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Nick Slatt, for The Verge:
For instance, commission rates under the categories home improvement, furniture, lawn and garden, and pet products will see a commission rate of 8 percent per sale drop down to just 3 percent. For headphones, beauty products, and musical instruments, commission rates will go from 6 percent down to 3 percent. Many other categories — including grocery, sports, baby products, and outdoors and tools — are all dropping down to 3 or 1 percent, CNBC reports, from 4 percent or higher
This story seems under covered for how significant it will be to the media industry. Companies like Vox, The New York Times, Buzzfeed, G/O Media, and others have dedicated affiliate advertising teams, all of which predominately rely on Amazon’s affiliate program. Right until the coronavirus hit, affiliate advertising was a growing and increasingly important component of digital media’s business.
As furloughs, pay cuts, and layoffs ripple through the journalism industry, we’ve heard a lot about the collapse of advertising market. Which is true.
But what’s also significant is that the revenue streams that were supposed to reduce these company’s reliance on advertising—like eventsand e-commerce—are also being decimated by the global pandemic.
There’s really no economic bright spots right now for traditional journalism outlets. And its going to get much worse.