Amazon is tapping into a key contemporary marketing strategy by recruiting influencers with smaller followings into its affiliate program.
According to AdNews, the e-tailer is shifting its focus from working with big names – Mark Cuban and Gillian Michaels (as referenced by AdNews) – to micro-influencers with followings of around 800 to the mid thousands.
Influencers are recruited into Amazon's affiliate program to recommend products and write reviews. They are then paid a percentage of the sale based on a fixed commission model. AdNews reports that, "Amazon's owned and operated fashion line tops the list of highest commission with influencers able to earn 10% of the sale."
Another area where influencers can earn a flat fee is via the promotion of services such as Amazon Prime and Amazon Music, whereby they include a button that clicks through to the subscription page. Inc. writes that this approach "neatly sidesteps" a big problem within influencer marketing strategies – fake followers. Rather than pay an influencer to deliver a message, they're required to bring in actual paying customers through subscriptions to Amazon's services. Only then do they get the commission.
According to documents acquired by Business Insider, influencers can earn between $US15 and US$3 depending on the service promoted.