Too much free business kills business

The US company, which probably owns tens of millions (at least) of affiliate links, has decided that as of March 1, the Associate Program will be evaluated to limit discovery of free books, in English and other languages. An option that will not affect commercial income prior to the date, but will have direct consequences for those the Associates Program does not make eligible for these new terms.

Historically, the Kindle Store has relied on free offers, attracting customers as much as possible: the more customers you attract with free offers, the higher the percentage of buyers. The affiliate network, which is intertwined with the network, has largely relied on this model to discover free e-books.

Building on the strength of this Amazonian marketing approach, website owners started playing it this way: their affiliate links offered free e-books, with the goal of later purchasing digital titles, for which they recoup a percentage of the affiliation. But things will change.

Compression free cost

Any site that accounts for at least 80% of the free digital titles provided by affiliate links attributed to the site and/or if more than 20,000 free e-books, in English or otherwise, are downloaded each month, will be the bottom line. A new policy should affect less than 0.1% of Associates program partners, according to Amazon data.

So the new movement considers it necessary to strive for more immediate profitability: allocating bandwidth to downloading e-books that do not bring anything, it will be enough. After all, Seattle has a monopoly on free campaigns for its Kindle fonts.

This can follow two things. If affiliate links pointing to free content are used as bait to encourage purchases of other products, it’s hard to believe that Amazon is ignoring the consequences of their work. If the free call is now limited, purchases should be affected, and it is impossible for an e-merchant not to be aware of this.

The other point is that the advanced terms — 80% downloads and 20,000 free titles — are hard to parse. If these numbers represent sites or blogs that weigh in at 0.1% of affiliates, what is their weight in terms of bandwidth, for example? Does it ultimately have an effect on the volumes transferred – and by the way, what is the geographical distribution of this 0.1%?

Commercially, we handle the accounts

And the company is clearly reorienting its business approach: after all, it will be necessary to clearly control all its download links, so as not to exceed 80% or 20,000, otherwise all the income for the month will be lost. It is a real frenzy of new profitability that is taking over the company, which, having championed the freedom to sell more, has decided to go short this way.

Because anyway, Amazon wants to improve the percentage of free books downloaded for the number of sales made. Either we’re seeing marketing education for the masses…or the company needs to make more money, and now it’s pulling the rope.

However, in early February, the state of New York sued Amazon for unpaid taxes caused by its affiliate system. In fact, a 2008 New York law would require e-commerce sites to pay an additional tax for this kind of cooperation, which would benefit state coffers: Together, between 2008 and 2012, they paid nearly $360 million for nearly $4 billion in sales, according to US Tax Department estimates…well…

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