Amazon is apathetic to affiliates

Amazon is apathetic to affiliates and if it does not change its attitude there is every chance in will join the list of failed giants.

Amazon was built by affiliate marketing

Way back in 1995 Amazon was launched as an online sales channel offering cheap prices and great delivery. The initial concentration was the sale of books and up to 50 other products.

Jeff Bezos said at the time it was an easy model to follow however few believed it could ever make money. That remained correct through to 2001 when it finally went into the blue line.

The affiliate model allowed any marketer to promote Amazon products and be paid a commission on the sale. There were few restrictions to entry although you were dismissed if you were not making sales within three months.

Over the years conditions for affiliates slowly deteriorated with strict rules and lower commissions.
The commissions hit ahead in March 2020 when they were generally halved making it unlikely anyone can make a reasonable return on the investment.

Amazon and others

It would appear that the Amazon attitude to affiliates extended to the opposition players as well.
They had lawsuits with Walmart, Barnes and Noble, Toys R Us among others as they rode over the top of anyone that got in the way.

Now turning over in excess of $258 billion a year you would think them an outstanding success, but are they?

Shareholders dilemma

Amazon has never paid a dividend on shares relying on share price growth to keep the buyers happy. On this fact, I was very surprised to see that Warren Buffet had purchased a small percentage of the company (537,300 shares in 2019). Warren usually wants a return.

Competition actions

First of all, let’s look at the main nemesis to Amazon. The hugely active Walmart.
They paid out $258 billion to shareholders last year but importantly was neglected by Buffet a shareholder since 2015 Buffet sold his holding in Walmart to buy Amazon instead. (Walmart share price grew after this)

Market competition to Amazon

Way back in 1995 online sales were a thing out of a space book. Amazon grabbed the market and grew it into a monolith that to this day dominates a storeless community. Yes, Walmart has a higher turn over with revenues last year of $524 billion out of retail stores, online and affiliates.

Interestingly Walmart cut Affiliate commissions at around the same time as Amazon. A sour taste was left in the mouths of all affiliates trying to make a dollar

Market changes by others

gettoing started

Online sales have grown so fast over the past few years that it is now a product used by most retailers across the world.
The recent closure of a large Australian retail company saw 6000 employees put off only to return 2000 of them days later to handle the online sales that went up by 800%.
Over Easter, cosmetic sales increased by a massive 7000% in one day highlighting the consumers change to convenience. ( Myers Australia)

The figures for Amazon online are falling

It is reported that Amazon online sales may have come off and that a 47% prediction is now 37% and that resellers account for 58% of that figure.

According to reports in The Information, eMarketer has lowered its 2019 estimate for Amazon’s share of U.S. online sales to 37.7 percent from its previous estimate of 47 percent. That new figure, according to eMarketer, was derived from “new guidance” from data in Amazon CEO Jeff Bezos’ annual shareholder letter.

Now to be truthful this may be understated by Amazon because of antitrust fears among the mighty. However, reseller sales including affiliates still account for a whole bundle of business.
This is business that may move.

Amazon is apathetic to affiliates know your way out.

What can affiliates do about Amazon

My first answer is to wait out the time until COVID-19 has passed and make a rational decision in the new year. Yes margins are so low it is not worthwhile but a sales increase may turn things around.


Next, if you are considering becoming an Amazon affiliate I would give it a miss and find something else to do.

Finally, I would vote with my feet and find a new world opportunity that really appreciates my effort. Tell Wall-Mart and Amazon you are moving on and to place their business somewhere else.

Will Amazon fail?

Amazon is apathetic to affiliates
sales will decline

Many businesses that failed to read the market left the space.

  • Borders books
  • Pan Am
  • Toys r us
  • Blockbusters
  • Kodak
  • Compaq

International companies that imploded while sitting on their hands and I see more in the future.
Amazon is diversified so I am not predicting, just commenting at this stage

Everyone is now online

The local grocery shop does home deliveries, the clothing shops are online, medication is sent by mail, meals arrive at the door. The list is now so long that it must worry the big dogs.

Covid19 has made online a necessity not a luxury.

The pricing model has changed

In the early days Amazon took a discount position. Above all, the competition was not too worried because the loss of sales was minimal.

