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

Dormant Accounts

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!

Let me clarify that what I am about to present to you is not about ranking your site, or your Home Page. It’s about Ranking Your Specific Long Tail Keyword Phrases… these are your money phrases, the phrases that people use once they have narrowed down their search – the Keyword Phrases that MAKE MONEY!

The first thing you MUST understand if you want to Rank Well for a Long Tail Keyword Search Phrase

PageRank is not SiteRank – Pages rank on their own for specific search phrases. You can not rank a single page for every phrase you want to rank. While you want a diverse incoming link base, you want those incoming links to be tied to specific anchor text phrases and to specific pages.

Too often people who do not understand this principal go out and just get as many links as they can and actually do themselves irreversible harm! They create untargeted incoming links that just confuse Google.

The result is non targeted keywords hurt Your Rankings. People waste way too much time trying to rank their Home Page for a ridiculously large set of keyword phrases. They lose site of the highly profitable Long Tail Keyword Phrases.

A well crafted page that is optimized for a Long Tail Keyword Phrase can outrank even high authority sites! Why? Because Google rewards information that is targeted to the search phrase over authority… they want to provide the “Best Match” for the search. This is great news for the Internet Marketer – it’s the loophole smart Internet Marketers leverage to make big profits.

Let Me Give You an Example:

Today I am researching a specific niche in Google in the Automotive Industry… a 3 word phrase “Keyword 1 Keyword 2 Keyword 3″

Here are the particulars:

• Google Local Volume: 22,000
• Anchor Text with Phrase: 770
• Competition: 137,000 *

* This is not really competition; rather the number of times this phrase appears on other pages in Google’s Index.

Google Page 1 results for this Targeted Keyword Phrase:

#1 PR 0 – that’s right ZERO!
#2 Site has a PR of 4
#3 is also Zero!
#4 is PR 3.

What does that tell you about the PR as a ranking indicator? Answer: It is not! You rank for the phrase and the page content NOT the site!

Why does this PR ZERO Page using this Targeted Keyword Phrase Rank so High?

• The #1 Site contains the EXACT keyword Phrase in both the Title and the URL and has a nice distribution in their body text.

• The URL does NOT point to the Home Page, rather a highly targeted content page directly related to the search.

More Analysis:

I placed the High Ranking URL in SEO Elite so I could examine the linking structure and anchor text. The results are as follows:

Incoming text links:

• PR 4 – 1
• PR 3 – 1
• PR 2 – 4
• PR 1 – 4
• All other incoming links show no PR!

Only 19 incoming links total! All .com’s no edu, no .gov, no .net – Okay we all know that Google doesn’t like to show us the full results so one could infer there are additional incoming links… but the trend for low PR sites in this case is evident.

Age of the Sites Linking in:

The majority of incoming links are from sites created between 2004-2008

Authority Directories

Not listed in Yahoo, Wikipedia, or DMOZ

Anchor Text Analysis

Anchor Text from incoming links is split almost equally between the 3 keywords.

Cross Linking

This site cross links extensively between other company owned sites using specific targeted keyword phrases. Because the links are relevant it appears to be helping not hurting. So much for cross linking penalties! You should infer that it’s okay as long as the links are relevant. This is a sticky issue, but all you can do is test it for yourself.

Domain Age

This site was registered in 1998

Conclusion:

While you can not draw specific conclusions from a single Case Study with a single keyword phrase you can infer the following (I see these trends over and over as I do keyword research).

• PR does NOT matter for Long Tail keywords… get over it, forget about it, and move on. I do not believe it matters for any ranking. It’s just an indicator like a thermometer that says… yes we know about you and think your site is just nifty. Google is not publishing information to the general public in their PR indicator that really makes any difference to you.

• Keyword Anchor Text is CRITICAL. Do NOT mix up you keyword anchor text when commenting, posting to forums, etc. You want aneven distribution of your keywords… there are plenty of scrape sites and other sites you can not control who will mess this up for you. If you are targeting “Safe Baby Toys” the most variation you create for your own links would be to rearrange the words like this: “Baby Toys that are Safe”, “Safe Baby Toys”, “Safe for Baby Toys”… filler words like the, and or etc. don’t matter.

• The Age of your site absolutely matters. The older the better. Not much you can do about this. This is the reward for being an established business. If you have a great idea, buy the domain now, put up a little content and let it settle in. You’ll need it later.

• Use your keyword phrase in your Title in Exact Form. Put it in your URL and include it in your body text. I see this over and over in top ranking results.

