– Can you make money with Amazon Affiliate marketing?
It seems like these boxes are taking over the world. Today what we’re gonna do is we’re gonna talk exactly about how to make money with affiliate marketing with Amazon. The good, the bad, and the ugly and if you can turn a profit and we’re starting right now. Hey guys, it’s Marcus here from affiliatemarketingdude.com and welcome inside. Today we are gonna talk about how to make money with the Amazon Affiliate Program. We’re gonna talk about the good, the bad, and the ugly and you can see I’ve got a lot of big numbers on the board that we’re gonna go through as well that have to do with your profits. But first, if you’re new here and you want to learn how to make money with Amazon Affiliate and any other affiliate marketing for that matter, go ahead and hit that Subscribe button right now and click the little bell notification icon. That way you get my new videos when I come out with them and you can attend our live trainings and ask questions and interact here right on the channel. So you wanna make sure that you Subscribe right now and click that little bell notification icon. And now without any further ado, let’s talk about Amazon Affiliate profits. Is it a good way to make money for beginners or even for people that are advanced who have traffic already? So lets first talk about the good things about the Amazon Affiliate Program. Everyone knows about Amazon, I think everyone’s gotten a shipment by Amazon by now and we all know that it’s good, it’s popular, it’s great and it’s cheap right, so everyone loves it. So lets talk about this and how it works with affiliate marketing. With affiliate marketing Amazon has what’s known as an Affiliate Program. That means you can sign up as an Amazon Affiliate, get a special link, sell products through your website. You don’t even have to ship them, they just go to Amazon and buy stuff and you get paid. So literally all you have to do is take your traffic, send them to a link and Amazon handles the rest and sends you a check and we’re gonna show you how that works. So the good part here is that Amazon is easy, easy right? It’s easy, that means everyone knows Amazon. So the conversion rate’s great. They know that hey, they’re gonna get the delivery on time, they know it’s a trusted source, so it’s an easy converter. Another thing is it’s a big program. Big, it’s huge, it has tons of products. I can find one little weird product that some weird group of people likes and I can sell it and make good money because it works really well. So it’s easy, it’s big, it’s structured. It’s well-known. And it has high-priced stuff, so it’s got lots of money here, okay? Amazon is making millions and millions and millions of dollars a day, hundreds of billions of dollars a year and the owner of Amazon or the guy who started Amazon is now the richest person on the planet. So, there’s a lot of money at stake here. Now what is the bad side? We can go, we can sign up at Amazon, we can get a link and we can promote hundreds of millions of products or however many products are on Amazon, and we can get paid, right? It seems great, we’re tapping into a $100 billion plus pie, that is a pie. I don’t even know if I can finish that pie and I like pie. So we gotta look at this. We say hey that’s cool, I can tap into it. Now what are the downsides here? The downsides are that it pays really low. So if you sell something that’s like $1,000, chances are you’re gonna get between four and 8% commission. That might sound pretty good, you’re like dude, I sell something for $1,000 and I get between 40 and $80, that sounds pretty good to me. If I can sell 10 things a day, I could make myself like 500 grand a year or something like that or little bit less than that. I think it’d be like 250 grand a year if my math is correct. All right so that looks pretty good, it’s like hey check it out, I can make money. Now in the affiliate marketing world, the numbers game is very important. What we’re looking for is a number called CPM okay? How much are you making per thousand visitors. This is a very, very important question okay? So we’re gonna put 1,000 up here because we need to know what we are making on 1,000 visitors. For example, if I have my website and I send 1,000 people to Amazon, how many are gonna order and how much money do I make? So if I send 1,000 people to this product, let’s say I’m selling I don’t know, like a camera or something like that. I think I have a camera around here, we’ll find it for effect. Or let’s say I’m selling a laptop. Hopefully not this laptop ’cause this is the one I threw in the pool. All right so this laptop here, let’s say we’re selling this and it costs a $1,000. So we’ve got like a Toshiba laptop, okay? And this Toshiba laptop let’s say its a $1,000. Now if I send 1,000 people to this laptop link, my Amazon Affiliate link, how much am I going to make? Well let’s say we get a 1% conversion rate. 1% conversion rate would mean that out of the people who come there, I am now getting 10 