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

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