• You should target your incoming links for each specific phrase to the page with the content, not your Home Page (Unless your Home Page is the target destination for the Long Tail Keyword Phrase).

FYI: The PR 4 site that ranks #2 has 50 “Dot Com’s” linking back to it from PR 1-6 sites and it’s getting beat! It does not contain the same high quality targeted anchor text link structure. It just has a lot more authority.

So if you are focusing on long tail you now know what to do! You still want high quality authority links… but you want to focus on your keyword phrase and anchor text. A high authority site will always outrank you all things being equal, but if you do your homework you can move to the top with Long Tail Keyword Phrases!

Good luck.

PS: If you have high authority and targeted Long Trail you can really cash in. You’ll get there, but focus on these principals, and make money now while you grow!

Software used: SEO Elite, Keyword Research Pro, Aaron Walls Free FireFox SEO Plugin

© Internet Marketing IQ – Republish on your own site approved only with a return link.

Matching your Affiliate Product Link to your Article Seems simple, but it’s often overlooked. The most proven and effective marketing strategy is to place your affiliate links in context with the theme of your site. If your site is about Baseball History it makes sense that you have collector memorabilia on your site. Don’t just throw up links about Baseball; target the location based on the context of the page. A page about Baseball Cards should have links to card dealers. A page about Baseball Uniforms to Uniform Auctions. The point is make the article fit the product you want to sell. There is no point in having mismatched links, or writing about a product in which you can not place links. Are you marketing or just writing?

Put your Links where they will be Clicked

Don’t hide your links; don’t make your visitors look for them. Blue is the most recognizable linking color because it’s what people expect to find. Don’t reinvent the wheel. If blue looks awful on your site design then don’t use it; otherwise blue is the rule.

Savvy Internet Marketers understand product placement is essential to generating sales. The key is to organize your affiliate links on your site in a way that is natural and accessible to your target audience. You want Your Visitors to become Your Customers. Again make it easy – affiliate links are an integral part of your site, and you want them not only to click on the links, but also to take ACTION after the click.

First Impressions and Advertisement Placement

Placement strategies based on “Heat Maps” (Studies done to see where people most commonly look when they first visit a website) are valuable only for first impressions. If your site doesn’t make a good first impression then you had better place your links in the most common places.

Upper left (Where the average person expects to find a Navigation Menu), Upper Center (Where they expect to read the first headline) and directly after the conclusion of your article in the center. If your site makes a good first impression, and the visitor stays around to read then your best bet is to place your affiliate links within the context of articles.

Banner Blindness

I can tell you from experience that people become “Banner Blind” (They expect certain locations to contain ads so they are “programmed” to ignore them). If a banner area is dead then its time to take corrective action. Don’t put a banner up just because it fits a space. A dead banner is a dead banner. The Internet is not new folks, most people have some experience and most people know a banner when they see them. On the flip side if your site is extremely targeted to a specific product niche; common banner areas can work. Because people know what to expect and if the ad meets their expectations they will use it.

Use Text for Higher ROI (Return on Investment)

Whenever possible incorporate TEXT (Yes Plain Old TEXT) into your linking strategy as much as possible. People that are annoyed by banners will not be annoyed by properly placed text links because you are giving them the option to click without interrupting the flow or look of your site. Do it right and you create enormous value for your visitors.

Overuse of Advertisements

Never overwhelm your visitor by placing links all over the page just because there is available space. Much like a book the “White Space” can make or break the visitors opinion of your site. If your site looks like a bunch of unreadable glare your visitor will simply leave. Give your visitors a reason to stay and read your offers.

Open your Links in a New Window

Make sure your Affiliate Links open in a new Browser window! If you are going to send people away from your site to investigate an affiliate offer you’ll have a better chance of them returning if the existing window doesn’t close behind them.

Most (but not all) affiliate code allows for the link to open in a new window. If not you can often use the target=” _blank” command in your Affiliate URL (avoid target=” _new” – it behaves differently; just trust me here explaining it in this context is irrelevant). Don’t just use the Affiliate companies default link as it is almost always set to close your site!

Overview – Outline: Affiliate Marketing Business Model

1. Ideas and Brainstorming – You have to come up with an idea for a product or service to sell. Think about products you use in your everyday life, think about products you WANT, think about the things you have purchased for yourself, friends, and family. Pick products and services you know about and/or are interested in; this makes your time spent marketing more enjoyable and helps you sell.

2. Market Research – Does your idea for a product or service have a market? You MUST MUST MUST know if a viable market exists or you are totally wasting your time.  People who rely on luck nearly always lose!

