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Why do some clickbank products offer 1% rebilling commission rate?

by priyadarshana
23 replies
I have this question in mind for a few weeks. But, i forgot to find information about this. Yesterday, i read this thread and learned 4 things about 1% commission rate.
  • Some vendors use ClickBank as a Payment gateway (as a complement to PayPal payment processor). So they don't want to give away huge money for others.
  • Even through 1% commission rate is looks like zero commissions (or minimum commissions), as the overall price of product/service, 1% commission rate could be hundreds of dollars worth.
  • Some vendors like to take most of commissions even customers are referred by affiliates.
  • In 1% rebilling commission case, vendors want include their product/service in rebilling pricing category. (As many affiliate like to promote rebilling products)

So, i want to know WHAT do you think about 1% commission rate for average sale and rebilling sale?

Do you promote a product that offer 1% average sale and 1% average rebilling commission rate?
#clickbank #commission #offer #products #rate #rebilling
  • Profile picture of the author Rich Struck
    It is to screw over the affiliates.
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    • Profile picture of the author priyadarshana
      Originally Posted by Rich Struck View Post

      It is to screw over the affiliates.
      It is very sad that there are some vendors who trick affiliates.
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  • Profile picture of the author Victor09
    The average % rebill is to look for if you want to specifically promote products that give rebill commissions.

    I guess the sellers think that bringing the customer was your part but keeping them for another sale was theirs so they deserve 99%. However, in my opinion 1% is ridiculously less. 5% must be minimum or none at all.
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    • Profile picture of the author priyadarshana
      Originally Posted by Victor09 View Post

      The average % rebill is to look for if you want to specifically promote products that give rebill commissions.

      I guess the sellers think that bringing the customer was your part but keeping them for another sale was theirs so they deserve 99%. However, in my opinion 1% is ridiculously less. 5% must be minimum or none at all.
      Yes, sellers should increase the average % rebill to a fair number. As you said, they might think that as products/services made by them, they should keep maximum amount of total earnings.

      What they actually have forgotten is that how much efforts affiliate put into drive high targeted traffic.

      If i would to be a seller, i would give maximum percentage to affiliates. There are several reasons for that. One of those most important ones is affiliates build the list (buyers list) that is worth rather than the entire product/service system.
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  • Profile picture of the author Harvey Segal
    Originally Posted by priyadarshana View Post

    So, i want to know WHAT do you think about 1% commission rate for average sale and rebilling sale?
    Where exactly are you seeing these figures

    1. At the vendor's site e.g on an affiliate sign-up page

    2. At the ClickBank Marketplace with the Avg %/sale and the Avg %/rebill

    .
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    • Profile picture of the author priyadarshana
      Originally Posted by Harvey Segal View Post

      Where exactly are you seeing these figures

      1. At the vendor's site e.g on an affiliate sign-up page

      2. At the ClickBank Marketplace with the Avg %/sale and the Avg %/rebill

      .
      Hi Harvey,

      #1: No, i don't think any vendor would like to share that they offer only 1% commissions for who promote the product.

      #2: Yes. With the use of search filters and attribute settings, you can find a few products which have a rebilling pricing model, but, not offering high commissions to affiliates.

      Here's a one product that only offer 1% avg commission rate. I think this is a NEW product. However, this product has a 1 gravity score.



      And you can find a few products that offer 1% rebilling commission rate. This could be because one of four reasons i mentioned in the first post.



      As you see, we cannot say that these numbers are mistaken added by vendors. These rebilling products convert pretty well.
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  • Profile picture of the author ideasman
    It's more important to focus on the full package of what you achieve. The vendor may be offering a valuable slice of the upfront.

    Ultimately if you can make a profit and see value in the affiliate payment being offered then that's fine, if you don't see value for you, don't promote it.

