Should You Focus on Amazon Affiliate Marketing in 2023?
The short answer, as a seasoned professional, is that it depends. However, it's not as straightforward as it might seem. Let's delve into the nuances and considerations involved in making a decision.
Compensation and Earnings Potential
As an affiliate marketer, you earn commissions from the products you promote. The key to maximizing these earnings lies in upselling high-ticket items and leveraging recurring purchases. Specifically, you can earn around two commissions on a product sales. However, the real goldmine lies in upselling. Upselling, particularly with high-end products, can result in recurring incomes from multiple clients. By leveraging these upsells, you can generate significant recurring commissions.
Email List and Continuity
Consider the power of an engaged email list. If you have a robust list, you can significantly increase your earnings. Here's an illustrative example: let's say you have an email list of 40,000 subscribers. If 20 of them buy from your affiliate links and you successfully upsell them on high-ticket products worth $2000 each, you could earn over $43,600 in a single month. This underscores the potential for high earnings even on a per-sale basis.
Numbers Game
The affiliate marketing landscape is undoubtedly a numbers game. The sheer volume of sales is crucial. Therefore, Amazon affiliate marketing can indeed be a viable option if you have a substantial email list. If you haven't built this list yet, consider other platforms or channels to achieve this goal. Once you have a significant following, you can start to explore Amazon affiliate marketing.
Challenges and Recommendations
Amazon affiliate marketing faces several challenges. The commission rates for Amazon affiliate marketing are notoriously low, typically in the range of 5-8%. Additionally, you cannot run direct ads, and the platform is not particularly SEO-friendly. Amazon also lags behind in providing timely payments, with a 45-60 day wait period. These factors make the process more challenging.
However, this doesn't mean that Amazon affiliate marketing is entirely out of the question. If you have an established following on platforms such as Instagram and YouTube, the influencer marketing space can be leveraged to drive affiliate sales. Furthermore, if you already have a solid presence on these platforms, you can test the waters without too much risk.
At the beginning of your journey, it may be more advisable to focus on platforms that offer better commission rates and more support for new marketers. There are numerous other affiliate programs that may provide a more lucrative and straightforward path to earning.
Conclusion and Next Steps
While Amazon affiliate marketing can be a rewarding option, especially if you have a significant email list, it's not recommended for those who are just starting out. For the most part, it's advisable to focus on platforms that offer higher commission rates and better opportunities for promotional strategies.
Get Expert Advice
If you need guidance or want to explore affiliate marketing, especially for Amazon products, you should consider consulting with experienced professionals. I, Ritvik Sood, am a 5-figures affiliate marketer and own a successful e-commerce store. If you are serious about getting into affiliate marketing or starting your e-commerce journey, feel free to drop me a message. I can provide personalized advice and mentorship. You can find me on Instagram or LinkedIn.