Do not build a site then try to figure out how to get people to come to your site with the hope they will buy something.  Make sure you have a viable product or service to offer first.  And don’t guess… do your research. You want to make money right?

* Keyword Research – What words and phrases are used to find your product or service? I write about tools used to find these keywords on other parts of the Internet Marketing IQ site. What is important here is that you take the time to see how people are finding what they are looking to purchase.

* Affiliate Research – Are there companies willing to pay you to sell these products and services (You’ll be joining these programs AFTER you have your site working properly)? An Affiliate Marketer works on commission so you must select industries with companies willing to pay you.

* Competition Research – Who else is selling in your niche market? How many websites already exist selling what you want to sell? Are they huge companies or mom and pop operations? Don’t be discouraged by competition – you need it; it shows there is a viable market. But don’t think you can just step right in and knock the big boys out of the top spots either. Make sure you know your competition so you can develop a realistic marketing plan.

* Legal Research – Is there any liability to sell in the marketplace? Don’t pick a Market that is “sketchy”. You might find online gambling, pornography, and pharmaceuticals look profitable, but it could come back to bite you.

3. Internet Access and Computer - High Speed Internet Access is mandatory you must budget for it in advance. You’ll also need a computer  – Mac’s and PC’s are both great, except you’ll find many more customized programs for the PC. Some very valuable marketing software will only run on a PC.

4. Site Creation Software – (Choose BEFORE you select Web Hosting service to be sure your selected host will support your needs. My preference is for WordPress because it’s free, powerful, and easy to learn. I would NOT recommend using a FREE host like Blogger or WordPress.com because you do not control your destiny.  At any moment your account could be deleted and all your work gone! What do you do then? Own your destiny!

5. Site Optimization and Copywriting Skills - Your site needs to have Headlines and text that BOTH sells and allows search engines to find you.  This is exclusive of other Search Engine Optimization methods which are external to your site.  You’ll need to learn those as you build  your business. There are some very powerful WordPress Plugins (Many of them free) to help you accomplish SEO.

6. Affiliate Link/Product implementation – Don’t go crazy here… start with a couple of products. Too many new affiliate marketers try to take on too much at once, and the result is unprofessional sites cluttered with advertisements and links.

7. Domain & Web Hosting – You need to think about what the name of your site will be and purchase the domain. Do not take this lightly!  I have written a helpful article on Domain Name Selection to help you brainstorm.

I always recommend “.com”, as that is what people doing business expect to see from other people doing business.  Make sure the Web Hosting Service you choose supports the Web Design Software you choose. Once you install a script like WordPress it can be a hassle to move your site later. You want a host that keeps up with technology so your site continues to operate smoothly into the future.

8. Promotion Skills – Promotion is a key part in your success; you must find ways to get people to visit your site. Think of your Web Site as an Address… how are you going to let people know you are open for business at your address?  In the “Real World” you have the potential advantage of location, location, location… in the Online World you need to create it!

You can also purchase links from other sites, or participate in Pay Per Click (PPC) programs where you purchase clicks based on the keywords you select. This is a fast way to get traffic to your site, but if you don’t know what you are doing it’s also a fast way to lose a lot of money.  You’ll need to brand your site, our offer, and make  yourself stand above the competitors sites and offers.

9. Statistical Tracking – You need to know where, how, and when people come to your site. You use this information to figure out what they buy and why. You can use the built in statistical reports your Webhost provides, purchase services from vendors, or participate in Analytic services like Google Analytics (The best FREE Analytics service). This is a CRITICALLY IMPORTANT part of affiliate marketing. People who learn how to understand site metrics will make a lot more money than those who do not.

10. Business – Once you start to make money you’ll need to choose a business model – Proprietor, Partnership, Corporation. Guess What? Taxes are owed on affiliate income. So in order to pay them, and track your expenses to write off against your income you need to be a business. This all depends on how much you make.  As you grow you will  need to talk to a tax professional or learn what is required on your own

Conclusion

A well conceived Business Plan will help you enormously. People can and do make money with Affiliate Marketing.  The big Affiliate Money Payouts  go to people who develop a plan, then put it into action!

This Affiliate Marketing Business Model outline has shown you the Basic Skills required to get into Affiliate Marketing, the rest is up to you. You don’t get rich quick, most don’t get rich at all. But if you have a good idea, a good site, and good marketing plan you can make a real living.

Everyone has their own work style, so you will likely rearrainge the order of the above and that’s okay. That is the great thing about working from home for yourself; you get to make the decisions. If you take only one thing from this article it should be this:  Make sure you have done your Marketing Research BEFORE you start building your sites.