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Offering Cash Rebate? Good Or No?

by lydia515
6 replies
Hi all,

I'm thinking of offering a cash rebate. This is a Clickbank product. Is this ok or not? For example, the product sells for $60, with a commission of $40. I offer a cashback of 50% off the cost price. That would mean my customers will only have to pay $30. If my calculation is correct, I'd still make a profit of $10. Of course, this would be offered together with some bonuses. And I would state that my customers will only get the cash rebate after the guarantee period if they just post their receipt to me.

Can fellow warriors please point out the good and bad points of offering a cash rebate?

Thanks

Lydia
#cash #good #offering #rebate
  • Profile picture of the author FG
    When I read the headline I was going to reply on the right way that it should be done but once I read what you wrote I see that you already have it down pat.

    The only other thing that I do that you probably are going to do anyway is this: When they buy through my link and get my bonuses then they also become part of my mailing list.

    It does not get any better than this if you are an affiliate marketer. For now you too have a new customer that will contribute to your yearly income as time goes on. Keep them happy and you will see the benefits.

    Floyd
    PS there is a special software that I use to handle this on autopilot. PM if you want to take it to that level.
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    • Profile picture of the author Amitywill
      Lydia there are a few things to consider...

      You need to make the decision
      whether or not your happy with
      $10 commissions. Are you? I know
      I wouldn't be.

      If I were you then I would test
      not offering a rebate against offering
      a rebate. You will probably find that
      they will convert at a similiar rate. If
      they do convert at a similiar rate and
      your giving away $30 of your commissions
      then your working harder and getting paid
      less. Which is stupid.

      The only time I think it's worth offering a
      rebate is if your still going to get a good
      cut out of it.

      Think of it like this. To make $100 you would
      have to make 10 sales, whereas if you didn't
      offer a rebate you would only need to make 2.5
      sales.

      Also offering a rebate can often times make
      the product convert less because you are
      basically saying to your potential buyers

      "Hey. I don't think this product is worth the
      asking price so I am going to give you some
      money off."

      It's definitely worth a try but if you believe
      that the time you are taking to promote it
      is only worth $10 per sale then you are not
      valueing your time highly enough.

      Even so it's probably worth split testing.

      Will
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  • Profile picture of the author artwebster
    I have seen products being sold with a rebate offer and they have had one thing in common - they did not justify the rebate.

    A rebate would immediately make me suspicious that the product was over priced to start with or that the affiliate was somewhat desperate because the product wasn't selling.
    Signature

    You might not like what I say - but I believe it.
    Build it, make money, then build some more
    Some old school smarts would help - and here's to Rob Toth for his help. Bloody good stuff, even the freebies!

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  • Profile picture of the author Floyd Fisher
    IIRC, such rebates are against clickbank TOS.

    If they aren't go for it.
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  • Profile picture of the author hotlinkz
    Lydia,

    A $10 commission is cutting it pretty thin. After you deduct Clickbank fees and marketing expenses, you are probably looking at $4 to $7.

    Generally rebates work well with high ticket items. Rebates on low ticket items usually end up creating a "loss-leader" situation.

    You should also look at the additional work involved in getting the rebates back to your customers. Will there be any fees associated with sending the $30?

    If someone told me that I would only get my rebate after the Guarantee period; as a course of "human nature" it would pop up a red flag. Of course you might also encounter the "occassional scammer" who got a refund but still requests the rebate.

    A LOT of work for less than $10 commission.

    In either case, let us know how you make out.

    Kind regards,

    Calvin
    Signature
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    • Profile picture of the author FG
      Lydia,
      I got your PM but the forum will not let me respond until my post count is over 15. I have a response to your questions ready and will send it when I hit the magic number.

      Floyd
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