About a month ago I made my first sale and first post about my Amazon Affiliate Website Experiment.
If you’ve been following my blog for a while now you’d know I do a ton of mini experiments to keep ‘in the know of things’ and also to provide interesting content to read on my blog.
An Amazon Affiliate Website is nothing new. It’s actually one of the oldest online money making website ideas in the book along side adsense ads.
In this post I’m going to go through some of the stats, planning and actual work that went into getting it to the state it is now.
Why An Amazon Affiliate Website?
Because they still work!
From nichepie’s $40k in monthly earnings within 8 months to thisiswhyimbroke probably also doing around $40-$60k+ in profit per month, how can you not take this seriously?
Amazon Sites are one of the best hands off business models in the game.
No inventory, no shipping, no customer service, you can even outsource the article writing and SEO!
Which means that I can literally just monitor the profit loss on a daily basis and things would keep running as long as systems are in place.
This is why building an Amazon Affiliate Website became something I wanted to experiment with.
I’ve also been able to see things the average Amazon Affiliate wouldn’t. Because I’ve been exposed to a ton of different ecom businesses so it’s interesting to see which elements can be used to expand and scale other businesses.
For example, many people think Amazon Affiliate Websites are great because there’s a lot of trust when people want to buy products and you direct them to Amazon. Which is why they seem to convert great.
Amazon has been around for years and is by far, the biggest online store in the world so why would people trust your brand new, half baked store when they can just buy from Amazon? Wouldn’t they have trust issues with a site they’ve never heard of?
True and not true.
True enough to have an effect, not true enough to make a big difference.
My idea with my Amazon Affiliate sites are to eventually turn them into Dropshipping Shopify Stores.
And I know from my Dropshipping experience that people hardly care about where they’re buying something from as long as the site looks legit, has the necessary policies in place, most likely they’ll convert.
I’ve spent $5 on FaceBook to get $500 in sales on a store I put almost 0 effort into looking good.
If people want something and it’s in front of them, they’ll buy it.
And so instead of getting just 5% commission on your sales, you can actually build a shopify store, direct people from your Amazon Affiliate Site to it and add your markup on Amazon products which you can then use as your fulfilment/supplier!
Imagine selling a $50 drone from Amazon for $70 on your Shopify store. Instead of just getting 5% which is $2.50, you’re getting a whole $20! You now have a big enough profit margin to start seriously running FaceBook and Google paid traffic. Something you can’t do with just $2-$5 profit products.
Amazon Affiliate Website Update and Stats
Alright, let’s get to the statistics.
Around 5 weeks ago I got my first sale., (26th December),
That month I ended on $53.88
More stats for the guys that like numbers,
Had some high revenue days which was pretty cool! Maybe because it was Christmas, people were just in the buying mood?
Anyway, this month so far in Jan, (Jan 1st – Jan 29th), we have,
Which is actually quite low compared to barely a weeks stats in December but then again if you consider everyone was in spending mood then maybe it makes sense.
But the crazy thing is that’s almost $2.5k in sales revenue! That’s a lot and has got me thinking of ways to claim more of that then just the 5%.
So all up, till date, we’ve done the following,
So 31 items shipped and $126.85 earned. Not bad for barely 2 months of work which has been over 90% outsourced.
But making just $126.85 from 31 orders is crazy low.
Again, if I could turn this into a drop shipping store and add an average $15 markup on these I would have got about $500 in profit instead of just $126 but we’ll have to see how that goes once I implement it.
What’s the Potential of this Amazon Affiliate Website and the Niche?
I’ve learned to go after big niches so I’ve gone with drones as my first Amazon Niche site.
It’s a fairly new industry in the sense that it’s only recently they’ve become so popular.
I actually went to the beach for the new year and could see at least 8 drones in the sky taking videos and pictures of the fire works. One year ago I had seen none.
Not only is it new but it’s become a pretty big hobby and people are still only just finding out more and more uses for them.
From doing regular farm crop checks to drone racing to wedding photography, drones are becoming quite widely used.
And for every big piece of technology there’s a tipping point where once a certain % of the population starts to use/talk about them, it becomes ‘popular’ and sales start to flood in.
This gives me plenty of room to go after 100s of keywords,
- Best drones for wedding photography
- Best drones for kids
- Best drones for teenagers
- Best drones for….
- This drone vs that drone
I can literally write 1,000 articles about the subject and still have 1,000’s of more keywords I can target.
I think the potential for this particular Amazon Affiliate Site is huge.
Not to mention that drones range from $50 all the way up to $5,000!
What’s 5% of $5,000? $25o! Imagine selling 10-20 of those per month $$
I’ve also learned that most people that make a lot of money do so by selling high volumes of high ticket items. It makes sense.