This attitude gradually changed and now small retail often holds a price advantage.

Furthermore people now shop the market for the best value, it might be on eBay or the local hardware store so sales are going away from the mighty.

“Amazon’s retail business competes in the worldwide market for retail sales,” the Amazon spokesperson said. “Our competitors include all the other online and brick-and-mortar stores that people shop at every day.”

And as quoted from Jeff bezos

“Third-party sellers are kicking our first-party butt. Badly,” he wrote.

They make no money, pay no dividends, shaft the sales force, fight with the competitors. tangle with the law and lose their market share every day. Not a great BIO.

Amazon is apathetic to affiliates so what are the alternatives

Affiliate alternatives

You will start looking elsewhere for now opportunities.
When you want to find a new supply outlet simply go to Google type in a product, leave a space then type in affiliate and you will have a whole range of sources.

Are there better ways to make money.

BloggingIncome as an affiliate and
from advertising
Email marketingDo it for your self and others
Social mediaSell your skills
Making videosLearn the simple art
TrainingSet up a training course
Websites, SEO Do extra training to move up a level

Just a few small ideas that you may consider along the way.
Have a look at Wealthy Affiliate the home of affiliate marketing and training.

Wealthy Affiliate is an affiliate opportunity from day one even on a free site. You have access to a bundle of training and a support forum that can assist you with any problems.

Recurring income is the best game in town and they will teach you how.

No credit card required, no contracts and no upsell. Start a new career by clicking on the script.

Conclusion

You will believe that companies like Amazon will face many problems in the year to come.

Your benefit is that other opportunities will take over the space providing superior returns on the input provided by you.

This is a great time for affiliates, however, many will be challenged in the transition to a new market.

“Think it, believe it and watch it happen.”

Napoleon Hill. Think and grow rich

Amazon is apathetic to affiliates by Peter Hanley

Amazon is apathetic to affiliates
Peter Hanley
About

Amazon what to sell

Selling during a pandemic

Coronavirus and business

Selling during a pandemic or any natural disaster is a time for the best of you to build your future and move your business forward.

This is not a time to panic

We are currently under the spell of Covid-19 one of many over the years that will trash your business if not handled correctly.
Furthermore it may be fires, typhoons, floods, sunamies, cyclones and other natural disasters that will impact your life.

Your major take from the current Pandemic should be that consistent contact keeps everyone aware and not alarmed. We see world leaders everyday telling us the latest news, often peppering it with hope and trust.

The public has been masheld like no other time into compliant obediance as we rally together to fight a rampaging crisis.

Communications is key, it has made the difference.

Use communications as your tool to success.

In my country many businesses have had to close down, doors locked and staff dismissed as we keep a boundary around contact. Essential services continue in a haphazard manner of close contact.

Communications will continue to win the battle and this can be done in many ways

  • Email is first
  • Newsletters are included
  • SMS is handy
  • Even an old fashion phone call
  • Creating videos
  • last but not least Social Media

When you are working from home and looking for things to do then jump on board one of the above.

You will have a customer list ( or should) so bring it up to date and then invest in some tools.

New tools to work with

This is the time to get a great email plan working. Email is not singular it is a mix of products that make your life easy.

A single contact emailThank you emails, contact details etc
Then your broadcast groupA sale for all VIP members
Building an autoresponderA new email every day on automation
Setting up a newsletter templateA must-do every two weeks
Reminder emailsAppointments, closing etc

Here you can see that the humble email is more than just a quick message to keep basic contact.

The essentials of business communications an open discussion

Do emails still work?

They sure do or your inbox would not be full of wonderful opportunities waiting for you every day. However, most will not be opened unless you have an understanding of what to do.
As a communications tool, this is by far the cheapest and best method of maintaining contact.

Selling during a pandemic with SMS

Using SMS in marketing

Your SMS market includes all your customers.
Furthermore SMS has instant results with a very high open rate.

Our Government have used SMS for important updates because more people read SMS than any other media.

One of my customers sends messages to advise that his store is still open.

Another confirming that all appointments were being kept

and another to say store closed until furthernotice.

Using SMS can be more expensive however with better results.

Social media from home

Social media still has a huge pull and it is an excellent tool to transport viewers to another page or location. Your social media is for entertainment and to showcase ideas it is not about selling or marketing. Maybe I should repeat that however there are times it can be used.

