Clickank Affiliates: what is the absolute Lowest Commission you'd take per initial sale?

39 replies
I know.. This depends all on how well it converts... Lets say, it's converts like MAD.. 4 to 5% of targeted visitors purchase, because it's such a good deal... I'm just curious as to what's the LOWEST you would go on initial commission payout? Would you be interested in promoting something that paid you $13? $18?

I'm just curious as to would a serious affiliate even give a product a chance if it only pays $13 to $18 or $20 or whatever per initial sale, when something else in the same niche pays $25 to $32 and up... Even though it dosen't convert as well...

All opinions appreciated!
#absolute #affiliates #clickank #commission #initial #lowest #sale
  • Profile picture of the author Daniel Brock
    Originally Posted by Jusumax View Post

    I know.. This depends all on how well it converts... Lets say, it's converts like MAD.. 4 to 5% of targeted visitors purchase, because it's such a good deal... I'm just curious as to what's the LOWEST you would go on initial commission payout? Would you be interested in promoting something that paid you $13? $18?

    I'm just curious as to would a serious affiliate even give a product a chance if it only pays $13 to $18 or $20 or whatever per initial sale, when something else in the same niche pays $25 to $32 and up... Even though it dosen't convert as well...

    All opinions appreciated!
    Depends on what your upsell chain is like.

    I'd promote something for $18 commission if there was a $197 product on upsell 1 backing it up.
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  • Profile picture of the author scortillion
    I've promoted some things that were free as long as there were One Time Offers in place that could bring in more money.
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    • Profile picture of the author MarketingVet09
      Originally Posted by scortillion View Post

      I've promoted some things that were free as long as there were One Time Offers in place that could bring in more money.
      Based off you and daniel's answers, I guess I should have better phrased the question:

      How much total money you look to make out of a product from 1 customer, not including recurring billing?

      So I mean, if their's a product that has no upsell and no recurring billing, how much money do you look to make at the MINIMUM? Some products can be 147 initially with no upsell at all, that's why I wasn't really factoring in upselling, but I guess I didn't make that clear.
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    • Profile picture of the author Darla
      Originally Posted by scortillion View Post

      I've promoted some things that were free as long as there were One Time Offers in place that could bring in more money.

      I like this idea. I have a product I could consider giving away for free if there is a way to make money from it on the back-end. A One-time-offer sounds like a great idea.
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  • Profile picture of the author BethWilliams
    I had one product that converted really well but paid only about 9.50 commission. I was happy to do it. Hey, it was still a good profit margin!
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  • Profile picture of the author Brian Johnson
    Hey,

    For me personally it really depends on several factors, first is the niche market. If it is outside internet marketing I am usually willing to go as low as nine or ten bucks per sale / customer.

    In internet marketing I usually promote stuff that pays at least 50% commissions and the product has to be solid. I want to know that besides getting paid my subscribers who purchase will get a solid product that will help them if they take action and implement.

    Best,
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by Jusumax View Post

    I'm just curious as to would a serious affiliate even give a product a chance if it only pays $13 to $18 or $20 or whatever per initial sale, when something else in the same niche pays $25 to $32 and up... Even though it dosen't convert as well...
    Yes and no.

    Serious affiliates tend to search by e.p.s. (earnings per sale) with a lower cut-off below which they won't normally go. (I don't often look at anything with earnings under $25. I don't care what the percentage is).

