According to mThink.com, Amazon ranks at number 3 in
affiliate programs, while Ebay ranks at number 5. Amazon’s affiliate program utilizes
its large customer base to advertise for them. With millions of users making
purchases on Amazon regularly, advertising for them should be quite simple. So
how does it work? Amazon gives you the option to attach an amazon link to your
company, blog, etc. in order to promote their company and earn a percentage of
their product earnings. The more products that are purchased from Amazon
through your link, the more money you will acquire. This is a benefit to customers as well as Amazon. Both can earn money through assisting each other.
However, due to new tax laws in states such as Illinois, Arkansas, Colorado, Rhode Island, and more, Amazon has begun to retract their affiliate program. These tax laws require Amazon to pay taxes on sales through affiliate advertising. Thus, Amazon has to pay state taxes in states that their company does not physically reside in. Therefore, Amazon has made plans to soon terminate the program, for the revenue benefits will dramatically decrease due to the tax laws.
In contrast, Ebay's affiliate program does not seem to be facing the same challenges that Amazon is facing. In the same manner, one may become an Ebay affiliate by simply signing up on the website and agreeing to the terms and conditions. Once an affiliate, the more traffic one sends to Ebay's website, the more compensation the affiliate will receive. People may earn up to high percentages of revenues depending on the amount of traffic and number of new customers that they send to Ebay. Some people have done very well utilizing this program. Ebay as well as Amazon supplies all the tools on their websites to connect one's page with their company site. Social media platforms may be used as well as any other personal site.
However, the major benefit to becoming an affiliate on Ebay rather than Amazon is the commission possibilities. The products often on Amazon are typically lower priced items, thus the commissions for affiliates are smaller. Amazon's higher priced items are typically collector's items, which have a much smaller buyer market. Therefore, acquiring large sums of money on Amazon is more difficult. On Ebay, numerous cars are sold that encourage exceedingly higher commissions. Cars have a much larger target market and are sold often on Ebay. Thus, imagine a 75% commission on a $10,000 car? The program could indeed make you rich.
