A new way to calculate ACTUAL sales CB products generate???

[doop]

Have you ever wondered how much money a product on clickbank is ACTUALLY making? Not just a meaningless number called "Gravity" which really doesn't give us a true indication of sales.....


Hi everyone,

Here is a simple way (my apologies in advance if it has been posted before) to determine roughly (yet reasonably accurately at the same time the sales a CB product generates – and the expected income for the owner.

Note: I accept that these calculations are rough and still give a wide range – however are far more meaningful than ClickBank’s “Gravity” score.


Tools Used In This Example:

Free Clickbank Calculator
Quantcast - Home
Make Money with Clickbank ~ ClickBank Marketplace

Assumption:

Most products will only convert at between 1-2% - anyone that says their products convert higher will have one or more of the following:
1. An unbelievable offer
2. Outstanding copy
3. Follow up marketing via e-mail auto-responder
4. FAR more experience than myself (I’m still learning!!!)

That said here is our

Example 1: (05/03/2009)

Product: Energy 4 Earth - Renewable Energy Solutions

#1 Product in ClickBank for several categories

Quantcast.com estimates this site gets 302,000 visitors monthly

Taking our lower estimate of 1% conversion rate we get 3020 sales/month
Taking our higher estimate of 2% conversion rate we get 6040 sales/month

At $49.97 per sale this gets us a total sales of:

$150k/month - $300k/month in sales.

That $49.97 sales breakdowns to:

$33.92 75% Affiliate Commision
$11.30 PRODUCT OWNER
$4.75 Clickbank Fees

So we can see that the product owner with this example is receiving between:

$408k-$808k/year
$34k-$68k/month or
$1100 - $2200/day

NOTE: This method has it’s flaws and doesn’t take into account:

1. % referred sales – (the above examples assumes 100% referred) obviously with a low % referred the product owner would earn more than we estimate above.
2. It also bases our traffic estimates entirely on the data quantcast gives us – which doesn’t take into account International Traffic (Outside US) which may influence our results by up to 20% or more.
3. Backend sales – which could increase total sales by 20% or more
4. Refunds – could reduce totals by 5% or more

Example 2: (05/03/2009)


This time lets take an obscure product

Competition Bbq Secrets (Barbecue Recipes | Barbecue Cookbook | Competition BBQ Secrets)

Quantcast.com estimates this site gets 6,000 visitors monthly

Taking our lower estimate of 1% conversion rate we get 3020 sales/month
Taking our higher estimate of 2% conversion rate we get 6040 sales/month

At $29.95 per sale this gets us a total sales of:

$1797/month - $3594/month in sales.

That $49.97 sales breakdowns to:

$13.35 75% Affiliate Commision
$13.35 PRODUCT OWNER
$3.25 Clickbank Fees

So we can see that the product owner with this example is receiving between:

$9600-$19200/year
$800-$1600/month or
$26-$52/day


Of course owning the product has the additional benefits of:
- making further money through upsells
- building a list of “buyers”
- selling products later via e-mail marketing


I hope this helps anyone out there – any comments welcome