Amazon.com sprang a surprise email on Deal & Coupon Associates saying that the commission structure would be significantly changed while limiting access to sales reports. Those top producing retailers are none too happy about it.
Over the next ten days Amazon.com will be changing the pay structure that it has in place with you today to one in which we pay you referral fees only on items that we send to you (and result in a sale on our website) on a regular basis
To migrate to the new pay structure, please print out, sign, and fax the amended agreement by close of business on Friday, October 13. Alternatively, if you prefer to not continue as an Amazon Associate, there is no action required on your part because our existing agreement will be terminated on October 16.
These two forum threads illustrate that those affected are vastly concerned about what these changes mean. The top 5 percent, they say, produce 95 percent of the affiliate sales at Amazon.com.
After a flood of disbelief in both forums, with posters having to repeatedly reaffirm that the email was actually from Amazon, the Associate Team cleared a few things up:
The changes referenced in the posts above will only affect Associates within the Deal & Coupon category, which can be defined as a category of Web site dedicated to finding the best deals or price discounts across the Internet (and brick-n-mortar stores as well) and/or websites that provide coupons to different retail stores, online or offline. If your business is not related to the Deal & Coupon category, or you only occasionally promote deals, coupons, or discounts in the context of the topic of your Web site, you will not be affected by these changes.
Said forum poster John Flagg:
During the time of the Sales HistoryI have sold $75,000 worth of your products, and have been selling Amazon since 1997, so I believe my total is over 100K.
Are you now convinced that you no longer need a sales force?
Amazon’s Associate Team posted that the changes only affected those that were contacted directly, but did not say why the changes were in place.
Scott, another forum poster, replied:
So basically this is our reward for climbing to the upper tiers of the associates program? You’ll limit our commissions and hold back reporting so we don’t know what we’re earning. Are there financial troubles that are causing a downsize to the associates program? That’s what it sounds like to me. This looks bad for all associates, not just those directly affected. What happens when this downsize continues down the ranks? Will the tiers drop a percentage or two? Or maybe we’ll need more shipped items for the same levels. Now I’m very wary to put much time into Amazon.
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