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How To Create A Passive Income From Amazon's Affiliate Program

Discussion in 'General Affiliate Marketing Forum' started by Rivmedia, Sep 9, 2015.

  1. Rivmedia

    Rivmedia Affiliate affiliate

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    Niche websites have been around for a long time and although they get a bad reputation (mostly because the majority of them are seriously spammy), it is possible to create a fantastic niche site that earns a regular passive income. There are a few ways to monetise a niche website including the sale of eBooks, AdSense (or other display advertising) and so forth, but perhaps one of the monetisation methods is Amazon Associates. Amazon Associates is Amazon's affiliate program that anyone can just in a matter of minutes. Joining the program allows you to earn commission on any Amazon products, of which there are thousands. But how exactly do you create a website that earns a passion income from Amazon's affiliate program?
    Choosing The Right Product(s)

    The absolutely most important part of the process is to choose the right products to promote. Obviously, there will be products that you're naturally attracted to (for instance, many people have an interest in electronics products) but when you're creating a niche site, it's all about choosing the products that will not only be the most profitable, but also the easiest to market. [​IMG] One thing to consider is the variation in commission rates that Amazon offers on their products. For example, electronics products are capped at $25 (or 4%) commission whereas products in most other categories can go up to around the 9% mark (so long as you're selling enough of them). You can see the commission percentages in the screenshot above. Another thing to consider is the price at which the products sell for. Because commission works on a percentage basis, the higher value the product is, the more you'll get per sale. For example, a 5% commission on a $2000 laptop will be $50 whereas a 5% commission on a $3 eBook will be $0.15. So you'd have to sell around 340 eBooks to equal a $50 commission. At this stage, you're probably thinking that you should simply choose the highest value product you can find on the site. This seems logical, but as we'll point out in the next section, this isn't always the best way.
    Analysing the Competition

    [​IMG] Typically, niche websites will obtain their traffic predominantly via the search engines. This means that you need to choose a niche that isn't too competitive and that you'll quite easily be able to rank for. This can be easier said than done and as you'll find when researching just about any industry, there will already be people trying to earn income from Amazon Associates with niche websites. For example, if you type "fitness equipment reviews" into Google, chances are that you'll see a number of websites all competing for search engine traffic in that area. This means that you'll find it difficult to rank without a substantial amount of effort. Some industries are more competitive than others though. For example, if you type "tablet PC reviews" into Google, you'll see a lot of big names like TechCrunch etc. These will be almost impossible to beat and although the rewards might there if you can, it'll take a lot of investment to do so. [​IMG] The other thing you have to consider (besides the current competition) is whether or not people are actually searching for information about your chosen niche. For example, there are probably more people searching for "laptop reviews" every month than "mouse mat reviews". Typically, the higher the keyword volume is for a key term, the harder it will be to rank for. You can use Google's free keyword tool to get a rough idea about the keyword volumes and to research possible keywords that you might target.
    Conclusion

    Basically, it's all about finding that sweet spot. You need to find a niche in which there are relatively high keyword volumes, the products will give a good commission per sale and that there is minimal competition for. Finding a niche that fits the bill is difficult and to an extent impossible, but some niches are definitely better than others. It will take a bit of trial and error to find a profitable niche that also interests you but it is possible if you put a little effort into it. You should also remember that just because you find a 'profitable' niche, it doesn't mean you'll be making thousands of dollars a month right away. Just like any other website, niche sites that earn revenue from Amazon Associate links require time and effort to build-up, so be prepared to invest.
     
    2 people like this.
  2. Golden Goose
  3. brendaanne3

    brendaanne3 Affiliate affiliate

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    Thank you for these tips! I honestly always forget to check amazons fixed fees and it's cost me for sure. So this was great as a BIG reminder for me to look into that every single time I visit the dashboard.
     
  4. shohrab

    shohrab Affiliate affiliate

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    Wonderful post. Worth reading.
     
  5. Wilson Wade

    Wilson Wade Affiliate affiliate

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    These tips are good I am still looking for a niche for a blog and Iknow it must be something that will not bore me. I really need to learn a lot and this is one of the reasons why I am joining forums such as this so I can gain knowledge and hopefully, start a blog with a potential to earn.
     
  6. threenerds2014

    threenerds2014 Affiliate affiliate

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    You can check the competition by using different SEO plugins as well as a website. For example SEO quark is wonderful add-ons of Firefox to check your competitors site.
     
  7. mdvelops

    mdvelops Affiliate affiliate

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    I've gotten plenty of clicks but no conversions! It's very frustrating. Oh well, I guess I'll have to try to find a niche. Right now it's very open-ended for me so I'm probably not getting conversions because I'm not targeting my audience.
     
  8. Jim Moriarty95

    Jim Moriarty95 Affiliate affiliate

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    Yes, you are right. You need to find out your niche first. In order to get the conversion, the content presentation is one of the vital points. What you need to use decent convenient content as well as you need to research on quality products as well. Best of luck.
     
  9. mdvelops

    mdvelops Affiliate affiliate

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    I typically go for the highest rated/most popular items on Amazon, as through their network you can search their best sellers and everything. Then pick something that is somewhat relevant to today or targets what I'm posting/writing about. Oh well.
     
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