You’ve likely heard many times that Amazon founder Jeff Bezos is the richest man in the world. He makes headlines basically every time anything related to rich people makes the news. In this blog, we will cover exactly how much he makes, how he does it and how you actually can make money with Jeff Bezos.
How much does Jeff Bezos make a day?
As of June 2021, Jeff Bezos makes over $330 million per day. That’s roughly:
- $13.75 million per hour
- $230,000 per minute
- $3,819 per second
To put that into perspective, he makes what the average American makes each month in less than two seconds. By the time you’ve read this next sentence, he’s already made another $10,000. It’s mind boggling to visualize that much wealth. Here’s a short video that helps you visualize it further.
His current net worth is over $185 billion and by the time you read this post, it has likely increased. Although we can sit here and idolize how much Bezos makes each day, the real question is how does he make his money?
How does Jeff Bezos make his money?
Jeff Bezos, like most rich people, has made most of his wealth from one source: the company he stated, Amazon.com.
As the founder of Amazon.com, Jeff Bezos started with 100% ownership of his company. Once he got investors for his business, he slowly lost equity. Now, Jeff Bezos only owns 10% of Amazon as of 2021.
Although this might seem bad for losing 90% of his company’s equity, it’s needed for a company to operate at the scale of Amazon. Amazon is worth 1.6 trillion as of June 2021, so owning just 10% of that makes Bezos the richest man in the world today.
So let’s get to the numbers:
- Jeff Bezos’ salary as an Amazon executive is $81,840
- The remainder of his wealth is in his 10.3% stake in Amazon
Jeff Bezos only makes money when the stock of Amazon as a company goes up. If it goes down, he loses money.
Many people think he’s printing money, but the actual truth is that his wealth is tied to how well Amazon performs. If somehow a freak economic event happens where Amazon loses half of its valuation, Jeff Bezos will lose half of his wealth.
Instead of making money the next year, he would have likely lost $100 billion.
Now that we’ve got a solid understanding of how Bezos makes his money, let’s move onto how we can use this knowledge to make you money.
How you can make money from Jeff Bezos
One thing that many people fail to understand is that these ultra rich tech CEOs do not get rich alone. In fact, companies like Amazon, Apple, Microsoft, etc have given birth to literally millions of millionaires.
Let’s take a look at Bezos for example. He has a net worth of roughly $185 billion. People obsess over this number and forget the bigger picture: where’s the rest of Amazon’s wealth?
Where’s the 90% of Amazon? Where’s the $1.4 trillion?
To give a quick answer, that money is held by everyone else who’s invested in Amazon that is not Jeff Bezos. Although he created close to $200 billion for himself, he created over a $1.4 trillion of wealth for other people.
This doesn’t mean investors only. This includes employees, contractors and other people who get paid by Amazon.
Let’s get into the real ways you can start making money with Amazon. This isn’t a get rich quick scheme or something like that. These are real businesses you can start today.
Don’t take my word for it, I’ll give you the numbers behind how much Amazon is paying people for various services.
Sell on Amazon
The first and biggest opportunity to make money with Amazon is to sell products on its platform. Amazon is a trillion dollar company with over a million employees. Even with the manpower Amazon has, it’s almost impossible for them to meet the shopping needs of consumers worldwide.
Amazon currently has 2 million sellers on its platform and these sellers make up more than 50% of all goods sold on Amazon. Amazon sellers generate over $50 billion in sales each year for Amazon.
Here are some more raw numbers on how Amazon sellers perform:
- 85% of Amazon sellers are profitable
- New Amazon sellers (1-2 years) generate up to $42,000 in annual profits
- Over 140,000 sellers make at least $100,000 in revenue each year
- Amazon only has 1% of global retail today, as it increases its market the sales for sellers will also increase
Selling on Amazon gives you access to sell products directly hundreds of millions of Amazon’s customers. You can sell products you get from other sources on Amazon for a profit. Here’s how selling on Amazon works:
- You apply to sell on Amazon first
- Once approved, you find products to sell (Amazon tells you exactly how much a product sells)
- You ship it into an Amazon warehouse
- Amazon ships it to the customer and handles all the customer service and more
In 2018, Amazon reported that over 20,000 people on their platform were making over $1 million in revenue each year. That number has likely increased dramatically since then.
I can make the rest of this blog dedicated to selling on Amazon, but I got to move forward to other opportunities to make money with Amazon. To learn how you can start selling on Amazon, check out this guide here.
Affiliate marketing is another way that many people make money from Amazon. Affiliate marketing is basically referring people to buy a product and you get a commission. For example, you give a link for my blog to a person and they buy a product from me and I’d give you a cut of the overall money.
