Amazon Affiliate Marketing or Amazon FBA, that’s what we’re going to talk about today. I’m Ryan with Amazing Profits and if you’re thinking about getting an Amazon FBA or you want to improve your Amazon FBA business, this is the channel for you. Don’t forget to subscribe and tick that bell icon, so you’re notified of new videos when I release them. Without further ado, let’s get started.
Okay, so this topic, it’s really not an either/or type of situation. You can do both, but if you’re thinking about getting started in one of these areas, either affiliate marketing through Amazon’s associate program or in Amazon FBA, there are pros and cons of both. Let’s take a look at affiliate marketing for a minute. Now, I have a full-time affiliate marketing business, and I also do Amazon FBA, but I started with affiliate marketing. You can do affiliate marketing for a bunch of different programs. There’s websites out there in affiliate marketing marketplaces like ClickBank, Commission Junction, there’s a lot of them out there. One of the more popular ones is Amazon.
Amazon associates program
Amazon has an associates program where they pay you anywhere from four to up to 10% based on the category of the product. If you have a review site, and you send traffic to Amazon, somebody purchases a vacuum cleaner or something else, you can get a commission on that for anything that they purchase. Now, with Amazon, they do a 24-hour cookie. If you sent any traffic to Amazon in that 24-hour period, if you sent them there to buy a vacuum cleaner and then they end up buying socks and, I don’t know, whatever else, you get commission on all those products that they’ve purchased. The commission does vary based on category. They had a change last year where they changed the commissions structure. It used be a tiered structure, but now it’s just all over the place. Depending on the category, it could be anywhere from 4% up to 10%.
What are the advantages of affiliate marketing?
Well, you don’t have a huge up front cost with affiliate marketing. Alls you need is a website, you need to register a domain with GoDaddy, or Namecheap, you need hosting, you need web-hosting, and then you need to create a website. You need to create content. You can write the content yourself, and it doesn’t cost that much. Then, you need to promote that website. It takes a lot of time, there’s a lot to learn with affiliate marketing, but you can start with a lot less money than you can with Amazon FBA because you’re not buying product.
Now, another thing with affiliate marketing is it takes time to rank your website. When you’re ranking your website with Google, it takes anywhere from six to nine months to start seeing some results. Now, this can vary, that’s just a general guideline. What I’ve noticed after ranking, you know, many different sites, it takes six to nine months to rank websites. You need to have a lot of patience with affiliate marketing because you don’t come out of the gate hot and start making all these sales. You can drive traffic in different ways. You can drive paid traffic, so you could do like Facebook advertising or pay for click advertising on AdWords or Bing ads, but usually those aren’t going to make you profitable. You can drive traffic and you can get some sales, but it’s probably not going to be profitable.
I’ve tried a lot of those for affiliate marketing for Amazon Associates Program and it really doesn’t work. You could probably get into some other affiliate marketing program and it might work there, if you’re driving like an informational product or something like that, it would work. But, if you have a review-type website and you’re selling, you’re driving traffic to Amazon, and trying to sell Amazon products then you’re not going to get a good return on your pay for click advertising. At least from what I’ve found.
With affiliate marketing, it’s a low cost to entry, but it does take time. You have to create a lot of content, you’re looking at six to nine months before you start seeing some results. Now, with Amazon FBA, there is an upfront cost. You have all the same costs with affiliate marketing as far as you do need a website, you do need hosting, because you’re creating a business. You’re creating a brand and you want to have a branded website to go along with whatever products you’re selling. You do have those costs, plus you have the costs of some software that helps you with product research. Then you have costs of the products themselves. I’ll put a link in the description below. I did a video on what it costs to start up with Amazon FBA. If you’re just getting started, what can you expect to pay. When it’s all said and done, you’re looking at anywhere from 1500 dollars to 2000 dollars to get started with Amazon FBA.
The time to become successful with Amazon FBA is a lot less than six to nine months. In six to nine months, you could have already done one or two reorders of your product and have been making a nice profit during that time. Now, whenever you start with Amazon FBA, you’re probably looking at least 60 days before you start selling your first product because you have to research your product, make sure that you get the right one, you have to order samples and then once you’ve decided on a product, then it’s time to manufacture, then there’s time to send it into Amazon’s warehouses and then they have to process it. There’s at least 45 to 60 days before you start selling product. Then, once you start selling product, you’re off to the races.
You might not have selected a great product and it might not be that profitable, but you’re up and running in around 60 days, which is a lot quicker than six to nine months before you start seeing any results with affiliate marketing. A good strategy is if you want to get into both, I would highly recommend it. I would probably start with Amazon FBA, just because you can see results a lot quicker. But, if budget is your biggest concern, then you might want to start with affiliate marketing. Get started with affiliate marketing, do that for a while and while you’re building your website out, and you start to get it ranking, then you can be saving money for your Amazon FBA business.
You should really have around $2,000 before you start with Amazon FBA.
You need enough to budget for software, and for the product itself. You really don’t know what kind of product you’re going to get. Products can vary, I’ve paid anywhere from a dollar a product for shipping and the product itself, like total cost, to ship to Amazon is a dollar, or on the high side I’ve paid as much as five dollars for a product. You really don’t know what product you’re going to find and how much it’s going to cost so you want to make sure that you have enough budget to buy the product that you want.
Hopefully, this gave you some just general guideline, whether you want to start with affiliate, and if you want to do affiliate, I do recommend starting with Amazon Associates Program. It’s so easy to sign up and to get started. Start small, start with a website that is just reviewing a single group of products like, let’s take for example, a vacuum cleaner or a garlic press or something like that. If you want to just focus on what’s the best garlic press and you have a whole website dedicated to that, it’s very specific. I think that is the best way to get your feet wet in affiliate marketing is to niche down to something very small, like a product, and then a single product group. Then, build a website out on that, promote it, while you’re getting that website to rank, you can be saving money and learning about Amazon FBA.