Today I received a question from a gentleman who is interested in following the Squidoo Christmas Cash blueprint, but is a little confused about a physical product that gives a decent commission.

From my limited experience so far, Amazon only offer low commissions. So how does this work?

It’s a valid question ~ because Amazon does offer a fairly low commission when you compare it to ebooks at clickbank.  However, there are some tricks to increase your commission per sale even at Amazon.

The quickest way you can do this is to choose products with a higher price point. Your commission rate may stay the same but you make more money with each sale.

Here’s an example:

You have a fisher price toy that sells for $30. If you are in the 4% commission tier you are going to make $1.24 commission on each sale you make of that product.

Now if you chose a product that say is $400, even if you stay at the 4% commission rate your commission on each sale would be $16.

Now $16 dollars may not seem like much commission to you, but since you are using such tightly niched keywords, you are catching people when they are ready to buy you’re conversion should be pretty good.

PLUS ~ It’s Christmas time, people are looking to buy ~ and they have to do it BEFORE December 25th. This time pressure will have good effects on your sales.

Now with that in mind let’s look at the other thing that happens to your commission at Amazon.

When you sell 1-6 items at Amazon (per month) you get the 4% commission rate.

When you sell 7-30 items in a month you jump to a 6% commission rate. What’s nice about this is not only do the 7-30 items pay you ate the 6% but also the 1-6 items as well. Everything jumps up to the new rate.

From 31- 110 products it jumps to 6.5% ~ and so on. You can see the whole chart and how the pricing works here.

You can immediately give yourself a raise by selling more items.

This is easily done by creating MORE lenses ~ the more things you have out there the more sales you’re going to have the possibility of making.

I have some lenses out there that don’t make anything. Yep ~ it’s true, and people ask me this ALL the time.

Do all your lenses make money?

And the answer is NO.  My first lenses made nothing. Now that I know what I’m doing (remember there was no Squidoo Queen, One Week Marketing or Squidoo Christmas Cash ebooks out there when I started lol) more of my lenses make money ~ but still not all of them.

If I had quit making lenses after the first 5 didn’t do anything ~ then the first 10 I’d still be sitting at my old J-O-B twiddling my thumbs probably being really pissed off most days.

Ok ~ getting way off topic here.

The key to getting a decent commission at Amazon is

1. Pick products with a high price point. I just sold a product that cost $352.99 and received over a $20 commission. That’s nothing to sneeze at for a lens that has been up and working for me for over a year now.  I haven’t touched it, in fact, I haven’t even looked at it since last November.

2. Sell more products. The more you sell at amazon the higher your commission rate goes, and the more money you make.

It is completely possible to make decent if not great money at Amazon ~ especially during the Christmas season. But don’t forget once you’ve made all these lenses they don’t just quit working after Christmas ~ they’re still there, working for you throughout the year. (You may want to go in and take out the Christmas references) but they work all year long.

4% of a $1000 is $40. If you sell 7 of them you just bumped your commission up to $60 for all 7 of them. That amounts to $420 ~ for one product. Now what if you had 10 different products doing that? That gives you 70 sales which bumps you to the next level which means you just made $4500 this month.

That’s very doable ~ you just have to do it, and it all starts with completing your first lens ~ so go out there and get one done today. (Feel free to come by and leave a comment when you get it done)

And as always ~ if you still need a little one on one help ~ I’m here for you.

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