"exploiting" Amazon through Adwords?

Discussion in 'Amazon' started by younghistorians, Jun 16, 2004.

  1. #1
    Hi all,
    Over this past week ive been researching various ways that people have been successful with Amazon's affiliate program. While searching for this on Google, I saw several Adword ads linking to Amazon with various affiliate id's in them.

    I'm asking if anyone has tried buying ads through adwords for popular products, then using a link to Amazon with an affiliate id in it?

    Has it worked?

    thanks!
     
    younghistorians, Jun 16, 2004 IP
  2. compar

    compar Peon

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    #2
    A couple of people have talked about doing that in threads on this forum already. I think the consensus is that it can be done. Why not?

    But I can't believe anyone can make any money by doing this. The conversion rate and the profit margins on affiliate type of stuff is normally too low to make a profit.

    Amazon is a prime example. If a person clicks on a link to a specific book and buys it you get a 15% commission. But if they arrive at Amazon via your link and then decide to browse and buy something else all you get is 5%. How much do you think you can afford to apy for an AdWords ad that will only yield a 1% or 2% conversion rate once the person lands on the Google page? Not very damn much.
     
    compar, Jun 16, 2004 IP
  3. younghistorians

    younghistorians Well-Known Member

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    #3
    That's a good point. I've been playing around with some certain things, i.e. writing product reviews, then linking to a "Buy Now at Amazon" page. I was thinking that if I could have an ad go to, for say http://www.younghistorians.com/ww2/articles/war.html, the conversion rate might be alittle higher, because of their train of clicking:
    I guess this relates to the "content is king" saying, although it's been proven wrong in regards to SEO.
     
    younghistorians, Jun 16, 2004 IP
  4. jfontestad

    jfontestad Well-Known Member

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    #4
    I've tried this. The conversion rate is horrible. You'd need to be focusing in on expensive high demand products in order to make any profit. There are some of those who succeed but don't get caught up in the hype... because that's all it really is, hype.
     
    jfontestad, Jun 16, 2004 IP
  5. GuyFromChicago

    GuyFromChicago Permanent Peon

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    #5
    You can make money doing this - I do and have consistantly for just under a year. Don't get me wrong, it's not "quit my job" kind of money but a couple extra hundred $'s a month isn't bad.

    It's a lot of trail and error, there is no secret forumla.
     
    GuyFromChicago, Jun 16, 2004 IP
  6. Owlcroft

    Owlcroft Peon

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    #6
    Sad to say, it's been quite a while since the days of 15% commissions from Amazon, even on direct links. It was sort of like those credit cards that used to give 1.5% cashback telling you they've "upgraded" their program to 1.0%. Now Amazon offers "tiered commissions" that, if you're lucky and careful, will let you make half as much as you used to.

    Amazon is your friend: __True or __ False ?

    Even so, with targeted pointers to particular books, you can get 25% or 30% conversions on click-ons for that book, but whether that means much depends on your basic site traffic and the interest in this or that book.

    As someone said, you can make enough for it to be worth while, but don't send away for the yacht catalogues just yet.
     
    Owlcroft, Jun 16, 2004 IP
  7. Joel Naten

    Joel Naten Guest

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    #7
    Lots of people try these with higher commission affiliate programs. In fact one person went so far as to make a company selling books about affiliate marketing through google and then getting affiliates to sell his book. I imagine you can make a buck or two, but you may very well just throw your money away too.
     
    Joel Naten, Jul 8, 2004 IP
  8. Help Desk

    Help Desk Well-Known Member

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    #8
    It all breaks down to CPC/CTR > AvgC.

    You need the amout of your "Cost Per Click" (CPC) divided by your "Conversion Ratio" (CR) to be greater than your "average commission" (AvgC).

    You will break even if...
    CPC/CTR = AvgC

    So if your CPC is $0.05 (Adwords Minimum) and your CR is 5% (0.05) then you need to make exactly $1.00 to break even. The problem is the "Conversion Ratio" is usually more along the lines of a half of one percent (.5% or 0.05) which means you need your average commision per sale needs to be $10 which is pretty hefty.

    The best way to up the conversion ratio is to have a very professional looking site. Somebody has used my Amazon.com webservices script to setup a pretty professional store (Much better than my own). Check it out if you desire to.

    http://www.amarillometro.com/shopping/

    See my signature for the link to my scripts.
     
    Help Desk, Jul 8, 2004 IP
  9. al2six

    al2six Active Member

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    #9
    i tried it and it wasn't worth it. i basically broke even. i was doing it with ipods which will make you like $8 a sale
     
    al2six, Jul 15, 2004 IP
  10. Help Desk

    Help Desk Well-Known Member

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    #10
    Even is better than most.
     
    Help Desk, Jul 16, 2004 IP
  11. radsoft

    radsoft Guest

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    #11
    Never worked for me - ended up losing money not making it.
     
    radsoft, Aug 11, 2004 IP
  12. Will.Spencer

    Will.Spencer NetBuilder

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    #12
    Looking at my Associate reports, I see 5% commissions on 48 of my last 49 sales. The other commission was 5.1%.

    I place topic-relevant ads on individual pages. For example, I have ads for books about snipers on my web page about snipers.

    My conversion rate is 1.37%.

    Overall, my Amazon revenue is approximately 2% of my AdSense revenue.

    And, of course, I have put considerably more effort into Amazon, because I have been selecting books individually. (I'm picky.)
     
    Will.Spencer, Aug 11, 2004 IP
  13. l234244

    l234244 Peon

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    #13
    I managed to break even for 3 mths using allposters.com focusing on vintage posters - no where near enough to justify the time I spent researching keywords.
     
    l234244, Aug 11, 2004 IP
  14. caroline

    caroline Peon

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    #14
    Yeah, but even means time wasted for nothing. Better than losing money too I guess.
     
    caroline, Sep 3, 2004 IP
  15. younghistorians

    younghistorians Well-Known Member

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    #15
    I think ill just stick to Adsense.


    However, has anyone done well with placing affiliate links on reviews they wrote about the product?
     
    younghistorians, Sep 3, 2004 IP
  16. Scoreboard

    Scoreboard Peon

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    #16
    Adsense is definitely the safe bet but I have one particular Amazon affiliate that sells the hell out of a $100 book on one page. It can work, but it definitely needs to be a targeted endeavor.
     
    Scoreboard, Sep 7, 2004 IP
  17. shirsc2

    shirsc2 Peon

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    #17
    i have done it for 2 quarters now and am up about 800 bucks. Not great money but decent. The key is to find a product that keeps selling for you and ride that product for a while. Each quarter I have found 1 product and made half my money on them. I only pay .05 click too. Like everyone says, its trial and error.
     
    shirsc2, Jul 6, 2005 IP
  18. Will.Spencer

    Will.Spencer NetBuilder

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    #18
    Something else to think about is that AdWords tends to charge more than any of its competitors.

    Therefore, this business model may have more success if you use an AdWords competitor instead of AdWords itself.
     
    Will.Spencer, Jul 6, 2005 IP
  19. GuyFromChicago

    GuyFromChicago Permanent Peon

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    #19
    Wow, here we are a year later:D

    I'm still at this and am clearing almost 3 times a month what I was at this same time last year from Amazon.

    Same principle still applies - trial and error. There's no secret formula.
     
    GuyFromChicago, Jul 6, 2005 IP
  20. donnareed

    donnareed Peon

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    #20
    Hi Guy;

    I was curious how long your successful campaigns last on average?

    Are they short-lived or do they tend to go on indefinitely? If the latter, then it would seem to be worth all the trial and error.
     
    donnareed, Jul 7, 2005 IP