You’ve signed up as a new Clickbank affiliate certainly because the idea of working for yourself from home earning commissions and getting paid for promoting Clickbank products seem passionate to you. But do you know how much you’ll earn? What about how the sale is tracked and reported? And when you will get paid for the sales you’ve generated? Also what happens in case of refunds and chargebacks?
To answer these question we will treat the following points:
- How to Earn Money in Clickbank
- How Clickbank Commissions are Calculated
- How You Get Paid in Clickbank
- Questions of Refunds and Chargebacks
How to Earn Money in Clickbank
Briefly, here’s how to earn commissions in Clickbank:
- You find a product at the Clickbank Marketplace and create a customized HopLink for it.
- You promote the product.
- A visitor clicks on your HopLink which sends them to the vendor’s website where they make a purchase from Clickbank.
- Clickbank calculate your commission taking into account the net sale price (more below) and credit your account within two minutes of the sale.
How Clickbank Commissions Are Calculated
The commission rate of each ClickBank product is set by the vendor. It goes from 1% up to 75%.
When the traffic you drive to a product makes a purchase, ClickBank processes the sale, applies its charges, then calculates the commission rate on the remaining net sale amount.
Let’s see an example of how much commission you’ll get on a one-time purchase product costing $49.95 retail and carrying a 65% commission rate:
Retail Price: $49.95
Subtract 7.5% + $1: -$4.75
Net Sale Amount: $45.20
65% of Above Amount: $29.38
Your commission: $14.69.
What about recurring billing products?
The calculation is done the same way. But they can have different commission rates for the initial purchase and the rebill purchases.
N.B.: The maximum commission you can earn on a single sale is $150.
How You Get Paid in Clickbank
You must satisfy the following two requirements to receive your first commission payment:
- You must reach the payment threshold you’ve set in your Settings.
- And meet the Customer Distribution Requirement.
Need more details about those requirements? And also about how and when Clickbank send you payments? Then see the blog post How Does Clickbank Pay You?
Your accounts default payment method is paper check. You can however choose to receive your commission by direct deposit or wire.
Do you live in an eligible country? Then you can receive your payment via direct deposit. You simply specify this as your payment method in Settings->Payment Information.
However if you live in a country supported by direct deposit, you may be eligible to receive wire payments or can continue to receive payments with a check.
Questions of Refunds and Chargebacks
A question I used to ask myself and which you may be tossing about in your head is whether you will receive your affiliate commission if a customer returns a product or requests a chargeback on the purchase.
The answer, unfortunately, is no. This is because all the money (earned by Clickbank, the vendor, and the affiliate) is returned to the purchaser.
Clickbank practices a 60-day return period for all their products. So they utilize a return allowance to cover the possibility of returns.
Q: Can you get the money if you made a sale with your ClickBank nickname misspelled in your HopLink?
A: Yes and no.
If the wrongly spelled nickname has not been taken by another Clickbank affiliate, you can contact customer service for access to that account.
If the misspelled nickname has been used by another of the company’s user, unfortunately Clickbank cannot transfer that money to your account. All sales made through that nickname will be listed in the account’s sales reporting, even though the account did not exist when the sales were generated. However, Clickbank cannot transfer money from that account to yours.
Q: Can vendors deny affiliates commission by “undoing” the commission on a sale, or by pretending that a sale was returned?
A: Not at all. ClickBank is the retailer in the transaction and is sole responsible for tracking and paying commissions. Also when a vendor requests a refund on a sale, they also lose their portion of the sale, so there is no sense for them to pretend that a sale has been refunded.