Hello J_philipp
Like you I was very confused when I first read the Tiered Fee
Structure plan but hopefully you will understand the summary I have
produced for you below. This was correct as of 6th July 2004 (I know
how often Amazon.com change these things and this answer will be
around for a while!).
With BOTH plans you earn a percentage of the money that you make for
Amazon by placing links on your site (or referring people).
With BOTH plans you earn an additional 1% for people clicking on links
that are made with the "Easy Link" method. The "Easy Link" method is
one of the methods available when you log in to your Amazon account.
With BOTH plans you can also earn an additional 2.5% with links based
on the "Product Link" method.
As these are similar to both the new and old payment structures there
is nothing really to consider here.
The old payment plan gave you a base rate of 4% on every item sold
(this basically means that if the selling price of the item, not
including all Amazon costs such as shipping, was $100 you would earn
$4). This is defined by Amazon as your "Base Referral Earnings".
The new tiered structure plan increases that base rate to 5% (for a
$100 item you would now earn $5) and again this is defined as your
"Base Referral Earnings".
In addition to this the new plan also rewards you for selling more
items. For instance if you sold 21 items you would receive a extra
bonus of 2.5% of your "Base Referral Earnings" (not including any
earnings from 3rd party items you may have sold). Basically in you
are on the Tiered Plan, the more you sell the higher the percentage
you earn. If you stick with the old plan you lose any opportunity of
earning these extra bonuses.
An example as I understand it:
1) You sell one item at $100.
With the old plan you would earn 4% of this so you would take home: $100 * 4% = $4
With the new plan you earn a base of 5% which is $100 * 5% = $5.
2) You sell 10,000 $100 items.
With the old plan you would earn 4% again, which is 10,000 * $100 * 4% = $40,000
With the new plan you would earn 5%, which is 10,000 * $100 * 5% =
$50,000. Because you have sold so many units you also earn a tiered
bonus, this is 30% for selling 10,000 units (it varies depending on
how many units you sell), therefore your bonus will be $50,000 * 30% =
$15,000. So in total you would take home $65,000 instead of $40,000
with the old plan.
In both of these examples you would also earn an extra percentage for
the type of link the person clicked on (but as this is the same for
each plan I have removed this for clarity).
The tiers of the current payment plans are given in this picture:
https://ssl-images.amazon.com/images/G/01/associates/q3-comp/q3-2004-comp_tier-threshold-us.gif
I am sure that the way Amazon has presented it is not the easiest way
for people to understand but as I grasp the concept the new structure
is better for the person who refers sales to Amazon as you have the
chance to make more money. At its simplest, you earn an extra 1% on
every item you refer to be sold.
Amazon have some "Live Chat Sessions" relating to the new payment
structures coming up in the next few weeks which will allow you to ask
as many questions as possible directly to their support staff. The
details of these can be found here:
https://associates.amazon.com/exec/panama/associates/tg/browse/-/567830/102-5692728-3170560
If you are still unsure please ask for clarification and I will do my
best to try and help.
Useful URL's
https://associates.amazon.com/exec/panama/associates/resources/payments/plan-select/
https://associates.amazon.com/exec/panama/associates/resources/help/faq-operating-agreement.html/ |
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