There are 2 kinds of people making $1,000’s a day with ClickBank.
1. The Super Affiliate. This person really knows there stuff. They understand they need to drive a lot of traffic to a specific landing page that has been written to convert. They may spend $100’s of dollars a day on Pay Per Click Advertising, or they may have a large list of subscribers that they mail to, or they may have a ton of traffic to their existing websites. Most likely that are doing a combination of all three methods.
2. The Affiliate Program Owner. These are the people that create the product to sell on ClickBank then recruit affiliate marketers to sell their products for them.
Can you be a Super Affiliate or create your own product? If you can you can really make money with Clickbank.
Lets Talk Money and How You Get Paid by ClickBank
Most of this information comes directly from ClickBank and you should take the time to read their help files. But for your convenience I’m going to sort out the important facts for you.
Most New Affiliate Marketers get in such a rush to promote ClickBank programs they don’t take the time to read their “fine print”. This is a huge mistake and could really cost you! You must understand the payment process.
How Commissions Are Calculated and Reported
Every ClickBank product has a commission rate that is set by the vendor, ranging from 1% to 75%. When you drive a sale to that product, ClickBank processes the sale, applies its charges, then calculates the commission rate based on the remaining net sale amount. Here’s an example of how much you’ll earn on a one-time purchase product with a 55% commission rate:
Retail Price: $29.95
Subtract 7.5% + $1: -$3.25
Net Sale Amount: $26.70
55% of Remainder: $14.69
Therefore, as the referring affiliate for this sale, you would earn $14.69.
The maximum commission you can earn on a single sale is $150.
Getting Paid by Clickbank
Obviously, the goal of being an affiliate is to get paid for your efforts. To receive your first commission payment, there are two requirements:
1. You must reach your Payment Threshold:
The “Payment Threshold” is a predetermined minimum amount of money you must have in your account before we cut you a check. You may select an amount from $10 to $100,000 as your Payment Threshold amount. The default setting is $100. We hold your payment until your payable balance reaches this amount. A $2.50 pay period processing charge is deducted from each payment we issue. To change your Payment Threshold, login to your account and select the “Account Settings” tab. Click “Edit” to the right of the “Payment Information” section. Select the “Payment Threshold” of your choice, and click the “Save Changes” button.
2.You must meet the Customer Distribution Requirement:
ClickBank will withhold payment of any account balance until the following criteria is met:
- Sales made with 5 or more different credit card numbers; and,
- Sales made with two different payment methods (either Visa, MasterCard, or PayPal).
Note: PayPal purchases do not count toward the minimum 5 different credit card numbers.
This requirement is in place to help prevent Affiliates from abusing the ClickBank Affiliate program by using their accounts for the sole purpose of fraudulently collecting rebates and/or discounts on their own purchases.
Once you have met the Customer Distribution Requirement, your account will begin issuing payments normally, in accordance with our Accounting Policy, beginning on the next payment issuing date.
Now Here is Where ClickBank Really Sticks it to the Average Affiliate Marketer
Accounts with a positive balance but no earnings for an extended period of time are considered dormant. Dormant accounts are subject to a charge of $1 per pay period after 90 days of no earnings, $5 per pay period after 180 days of no earnings, and $15 per pay period after 365 days of no earnings.
Refunds and Chargebacks
One question you may have is whether you will still receive your affiliate commission if the product is returned or if the customer requests a chargeback on the purchase. Unfortunately, the answer is no. All money is returned to the customer, so the vendor and affiliate must return their portions of the sale as well.
Because of the 60-day return period for all ClickBank products, we utilize a return allowance to cover the possibility of returns.
So Can You Make Money With ClickBank?
Maybe! But you really need to be aware of these rules. Unfortunately the average guy will only make a couple of sales and never be paid. If you are going to promote ClickBank products you’ll need to do PPC or have a pretty steady stream of targeted traffic. If your site gets less than 200 unique visitors a day I wouldn’t do ClickBank. Instead focus on other affiliate products and Adsense. Then as you build your traffic you can introduce ClickBank to your visitors.
Remember this simple fact (And forget about the Hype you read from people claiming to make $1,000’s a day)… conversion ratios matter!
If you have 200 visitors and a 5% click through rate you’ll have 10 hops a day! On an average site it is not uncommon to have an actual conversion ratio of 1 in 500. This does not mean that for every 500 visitors you make a sell, it means for every 500 visitors that actually click on your Clickbank link you’ll make a sell. So the real numbers look like this:
200 x 5% = 10 click throughs to your Click Bank Hop a day
1 sale per 500 visitors = 1 sale every 50 days!
Crazy eh? You bet it is and if you are doing one sale every 50 days it’s going to take you a while to get your first check! These are real numbers folks! Some people do better of course can’t even do this well. It’s all about traffic and conversions.
Lets take a better case example. Lets say you have 500 vistors a day at 5% click through and a conversion rate of 1 in 200.
500 x 5% = 25 click throughs to your Click Bank Hop a day
1 sale per 200 visitors = 1 sale every 8 days!
Much much better, but can you live on a single sale once per week? This is the reality of selling ClickBank products. You need traffic and you need conversions. This is why so many new marketers get frustrated. They confuse visitors with conversions. It works like this:
Someone visits your site>They read your pitch and decide to click or leave>If they click they read the pitch on the Affiliate Site then stay or leave>If they stay they click the buy button>Do they stay or leave?
Selling is a process and buyers are always reluctant to pull the trigger. Most people drop out at the shopping cart. This is fact!