Amazon Infuriates Affiliates with Changes to Payout Structure

[mandy]

Web site publishers who rely on Amazon Associates' affiliate program are unhappy with a new compensation plan announced by the company today. The online retailing giant sent an e-mail to its affiliates notifying them that beginning in Q2 2006 (April 1), a new compensation plan will be in place that introduces flat-rate commissions and does away with link bonuses.

The Amazon Associates program currently allows affiliates to build links to Amazon content and merchandise with an embedded affiliate tracking code. When a user actually buys something from Amazon, the affiliate gets a percentage ranging from 4 percent all the way up to 10 percent...

According to the new referral structure, affiliates using the "Performance Structure" compensation plan will receive between .75 percent and one percent more in commissions. This applies to 21 or more total items shipped in a quarter. Affiliates earning commissions on 20 or fewer items shipped in a quarter will actually receive a smaller commission - four percent instead of the old five percent. Associates will now also earn a flat four percent commission on consumer electronics items. Electronics currently follow the tiered compensation schedule....

full article: http://www.ecommerce-guide.com/news/news...hp/3595256