My daughter closed her retail shop for the Covid lockdown. Fortunately she had invested in an online shop as a back up to sales so she maintains a presence even in lockdown.

Currently she does a video of herself and new products as she wanders around a store empty of buyers. Does it work? It sure does with online sales and home delivery going gangbusters.

Selling during a pandemic using Video.

marketing in a pandemic
Use of videos

Using video for your business

Just hang about for a minute and don’t be scared of the whole video business. Did you know Youtube is searched nearly as often as Google? Plus more times than Bing and Yahoo combined.

You can do a simple video and post it to YouTube on a phone or tablet or a professional live video through Content Samurai.

Make up your how to do things stories and keep them as links on your website to increase site time and greater SEO.

grab this free book that takes you into the video world

The internet revolves around Keywords

You need a very good working knowledge of keywords and how to use them.

They make the difference in your marketing between success and failure. The use of words is the road directory of the internet and most lead to dead ends.

You are fortunate that there are Keyword tools that tell you all about traffic and conversion along with competition and success. These must be understood before you do another thing.

Try this free tool today and start to check all your marketing for a better way to be seen.

Take your blogging adventure

blogging in a virus

First of all this is not an overnight adventure it is a term commitment that needs constant attention to find and keep a huge reader base. It can be part of a website or stand alone opportunity designed to make you money.

I started to blog as an aid to my large email list and customer portfolio. I could not share all I know through other means so I now link to appropriate pages at every opportunity.

No doubt I take the opportunity to monetise what I do with affiliate links and advertising but that does not distract from the core product.

I am marketing business ideas like all those above and provide an opportunity for small business owners to advance their income.

Conclusion

On my home page, you will find endless topics to help you grow your business. Take some time and adapt anything that will suit your current position.
If you are stuck at home this is a great time to ramp up your marketing or even if the business has slowed right down do something to prepare for the tomorrow that will be here sooner than you think.

Furthermore don’t waste this opportunity to expand your future.

Growth of your future is in your hands not in a lousy virus.

Take my ideas and run with them for youtr future.

Selling during a pandemic by Peter hanley

selling during a pandemic
Peter Hanley
About

coronavirus and business explained

Best way to build an email list

email list

A customer list is a negotiable asset and the best way to build an email list comes in several stages. Here we tell you the correct steps to take.

Why have an email list anyway?

A list of any kind gathered correctly and maintained regularly represents a valuable asset in your business. An asset that can be valued in $ per subscriber on the sale of the business.

This can be a fixed location or an online business it makes no difference.

My condition is that it must be legally gathered in the course of business. There is a thing called the spam laws with huge penalties for randomly contacting people.

Starting the email journey

This will vary depending on where in business you are.
Retail;

A retail business is easy, you have data everywhere, client details, billing, enquiries, competitions, surveys and asking at the counter.

firstly sort your list

Your job is to put them into an order and record them in a file.
If you have a women’s’ dress shop your order may look like this.

  • Small size women
  • Large size women
  • Younger group
  • Older vintage
  • Trendy buyers
  • Brand loyalty
  • Special followers
  • Summer ware
  • Winter ware
  • Accessories

Yes, many will be part of several groups but not all of them.

The power of an email list

You should never underestimate the power of a list. It is a guide to your customer base, their habits and buying patterns.

A well-segmented list can be used for marketing every day. It is not time-consuming but rewarding as your results are relayed immediately.

It is a permanent asset that has great value for any buyer.

A customer of mine fell on hard times and had to close her business. She recovered some funds from asset sales at trash prices and still owed quite a lot of money. Her closest opposition approached me and offered to buy her contact list. Good value as it would have cleared all debts but guess what, she did not have one.
This was an early lesson for me and I have pushed this barrow long and hard.

This is not a one-off case. An associate had a very busy Pet food business that was unfortunately raised by fire. It broke Peter’s heart and he never re-entered business. His customer list from the rewards card he had maintained allowed him an extra income bonus. ( lucky he had it all backed up)

Marketing to a list in different ways

Before I tell you how to get a list together let’s look at some interesting examples.

First of all, I run a message service to small business so I have close contact with a range of customers. I also mail them with ideas on a regular basis and many act on these in innovate ways.