Instead of selling $5 eBooks, why not become a master in your field and sell premium courses for $1,995 a pop?
Even if you get 200 sales on your eBook, just 1 or 2 sales to your premium course will far outweigh this initial sale.
But if you sell 5-10 of these per month well damn..
My Amazon Affiliate Site Traffic Strategy
Here’s a snapshot of my traffic for the last 30 days,
Now I have to admit, I hate writing articles about things I’m not interested in. Drones are interesting, but it’s not a hobby I’m into so am I writing my own articles? Heck no.
I also hate SEO. I find it’s mundane and I have 0 love for the art. I understand it’s value but it’s just not a part of the online industry I’m into.
Just not my thing.
So I’ve focussed on outsourcing the two and I’ve added video content which I’ve also outsourced.
I’ve got a full time article writer that does 3,000+ words on the topic I give him.
An SEO team that make sure each article has the necessary on page SEO parameters in check, do some backlinking and plan my SEO strategy moving forward.
A Youtube Video creator to make videos of my content for each article.
Why the videos? Because incorporating a 2-5 minute Video into your article about that specific topic does wonders for the SEO quality of that page.
More advertising opportunities for Google? Ofcourse they’re going to love it and rank it higher.
Not to mention the traffic I’m generating from Youtube along which is actually quite significant in comparison to the other traffic sources.
I’ve also been recently incorporating some basic Google Ads at around $5/day which is paying for itself with sales.
So with all these points in place, I believe the site should increase in traffic quite significantly over the next couple of months.
Amazon Affiliate Websites or any website you’re attempting to rank for that matter usually takes some time to increase in ranking in Search Engines.
It’s more of a long term thing and something you have to exercise patience for so I’m going to trust the process and just keep doing the above things till I start to see more progress.
Make sure with any website you start whether it’s an Amazon site or just a personal blog, you have an idea of how you’re going to generate traffic to it.
One of the biggest mistakes I see people making is building a website and just letting it sit there while consistently blogging. Sure, you’l start to get traffic eventually but it’ll take a real long time!
This blog for example started with me just recording my adventures and pointing people to it every time they asked me what I do for a living.
I’d also comment on many affiliate marketing forums, (like digital point, warriorforum etc), with a link to my blog in my signature which would get me loads of daily traffic.
Although this wasn’t as much as it is now, it was still enough to get that initial following and build my email list to something I could work with.
So having a Traffic strategy of some sort is extremely important. No point writing 1000’s of articles if no ones going to see it.
How to Choose a Niche for an Amazon Affiliate Website
Honestly, I didn’t do much research for this website idea. I just quickly checked Google keyword planner to see if it had a healthy monthly traffic search volume, which it did and went straight into building the site and cranking out articles.
I’ve noticed that with a lot of online ventures, we get so stuck into researching things it hinders us from taking action.
On top of that, a lot of my success has come from things that I never thought would work but they just end up working.
Think viral videos. There’s no way you can reverse engineer the exact reason why things become viral. There’s too much variation.
From a guy in Turkey that Salts Meat, (Salt BAE), to a Dead Gorilla, (Harambe), certain things just take off and people will make them worldwide famous.
So choosing a niche for an Amazon Affiliate Website really just came down to a few of things,
- Good monthly volume for some of your core keywords, (in the 1000’s), eg,
- Best Fridges 2017
- Best Small Fridges
- Best Fridges for Singles
- Top Fridges for Summer
- An industry that is going to grow, (more traffic = more money).
- A niche that has a lot of mini keywords or long tail keywords you can go for.
- Something you or your article writer is interested in writing about.
That’s it really.
In terms of competition, I see it as being quite healthy. Competition means there’s a lot of demand for the product which means even if you get a small slice of the pie, there’s still big money to be made.
Think of food joints. Here in Australia, there’s always a McDonalds, Red Rooster, KFC and Hungry Jacks within 2km of each other.
Imagine if KFC said, ‘Nah, we’re not opening there because McDonalds is already there’. They know that McDonalds attracts traffic and even if they get a smaller part of the traffic, it’s still profitable for them.
Go to any shopping centre, you’ll notice all the food places are clustered in the same area for the exact same reasons as the above!
Long Term Strategy for the Amazon Niche Site
Now doing the above work is very expensive if you want to outsource it. Let’s do the math just to show you how much I’ve spent.
$50 for each article + video, (I have 10 so far) = $500
$300/m for my SEO team = $450 spent so far.
$5/day with google, it’s been about 2 weeks = $70
So all up about $1,000 spent
Which puts me in the negative for this project so far.
BUT, here’s why I’m spending the money.
