If you’re an affiliate marketer, and you’re promoting a Clickbank product, make sure you take the time to dig into the numbers and figure out if consumers like the product, and whether or not you’re really going to make money on each sale.
Here’s what I do to evaluate a product for profitability.
Let’s say I want to promote a dog training eBook.
I go to CBEngine and find the dog training eBook product I want to promote.
I see the sales price of the eBook is $49.95.
The publisher is offering a 75% commission, so I quickly calculate that I’ll make $37.46 on each sale. That sounds pretty good.
But then I notice that CBEngine says affiliates earn $33.96 on each sale.
Well, first of all, Clickbank takes a 7.5% +$1.00 commission off the top of every sale. (They do have to make money…)
So now the product’s sales price is reduced to $45.20.
Ok, so not so good, but still ok. Now I know why CBEngine says affiliates earn $33.96.
But, wait. CBEngine has another column, called “$ Earned per sale.” And I see that says $23.73.
Huh? Does that mean I’ll end up with only $23.73 for every eBook I sell?
Why?
Because $10.23 of each sale goes to a refund.
A refund?
Yup. Clickbank has a 60-day return policy, which is great for the consumer. And it’s the right thing to do.
($10.23/$33.96 x 100% = 30.1% refund rate. Yikes!)
So I move on and evaluate other products. I’ll never make money with this one.
Generally speaking, any product with a refund percentage of 10% or less is worth promoting. The lower the percentage, the higher the product quality, and the more money you’ll make.
I use CBEngine to look for and evaluate all Clickbank products I’m thinking about promoting. They have a nice free version, and a paid version (at a nominal cost) that includes a lot of valuable bells and whistles. Try the free version first.
Tags: affiliate, affiliate marketers, Affiliate Marketing, affiliates, cbengine, clickbank
Well, I’d use it if I was earning any Clickbank revenue. LOL One of these days, someone’s going to buy one of them, and then we’ll see how it all works.
This is great , I do a lot of PPC activities with high refund rate products the trick is to drive tons of traffic and ensure 3-4 sales a day. Even if you have the highest refund rate product 1-2 willl end up in refunds. The other 1 will cover your PPC cost and 1 sales will give you a profit. Even if its a USD 30 a day profit its about USD 900 a month..thats a lot of money by promoting just one product and not spending much time on it…The is where passive income kicks in…
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Thanks for this very much.
However, when I tried to do sanity check for this method, I found that quite a few of the products that I have been involved with have a higher “$ Earned Per Sale” than “Commission”.
Is there a good explanation? It would be good to know. Thanks.
Badly need your help. I’ll be more enthusiastic about encouraging thinking outside the box when there’s evidence of any thinking going on inside it.
I am from Senegal and also am speaking English, tell me right I wrote the following sentence: “The privacy of new defendants gives a short evidence to get forward jury, adult and government in crimes high as mayor, justice, legal allegiance, illegal enforcement and wide result, criminal justice.”
Thanks
. Ahmik.