    But it's not quite as simple as that. Other points to bear in mind include the following:-

    (i) Serious affiliates with a ready-made market (usually in the form of a big list) are often adding additional products, and just want whatever they're happy to recommend and stand by that they think will convert their traffic best - these are the affiliates who can judge this reasonably well from the sales page and the product (obviously, anyone who promotes it without actually seeing the product isn't, by definition, a "serious affiliate" - and won't have a big list, either). In such cases, people may well search below their normal e.p.s.-threshold anyway;

    (ii) People don't know for sure how well a product converts because this information isn't made available by Clickbank (rightly, I think);

    (iii) The more "serious" the "serious affiliates" are, the more likely they are to have a list of criteria which they apply, pretty methodically and scientifically, before selecting products to promote (mine are listed here) - earnings will rarely (if ever) be at the top of the list;

    (iv) It's possibly a mistake for vendors to price their products and fix their commission structure so that the affiliate's share, net of Clickbank deductions, comes to some figure like $19.90 (which might miss the attention of affiliates who enter $20 as their minimum e.p.s. into Clickbank's search function) or $24.90 (similarly for a $25 cut-off). I've seen products paying 60% commission which leave the affiliate an amount of money which is 1 or 2 cents under an "obvious e.p.s. threshold", and I'm sure those vendors would be far better off financially by paying 61% commission instead, because they'd attract more affiliates. Similarly, a $37 product paying 75% commission leaves the affiliate just under $25, after Clickbank deductions - a $39 product produces just over $26;

    (v) Higher-priced products (I'm talking about retail prices, not just commission percentages) often tend to affect lower total affiliate numbers, but a much higher proportion of more serious, more experienced, more professional affiliates, and they can make a lot more sales, (not just "more profit") too. I look pretty carefully at $97 products, but perhaps less carefully at $37 ones;

    (vi) For a large variety of reasons, actually, contrary to what one might imagine, it's generally a mistake, from the vendor's perspective, to "try to attract as many affiliates as possible". 90% of the affiliates make 10% of the sales. The affiliates whom vendors ought to want to attract are the other 10%, who are attracted in different ways.

    (vii) Serious affiliates often don't think in terms of commission percentages, because they understand that 40% of $97 is worth more than 75% of $47; and they're more likely to appreciate from experience, too, that a $97 product doesn't have to convert at any lower percentage than a $47 product (i.e. contrary to what a less experienced affiliate may sometimes mistakenly assume without testing).
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    • Profile picture of the author catchingeye
      Originally Posted by Alexa Smith View Post

      Yes and no.

      Serious affiliates tend to search by e.p.s. (earnings per sale) with a lower cut-off below which they won't normally go. (I don't often look at anything with earnings under $25. I don't care what the percentage is).

      But it's not quite as simple as that. Other points to bear in mind include the following:-

      (i) Serious affiliates with a ready-made market (usually in the form of a big list) are often adding additional products, and just want whatever they're happy to recommend and stand by that they think will convert their traffic best - these are the affiliates who can judge this reasonably well from the sales page and the product (obviously, anyone who promotes it without actually seeing the product isn't, by definition, a "serious affiliate" - and won't have a big list, either). In such cases, people may well search below their normal e.p.s.-threshold anyway;

      (ii) People don't know for sure how well a product converts because this information isn't made available by Clickbank (rightly, I think);

      (iii) The more "serious" the "serious affiliates" are, the more likely they are to have a list of criteria which they apply, pretty methodically and scientifically, before selecting products to promote (mine are listed here) - earnings will rarely (if ever) be at the top of the list;

      (iv) It's possibly a mistake for vendors to price their products and fix their commission structure so that the affiliate's share, net of Clickbank deductions, comes to some figure like $19.90 (which might miss the attention of affiliates who enter $20 as their minimum e.p.s. into Clickbank's search function) or $24.90 (similarly for a $25 cut-off). I've seen products paying 60% commission which leave the affiliate an amount of money which is 1 or 2 cents under an "obvious e.p.s. threshold", and I'm sure those vendors would be far better off financially by paying 61% commission instead, because they'd attract more affiliates. Similarly, a $37 product paying 75% commission leaves the affiliate just under $25, after Clickbank deductions - a $39 product produces just over $26;

      (v) Higher-priced products (I'm talking about retail prices, not just commission percentages) often tend to affect lower total affiliate numbers, but a much higher proportion of more serious, more experienced, more professional affiliates, and they can make a lot more sales, (not just "more profit") too. I look pretty carefully at $97 products, but perhaps less carefully at $37 ones;

      (vi) For a large variety of reasons, actually, contrary to what one might imagine, it's generally a mistake, from the vendor's perspective, to "try to attract as many affiliates as possible". 90% of the affiliates make 10% of the sales. The affiliates whom vendors ought to want to attract are the other 10%, who are attracted in different ways.