- Although the expenses will stay at around $600-800 a month depending on how many articles I choose to publish, the revenue will increase. There will be a point where the revenue will outgrow the costs. Remember, this is a game of patience.
- It’s an experiment and although I could have spent hours and hours doing all this work myself and save $1,000, it’s allowed me to just outsource it and get things moving forward while still running a ton of my other businesses. There’s only so many hours in the day
- One of the biggest reasons of doing this is that I frequently check up on a website auctioning platform called flippa.com. I’ve seen niche sites go for 30-50 monthly revenue. So my site right now is worth around $2k+! If I sell it, I’ll be in profit.
The long term strategy of any website or business for that matter is usually to cash out on an exit plan. This is something people don’t really think of.
Most of us here when thinking online business want to earn $x amount per month. Which is a good thing to aim for but once you’ve learned the lessons from this particular business and it’s been 3 years on, why not sell it for 30-50x monthly profit/revenue and start on a new project?
It’s like getting sick of your job after 2 years and wanting a change. Even if the money is great, having a job that stagnates your learning can be frustrating.
So my plans have always been to grow a certain project to a point where I can sell it for $x amount. It’s called an exit plan and is what investors look for before investing in your company.
So let’s take this Amazon Affiliate Website for example.
Say I grow it to $4,000 per month. That’s pretty cool but is still my side business. It will still be in the experiment zone so I wouldn’t mind selling it.
Imagine I sell it for 35x monthly revenue = almost $150k!
Now I have around $110 cold hard cash with me, (if you minus taxes), to restart on another project. I can probably build another 10 of these niche sites with this money.
Imagine I build about 10 more niche sites, wait 3 years and again cash out….you get me?
An exit plan should never be underestimated and if you’re an entrepreneur that likes to create things and experiment with new businesses, having a sudden cash injection can get you excited again and motivated to start and build a completely new project.
Anyway, again, it’s all just planning for now, gotta wait to see what happens after about 6 months.
I’ve also briefly mentioned turning this site into a drop shipping site.
For those that aren’t familiar with drop shipping, it’s basically selling something on your store but fulfilling it from another store.
So if I sell a $100 drone on my site, I’ll just go over to amazon.com and buy the drone from there for $60. I made a profit of $40.
I haven’t seen many people do this so I’m going to try it out. I can see this getting to the point it’s doing around $50k in sales revenue from Amazon which means about $2,5o0/month profit which is nothing compared to the sales revenue.
If I can convert it to a drop shipping site I can get about $8k of that per month.
And now if I go to sell it, 35 x $8k = around $300k!
So we’ll see how this goes, it will be an interesting experiment none the less.
How You can Build Your Own Amazon Niche Website
For those that want to get started doing the same thing keep this in mind.
- It takes about 2 hours to write each article, (3,000+ words),
- About an hour a day to spend time building backlinks, probably more at the start
- About an hour to make a 3-5 minute video for it, (this is optional).
- About 3 hours to set up a simple wordpress blog and install some helpful plug ins.
- Best to publish about 2-4 articles per week consistently.
So you can see if you were to do this all yourself, it would take quite a lot of time which is why I outsource it.
I’ve seen people just write a handful of articles and work their butt off to get quality backlinks and rank the specific articles real high.
But I’m a quantity guy so my style is more of just pumping out articles after articles and seeing what happens. If any of those pick up I’ll focus on making them ranking higher but I don’t like putting all my eggs in one basket.
One thing I know for sure is that Amazon Niche Sites are one of the best almost free methods to make a highly profitable side income if you can put in the work.
What I mentioned above is for optimal results.
But you can probably do half of that or even a quarter and still see a healthy income stream the most important thing is to be consistent and follow through for at least 6-12 months.
Worst case scenario, you’ll be making around $3-$500 per month in which case you can just sell it for about $15k.
Anyway if this project ends up at the very least, paying for itself on a monthly basis I’m going to start another 5 Amazon Affiliate Websites. Mostly for the exit plan mentioned above.
After 2-3 years they could prove to be big cash cows I can just cash in at any time. Not to mention the healthy monthly income that comes with it.
eCommerce is so big it’s kind of fun experimenting with different systems that seem to work.
From selling products through FB paid advertising, through free platforms like eBay or Amazon to paying for influencers shoutouts, there’s so many experiments being done on ecomuniverse and success being found.
It’s just motivated me to keep trying different things.
If you’re new to the whole ecommerce industry it’s probably best you just pick something you enjoy and jump right in. I’ve probably worked on about 50 different ideas and succeeded in just a handful but I’ve been able to learn from each and every attempt which is what allows me to see opportunities now and spend money on outsourcing because I know there’s a return in it somewhere down the line.
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