How do JV Brokers get Paid?

[IM Headlines]

Hello warriors,

I was just thinking about JV brokers & how do they
make money. It's a pretty simple concept to understand.

The JV broker usually sends out an e-mail (promoting the
product's JV page) to a bunch of subscribed list owners
like me.

The JV broker will earn money from the sales generated
by list owners who have signed up under him.

That's pretty easy to understand.

BUT

What I don't understand is how they get paid exactly...

To make this work, does the vendor (the one that will
promote his JV page trough the JV broker's list) need to
create a second tier affiliate program himself?

And, won't the affiliate program need to be integrated with
clickbank to track how many sales were generated from the
JV broker's referrals? If so, how can this happen? Because
I don't think that clickbank will allow this...

Can you enlighten me a bit?

Thanks

[salesnitro]

Nver heard of a broker for this but it seems that it would have to be a two tier affiliate system.

[Andy Fletcher]

It depends on how the deal is structured. Some software lets you run a straight up two-tier system like Rapid Action Profits. Where affiliates are tracked by who recruited them.

Most JV broking deals are structured so that the JV broker is solely responsible for recruiting affiliates and receives some % (usually 10-15) of the whole deal.

[timpears]

I would think that typically these type of brokered deals don't go through Clickbank. I don't really know as this is way out of my experience. But it doesn't seem like Clickbank would be involved.

[Kirk Ward]

Originally Posted by threatlevelorange

What does JV stand for?

Joint Venture

[IM Headlines]

Originally Posted by Andy Fletcher

and receives some % (usually 10-15) of the whole deal.

Yeah but the thing that I would like to find out is how
they track those second tier commisions when promoting
a clickbank product...

Originally Posted by timpears

I would think that typically these type of brokered deals don't go through Clickbank. I don't really know as this is way out of my experience. But it doesn't seem like Clickbank would be involved.

Yes, they do go through clickbank, I see it all the
time.

The big gurus usually release their products on clickbank
& I often recieve e-mails from JV brokers promoting their
JV pages.

[Sid Hale]

Hi Johnny,

Originally Posted by IM Headlines

Yes, they do go through clickbank, I see it all the
time.

The big gurus usually release their products on clickbank
& I often recieve e-mails from JV brokers promoting their
JV pages.

No. What you often receive is emails from JV Partners (not brokers). A JV partner may just receive a higher commission rate than the standard affiliate, but...

Some merchants will call all of their affiliates "JV partners".
Some may provide a free evaluation copy of the product to JV partners.
Some will recruit JV partners separately from a list of known "super affiliates".

JV brokers, are recruited not to sell the product, but to recruit affiliates/JV partners and are compensated for that effort.

[IM Headlines]

Originally Posted by Sid Hale

Hi Johnny,


No. What you often receive is emails from JV Partners (not brokers). A JV partner may just receive a higher commission rate than the standard affiliate, but...

Some merchants will call all of their affiliates "JV partners".
Some may provide a free evaluation copy of the product to JV partners.
Some will recruit JV partners separately from a list of known "super affiliates".

JV brokers, are recruited not to sell the product, but to recruit affiliates/JV partners and are compensated for that effort.

Hi Sid,

The guys that promote the JV page of the vendor are not
JV partners. They are JV brokers. A clear example of this
is Mike Merz from JVnotify pro.

He promotes JV pages of product creators & he earns
commissions obviously. Now what I'd like to know is HOW
they do track the sales made by the people that he referred,
so that he can get paid. I'm guessing that there's some kind
of program that does this & I'm wondering if something like
RAP could do this...

EDIT: I think that you didn't read my post (the one that
you quoted) quite well. I said "I often recieve e-mails from
JV brokers promoting their JV pages"

JV brokers or the Product creator himself promote the JV page.
JV Partners promote the salespage.

[Sid Hale]

Johnny, you're right...

I picked up on your reference to Clickbank, and went south from there

Originally Posted by IM Headlines

I think that you didn't read my post (the one that
you quoted) quite well. I said "I often recieve e-mails from
JV brokers promoting their JV pages"

JV brokers or the Product creator himself promote the JV page.
JV Partners promote the salespage.

JV brokers can be paid in many ways.
Maybe just a check in the mail after the promotion is done, but not via ClickBank (as it's not directly related to a product sale).

If you have only one JV Broker involved, and you pay them as a percentage of gross sales, this is easy. Once you involve multiple brokers, and pay for performance, it gets more difficult. You have to track which JV broker should be compensated for sales made by a specific affiliate (who's the "sponsor").

RAP can handle either situation:

1. Set up the JV Broker as an "Equity Partner". That means he gets a share of earnings, regardless of who brings in the direct sale. RAP provides for up to 2 Equity Partners on each product.
2. Two tier commissions allows one person to earn credit from sales made by another (i.e. "sponsor" another affiliate), and has the added benefit that the JV broker can also promote the product sale as an affiliate and earn commissions for direct sales. He/she can wear both hats.

In either case, with RAP, the JV Broker can be paid "instantly" (just rotated along with the afiliates), so they don't have to wait until the promotion is completed to receive compensation.

