If you are new to internet marketing I highly recommend signing up with Clickbank as they are the largest digital merchant in the world where they only sell digital products. Once you have signed up with Clickbank, you can select from various products on the Clickbank marketplace and become an affiliate. They will send you commission checks in the mail if you have made affiliate product sales!
I was taking a home study course and learned something new today so I thought I’d share it with you. What I am about to share will open your eyes, so take some notes before continuing.
There are many products in Clickbank but what really determines the product that can be sold? Well, many people don’t know that Clickbank actually provides the following information in their marketplace.
Here an explanation of what are the previous numbers taken from Clickbank
1. $ Earned/Sale: Average net amount earned per affiliate per referred sale. Please note that this is the net profit per actual sale and is therefore affected by refunds, chargebacks and sales tax. Non-sufficient sales, such as returned checks, do not affect this number.
2. Future$: Average total rebilling revenue earned by affiliate from site sales. In general, this equates to the average sum of all rebills.
3.Total $: The sum of all initial sales and rebills divided by the number of initial sales. It’s the average $ total per sale, including any rebills that may come from that sale.
4. Livestock/Sale: Average percentage commission earned per affiliate per referred sale. This number should only change if the publisher has changed their payout percentage over time.
5. Referral %: Fraction of the publisher’s total sales that are referred by affiliates.
6. Gravity: Number of distinct affiliates who earned a commission by referring a paying customer to the publisher’s products. This is a weighted sum and not an actual total. For each affiliate paid in the last 8 weeks we add an amount between 0.1 and 1.0 to the total. The more recent the last reference, the greater the added value.
To determine if a product on Clickbank is profitable, you can actually determine by two important numbers and they are Gravity and $Earned/sale. Gravity tells you the growth of the product in the last 8 weeks, the higher the number means it is more popular and gets more sales in the market.
The $ Earned/sale will help you determine the rebate account the product has. Before getting into the rebate formula, you first need to find out how much the product is currently selling for online.
First of all, you need to visit the product page, for this, a product retails for US$77, which is called the Retail Price.
If you actually calculate your commission, which is 61%, your calculator should show you 46.97, instead it says affiliates earn only $36.04. Well, that’s because of Clickbank’s commission, which is 7.5% + $1. Calculate it with the price of the product: it brings you to approximately $6.77.
Now the actual total profit for the affiliates and the merchant is $70.23. Affiliates earn: 61% from $70.23, which works out to about $42.84
Revenue per sale is only $36.04, what affiliates will earn for each sale, where did the remaining $6.80 go? goes to refund!
Here’s how the refund rate is calculated: ($6.80 / $42.84) x 100% = 15.87% refund rate. It means that this product is not that bad in quality. The guideline is to find a product with refund rates below 25%, you should be pretty good.
Want a shortcut to tracking profitable Clickbank products?
When I found out about this, I decided to take a look around Google to see if there were any tools that would help me monitor profitable Clickbank and this is what I found.
It’s called CBEngine, which I think the FREE version gives you enough information to find basic information without showing you the important boost numbers you see above. What you saw above is only available in the paid version, you can track and monitor which products in which niches you are making it highly profitable and I think these tools will be quite useful for those who are doing internet marketing full time.
Cool stuff, huh, feel free to leave your comments on my blog.