Amazon.com (NASDAQ:AMZN) is about to throw some serious marketing muscle behind its Prime Instant Video service.
The e-tailer just updated its revenue-sharing operating agreement with independent partners such as bloggers and other third-party websites. Under the program, Amazon's so-called associates send potential customers to Amazon via special links, and earn a share of the resulting sales. Depending on the type of product and volume of sales leads involved, the rates generally range from 4% to 8.5%. Some special marketing programs bump up the fees to double-digit rates, but most bloggers will stay in the land of single-digit advertising fees.
So it's a big deal when Amazon suddenly busts out a flat $2 per Prime Video customer referred. For a one-month Prime customer, that would amount to a 25% cut, and a serious incentive to get behind the program. The agreement, which takes effect on July 1, even covers free trials, which works out to an infinite percentage of Amazon's guaranteed sales.
In the video below, Fool contributor Anders Bylund explains how this move lays the groundwork for a serious marketing blitz over the summer. He'll also tell you why the attack doesn't make him lose sleep over his Netflix (NASDAQ:NFLX) holdings.