An example that most people are familiar with is influencers who promote a product. If you’re on a big social media platform, you’ve likely seen your favorite entertainer promoting a product. When you use their code for a product, they get some of the money that you spend on a product.
Since Amazon has literally billions of products, there are endless opportunities to make money with affiliate marketing. The success of your affiliate marketing will depend on a few things:
- How much traffic you can get (views)
- How well you can convert that traffic (clicks and purchases of a product)
There are many ways you can do affiliate marketing, so it’s best to focus on one way and become an expert at it. A few ways you can do it include:
- A blog (like what I’m doing right now)
- YouTube channel
- Instagram page
- TikTok, etc.
If you can build a good audience, you can make a living off selling your own products and promoting other products (affiliate marketing).
Amazon Associates Program:
Amazon Associates is the name of the affiliate marketing program for Amazon. This is how you would get paid by Amazon if you promoted an Amazon product. This is how it works:
- You sign up for the program
- You recommend products to an audience
- You get paid when a sale is made (up to 10% of the sale)
Although this may be small compared to getting most of the profit if you sell the product yourself, affiliate marketers often reach a large audience.
Let’s take my blog for example. I’ve written over 60 blog posts in the last 5 months. In those posts, I help address a problem/question someone has. After providing value for them, I can suggest a product that they can buy. If the reader buys it, I can get a cut.
Once my blog matures, it will likely generate over 50,000 readers per month. Each reader lands on a blog post that has an affiliate link. If just 1% of my audience buys a product that I’m an affiliate for, that’s 500 people each month.
That alone can generate thousands of dollars in passive income each month. The hard part about affiliate marketing is building the audience. Once you have that, you can incorporate affiliate links all over your website.
Check out this blogger who makes $50,000 per month with just affiliate marketing.
The last way you can make a living off of Amazon is publishing. Amazon is the world’s biggest bookstore and it makes sense that it’s also the world’s biggest publisher. Amazon allows you to create books and audiobooks on topics you are knowledgeable in. This is probably one of the best ways to make passive income.
Prior to Amazon, if you wanted to publish content, you’d have to get through a publisher or publishing house. Amazon allows anyone to create any kind of book/audiobook and they take a cut of the revenue.
With Amazon Publishing, you don’t need to be JK Rowling to make money. If you build an audience through a blog, YouTube channel, Twitter, etc., you can create and market a book regardless of length. This is honestly one of the best forms of passive income.
If you create a good book for your audience that addresses a problem they have, that book can make you thousands of dollars each month for years. Of course you will have to build an audience first, but this is just another way to make money with Amazon.
Timelines for success with these programs
Out of the three major ways I listed above, the actual timeline for success will vary greatly depending on your goals. I judge success as you can make a living income off of it (>$4,000/month). Let me give you realistic timeframes for success with each of these programs:
Selling on Amazon (<2 years): Selling on Amazon is probably the most lucrative of the opportunities listed. This is because the barrier to entry is low and the reward is high. If you truly dedicate yourself to learning how to do it, you can easily become successful in less than 2 years.
Many people are able to hit the 6 figure mark in their second year of selling on Amazon. This is assuming you’re learning and putting in the work (shipping products, doing product research, etc).
Affiliate marketing (2-3 years): Affiliate marketing seems the easiest out the ways to make money on Amazon. You’re just basically promoting products right? Wrong. The people who make serious money with affiliate marketing are people who have built audiences on different platforms and have built trust with thousands of people.
Can you succeed in less time? Of course, but this is a more realistic timeframe for the average person who’s getting into affiliate marketing.
Publishing (3-5 years): Publishing requires the most work, but it can be the most lucrative. When people think of real passive income, publishing is what they’re thinking about.
You create a product (book) one time and it can pay you for years to come. While you get paid from the first book, you can create a second book and so on. Over the course of several years, you can build multiple passive income streams from the books published.
I hope you found this post to be valuable. Although we can obsess over how much Bezos and other billionaires make, it has no impact on our lives unless we can use that to our own advantage.
The different ways I listed on how you can make money on Amazon are the few ways you can honestly make a living/build a business with on Amazon. It’s listed on Amazon’s site, you can check it out here.
Although it can be easy to get distracted and overwhelmed, I’d recommend solely focusing on one of these ways while keeping your day job. This can be your side hustle until it becomes a business you run every day.
That’s what I’m doing. I’m a freelance writer by day, but I spend a few hours each day writing blog posts to build an audience and make money with affiliate marketing. I like to share what worked and what didn’t work for me. If you’re interested, you can check out my income report here for last month to see my progress in my business.