    There are plenty of vendors that also don't disclose that they will be trying to sell to customers on an ongoing basis. For example you promote an offer and the customer buys. You get a commission on the front end sale. A week later after delivering the product that vendor can approach the customer with a subscription offer with no reference to you at all. 1% is better than none!
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    • Profile picture of the author Rich Struck
      Originally Posted by ideasman View Post

      I 1% is better than none!
      1% is an insult.
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      • Profile picture of the author KirkMcD
        How DARE product owners try to make money!
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        • Profile picture of the author Rich Struck
          Originally Posted by KirkMcD View Post

          How DARE product owners try to make money!
          And how DARE the affiliates!
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    • Profile picture of the author priyadarshana
      Originally Posted by ideasman View Post

      It's more important to focus on the full package of what you achieve. The vendor may be offering a valuable slice of the upfront.

      Ultimately if you can make a profit and see value in the affiliate payment being offered then that's fine, if you don't see value for you, don't promote it.

      There are plenty of vendors that also don't disclose that they will be trying to sell to customers on an ongoing basis. For example you promote an offer and the customer buys. You get a commission on the front end sale. A week later after delivering the product that vendor can approach the customer with a subscription offer with no reference to you at all. 1% is better than none!
      We all know that one of biggest reasons people select ClickBank as the payment gateway, not only because its high number of affiliate base, but also build the buyers list along the way (fast). Vendors could promote other products to the list. That's the nature. No difference with that.

      No money == No business

      But, why do they offer lesser commissions to affiliates, if he can make more money later by promoting other products?

      I don't admit that "1% is better than none!" statement. If he want others promote his/her products, should he keep getting majority of commissions? Is it fair?

      Many people are struggling to make their first sale. You can search this forum and find a few threads HOW many people be happy after getting his/her first sale. Personally, i got my first sale after 18 months of lots of hard works. (learned from zero about IM and other stuff).

      I think, vendors especially who think about people (customers) and affiliates makes more money and stand out from other sparing vendors.

      { { sorry, English is not my mother-language, i could make some mistakes } }
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  • Profile picture of the author talfighel
    1% commission rate? I would not even look at the product itself.

    If you are not getting at least 50% of the commissions, don't even think about promoting that product.

    The beautiful thing about the internet and affiliate marketing is that you have a vast line of products to choose from and you can promote what ever you want. 1% commission products should not even be allowed to be a part of any network out there.
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    • Profile picture of the author agmccall
      Originally Posted by talfighel View Post

      1% commission products should not even be allowed to be a part of any network out there.
      The 1% is on the rebill and not the initial product. I think we should remember this, we presell the initial product, but do absolutely nothing to keep them being members, once they join 100% of the work involved in keeping the member falls on the vendor and not the affiliate.

      al
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      • Profile picture of the author priyadarshana
        Originally Posted by agmccall View Post

        The 1% is on the rebill and not the initial product. I think we should remember this, we presell the initial product, but do absolutely nothing to keep them being members, once they join 100% of the work involved in keeping the member falls on the vendor and not the affiliate.

        al
        Yes, i agree with you. retaining customers in vendors hand. If he/she is a good marketer, influencer and if the product is high quality, there is no specific reason to lose customers.

        Statistics has shown that getting a new customer is costly than retaining the existing customers.(five times costly than retaining new customers: source)

        That means, affiliates do a great job at getting new customers. We all know that some products are automotive. As an example, i promote a few software based products on CB and other networks. The product owner just need to add new features and fixing bugs. Not getting new customers or doing hard work to retaining customer. (some customers i referred a few months ago, still use the software. That's the quality and the demand of product).

        I still don't admit that 1% rebilling commission (or any other commissions, upsell or downsell) is a fair amount.

        Thanks for sharing your experience with us. It helps a lot.
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    • Profile picture of the author priyadarshana
      Originally Posted by talfighel View Post

      1% commission rate? I would not even look at the product itself.

      If you are not getting at least 50% of the commissions, don't even think about promoting that product.

      The beautiful thing about the internet and affiliate marketing is that you have a vast line of products to choose from and you can promote what ever you want. 1% commission products should not even be allowed to be a part of any network out there.
      Yes, i added this factor to the list of "think to look for before selecting affiliate product to promote". Others are,
      • Is it a quality product? Has a demand? etc.
      • Its conversion rare, refund rate and other statistics.
      • Is product owner responsible?
      • What do i get from promoting the product?

