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  1. #1
    ABW Adviser Panel Dynamoo's Avatar
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    I got this.. basically saying that commission rates are going to be tiered up to 8% depending on volume and the $10 cap is going to be removed from certain products. But oddly its conditional on all the associates increasing sales. Hmmm.

    quote:
    Dear Associate,

    As one of our loyal Associates, we thank you for the time and effort you've spent fine-tuning your Web site.

    Because we value your contributions, we're increasing your referral fees in Q4.

    Sound too good to be true? It's not. We're evaluating a new compensation structure for the Associates program starting on October 1, 2002.

    Our goal is to create a better compensation structure--but we need your help to make this work. If this new structure doesn't result in more sales through the Associates program links, then we revert back to the old structure on January 1, 2003.

    Here's what we've done to create a more lucrative compensation structure:

    * We've changed the base referral fees from a fixed 5.0% to a tiered structure ranging from 5.0% to 8.0%, so the more sales you drive, the more you'll earn. Although you still receive the same 2.5% on third-party items, their item sales do count towards your tier level (see Associates Central for all details -- http://associates.amazon.com/):

    Tiered Compensation Structure

    Products Sold Per Quarter Referral Fee Percentage
    1-25 5.00%
    26-100 5.50%
    101-500 6.00%
    501-3500 6.50%
    3501-15,000 7.00%
    15,001-175,000 7.50%
    175,001+ units 8.00%

    * We've removed earnings caps from a large number of stores, including Toys, Tools & Hardware, Kitchen & Housewares, and more. During Q4, earnings caps only apply as follows:

    - $10 earnings cap on Electronics
    - $10 earnings cap on Software
    - $50 earnings cap on Computers

    * We've maintained the 15% Individual Book Link referral fees

    Still not convinced? We've actually calculated what your compensation level would have been during Q3 if this structure would have been available--the results clearly show the benefit to you:

    Old Earnings = ********
    New Earnings = ********

    Also, starting October 1, check out our new reports, as well as a new section we've created in Associates Central called "Best Practices." This section includes tools and tips designed to help you increase your compensation rate.

    Thanks again for the contributions you've made to date. Remember, we may not be able to offer this structure next year unless sales increase for the
    entire Associates Program.

    Sincerely,

    The Associates Program Staff
    Amazon.com Associates Program
    http://www.amazon.com/associates



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  2. #2
    ABW Ambassador
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    Hmmmm?

    With my sales already tripling because of using their xml feeds, this is great news. I love other programs on ABW, but 2% commission vs 6.5% commission? Pretty easy to decide who to promote.

    Chet

  3. #3
    ABW Ambassador webmarm's Avatar
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    Cha-Ching!

    - - - - -
    42. Yup, the answer to life, the universe, and everything.

  4. #4
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    Time for me to put some serious effort into promoting them [img]/infopop/emoticons/icon_smile.gif[/img]

    They keep dropping the free shipping minimum too.

    {

    "Laziness, Impatience, Hubris. Pick any three" ~ YAPC 19100

  5. #5
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    The increase from $10 to $50 cap on computers is great news

  6. #6
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    I'm very happy as Well. I'm glad I participated in that survey, It does encourage sales. Well should go build some pages.

    ------------------------------------------------------------Minds are like parachutes - they only function when open. Thomas Dewar

  7. #7
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    Even with the changes, I wonder if it will be worthwhile promoting them while they are still a Morpheus merchant?

    {

    "Laziness, Impatience, Hubris. Pick any three" ~ YAPC 19100

  8. #8
    ABW Adviser Panel Dynamoo's Avatar
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    Well, with the last announcement about getting commission on marketplace products and Toys R Us it's looking quite promising, especially with Christmas coming up.

    This quarter has been my best ever in terms of conversions. Last quarter was the worst ever. Go figure [img]/infopop/emoticons/icon_smile.gif[/img]

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  9. #9
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    best thing about amazon is they deliver the stuff.. hey, even I trust them [img]/infopop/emoticons/icon_eek.gif[/img]

  10. #10
    Affiliate Manager Lionstail's Avatar
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    Does it make sense for all of us affiliates to push amazon extra hard for the next quarter so that their numbers come out well and they keep to this model? It seems like the more we can do to make this experiment of theirs successful the better it would suit all of us. Dave

  11. #11
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    It does so long as we can be certain the money for our efforts will go into our own pocket and not Morpheus'.

    {

    "Laziness, Impatience, Hubris. Pick any three" ~ YAPC 19100

  12. #12
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    Their timing is rather interesting - I mean, wouldn't they expect sales to do better during the holidays anyhow? So why would they make it a condition on keeping the new terms?

    I imagine my Amazon sales will do better in the 4th quarter (they've been progressively improving as I introduce more products, so it only makes sense), but I imagine a lot of my other merchants will do better too. [img]/infopop/emoticons/icon_smile.gif[/img]

    J

  13. #13
    ABW Adviser Panel Dynamoo's Avatar
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    I think Amazon might actually have listened to some of the things its "associates" were saying, especially since they started the message boards there (OK most of the posts seem to be people asking about the 15% commish). But it is progress.. [img]/infopop/emoticons/icon_wink.gif[/img]

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  14. #14
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    quote:
    I think Amazon might actually have listened to some of the things its "associates"...

    Don't think so. They are just watching their affiliates sales figures and I guess they are dropping pretty bad. I'm an Amazon Affiliate from the first hour, I used to have a lot of links to them, not anymore I've found better merchants. I'm mad at their loosy AMs, at their association with scumware, at their $10 cap, at their quarterly payment...
    They have better to be real nice to me before I put any link back, and I'm not the only one.

    It's not the big that eat the small... it's the fast that eat the slow. Jennings & Haughton

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