blogging, you need to be able to write well. Keep it short and sweet. Add plenty of images and close-ups. Take your own photos, if you can.
Perhaps you want to create videos. Customers often feel much more confident to buy after seeing the product in a video. YouTube is full of these. Unboxings. Reviews. Comparisons. And you can share your affiliate links in the video description.
Maybe you can produce a big comparison table. Pick the four best products at different price points and show people the differences between them visually. This is much easier to digest than lots of paragraphs.
Bottom line… Get creative.
Give it a go!
I hope this article has convinced you that it’s easier than you think to make $10,000 per year from Amazon Associates.
It requires a bit of working getting a website set up and creating the content. But once it’s done, it’s the definition of online passive income.
I receive Amazon Associates money straight into my bank account each and every month for content that I created three, five, even seven years ago! That’s pretty cool.
So, why not give it a go yourself?