How To Make Money On Amazon Associates

Without selling any of your own products on the market?  This is correct.  You can earn money by acquiring an affiliate company.  If you have marketing and SEO skills, you can leverage your knowledge to build and monetize a content site with Amazon Associates. 

There are plenty of other ways to monetize your content with display ads and other affiliate offers. 

But in this post, we will focus only on the Amazon Associates Program and how you can use the startup capital for an affiliate business to make money. 

How To Make Money On Amazon Associates: Without Having an Amazon Store? 

Amazon Associates is a very popular business model for those looking to create a secondary source of income, as these businesses are often pre-loaded. 

This means that most of the effort required to start and operate the business will be required initially.  This is how you can do that: 

  • Once you start monetizing your content and ranking for profitable keywords, you are more likely to move on to outsourcing your content production. 
  • With the operating systems in place, things start to lighten up your workload, which means you now have somewhat of a negative cash flow. 
  • Many who are still new to online business don't realize that they can buy an Amazon Associate that already generates cash and skip the entire startup process. 
  • The best thing about this option, rather than building something from scratch, is that you know you have a profitable operation that actually makes money. 
  • If you are one of the few who still doesn't know how someone can make money on Amazon without selling a physical product, we will first explain how you can do it with the Amazon Associates program.  

How Can I Recommend Amazon Products And Make Money?

Simply place trackable links within your written or visual content, and every time someone clicks on your link and makes a purchase on Amazon, you earn a commission. 

This event happens over and over again until you finally start to see a steady stream of income without having to sell a single product of your own. 

For this reason, many people choose to build large content networks to spread their sources of income. 

If you're not familiar with e-commerce or even how to source, produce, and distribute your own product, this is a great opportunity to make money with Amazon without having to sell an individual item.  Before we delve into how to scale and manage your own content network, we need to cover how to evaluate these companies.  

How an Affiliate Business is Valued 

There are many factors that come into play when determining the value of an Amazon Associates content site. 

For starters, there's a new update on the commissions Amazon pays its partners based on the specific category of products you send traffic to.  Some other factors that we will cover in more detail include a brand's social following, any assets such as an email list or notification subscriber list, among others. 

Analyzing how a content site is evaluated at the most basic level is: 

  • It is very easy to obtain the first part of the above equation.  However, the second part is usually more difficult. 
  • Multipliers for any type of online business can range hugely from 20x monthly net profit to 80x+. 
  • It makes sense to consider how different each company is, even if they operate in the same business model or even the same niche! 
  • One of the most important parts to understand is what is involved in creating the multiple parts of this equation. 
  • Factors such as the age of the domain name and the diversity of your traffic sources will also play a role in determining the monthly multiplier Amazon Associates will receive. 

Here are some of the considerations that come into play when determining the typical multiplier a company will earn against similar assets being bought and sold in the market:

1. Pricing Windows 

As you noted in the valuation image above, we use a 12-month average to show you what the gold standard is for determining the most accurate trade value. 

Some business owners who want to exit a business without this massive amount of data may experience a ripple effect on their evaluation by doing so.  Buyers looking to acquire this type of business also want to see how potential seasonality can affect the income they will receive once they take over the business. 

Listing your business for sale on the market within just three to six months of revenue data may work for some, as you can trade in favor of asset growth potential. 

This approach is often more suitable for those who are experienced in the field and who have a basic understanding of SEO techniques and content ranking. 

Since it takes a long time to start this type of business compared to selling a physical product outright, the life of the business will also tilt in favor of increasing your multiples. 

2. Duration Of Domain 

Google sees domain age as a primary ranking factor for trustworthiness, and therefore your domain age will also move the multi-needle. 

Studies have shown that Google often rates a domain with a longer history on a new site, which Amazon specifies is still in the "Sandbox" stage. 

Once your domain has had some time on the web, it may start to rank better for keywords related to your target market. 

3. Diversity Of Traffic 

  • As mentioned above, if you're looking to buy an Amazon content site for a lot of money, you'll want to make sure you don't have all your eggs in one basket. 
  • If you only have one marketing channel that generates the majority of your revenue, you are putting your entire business at risk if that source of traffic stops, along with all the revenue it used to generate. 
  • Having social media profiles for your business, even if you're simply reviewing other people's products, is still valuable in the eyes of Google. 
  • When you have other traffic sources that you like and share links to your content, you build confidence in the eyes of the search engine results page (SERP) that your content is getting outside attention.  It's also an opportunity for you to partner with influencers to expand your brand's reach. 
  • Email marketing is another huge advantage in the eyes of any potential investor looking to acquire an Amazon Associates content business, as it provides another source of potential income if the owner doesn't know how to go about the process themselves. 
  • In addition to diversifying your traffic and using more than one form of marketing to your audience, your content can also play a role in moving multiple needles.

4. Article Content 

The content a business publishes to capture the attention of its target audience is also important in determining the value of the business. 

Maybe just 10 years ago you could get rid of spammy links to anything under the sun and find a way to monetize it, but things have changed drastically since then. 

Your site content should not only be optimized as much as possible using all existing SEO techniques, but should also focus on reader intent, experience, reliability, and trust (EAT). 

Linking content within your own site is also something most business buyers consider when deciding what kind of price range they might consider investing in.  Linking pages on a site is something that many SEO professionals have used to naturally generate traffic and should be used on your content site as well. 