I probably don't handle every possible Merchant/Broker agreement possible, simply because those agreements are typically negotiated, but if you make a potential broker aware of your abilities, you can use those in your negotiations and should be able to work out an arrangement that fits your capability.

[jasonl70]

I haven't seen this done with CB... maybe you saw a product with an inhouse 2-tier system, as well as using CB (seperately).

[IM Headlines]

Hi Sid,

Thanks for the advice.

Clickbank can simply track the sales made by JV partners.
But its system will not show you if someone referred those
JV partners or not. That means that a JV broker will not be
be credited for his work unless he uses some kind of software
that tracks his referrals.

It would seem that RAP handles this type of operation. I'll
definitely look into it in the future.

Thanks again.

[IM Headlines]

Originally Posted by jasonl70

I haven't seen this done with CB... maybe you saw a product with an inhouse 2-tier system, as well as using CB (seperately).

Hi Jason

Haven't you ever received an e-mail from a JV broker promoting
a JV page of a clickbank product?

I receive a lot of them. I understand that clickbank is not
the program that is being used to track the referrals sent
by the JV broker.

They use some other software to track the those referrals...

[Sean A McAlister]

Originally Posted by Kingdom_Mines

Yes there are JV brokers, i deaal with them everyday,

Usually they will demand 5% - 10% in any sales generated from the jv, so if there are no sales they lose as well.

If anyone asks for more than 10%, ask them to take a hike

Ricky

Hey Ricky,,,, I would like to know who you are dealing with for less than 10%...

Reputable brokers such as myself, Merz, Crawford, Floren etc would be hard pressed to do anything for less than 10% (not speaking for anyone other than myself here)

To elaborate on the OP's question...specific to Clickbank....typically you need to set up Easy Click mate giving the broker access and some...including myself require that you set up a Separate Webform via your AR Account that is tagged to the referring Broker.

You set the web form to notify the Referring broker each time a new affiliate signs up.

Additionally, you will more than likely be required to provide a spread sheet at the end of the promotion that shows the affiliates / commissions as a cross reference.

That is the general gist with Clickbank.

[IM Headlines]

Originally Posted by Sean A McAlister

To elaborate on the OP's question...specific to Clickbank....typically you need to set up Easy Click mate giving the broker access and some...including myself require that you set up a Separate Webform via your AR Account that is tagged to the referring Broker.

You set the web form to notify the Referring broker each time a new affiliate signs up.

Additionally, you will more than likely be required to provide a spread sheet at the end of the promotion that shows the affiliates / commissions as a cross reference.

That is the general gist with Clickbank.

Now that's exactly what I needed to know.

Thanks a lot Sean.

I have another question though if you don't mind me
asking.

By the way that you said it works, the vendor has to
buy easy click mate in order to use your services as a
JV broker right (If they are promoting a clickbank product)?

Thanks in advance.

[Sean A McAlister]

Yeah man.....

There may be some other platforms out there....but EasyClickmate is
what I see the most of...and yes ...the vendor would need to purchase it.

Again, this is a specific work-around to clickbank since they do not offer tiered commissions.

Good luck with your ventures!!

Highest Regards,
Sean

[Willie Crawford]

Brokers often negotiate their commission rate, and how
everything else is tracked is spelled out in a contract.
For me tracking can be as simple as using 1SC or
some similar script.

I personally charge a 10-20% commission (essentially
2nd tier) plus $10,000 - $20,000 upfront, depending upon
the amount of work I do in setting things up in the first
place. I also often insist upon being the only one allowed
to recruit affiliates for the launch. I don't consider myself
a JV broker if a dozen others are also recruiting for the
launch.

Willie

[JonStein]

There are a few ways you could set up a JV to receive commissions from their sale:
One is to design a sales page with a specific URL that only the JV would promote
for example www. myproduct. com/product1 for the JV and just www. myproduct. com for everyone else (clickbank, etc)
The other method I found is through paygear.com that allows a 2 tier set up for affiliates and people under them.

Hope this helps,
Jon

[Mike Merz]

The majority of low ticket ... primarily CB and PDC products/services I broker are for members of my JV community and established partners. I've helped dozens of new merchants attain higher levels of success in this manner, and yes ... there are times when things don't go well and neither of us make money, it happens. I'm willing to take a chance here and there if I see promise.

But ... I've also made 30K and more on numerous occasions with low ticket launches, for what amounted to less than a dozen hours of actual work ... and over 100K on a few well known high tickets. That happens, too.

My point is that you can't rate a broker based on the size of the JV ... I've worked with just about every top marketer out there, but I'm not too big to give the new kid on the block a shot.

Does that make me a bad person?

And ... Top Brokers like Willie, Gina, Reed, Sean, etc. have every right to ask for a high % and a retainer of that's how they choose to work ... how many times have YOU been burned working your tail off, legitimately ... and not get paid, or have to transform into your own debt collector to get what's rightfully owed you?

I work on results because that's been my model since I first brokered for Mark Joyner back in 2003 ... my choice, as it's worked well for me.

The bottom line is my JV business has grown every year since I started brokering 6 years ago ... if it ain't broke ...

Cheers,

Mike Merz