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As I mentioned in the January progress report for the ASS site, we developed a keyword research process that focuses on products to ensure we are targeting profitable keywords.
When it comes to making money with Amazon affiliate, finding the right products with the right price is the key to success.
If you promote cheap products, it might help to boost the commission rate since the rate is determined by the number of items sold each month, but your earning will be so small that it can’t recoup the investment.
On the other hand, if the products are too expensive, it might be difficult to hit the next commission rate that can boost your earning further.
The interesting thing is, “cheap” and “expensive” are only relative to each person’s perception. Just because a product appears to be expensive to me does not necessarily mean it will be expensive to someone else.
I personally have experimented with both very cheap and very expensive products and I must say it is a good mix of both, but the focus should always be on profitability.
Let’s say each article costs $20 to produce and let’s also assume we can hit 6% commision each month by selling 30 products.
This means we need to sell about $333 worth of products ( 6% of $333 is about $20).
If we promote $10 products then we will need to sell about 33 units, whereas if we promote $100 products that number drops to 4 units.
There are also other considerations such as complementary products. For example, if someone is buying a drill, he/she might also buy drill accessories. This could substantially boost the number of products sold. So it is important to consider what products you could target when finding a niche market.
What is our approach to find profitable product keywords?
- Find products that are selling well on Amazon at above certain price points.
- Carry out keyword research to find keywords that are relevant to these products
- Use Keyword Difficulty Checker to find the low competition keywords