If all of this sounds like more work than you'd like to put into a secondary income stream, you may want to consider skipping the hard stuff and going straight to finding a business that's already optimized to be passive for any new owner. 

Find The Right Offer 

Since each Amazon Associates company has its own unique characteristics, you must first have a clear understanding of your budget and specific criteria. 

Are you the type who can spend 10-20 hours a week running this business, producing content, managing links, and SEO on your own? 

Or would you rather have a management position where you delegate outsourced assistants to handle day-to-day operations for you so you can focus on scaling through marketing and keyword research? 

Depending on your specific business and personal goals, a potential acquisition growth opportunity may fit your current skill set more than others. 

The biggest struggle we see new investors have is chewing up more than they can chew by adopting a business model they have no previous experience with.  If you can determine what you're really good at and find a company that lacks this area of ​​expertise, you can usually outsource processes that need additional help. 

Most online business buyers fall within the six buyer personas we've created, based on these unique differences, when and what an individual buyer might buy based on their personal and business goals.

Regardless of your specific reason for acquiring the digital property, one thing is the same for all and that is to perform the daunting task of due diligence before contacting and making an offer to the seller.  

A Due Diligence List 

Typically, buyers will have a checklist that they use to take a quick five-minute survey as to whether the business is worth investigating further and then qualify as a potential investment opportunity.

Additionally, drilling is done during due diligence in the form of looking at some of the work factors that we have already covered in this post.  things like: 

How many hours does the employer currently dedicate to the maintenance of the work? 

Where the traffic is coming from and how the traffic is distributed across multiple sources (and earnings).

What keywords the site ranks for and whether they offer long-term potential or just a trend at the time. 

The due diligence process varies from person to person, but the basis remains the same in that buyers will make their own personal decisions during the process as to whether they feel the business is worth exploring. 

One thing many business owners have told us they are looking for is why the business is selling its assets and what future plans they have to grow and expand their industry. 

This brings up the important topic of planning your exit and having a strategy on how to market your business as a rising winner and not as a trend that is slowly breathing its last breath.  

How to Prepare for an Amazon Associates Business?

When it comes to getting ready to take possession of yours, there's not much you need to do with a little help from you. 

Buyers just need to create an Amazon Associates account, and once they've done so, start transferring seller-to-buyer tracking IDs, update any account or personal information, and ensure proceeds are now sent to your bank account sooner. to release money to the seller. 

If your content site uses Product Ads (API) to reflect real-time market value, you'll need to change the APIs as well. 

This can be more complicated, so we recommend a broker to help you if this is your first business. 

Many times when you use a broker to help you continue a business, they will provide a safety net to make sure the proceeds go to your bank account before they release the money or the business itself to the buyer in the event of a a problem during the transaction. 

How Do I Make Sure My Revenue Or Traffic Doesn't Drop? 

We'll cover four ways you can avoid a sudden drop in traffic or revenue for a newly acquired business: 

One of the first steps is to see if you can work out a performance-based deal structure if the seller is open to it.  Buyers will often try to turn this into a deal as much as possible because it limits the risk of them getting a deal that they will only get paid if the company meets a certain standard in revenue or net profit margin. 

Another way to avoid a sudden drop once you have full ownership is to see if the seller is willing to provide any additional support after the sale.  This can mean a lot of things to a lot of people depending on who you ask, but the point is to get help working after the deal closes in case of any unexpected issues. Plus, you gain a basic understanding of the key skills needed to keep a business on track. 

The fourth (but not the last) way to avoid sudden drops in any of your important metrics is to study and understand where you are.  From the first account discussions with marketers looking to get out of their content site, most of these owners are often overloaded with the niche they've been in for a year or more at the time of their business listing.

Understanding the niche and growth strategy based on the current view of importance within the community can reveal hidden growth opportunities that the current owner may not be aware of. It is also important that you are interested in the niche of the site you are looking to acquire. 

Where Do I Find Great Deals? 

When you search the Internet for potential online businesses to acquire, you'll find that you have a few options to choose from. 

For some who already have a bit of experience in the game, this can be as easy as getting into your network and assessing if anyone has a business looking to get out of it.  This could be a simple listing on a Facebook page or a friend they met at an SEO business conference a few years ago. 

Special offers can seem like a great opportunity for the buyer (and some of them can be);  However, the seller loses this process unless he is ready to claim more than the buyer thinks might be beneficial. 

This is where using a broker is a great option for both parties, as the seller gets what they want and the buyer has a better chance of implementing a simple profit deal structure or perhaps the owner financing option, which can get annoying for private collectibles. 

Private Takeover: Tips for Sellers 

Our advice when making a private seller acquisition is not to sell too low. 

This means you must make a reliable assessment of your business against what the market has determined other buyers will receive.  This can be very difficult when it comes to a special offer, but remember that by doing this you are accepting the best offer from the buyers in their opinion. 

Another big sign for salespeople is the divorce from emotional fairness. 

Which in turn is great for shoppers because now they won't be spending countless hours trying to meet you in the middle of something you really don't want to part with. 

Whether you decide to optimize an email list, expand your social media profiles, or perform conversion rate optimization on an old content site, using the techniques we've discussed in this post will ensure your future success within the industry. Amazon ecosystem without having to.  sell a single product, never.


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