      (vii) Serious affiliates often don't think in terms of commission percentages, because they understand that 40% of $97 is worth more than 75% of $47; and they're more likely to appreciate from experience, too, that a $97 product doesn't have to convert at any lower percentage than a $47 product (i.e. contrary to what a less experienced affiliate may sometimes mistakenly assume without testing).
      The best answer this thread can get is of Alexa, agreed once again with everything here But to add to it, promoting low paying recurring products can be more profitable than promoting others as vendors of recurring products & services have a belief that they will retain customers & thats why they use a re bill option. In my experience of Clickbank, recurring products & services lead to a very low refund rate as compared to others (ONE TIME CHARGE).

      Regards
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      • Profile picture of the author Onash
        I would not promote anything on Clickbank where I get paid less than $10
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        • Profile picture of the author Exire
          This is great info and it's something that I was curious about myself.

          I actually made a thread about something similar just a little while ago but it hasn't gotten any replies as yet, so this really helped me out. Thanks guys!
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      • Profile picture of the author scortillion
        Originally Posted by catchingeye View Post

        The best answer this thread can get is of Alexa, agreed once again with everything here But to add to it, promoting low paying recurring products can be more profitable than promoting others as vendors of recurring products & services have a belief that they will retain customers & thats why they use a re bill option. In my experience of Clickbank, recurring products & services lead to a very low refund rate as compared to others (ONE TIME CHARGE).

        Regards
        I agree Alexa's is the best response here and you are correct too, recurring products are great
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  • Profile picture of the author WillR
    This is way too open-ended. It depends on a a lot of things.

    1. How is the affiliate promoting the product? If they are just promoting to a list then obviously they won't need as big a commission to break even. They will be more inclined to promote products based on the quality of the product alone, rather than how big the commission is. If an affiliate is promoting using paid ads or PPC then they will have a certain figure they need to recoup before they are turning profit.

    2. How big is the market? I might be able to make more per sale promoting product A but if it's a small market then I will be limited by that. If product B pays a little less but has a much wider appeal, I am going to be able to spread my promotions much further and close more sales faster - hopefully. Also the average CPC for that niche will come into play - how much will an affiliate need to spend in order to earn that commission - it's something you need to think about. The best way to do this and put your affiliates minds at rest is to promote your own product as an affiliate using PPC and make sure it is profitable for you BEFORE you try and get others to promote.

    3. What is the refund rate?

    On and on it goes. I think the only things you need to make sure you are doing is:

    a) Offer affiliates the highest commission you can afford. Remember, these are sales you would not have made otherwise. Even if you only make a couple of dollars per sale you are still getting a brand new customer introduced to your business who you can then follow-up with and sell more stuff to.

    b) Make sure the product and customer service is quality so the refund rates are as low as they can go.

    c) Provide the affiliates with as many ready-to-go promotional materials as possible and encourage them to contact you if they need any further custom promo materials.

    d) Reward your best affiliates. This is why it can be good to ask for the email address of your affiliates. If you reward your best performing affiliates with special unannounced bonuses or giveaways, they will be more likely to keep promoting for you and tell others about your cool affiliate program.
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    • Profile picture of the author Daniel Brock
      It's really not so much how much one customer will make me...

      It's about how much I get paid per each visitor I send to your website. That way conversion rates aren't really apart of the equation.

      I've seen many products at $37 front end convert at $1.00+ EPC, and many $97, $197 front end products convert at lower than $1.00 EPC.

      Also, you wont find that many people are willing to promote a product under $17 in the IM niche because you will skim all their buyers.

