Amazon Associates Shuts Down Account Keeps Money

Many who are new or exploring Internet Marketing as a business often get started with Amazon.com as an associate. It makes sense, for publishers who want to get setup quickly, as they have the best set of APIs, tools, and widgets to get started. It is a great way to start monetizing a website that already has traffic. My associates account was opened years ago by me, but was closed a few days ago by Amazon. Here’s what I’ve learned, and you should too.

Amazon Associates Shuts Down Account Keeps Money

First let me say, I am disappointed, but not bitter. If you are looking for anti-Amazon vitriol, or any flavor of vitriol that is just not what we do here. There are products we recommend, and products we don’t recommend, and then there are public service announcements. Consider this a public service announcement. However, I will offer them some free advice in a moment.

Amazon is a great example site, when working with marketing coaching clients who are looking to sell online. I will continue to use them for that as well as some online shopping.

So I logged into my Amazon Associates account, and was greeted with the following message:

Scouring the email address associated with the closed account, I found a message they sent a few days earlier indicating that I was in violation of the terms of the Amazon Associates agreement, and that “account has been closed and you will not receive further payment.”

The email from “Gary – Associates Account Specialist” also included a link to the Amazon associates agreement.

https://affiliate-program.amazon.com/gp/associates/agreement

What Current or Potential Amazon Associates Should Do That I Did Not

Shore Up Weak Points in Your Model. It’s important to consider your business model carefully when starting an Internet marketing project or business. Many have lost their businesses overnight because they relied on one vendor as their sole revenue stream and then a change comes and the relationship is over.

Streams. It is important to have multiple streams of income. The stories of Amazon.com, Ebay, and Google AdSense accounts being banned and decimating home based businesses are heartbreaking an unnecessary.

Know the Issues. Amazon has been in the forefront as they respond to State Tax laws across the nation. Consider this conversation with Shawn Collins regarding successful affiliates being shut down overnight.

So what happened with me? I got lazy.

I didn’t properly study the Amazon associates agreement, nor keep up with the update to the agreement, most recent update being yesterday. Turns out, I was in violation. They closed account with no further payment. End of story.

I’m Not Alone

Doing some cursory research, it seems I’m not alone when it comes to having my account shut down. It has happened to many others, even to more notable marketers like Joel Comm.

What Now?

After finishing this post, I’m going to call Amazon, but I’m not expecting much. They don’t make it easy to reach them by phone (if you have a good number feel free to list it in the comments). It was only several hundred dollars, others have lost a lot more.

So it’s time to move on.

Advice for Amazon?

Some might argue Amazon is out for affiliates and really don’t want them to profit. I disagree. I think Amazon is like a lot of small businesses, having limited resources, and doing what they can to make a profit while scaring people into complying with their agreement by having a “no second chance” enforcement policy.

I’m also aware that this site is just one site. Whose operator is a regular guy from Ohio, managing an online business. Just a mere pittance to Amazon.

However, that said. I would remind Amazon what their associates are, small businesses. Regular people, like Jeff Bezos (ok, so he’s a Billionaire…).

Therefore consider changing their enforcement policy and offer a 10 day window for associates out of compliance to make adjustments to their sites. Better still, would be a phonecall, saying there is a compliance issue, requesting it be changed immediately, etc.

Why this is good for the industry. Amazon is the big kahuna. When government regulators think of affiliate marketing/e-commerce sites, they think of Amazon. With all the potential Internet tax legislation’s looming, it seems to me having a unified front (publishers and advertisers) is a key to victory.

Not only would this new policy be good for affiliates like me, but it would be good for Amazon, building goodwill in the affiliate community and stronger business relationships and alliances with associates.

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Image credit: hans_van_rijnbrk