Amazon have set up an affiliate program (they call it the “Amazon Associates Program”). The theory behind the Amazon Associates program is amazingly simple. By sending traffic to the Amazon website, you will earn a commission (between 5%-10%) on all of the sales that result from any visitors that you send.
This is great because it means you do not have to get involved in product fulfillment. You have no stock to store, you don’t have to pick and ship orders and, perhaps most importantly of all, you don’t need to get involved in any customer service activities. All you have to do is be purely a marketing machine and send traffic to Amazon’s site.
Of course, the real trick – in fact the key to making this all work – is to send traffic to the Amazon site at a cost that is less than the revenue you receive from Amazon. If you are able to do that, then you can definitely make a tidy profit in the process.
Now, there are a number of options open to you for creating traffic. You can create traffic for free by writing articles, creating your own blog or even by setting up a website of your own and going through the lengthy process of optimizing your website for the search engines so that your website is listed near the top of the search results. These three methods are time consuming, but they will get you results if you stick with them.
Another way of generating traffic, which unfortunately is not free, is to create advertising campaigns using one of the many pay-per-click options that exist. This basically means using Google Adwords or the similar services offered by Yahoo! and MSN.
If you hadn’t already noticed, every time you do a search in Google, you will see a series of paid advertisements down the right-hand-side. You can create adverts that will be displayed when the user types in specific search terms.
So you can pick specific products from the Amazon website to promote and set up a specific pay-per-click campaign for each of these products. Each time the user clicks on one of your adverts, Google will charge you for the click, hence the term pay-per-click. You, in turn, point the user to Amazon’s website. If this whole process costs you less than the commission you receive, then you make a profit.