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Prosperent vs. Amazon

by Charles - admin on October 1, 2010

In this post I will explain why I think that Prosperent could work better for you than the   affiliate system.

Lets take a look at the Amazon affiliate system.

What is great about Amazon, is that they are a well know and trusted brand that offers pretty much anything and everything on there site.

The first bad thing about Amazon is that they don’t accept people living in certain states.  Don’t bother trying to join their program if you live in CO, NC, NJ and several other states. Due to new tax laws they booted out all affiliates in these states.   With , all states are excepted and most countries too.

As of this time they have two fee structures.

Classic, which I have heard is not available to new members, and Performance.

Lets look at the “Classic” structure.  With this they offer a flat 4% on all items sold.  I believe there is no cap.

And for the “Performance” structure.  You start at 4% but quickly jump up to 6-7% and max out at 8.5% all based on the number of items sold, but (there are actually two buts)  1) all electronics are at 4% and 2) there is a per item cap of $25.  Not to mention to get to the 8.5% you have to sell a ton of items (3131+).

So, unless you are selling only items averaging over $625, the “Performance” structure is the one for you.

For affiliate marketing a cookie is a little piece of software code in your browser that tells the merchants who sent them to their site so you can get your commissions for the sale of any item purchased from their site, not just the one that got the click.

What I don’t like about Amazon is their one day cookie.  A one day cookie means that it’s only valid for one day. While you think that might be great as the person will probably buy the item right when they see it, you would be surprised at how many sales are made at a later time.

Click here to see a graph of time from click to sale.

The data that used to generate that graph indicated that on average the time from the click to the person purchasing the item was about one week.  If you are using amazon you only have a one day cookie.  That means that you could be losing out on a ton of sales.

With Propserent you are dealing with a ton of different merchants and each merchant determines their own cookie length but the norm is from 30-90 days with some being even longer.

Look at that graph again.  The average time to buy on electronics and home appliances is 16 days.   Think of how many high dollar sales you might be missing with just a one day cookie.

So now you know you might be able to get more sales, but what about the commission percentage.   Again this is set by each merchant so it can vary, but since is pooling all the sales into a single merchant they have already negotiated higher then normal payout percentages with most vendors.

These higher payouts are generally higher than the top level the merchant might offer you directly if you will a high volume seller.     So you get the super affiliate advantages even if you are just starting out. I’m guess that most payouts are from 10-15% but that is just a guesstimate. And even after gets their fee, you might still make more than you would using the merchant directly without all the tools and benefits that offers.

I still like and use the Amazon program but now with the WPProsperent plugin I can quickly and easily add better targeted products right in my posts that have a longer cookie and a higher payout.

As a matter of fact, I have both Amazon and ads on my pages, I just give better placement to the ads.

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{ 4 comments… read them below or add one }

Paul Grimm October 2, 2010 at 3:53 am

Charles,

This is great info. I have several product sites and plan to build more. I have been using Amazon but find that conversion rate is very low. I wonder sometimes if it is the products or just not enough traffic or….???? On most of these sites i get from 50 – 100 visitors/day but not much in amazon sales.

I registered for prosperent and now waiting to see how you plugin can enhance this. I have not yet placed any prosperent ads on my sites.

Still trying to get my head totally around your program and how it works.

My question is, you are putting a lot of work into this obviously, How do you benefit long term from this?

Paul

Charles - admin October 2, 2010 at 9:49 am

Hi Paul,

50-100 visitors a day should be enough to see some action. But there are a lot of factors. Some sites just never work out. About 20% of my sites bring in 80% of my earnings.

Things to think about for your site:

1) Its is a popular product that people BUY online. You don’t just people looking for information. You want buyers. Longer tail keywords generally are better at targeting buyer.

2) How does you site and the ads look. I have found that adding a couple ads to the top of the page before he content really helped me. I know others who say place it at the bottom only. So you would need to test this.

3) Are your ads targeted. If a visitor comes in from a search engine are they seeing targeted ads? I’m sure if you check your logs you will see that you get a bunch of search terms hitting your pages that don’t always match what the page was built for.

This is both good and bad. It’s good because the search engines have decided that your page is relevant for more keywords but it’s bad because your ads might not be showing what the person wants. Therefore you get traffic, but no sales. This can happen a lot when using phpbay, phpzon, or wp mage to display keyword based ads.

Here is where my plugin solves that issue. With WP Prosperent, you can set it to display ads using the keyword that the person search on in the search engine. And that means that you can show an ad for exactly what the person is searching for. This highly targeted ad means you will get more clicks and more sales.

My benefit – Well, I have over 400 product based sites. So this plugin was made for my own use. I will be placing this on all of those sites. I am giving it to others to use as Prosperent does have a referral program.

PS, the plugin is ready, I just need to get some instructions done.

Stephen Taranto October 2, 2010 at 10:33 am

Hi Charles,
How long till the plug-in is ready?

Speaking of ad placement. Let’s say I’m using Amazon & WP Prosperent.
Could you give us a pdf or marked up screen shot…something graphic on BEST AD PLACEMENTS on our websites…that would be very helpful.

Steve

Charles - admin October 2, 2010 at 10:59 am

Hi Steve,

The plugin is ready. I just need to do some instructions (probably video) on how to use it and I will include info on how I will be using it on my sites. That will include placements.

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