      Like those 1 dollar trial FEs, a lot of affiliates dont like that.
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      • Profile picture of the author MarketingVet09
        Well, thanks to Alexa, Will and Daniel again. Glad I made this thread. Gave me the information I need!

        have a good one
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        • Profile picture of the author halmo
          This doesn't necessarily answer the original question, but it's related, and something I have been trying to find out in the last couple of days.

          Does Clickbank allow 100% commission? I couldn't find anything in their Terms about this, but in their basic description to affiliates (click Affiliates on their home page, and go to slide 4), it says an affiliate can get up to 75%.
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          • Profile picture of the author WillR
            Originally Posted by halmo View Post

            This doesn't necessarily answer the original question, but it's related, and something I have been trying to find out in the last couple of days.

            Does Clickbank allow 100% commission? I couldn't find anything in their Terms about this, but in their basic description to affiliates (click Affiliates on their home page, and go to slide 4), it says an affiliate can get up to 75%.
            The maximum commission you can offer is 75%
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            • Profile picture of the author halmo
              Originally Posted by WillR View Post

              The maximum commission you can offer is 75%
              Thanks for the info. Which large affiliate networks allow 100% commission?
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              • Profile picture of the author WillR
                Originally Posted by halmo View Post

                Thanks for the info. Which large affiliate networks allow 100% commission?
                I'm not going to lie, I'm not sure. If you wanted to you could setup your own affiliate program using something like 1ShoppingCart - but obviously you lose the advantage of having all the affiliates already there looking for sites to promote.

                Maybe someone else can help you with this.

                I think the reason Clickbank does not allow you to offer 100% commissions is because they like to keep a percentage of all your sales incase of refunds, chargebacks, etc.
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                • Profile picture of the author halmo
                  Originally Posted by WillR View Post

                  I'm not going to lie, I'm not sure. If you wanted to you could setup your own affiliate program using something like 1ShoppingCart - but obviously you lose the advantage of having all the affiliates already there looking for sites to promote.

                  Maybe someone else can help you with this.

                  I think the reason Clickbank does not allow you to offer 100% commissions is because they like to keep a percentage of all your sales incase of refunds, chargebacks, etc.
                  Thank you, Will. I didn't mean to put you on the spot. Thanks much for your insights.
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              • Profile picture of the author Greg D
                Originally Posted by halmo View Post

                Thanks for the info. Which large affiliate networks allow 100% commission?
                There is a marketplace that a fellow Warrior established.


                Andy Fletcher and it is Digiresults.

                Check it out. Free to join, less charge than CB and instant payments because it is through PayPal.
                Right now they do not set up recurring payments, but you can offer 100%.

                Check them out.



                Greg
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                • Profile picture of the author halmo
                  Originally Posted by Greg D View Post

                  There is a marketplace that a fellow Warrior established.


                  Andy Fletcher and it is Digiresults.

                  Check it out. Free to join, less charge than CB and instant payments because it is through PayPal.
                  Right now they do not set up recurring payments, but you can offer 100%.

                  Check them out.



                  Greg
                  Yes, thanks. I have seen it, and actually talked to Andy about it.They are implementing some other features soon, and I will be interested in checking them out.

                  I was actually wondering if there were any LARGER affiliate networks like that with the 100% commission option..
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          • Profile picture of the author Danny G
            If I remember correct CB allows commission between 50% and 75%. Right me if I'm wrong

            Originally Posted by halmo View Post

            This doesn't necessarily answer the original question, but it's related, and something I have been trying to find out in the last couple of days.

            Does Clickbank allow 100% commission? I couldn't find anything in their Terms about this, but in their basic description to affiliates (click Affiliates on their home page, and go to slide 4), it says an affiliate can get up to 75%.
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            Be Marketer, Not Expert!
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            • Profile picture of the author Alexa Smith
              Banned
              Originally Posted by Danny G View Post

              If I remember correct CB allows commission between 50% and 75%. Right me if I'm wrong
              Hi Danny, welcome to the Warrior Forum. It's between 1% and 75%.
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            • Profile picture of the author halmo
              Originally Posted by Danny G View Post

              If I remember correct CB allows commission between 50% and 75%. Right me if I'm wrong

              Originally Posted by Alexa Smith View Post

              Hi Danny, welcome to the Warrior Forum. It's between 1% and 75%.