The Loan consultant.

Having written many loans over the years Mike had collected quite a few names. At this time interest rates were being changed on a monthly basis and it was difficult to keep up.
Mike sent an SMS message to all his client every time the federal bank made a change. No selling, no coercion just information.
Mike wrote many new loans directly from the SMS service even though his email newsletter was also a monthly habit.

The Tyre man

Justin had a tyre service in a local upmarket community, next to a big shopping centre and a whole bundle of passing traffic. His idea was to send an SMS saying call in and get your tyre air pressure checked for free.
Again no sales pitch just a good offer.
Believe me, when I say the first customer to take advantage was a Porche driver. He said I was driving past and you reminded me I need a set of tyres can you do them while I am at the shops. Kerching.$

The swimming teacher

Sue had a busy swimming centre that provided regular lessons for the younger generation. Her company decided to message every client that had been absent for a period of time with a new deal.
They sent out about 130 messages by SMS to test the waters. The return was about 50 new bookings that they would have lost. kerching$

Yours truly

I send out emails nearly every day, some segmented some a newsletter-style to all. I regularly get new customers that have been on my list for over a year. When the time was right I was in front of the action.

What are the best ways to get names for a list

I just googled this exact question and had a look at a lot of answers however I want to stay local and easy. So I list my top 10 ways.

Ask for your customer details

This is a no brainer. You want it for your invoicing and even cash sale receipts and other instore needs. Record them in a manner you can access and use.
You must be proactive to get results.

Run an instore VIP club.

Do you have a coffee card, a major store card or even a Flybys card? These cards are to get your information so they can market to you, blind Freddie knows that however, we all have them and willingly give over info.

A regular instore promotion, raffle or survey

We will line up to give our details in the minute chance of winning or achieving a gift. It is in our nature.

Telemarketing is still alive

It might be hard work but it is rewarding. I ran a campaign using a call centre in India. Don’t get me wrong we all hate telemarketers and particularly the overseas variety. Firstly I did not ask them to sell, all I wanted was to ask if they had a message service and if not get an email address. This delivered thousands of potential customers.

Websites

Using contact forms, popups, enquiry channels all add to the supply. You must have these anyway so make the best use of them.

Events

Stay with me for a moment on this one. This is an instore promotion style event where a supplier does a workshop. It may be you or an outsider but the idea is the same.
At 5 pm on Thursday, Wild Erp will give a workshop on the sharpening of Tomahawks. Great door prizes and giveaways.

An actual example is Geoff who has a wholesale business in the refrigeration industry, Geoff runs a breakfast event every few months. Invites are by SMS and you are prompted to bring a guest. They have a supplier giving goody bags away and a sausage sizzle for all.

Social media promotions

Surveys, competitions, ebooks giveaways can be done on all forms of social media. This can be a really strong CTA if used correctly. You know you should post regularly so post smartly as well.

Outside events

Tradeshows, home shows all sorts of shows operate during the year. Most of these are lead capturing and you are lucky to sell anything worthwhile. I did one of these for a friend recently. A five-day show that needed a few hands-on-deck during a 12 hour day. Our goal was to get people to sign to our list so we could send them information. The several hundred we gathered were really warm prospects that moved into a sales situation. We were selling a $20,000 product so we did not need many to give us a return.
The point was to get an email and phone number so we could follow up.

Other list building ideas

We can go on for a long time but your time is precious and you just can’t do them all. Pick a couple and give them a go. Get them to a place of self-producing before moving on to the next idea.
Optin pages, outbound mail, on your stationery, referrals etc can all be added to the list.
Lastly is to consider YouTube videos. How to do thing Videos are heavily searched so having a link on them is a sure thing.
However pick your social media of preference and concentrate on that, you can’t do them all.

Conclusion

You should have gained some insight and had an ahha moment somewhere in this short post.
Doing them is a whole new game but choose wizely and limit your time to the ones that will produce results for you.

Once you have your list use it often. Regular newsletters, emails, autorespnders and SMS to make them pay.

This is business and you want a return so do it properly and do it often.

Best way to build an email list by Peter Hanley

Best way to build an email list
Peter hanley
About

PS There is a lot more training on this at Wealthy Affiliate the worlds leading internet training