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clickbank charges?

by coolWebsites
8 replies
Hi,

I was wondering -- how much does clickbank charge to get started? I'm a little confused and am not quite sure.

Is it "$49.95" per "product" that you add? Or is it just a 1-time fee of $49.95, and then if you have say 5 products can add those (so $49.95 for 5 products, instead of $49.95*5=~$250)?

Thanks!
#charges #clickbank
  • Profile picture of the author Dan C. Rinnert
    It is $49.95 for the first product you have in your account. You can have additional products in your account at no extra setup fee.

    But, only one product will be listed in the marketplace and your marketplace ranking will be determined by sales of all the products you have in that account.

    The easier way is to open an additional account for new products. For additional accounts, the activation fee drops to $29.95 per account. In other words, your first account is $49.95 and each additional is $29.95 per account.
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    • Profile picture of the author coolWebsites
      Thanks, I appreciate that.

      For marketplace ranking -- I don't understand the significance of that -- why (or how do you view it) -- and why would it be useful/beneficial to me to have several accounts as opposed to just one?

      Thanks!

      Originally Posted by Dan C. Rinnert View Post

      It is $49.95 for the first product you have in your account. You can have additional products in your account at no extra setup fee.

      But, only one product will be listed in the marketplace and your marketplace ranking will be determined by sales of all the products you have in that account.

      The easier way is to open an additional account for new products. For additional accounts, the activation fee drops to $29.95 per account. In other words, your first account is $49.95 and each additional is $29.95 per account.
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      • Profile picture of the author Dan C. Rinnert
        Originally Posted by coolWebsites View Post

        For marketplace ranking -- I don't understand the significance of that -- why (or how do you view it) -- and why would it be useful/beneficial to me to have several accounts as opposed to just one?
        The ranking can help your product look more attractive to affiliates. For example, let's say that you have a product that is a hot seller. Affiliates are going to want to get in on that as they can see it's a proven winner.

        Now, let's say you have a second product on that account that's a dud. Since that will factor into your marketplace ranking, the hot selling product won't look as hot to affiliates, since your dud is bringing it down.

        As Judy Kettenhofen mentioned, a benefit to ClickBank is the huge potential army of affiliates. If you want to take advantage of that, keeping different products under different accounts is perhaps the easiest way.

        As for total recurring charges, ClickBank does take a percentage on sales. And there are dormancy fees and the like if your product stops selling.

        Let's say that you have a $37 product. Getting started is going to cost you $49.95. If you make a sale without an affiliate, you will get $34.22 and ClickBank will keep $2.78, which is 7.5%. If you offer an affiliate commission of 75%, that affiliate percentage kicks in after ClickBank's percentage is taken out. So, the affiliate doesn't get 75% of $37; instead, they get 75% of $34.22 (the balance after ClickBank's share is taken out). That means that the affiliate will get about $25.67 and you get $8.55.

        So, you need two non-affiliate sales to cover your startup costs or six affiliate sales to cover those costs.
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  • Profile picture of the author zapseo
    The main advantage to using ClickBank is the army of affiliates.
    ClickBank's fees don't stop after you pay the $49.95 -- ClickBank's fees can quite high -- I think 10%. (So, if you are paying 75% affiliate commission on a $37.00 product

    Since the main advantage of using ClickBank is the army of affiliates your share of the charge comes to $9.25. When you subtract another 10%, that leaves you with 5.55. So you'll have to sell at least 9 copies of your product to cover your initial CB fee of $49.95.

    That doesn't even include covering the fees you may have paid for webdesign, webhosting, autoresponders, copywriting -- and your time.

    So you want to attract affiliates who are going to sell, sell, sell your product. You do that by being higher up in the marketplace. The default sort on the marketplace is gravity, made up of a secret CB formula -- although some people have made what appear to be very reasonable guesses as to what makes it up. In general, it's a combination of number of sales and number of affiliate sales.

    Hope that helps!

    Live JoyFully!

    Judy Kettenhofen, Copywriter & MarketersGeek
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  • Profile picture of the author zapseo
    Thanks, guys!

    Nothing like mis-stating a fact or two to get the real experts to come out.

    (Did I do that intentionally? heh heh heh -- you'll never know...)

    Dan C. Rinnert's comment about "duds" in your CB account is very worth noting.
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    • Profile picture of the author Dan C. Rinnert
      Originally Posted by zapseo View Post

      Nothing like mis-stating a fact or two to get the real experts to come out.
      Harvey's the real expert. I only play one on my own TV.


      Here is some further info for comparison. (Assuming I haven't made any math errors!)

      $27 Product

      Setup Fees:
      ClickBank: $49.95 (first product)
      PayPal: none
      PayDotCom: $29 (one-time)

      Rates:
      ClickBank: 7.5% + $1.00
      PayPal: 2.9% + $0.30
      PayDotCom: Variable + PayPal Fees

      Bottom Line:
      On ClickBank, you'll get $23.98 on a non-affiliate sale.
      On PayPal, you'll get $25.92 on a straight sale.
      On PayDotCom (including PayPal fees), you'll get $24.92 on a non-affiliate sale.


      $37 Product

      Setup Fees: same

      Rates: same

      Bottom Line:
      On ClickBank, you'll get $33.23 on a non-affiliate sale.
      On PayPal, you'll get $35.63 on a straight sale.
      On PayDotCom (including PayPal fees), you'll get $32.63 on a non-affiliate sale.


      $47 Product

      Setup Fees: same

      Rates: same

      Bottom Line:
      On ClickBank, you'll get $42.48 on a non-affiliate sale.
      On PayPal, you'll get $45.34 on a straight sale.
      On PayDotCom (including PayPal fees), you'll get $42.34 on a non-affiliate sale.


      It should also be noted that PayPal fees, once your sales reach $3000 per month, may go lower.


      Overall, there is not a big difference between the options, at least in these price ranges. And, for the benefits that ClickBank offers, it's not a bad deal at all. If you don't need or want to use affiliates to help sell your product, then you might as well go straight through PayPal.

      Granted, as your sales volume goes up, you would need to re-evaluate. A 94¢ difference on a single sale, or even a small number of sales, isn't a big deal. But, if you have hundreds of sales, that small difference can become hundreds of dollars a month. At some point, you may have to decide whether the benefits are making up for the additional cost, bearing in mind that some of the benefits (i.e., the army of affiliates) may be what's getting you the majority of sales, or at least a significant enough number of sales to make the extra expenditure worthwhile.
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