With the commission changes of March 2017, it became abundantly obvious that the home category is the niche to be in…
The whole market (over 2,000,000 Amazon affiliates) began competing for home furnishings and equipment like mattresses, juicers, ovens, etc.
Looking at the top rankings in some of these niches reveals the average sites have well over 50,000 words of content on them:
At only 25c per word, you’re looking at $1,250 on the low end to create this much content.
Excluding the management, which is the part affiliates neglect to mention.
Another friend was telling me, reporting the success of one of their Amazon affiliate sites.
They were doing extremely well, for the model anyway.
Even they were at full capacity managing ONE website.
Remember that “dream” you were sold of creating a website that gives you passive income every month?
That was a myth.
Co-ordinating creating 50,000+ words of content so you can launch is far from passive.
There's tasks like:
You get the point.
And that’s only to get it “launch ready”.
After that you ideally want to take it from 30+ pages to 100+.
And as you’re doing that, you need to execute a link building plan to rank this many pages.
For the ones smart enough to pull this off, it may be worth it.
Build it up, work your ass off to get it up to around $3,000 per month for a 22-36x multiple, then flip it.
("Multiple" means the multiplication of your monthly revenue to calculate the website value. So 22x of $1,500/m over 12 months, is a value of $33,000)
It’s not worth the risk keeping the sites, as we discussed in part one.
So you build them up, aiming for the elusive “six figure flip”.
That’s usually reserved for the "Tier 1" affiliates.
The ones with at least $10,000 to invest into their authority website.
Most people will be happy with a $30,000 - $40,000 flip.
Not bad money, by any means.
But let’s be clear:
You WILL work your ass off to get it.
Building a website up to $1,800 a month isn’t easy.
Let’s say the average visitor to your website is worth 25c. Fairly high.
$25 per 100 visitors.
If we presumed a 1% conversion rate, you’d need to have 1/100 people purchase something for $312.50 at an 8% commission. Which is unlikely, but let’s go with it.
Your goal is $60 a day to get the “40k flip”.
240 visitors a day. 7,200 per month.
If we say after seller commissions, expenses, and revenue collected up to the sale, your personal take home is $40,000 (excl. taxes).
And with the average Amazon authority site taking 6-12 months to start ranking... that you do well and this process takes you only 18 months.
That’s around $26,666.67 per year.
Not a bad side income. Not enough to live from, especially after taxes.
That’s because you’re not supposed to.
Here’s the real plan (most people figure out after flip #1):
Step 1) Build a website similar to the one we mentioned until it hits around $1,150 per month in commissions
How long this takes with vary, for beginners with a low budget for content and links, 18 months would be great
Step 2) Flip the websites for $30,000-$40,000
Again, this is barely enough to live on yet
Step 3) Re-invest at least $10,000 into the next site
The goal this time is to go for the elusive six figure flip.
Maybe in another 18 months time, if things go well.
And that can work, extremely well. I’ve watched friends and community members do this multiple times.
But you’re usually mentally limited at being able to manage one website at a time, which severely caps your income.
...AND you’re competing against the best of the best.
Like we said earlier, Amazon affiliate is the “hot” thing to promote. Especially in the home category, where the best commission are.
And even with the help of a conversion rate optimisation expert, and master copywriter, the most you could possibly hope for is... what?... $0.35 per visitor?
Even that is outrageously high for an Amazon affiliate site.
So you’re left working your ass off, competing against the best SEOs in the world, with the hope that your one and only project pays off with a six figure flip…
...IF Amazon doesn’t change anything or screw you over in the meantime.
Meanwhile, the smart and lazy affiliates are out there getting paid $2-$4 per visitor to their website with practically ZERO competition.
Created by the Lion Zeal Team