How a Small Tech Site Found a New Way for Publishers to Get Paid
Joyce Park stashed this in Tech biz
Affiliate marketing is not exactly new, but The Wirecutter has been doing a fantastic job. What interests me is that they are the OPPOSITE of crowdsourced... and a lot of their articles are soooooo long!!!
Fascinating article. I wonder how much they gross on $150 million in annual transactions.
Lam’s website, the Wirecutter, has become a Consumer Reports for the digital age, albeit with a unique model -- it posts in-depth reviews of gadgets, embeds links to buy them on e-commerce sites like Amazon.com, and takes a cut of the sales. The site has a staff of about 60 and posts only a few dozen articles a month, yet it’s profitable. Last year, the Wirecutter drove $150 million in e-commerce transactions, Lam said.
Amazon says publishers whose links lead readers to buy products get 4 percent to 15 percent of each sale, according to its website. Some publishers, including Vox Media and Gawker Media, use a service called Skimlinks, which connects publishers to more than 20,000 retailers willing to split the sales with them.
$6 - 22.5mm?
Probably closer to $6 million (4%) than $22.5 million (15%). Still good.