sales, 10 sales okay? So 1,000 people, 10 sales, that means I am making probably around $400. Or $400 CPM, okay? That’s what you would make on your thousand clicks. Pretty cool, so we look at this, we’re like okay, so I make $400 on my clicks which means each click that I send to Amazon is worth, math brains, 40 cents. Boom, there’s your target number. Now here’s the problem. The problem is if I go bid on cheap laptop, big laptop, small laptop, Toshiba laptop, fast laptop, slow laptop, cheap laptop, whatever, The amount of traffic it’s going to take and the amount it’s going to cost, if I go to Google and I bid on this traffic, it’s probably gonna cost me about 80 cents to 120 cents or $1.20 right? I can’t talk today. $1.20 per click. That means how much am I spending CPM? I am spending 800 to $1200 to get that traffic. If it cost me $1200 to get 1,000 clicks and I only make $400 on that, this is what we call bad, crappy business. No, don’t do it. Okay now there are methods to get free traffic and that’s all great and that’s all wonderful but how would you feel if you got the free traffic and you were making 400 bucks when you could be making 1200, not real fun right? So this is one of the downsides. Now again there’s lots of stuff, it’s really cool. There’s a lot of affiliate programs out there. There’s a lot of offers on Amazon and it’s very important to look at because sometimes you’re gonna go into a market. Like let’s say you’re going into a market, I remember when my kids were really young, my wife was like hey, I want to get some toys like I had when I was a kid and she found these things called Calico Critters. Calico, and the Calico Critters were pretty cool. it was like hey check it out, these are neat, they’re little toys and yay, they’re wonderful and she went and spent a fortune on these Calico Critters. She was like I gotta get the exact box I used to have. And so now as an affiliate marketer, the Calico Critters keywords are very inexpensive and you can get a lot of free traffic really really cheap and you could set up YouTube videos and play with the toys, you could go and find traffic about like the bunnies and the little bunnies and the little houses and everything and you can get traffic really inexpensive and that’s good, or you could get it free. Now, there’s no other affiliate program in the world that really has Calico Critters. Maybe there’s one or two but Amazon is probably the best because everyone sells on Amazon and everyone knows Amazon, so they’re gonna buy it. So if you have a niche market like Calico Critters or perhaps some kind of baseball card niche or perhaps something very refined, Amazon is your way to go, awesome okay? With the computer stuff it might be a little bit different. Sometimes you might be able to sell like these little headphones I got on Amazon or this microphone I got and things like that and that’ll work too, but you have to have a very refined niche because the amount you’re gonna make is very very low and we’re gonna talk about that in the ugly part. What I did before this video is I actually went through and looked at some of the Amazon top affiliate people who make a lot of money and I looked at their screenshots that they had and I took a look at how much they’re making per click and how much everything. So we’re gonna go through that. So the bad part of Amazon is the payout is really low, okay? Very bad part, we don’t want low payout, we don’t want to be making 40 cents and have to pay more for traffic or you know, whatever. And again these numbers are hypothetical. A lot of times they’re a lot less than this, okay? Now let’s take a look, right? It’s good if you have something and you’re beginning and you have a very refined niche and it’s very easy to get traffic and you don’t know how to monetize it, excellent, great. Now the bad part, low commission, we don’t like that. The ugly part is the really low commission that you’re gonna see because sometimes you might be able to go into this Calico Critter market, which again is gonna be a very very low CPM. It’s gonna be a very low earnings per click because of the fact that these things are cheap and you’re only getting 10% of something cheap. So like if I sell, you know, 100 bucks in Calico Critters a day and I’m getting 4% to 8%, I’m gonna make $8 on a good day. That’s gonna take me a lot of traffic to get those $8 because not everyone is going to buy and that’s what you’re gonna find out. I could go and find an affiliate program that has like a gift card or some kind of offer for toys or maybe some kind of opt-in thing or whatever and make a lot more, okay? Those are some things we can do and we talk about that here on my channel and you’re gonna want to subscribe for that. Now what you’re gonna see here is here is a guy that I took in the ugly portion and he had this screenshot about how he made, how he sold over $8 million in Amazon stuff as an affiliate. Now think about that for a minute. This dude sold more than $8 million worth of stuff from his traffic, right? So his traffic came to his site, the amount of traffic was 2,837,532. That’s a lot of traffic, right? People are struggling to get 1,000 visitors a month, let alone 2.8 million visitors. So he got 2.8 million visitors. He made eight million bucks in sales. Okay now that’s in sales, that’s how much was rang up at the old Amazon cash register and shipped out. Now the amount that he got was again four to 8%, so we’re gonna say the amount he got was approximately 400 to 500,000 bucks. 