Amazons New Policy Means Big Change For Direct Linking Strategies

I recieved an email from the Amazon Associates program last night (April 6, 2009) stating their changes to their program.  Here is an excerpt containing the two main points of this change:

“After careful review of how we are investing our advertising resources, we have made the decision to no longer pay referral fees to Associates who send users to www.amazon.com, www.amazon.ca, or www.endless.com through keyword bidding and other paid search on Google, Yahoo, MSN, and other search engines, and their extended search networks.”

“As of May 1, 2009, Associates will not be paid referral fees for paid search traffic. Also, in connection with this change, as of May 1, 2009, Amazon will no longer make data feeds available to Associates for the purpose of sending users to the Amazon websites in the US or Canada via paid search. “

The first section basically says that they will no longer pay affilates that direct link to them from Paid Search like Google Adwords or Yahoo Marketing.  This will no doubt take some of the wind out of the sails of products like Google Cash and PPC Ninja, although neither of them rely strictly on Amazon for sales, they both make mention of them as good ways to make quick money.  I am sure that there will be a lot of people very unhappy about this and will see a dent in their earnings until they restructure.

The second section will probably affect less people, but I am sure there are a number of people making good money with Amazon datafeeds.

Obviously it must make good business sense to Amazon to do this. If those things weren’t helping their bottom line, then obviously these changes were necessary.  At least they are giving their affilates a little bit of time to readjust.  These changes don’t go into effect until May 1, 2009.

So if you didn’t get the email, and you happen to be reading this (before May 1), then it is time to start making some new plans on how to work your PPC campaigns.

This is why you need to diversify.  Do not rely solely on one form of income. I have know many people that have been virtually wiped out when the have all of their eggs in one basket and a major change like this comes. If you are just starting out in internet marketing, be sure to keep this in mind.  Create multiple streams of income from different sources. It is the only way to be truely financially independent. Mail this post

Technorati Tags: amazon, associates, Canada, change, data feeds, direct linking, endless.com, policy, PPC, program, US

Free Online Merchant Account - Read This First Before Applying

I just got done watching a live UStream video cast of Howie Schwartz and Jimmy Davis talking about a Free Online Merchant Account through Imax.  First let me say how much I like Howie Schwartz.  I think he is an absolutely brilliant marketer and I have learned a lot from him.  I don’t know Jimmy Davis but he seems like a top notch guy also.

So the main focus of this video is that there is  a company offering a online credit card merchant account with no application fee.

Sounds like a good deal.  On top of that, Howie will also give you $2000+ in bonuses if you sign up through his link.  The bonuses are 20 products that you can sell with your merchant account.  Sounds Great.

So I went and looked at this offer, because it sounded a little to good to be true.  I have been a business owner for many years and have learned the importance of reading over contracts before signing anything.  I recommend that you always read through contracts before signing.

Let me say, that if you are in the market for a merchant account, then this is probably not a bad deal and you may want to take a look.  Visit Howies site here to learn more. (you may want to read the rest of this first however)

If you are not really in the market for one, you may want to consider how important it is that you have one now, before you jump in.  I know the bonuses sound great, but reading through the fine print here is what I found.

1. Although the application is free to apply, there is a $49.99 administration fee listed.  It does not state when this applies or when it will be charged.
2. Buried way down at the bottom, it states that once the contract is finalized, you are locked in for 3 years. If you choose to cancel before the 3 years is up, they will charge you $250 for canceling.  It also implies that you could be charged an additional $250 if you breach the contract, but that part is not very clear.
3. There is a $39.95 monthly charge per location.  I don’t have a problem with that except that it is not clear if that would be each website. If you didn’t have a website immediately ready for it, would you start getting charged the $39.95 anyway?  This may be OK, it just isn’t clear.
4. On top of the $39.95 monthly charges, you will also get charged a $5.00 Statement Fee (per statement) and $5.00 internet access fee (per website).  To me it sounds like you will be on the hook for $49.95 per month per website for the account.  Again, I don’t think this is a big deal if you will be using it, but I wouldn’t necessarily get it just to have it.
5. There are also another set of fees listed under “Miscellaneous fees” , just before the $250 cancellation fee mentioned above.  Again it is not clear when or how these apply and that is what makes me nervous. $25 Documentation fee, $150 Research and investigation fee, etc.

I think the final thing that bothers me about it is there is no contact page, or even visible contact information, to be able to clarify any of these things. No phone number, no email, nothing.

I eventually found some contact information listed at the bottom of the program guide:

The bottom line is “look before you leap”. If you are in the market for a merchant account, this is probably a pretty good deal.  Their processing rates look a little high, but not terrible.  (I would try to get some clarification as to what their “Non-Qualifying”  limits are as those seem a little steep.)  Oh and another note, if you do apply, make sure you click the “review you application” section at the bottom of the application before submitting or you will get an error.

This is nothing against Howie Schwartz.  Like I said, I like Howie a lot and I have learned a lot from him and usually buys whatever he puts out.  (Take a look at his Underground Traffic Society if you are just starting out.  You will learn a lot and have access to some pretty cool stuff.)  But this isn’t one of his products, it is just something he is promoting as a (I assume) JV partner. He usually has the best interests of his students in mind, but this time, it seems a little questionable.  I hope it doesn’t come back to bite him.

So why am I telling you all of this and possibly raining on Howie’s quick cash parade.  Because I have a lot of loyal followers of this site and I will always try to protect them best I can.  I am thankful for them and want to make sure that they have the best chance at success. It may not seem like a lot of money to some, but for others $50 a month for something your not going to use is a lot.  And $250 to try and get out of it can be way to much.  Been there done that.

Personally I have been using Paypal’s merchant program for years and have been very happy with it. Their pricing is very competitive (the lowest I’ve found), their transaction percentages are low, and they don’t try to hide any extra fees from you. Everything is very up front. And PayPal integrates easily with a lot of different shopping carts because they already have it built in to them.

I hope you find this useful. Please leave me a comment, especially if you have had any experiences with this company or others that someone may be able to learn from.  A lot of people read this blog and you never know who you might help.

Update:
A friend recommended a new company to me, expensus.com, that looks like it may be ok. I don’t have any information on them. Does anyone have any experience with them, good or bad? Mail this post

Technorati Tags: bancard, credit card merchant account, credit card processing, free online merchant account, howie schwartz, imax, jimmy davis, merchant account, merchant services

Thank you

Thanks for your request!

Just one more thing to do….check your email for a message from Associate Pie that will contain a confirmation link.

After you click on that link you will be set to receive the information you requested.

Thanks again,

Erich Mosier Mail this post