If you have shopped on Amazon before, you will know that there are a ton of products on the online marketplace. Now, what if I tell you that you can leverage this to build your own online business? Would you be interested? In this article, I’ll show you the step-by-step on how to make money on Amazon without selling; only recommending good products to other people online.
What Is Amazon?
To give you a perspective about the potential of this opportunity, it’s worth mentioning some history about Amazon. In 1994, founder Jeff Bezos started the company from a garage with the intention of selling books. Obviously, sales soared and not long later, they started selling all kinds of household products, electronic gadgets and designer labels.
Today, Amazon is the largest internet based retailer in the United States, raking more than 100 billion in net sales (2015) with over 300 million active customers shopping on the site – daily.
How to Make Money on Amazon Without Selling?
The way to do this is through the Amazon Associate Program. It adopts the affiliate marketing business model whereby you earn a sales commission whenever you refer a customer to purchase something online from the Amazon marketplace.
Here’s how it works;
- Sign up for a user account with Amazon by providing some personal information.
- You will receive a call from Amazon for verification purposes.
- You’ll be given a unique associate ID that allows you to access the Associate Central where all your affiliate resources reside.
- Now, you can search for the products that you want to promote, get the product links (which has your unique ID attached) and share them on your website or blog.
How Much Does It Cost to Join The Program?
It’s absolutely free to become an Amazon Associate. However, you may come across alleged scammers posing as the company’s representatives, offering you this ‘business opportunity’ for an X amount of fee.
Do not fall for this scam! Remember, Amazon will NEVER ask you for an associate fee.
What Do You Need to Get Started?
(1) Find a Niche
In other words, a group of people searching for stuff online. In a more specific manner, a group of people who wants to BUY something online. Why the emphasis on buying? Well, take a look at this graphic.
People who are ready to buy are usually at the decision stage, which means, they have pretty much made up their mind on a certain product. If you target this group of people, it’s going to be a lot easier to make a sales convert.
Having said that, it doesn’t mean that you are going to push every single product on Amazon. Instead, you are going to pick a product category that you are interested/ passionate/ knowledgeable about and use that to create awareness, help people to understand their situation and ultimately, recommend a product that can solve their problems.
Let’s have a look at the type of products in Amazon, shall we?
Wow! That’s a long list and it’s not even the entire thing yet. Now you understand why you only need ONE NICHE to get started. So, take your time to study the product categories and then decide which one you want to get involved with.
(2) Get a Domain Name
After selecting a niche, you are going to build a website, but before that, you’ll need to come up with a domain name. A domain is basically your business name and it usually reflects the niche that you are targeting. If you are thinking about long term growth, I would recommend that you invest in a custom domain because with a proprietorship, you have more control over your business.
SiteRubix is a great place to buy domain names. It’s affordable and comes with an all-inclusive package. For example, if I am planning to make money with pet products, I may choose a domain name like ‘happydogaccesories.com’. As you can see, it’s still available for only $13.99/year.
(3) Build a Website
After getting the domain name, you’ll need to link it to a website and fortunately, you can do this easily within SiteRubix too. All you need is to wait for a couple of minutes for your domain to be registered and then you can start to create your own website on the powerful WordPress platform.
(4) Research Keywords
Now that you have got the basic structures set up, you are going to create content (articles) for your site. Keep in mind that adding content will help in growing traffic to your site so this is something that you need to do on a regular basis.
So, what exactly are keywords? They are merely terms that people type on the search engines whenever they are looking for something online. In your case, you are going to search for terms related to your niche and use them to produce articles for your audience. To do this, you’ll need a keyword research tool and my favorite one is Jaaxy.
Your keywords choice should match these 3 criteria for improved online search-ability;
- Phrases must make sense.
- Should contain at least 3 words or more – the more descriptive, the better.
- Has low competition level.
Using the pet product niche, for example, if you want to recommend a durable dog bed, your keyword choices would be the following;
Notice how descriptive these terms are? They also have higher monthly searches (AVG column) and most importantly, low competition level (QSR column). Read this page for more information on how to create content for a niche.
(5) Write a Product Review
The whole point of doing keyword research is that you can funnel your readers – whether they are in the Awareness, Consideration or Decision stage – to your product review page where your affiliate links reside. Here’s where you really want to promote a particular product and if they are convinced with the recommendation, you’ll be on your way to making a sales commission from Amazon.
How Much Can You Make?
There’s a lot of discussion about how much people can make as an Amazon Associate. Some say that the payout is low while some boast about making a full-time income from it. Well, let’s see where all the figures come from. There are generally two types of commission structure that dictate your earnings as an Amazon Associate.
The Fixed Advertising Fee Rates, and
The Volume Based Advertising Fee Rates
In general, you start with a minimum of 4%, so if an item sells for $100, you earn $4. At a glance, this looks like a very small sum, but there something else that beginners usually overlook. This income is potentially recurring.
A good product review can gather hundreds (if not thousands) of online searches per month. If 100 readers convert, you make $400. If 200 converts, you make $800 and so on. And that’s only for one Amazon product review. In the lifespan of your online business, you’ll be writing a lot more than just one product review, so imagine the potential income that you’ll be able to generate.
Plus, Amazon generates over $100 billion sales per year, so even earning as little as 0.01% as an affiliate can be very lucrative, don’t you think?
So, Is Amazon Associate Worthy of Your Time?
Literally, all you do is advertising; no selling and no inventory, so that already saves you a lot of time. And, it gets even better. You see, Amazon has a pretty good funnel system by itself;
- It’s a trusted brand with good customer service that attracts millions of online shoppers every day.
- When shoppers buy more than one item, you earn commissions from other purchases as well.
- You can use the pre-existing customer reviews to enhance your own product review page.
- You can leverage from sales promotion to attract more audience to your site.
- If you really invest in effort and time, you can expect to see some good earnings within months. Here are the testimonials from some Amazon Associates who are doing quite well as an affiliate.
Do You Want to Make Money from Amazon Too?
Although many resources out there would offer you success tips to becoming an Amazon Associate, none of them come close to my recommended program at Wealthy Affiliate University. In their training, you’ll learn about;
- Researching a profitable niche.
- Building a powerful WordPress website.
- Doing proper keyword research for your content.
- And most importantly, growing constant traffic to your site.
If you like to see this process in action immediately, watch the webinar series (for free) on how to build an Amazon affiliate business from scratch in just 4 weeks!
In fact, the success experienced by Andreas, Nat and Carlton is the result of doing this training. No matter what niche you are involved in, as long as you follow the step-by-step, you’ll be making money on Amazon without having to sell anything, just like them too.
Interested to learn more? Check out my personal review on Wealthy Affiliate University here.
“One strategy: “We’ve had three big ideas at Amazon that we’ve stuck with for 18 years, and they’re the reason we’re successful: Put the customer first. Invent. And be patient.”- Jeff Bezos
Do you have any tips or questions on how to become an Amazon Associate? Please leave your comment below and I’ll get back to you.
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