April 7th, 2009 Posted in Home Page, Affiliate Marketing | No Comments »
Today Amazon has changed its policy for their Associates Affiliate Program not compensate partners for paid search and data feed referrals. This is a significant change in policy that will could serve as a precedent for affiliate programs in many other industries. See the email below for the email Amazon sent to its associate partners.
We’re writing to let you know about a change to the Amazon Associates Program. 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. If you’re not sure if this change affects you, please visit this page for FAQs.
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.
This change applies only to the Associates programs in North America. If you are conducting paid search activities in connection with one of Amazon’s Associates Programs outside of the US and Canada, please refer to the applicable country’s Associates Program Operating Agreement for relevant terms and conditions.
We appreciate your continued support and participation in this advertising Program. If you have questions or concerns, please write to us by using the Contact Us form available on Associates Central.
Sincerely,
The Amazon Associates Program
One thing of note is that this change or at least this email refers to only North America so the rest of world may still be able to promote through paid search and data feeds. Amazon cites a review of their advertising investments so they must have done some analysis that encouraging competition drives their CPC costs higher over time.
One thing to think about is that this type of change may not be for everyone, or every region. Depending on the success and penetration of your PPC and feed programs you may want to evaluate this on a case by base basis. It all depends if you are fully maximized for traffic and conversion. I think that Amazon may have reached this point and realized that if they do this they may add the 5% back their bottom line.
See the following FAQ on the changes to the Amazon Associates program.