              Thanks to both of you.
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  • Profile picture of the author Rich Struck
    I like to see at least $20 or $25 per sale BUT what I really prefer is recurring income. I would take $10 a sale if I thought the site would rebill well. There is nothing like a big batch of rebills to get you through lean times.
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  • Profile picture of the author joetheseo
    it really depends on the target market. but to answer your question, we actually promoted a $7-10 commission product with SEO, and when our site is rank #1, we get almost a sale per day. At the same time we have sites promoting $50 products that have NEVER converted... See where I'm going with this?
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  • Profile picture of the author jamjar919
    25% on high ticket ($100+)
    50% on med ticket ($50 - $100)
    75% on low ticket (under 50$)
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    • Profile picture of the author Dan Bainbridge
      Originally Posted by jamjar919 View Post

      25% on high ticket ($100+)
      50% on med ticket ($50 - $100)
      75% on low ticket (under 50$)
      There is a lot of complex info and personal opinions above, but imo this is a very simple view, and a rough guide.... use this as a base if you are setting up a brand new site with 1 product to sell... if youre more experienced, have multiple upsells and downsells then you can play around with commissions a bit more...
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  • Profile picture of the author noon
    I have been marketing on middle east forums for low cost products for long time and gess what its far much better than expensive ones as people get to buy them in larege quantity thats why my gaining was always high

    good luck
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  • Profile picture of the author theentry
    It all depends on the volume you can push. For example I'm promoting an adult affiliate program which pays $1.5/free signup and I can push many of those, so it does worth it!
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    • Profile picture of the author Yogini
      A lot of people promote cpa offers which will pay 1 dollar or so a lead. I use e-junkie and have affiliates that sell ebooks I have that pay 1.50 commission as they are impulse items at 3.00 so not hard to afford. This is in the self-improvement and health niche though so am not sure if IM niche is different.

      Debbie
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      • Profile picture of the author JohnMcCabe
        Lots of factors to consider here...

        > How much effort do I have to put into the promotion? If it's simply adding a message to a responder series because the product fills a void in another sequence, I don't worry so much about the individual commission. I'm looking at the overall profit in the sequence.

        > What's my relationship with the product owner? I'd probably take less to help out a friend than I would a total stranger, as long as they didn't go to the well too often.

        > Can I use the promotion to build my own lists? If so, how effective is it as a lead generator? This relates to my first point - I'm looking at the overall return for my efforts.

        Establishing thresholds based on your own model and experience is a smart thing to do, but I don't believe such a threshold should be cast in stone.

        I'll also agree with the recommendation to pay as much as you can afford, rather than trying to figure out the bare minimum you can get away with. Which would rather have? 80% of 50 sales or 50% of 500?
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  • Profile picture of the author davemiz
    no less than 50%.

    if its a low ticket item pretty much all the top CB vendors do 75%.
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  • Profile picture of the author stews
    A lot believe 50% of the sale price is good, But if you make something its better than nothing as long as your not spending more marketing than its worth.
    Good Luck,
    stews
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  • Profile picture of the author Big Al
    I promoted a product to my list that paid out $0.16 commission on a recurring basis (no joke) because I liked the product and thought it was pretty good.

    Didn't really care much about the money that day ...

    ... made zero sales!

    Oh well!
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  • Profile picture of the author Gewdo
    Honestly, as someone just starting out in the CB and Amazon Affiliate scene, I would take as low as 3% as long as it converted well.
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  • Profile picture of the author yankforlife41
    I'm all about EPC, if that is high, it doesn't matter how much the product is selling for.
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