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Amazon Tests New Tiered Fee Structure

"On October 1, 2002, we launched a new referral fee structure aimed to help you earn more in our program - as much as 40% more. These new payment rates are designed to reward all of our hard-working Associates - it's now possible for everyone to earn more in Q4!

Q4 will serve as an evaluation period for this new fee structure - we're hoping that you will see this as a tool that rewards you as you send more sales to Amazon.com. If this new structure proves successful in helping you drive more sales, we want to consider making it a permanent program feature."

Details are available (for Amazon.com affiliates only) on their dedicated web site.

This is interesting for several reasons:

  • Affiliates criticized Amazon in the past because the 15% direct referral commission rate is for practical reasons quite difficult to get. This is a smart way to increase commissions but get something back for that money, namely, more involvment from participating affiliates. They ask you to go through the hassle to send them a signed fax to agree on the new terms. Come on. Fax. 2002.
  • Amazon is helping affiliates benchmark themselves against their peers with a "reporting dashboard" to keep track of your performance.
  • Amazon employees have recently been more "visible" and responsive in the message boards dedicated to affiliates.

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