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PayPal Or ClickBank As Payment Processor?

by capitalalchemy
6 replies
I have a new product that I'm working on which I'm excited about, and it's going to have a recurring back end product as well.

I'm weighing out the pros and cons of CB vs. PayPal. This is what I've come down to..

PayPal Pros

  • I can keep all the profits
  • Use it to test before moving to CB (if I should choose to do so)

Cons

  • Looks troublesome to test payments before going live
  • Have to keep track of my own charge backs, refunds, etc
  • Not sure if it's possible to integrate back end offer pitch page to trigger after customer has made initial purchase
  • Have heard that they crack down on whoever they want, whenever they like
  • Can't figure out how to deliver recurring product other than to get people on to a mailing list using an autoresponder.

ClickBank Pros

  • Easy to test payment processing before going live
  • Easy to integrate upsell after customer has bought initial product
  • Network of Affiliates to help promote

ClickBank Cons

  • Would like to test before going to CB
  • Have to split profits

Am I looking at this from the wrong perspective?
#clickbank #payment #paypal #processor
  • Profile picture of the author AlenGeorgeson
    I would choose Clickbank immediately. They have over 100'000 affiliates right there that want to promote your product. I mean if you have a good product and it takes off, you'll have a passive income for years and years. There's nothing better than that.

    I'd definitely go with Clickbank. Besides that, there's a lot of bad news about PayPal at the moment, blocking accounts and stuff.

    Hope that helps.

    Alen
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    • Profile picture of the author capitalalchemy
      Thanks Alen...

      I'm more familiar with CB and they definitely make it easy to set up recurring products and so forth.

      I guess I don't want to sound greedy, but this is a business plan where the back end was to bring in a set amount of money yearly.

      The back end will be limited to so many slots, and then once seats fill up I want to take that offer down.

      I'm not sure if I can do that with CB, plus offering something like 50% of that back offer to affiliates will naturally decrease that yearly income by 50%.

      I'm torn about what to do :confused:
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by AlenGeorgeson View Post

      They have over 100'000 affiliates right there that want to promote your product.
      This isn't right at all.

      Don't imagine that listing your product on ClickBank is in itself going to attract any affiliates who will actually make any sales. You need to have a sales-page that's proven to convert targeted traffic, for that to happen, and you have to promote your product to affiliates actively, to attract them. And especially to attract the people doing this for a living. But obviously you know this already ...

      However, on balance I would lean toward ClickBank, myself, because of the potential difficulties of depending on the continued availability and reliability of PayPal for payment processing. I think this is a huge issue, and rather dwarfs the other factors. For me, anyway.

      Originally Posted by capitalalchemy View Post

      offering something like 50% of that back offer to affiliates will naturally decrease that yearly income by 50%.
      I think this may not quite be the right way to look at it, actually. If it's going to sell well, you'll have 50% of something a lot more than twice as big, that way. (Is how I'd look at it, myself).
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      • Profile picture of the author capitalalchemy
        Originally Posted by Alexa Smith View Post

        This isn't right at all.

        Don't imagine that listing your product on ClickBank is in itself going to attract any affiliates who will actually make any sales. You need to have a sales-page that's proven to convert targeted traffic, for that to happen, and you have to promote your product to affiliates actively, to attract them. And especially to attract the people doing this for a living. But obviously you know this already ...

        However, on balance I would lean toward ClickBank, myself, because of the potential difficulties of depending on the continued availability and reliability of PayPal for payment processing. I think this is a huge issue, and rather dwarfs the other factors. For me, anyway.



        I think this may not quite be the right way to look at it, actually. If it's going to sell well, you'll have 50% of something a lot more than twice as big, that way. (Is how I'd look at it, myself).
        I definitely agree! Having exposure to affiliates is one thing, but being able to present them something that is going to convert, have minimal refunds, etc, and REACH the affiliates is important.

        That's why I wanted to test the product on my own for a while, but PayPal doesn't exactly make it easy as a payment processor, and isn't that kind of WHAT they do? It seems like they could improve their system, especially when I found out that they will report gross income to the IRS, but that I have to calculate all negative balances, and that this doesn't go into what they report. Seems lame.
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  • Profile picture of the author Zayne
    I have only really used CB for affiliate stuff, so I would lean towards paypal, but everyone is right about the payment reliability being a bit of a big deal! I always say that I can learn how to bank and spend money anytime, its the making the money part thats important!
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  • Profile picture of the author ryanmilligan
    Banned
    Clickbank wont screw you over. Ban/freeze your account for no reason.

    But Clickbank only pay bi-weekly or monthly. Unless of course you are making $$$$$$ then they will probably pay whenever you like. And of course some people can't afford the $40 listing charge.

    They both have pros and cons like you have stated.

    My personal choice would be Clickbank.
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