It’s fun to look back a year ago to see how much my earnings have increased compared to where I was one year ago. This is just one of my income streams, Amazon Associates income. Most of my Amazon links are embedded on my Squidoo pages. My Squidoo income has increased even more than my Amazon income has, but I don’t have a nice little earnings screenshot to show you from my Squidoo earnings, as I have split up my one Squidoo account into numerous smaller niche accounts over the last year, making it difficult to compare one graph from last year to numerous graphs from this year.
Anyway, here’s my earnings from Jan 1 – April 17, 2011 compared to the same time period for 2012 for Amazon Associates income. As you can see my earnings have quadrupled. This is due to the fact that I made a bunch of new pages over the last year, and I learned a lot about how to optimize my pages to get better traffic. I also started using a keyword research tool, which taught me which keyword phrases to focus on that I could get ranked easily for on Google search results. I think using the keyword research tool was probably my #1 reason my Amazon sales increased so much. I am getting so much more traffic than I was a year ago.
Although the commissions from the Amazon Associates program are not the best, they make up for it in the number of products they offer on their website. I usually earn 6.5 – 7.0% on my Amazon sales. The commissions are on a tier system and the more you sell in any given month, the higher your commission rate. Except for electronics, which are paid at a flat 4% no matter how many products you sell, and some other product categories that earn a flat rate.
So while this is quite a bit lower than maybe a stand alone store that offers me a 10% commission, I feel like I make just as much because it’s so common for the shopper to add additional items into their cart before checking out, which I will earn a commission on too. You can earn a commission on any item the shopper buys within 24 hours of clicking on one of your Amazon links. And since they offer such a huge variety of items, most shoppers will add 1 or 2 more items into their cart, sometimes just to get free shipping for ordering over $25 of items that qualify for the super saver shipping. I think this is really common for the shoppers who order something for $19.99 and then Amazon tells them they are only $6 away from getting free shipping. So they go find another product to add to their cart.
And don’t forget that another item in the cart is one more item closer to you receiving a bump up in your commissions as the more you sell the more you earn. And when you move up a tier on the commission chart, all of your items sold from that month receive that commission rate. It’s retroactive back until the first of the month. So it’s pretty easy to go from earning 4% at the start of the month to earning at least 6.5% by the end of the month. Here’s the commission % for the number of items sold in a given month for most products.
Most products fall in to the general products category above. However, there are fixed commissions on some of the items like electronics and gift cards. Here are the fixed rates for the following special categories.
My Amazon Associate Earnings are just one small portion of my total online income, but I’m happy to see how much it has increased from a year ago. It’s encouraging to see progress. I wonder where I will be next year and what type of earnings I’ll have to report.
Here’s a list of the different ways I make money online:
Small Business Online Marketing Services
Amazon Associates Program
Referral Commissions for Cash Back Websites – Ebates and Mr Rebates
Jaaxy Keyword Research Tool
Have your online earnings increased since last year? Take a look back and see if you have made progress. Let me know in the comments if your online earnings has increased. Or tell me about your online income goals for the next year.