      That's why i like affiliate networks, especially ClickBank. Hundreds of thousands of product to promote right away.
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  • Profile picture of the author winnermarketing
    stay away to the 1% rebilling commission rate
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    • Profile picture of the author priyadarshana
      Originally Posted by winnermarketing View Post

      stay away to the 1% rebilling commission rate
      Thinking about it....
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      • Profile picture of the author Harvey Segal
        There are 2 cases to consider

        1.
        Initial commission: 1%
        Rebill commission: 1%

        One reason may be that the vendor does not want affiliates. The correct procedure is not to submit a listing to the Marketplace (or to remove it if already there). If he is not aware of this he changes the commission rate to the minimum - 1% (0% is not allowed)

        Note that currently there are only 73 products in the Marketplace with 1% initial commission.

        2.
        Initial commission: NOT 1%
        Rebill commission: 1%

        Two possibilities

        a) The vendor does not want to give commission on rebills. This is quite legitimate.

        b) The vendor wants the product to appear in the Marketplace as a rebill item in order to attract affiliates and maybe fool them into thinking there is a rebill commission.


        .
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        • Profile picture of the author priyadarshana
          Originally Posted by Harvey Segal View Post

          There are 2 cases to consider

          1.
          Initial commission: 1%
          Rebill commission: 1%

          One reason may be that the vendor does not want affiliates. The correct procedure is not to submit a listing to the Marketplace (or to remove it if already there). If he is not aware of this he changes the commission rate to the minimum - 1% (0% is not allowed)

          Note that currently there are only 73 products in the Marketplace with 1% initial commission.

          2.
          Initial commission: NOT 1%
          Rebill commission: 1%

          Two possibilities

          a) The vendor does not want to give commission on rebills. This is quite legitimate.

          b) The vendor wants the product to appear in the Marketplace as a rebill item in order to attract affiliates and maybe fool them into thinking there is a rebill commission.


          .

          Yes, as affiliates, we should first look at what type a vendor is. If he doesn't think about affiliates who do day/night hard works to promote product, we shouldn't think about promoting the products. And luckily there are only a few products that offer low commission rates.
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        • Profile picture of the author Victor09
          Two possibilities

          a) The vendor does not want to give commission on rebills. This is quite legitimate.

          b) The vendor wants the product to appear in the Marketplace as a rebill item in order to attract affiliates and maybe fool them into thinking there is a rebill commission.
          If the vendor does not want to give commissions on rebills, then imo it is not legitimate to place it under rebill commission products by giving just 1%. If he does really want it to appear under rebilling products, a decent rebilling commission must be given.

          Another thing I would like to add to the whole discussion is that once a customer decides to stay with the same product for another term, he is most probably indisposed to buying anything else similar from the same niche. So the mailing lists which are talked about a lot on almost every second thread, might not be as useful for the time being. And since the person is already using one product and is not in need of anything similar anytime soon, he may even unsubscribe from your list.
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  • Profile picture of the author watwebdev
    1% does seem like quite a slap in the face. Its like saying "Thanks for getting us a regular income from this customer, here's a one off payment".

    I had never heard of products with a 1% rebill commission. Thanks for the info, now I can look for it when locating products to promote.
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  • Profile picture of the author MMartin89
    That's really low but remember you don't have to do any extra things to promote those rebill offers, they are doing the heavy lifting, so it's a no brainer..
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    • Profile picture of the author priyadarshana
      Originally Posted by MMartin89 View Post

      That's really low but remember you don't have to do any extra things to promote those rebill offers, they are doing the heavy lifting, so it's a no brainer..
      Yes, Vendors do a great job at creating quality products that convert. But, remember that some vendors use CB only for the sake of getting free high-quality traffic. If you read one of above posts, you'd find that getting a new customer is four times harder than retaining existing customers.

      That means, affiliates also do a great job at driving pre-qualified traffic to vendors sales pages.

      1% rebilling percentage is nothing for affiliates considering efforts they put into drive traffic to sales pages. Isn't it?
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