400 to 500 K. You might be saying well Marcus, hey bro, that’s pretty cool, you know? I’d like to get me some of that 500 K. But here’s the thing, 2.8 million. Now the 2.8 million number, it is very important to realize this because people don’t pay attention to this. In this number here, this is the number of people he sent to Amazon. Very important because if you watch my video, some of you will be smart and you’ll go to my website and you’ll check out my stuff at affiliatemarketingdude.com. Some of you will be even smarter and you’ll go to simplesitesbonus.com and pick up my course. But on this video, how many people are gonna watch it and not go to the link? Probably a pretty big number. That’s what’s happening here. So, in order to get those 2.8 million people to go to Amazon, he probably needed like 20 million people to come to his website, and it sounds like the gardeners are here. There’s a lot of things that make me not want to do this video today. We had all kinds of stuff going on but I’m making this because this is important, and you need to know it. So he had to get like 20 million visitors or more. That’s a 10% click-through rate, which is still pretty high, okay? So in order to generate that, what is his effective CPM? His effective CPM is less than 10 cents, 10 cents a click. Because we look at that and we’re like okay, 10 of these whatever you know, 10 click-throughs, lets do this the right way, hold on one second. So the amount he’s earning on 20 million visitors, so if he has 20 million visitors and he’s only making $500,000, his amount he’s earning per click is so low it’s not even funny. Now again, think of this because a lot of you guys that are watching this are not going to be able to generate 20 million visitors. It’s very, very difficult to do. One in a million are able to do it, right? So in order to do this, you’re either gonna have to have a lot of money or do a lot of work and for all that work, this is a very little amount of money. Now if you contrast that with some of the things that I’ve done online with the toolbars and the affiliate offers and everything like that, we usually get like on the low end 20 to 30 cents per click. So when we’re looking at this, this is way low and this is a targeted market. It should be way higher. You would do better if you were to make your Calico Critters site and you got a bunch of visitors to actually buy the Calico Critters wholesale and sell them or drop ship them. You’d do way better than this, okay? And that’s what we’re gonna talk about here. Let’s take a look at another one. We have 15,000 clicks generated $3809. So this guy got 15,000 visitors and he generated 3809. So that is a per Amazon click, for the amount of traffic he sent to Amazon, he was making what I think, if I was gonna do the math right that would be times what, three or something like that? Okay, so it’s like pennies per click right? So we look at that and we’re like wow, that sucks. Okay here’s another guy, this guy got 27,097 clicks to Amazon, he only made $790. That’s nothing, if I was gonna make those kinda numbers, I would have to hang up my hat and quit and go do something else for a living, right? So we gotta look at this objectively and we have to say what is the best way to make money online? Now if you’re in a niche that there’s nothing else to sell, maybe Amazon is the way to go. If you’re in a niche where you can be creative and make this work, then I’d like you to look at some other options and we have some other options here on this channel if you subscribe and check out the little videos we have for you on CPA affiliate marketing, affiliate programs, Offer Vault and things like that. You’re gonna learn all about it and we’ll put one of these videos after this that you can just click on and go to. But we look at this and we’re like 2700 or 27,000 clicks to Amazon making 700 bucks, how many clicks did he have to get to get those people to go to Amazon, 270,000? This is the kinda stuff that makes people quit affiliate marketing, that makes people think affiliate marketing doesn’t work because these things pay so low. So, what’s the verdict? Is Amazon the best way to go? Well, if you have no other option like the Calico Critter guy, probably the best way to go. If you do have other options, you can make a lot more money with different stuff. Stay tuned on this channel, check out the other videos and we’re gonna talk to you about how to make real money with CPA affiliate marketing. Thanks again for watching, I’m Marcus from affiliatemarketingdude.com