Understanding ClickBank Payout Stats
If you’re a ClickBank affiliate (and if you’ve got a web site that contains advertising, I think you should be - see why here), you may have noticed in the Promote Products section of their site, that there are 4 mysterious looking numbers (labelled “PAYOUT STATS”) under each vendor’s listing.
These are:
- $earned/sale
- %earned/sale
- %referred
- gravity
What do they mean?
- $earned/sale
This is the average amount of commission that affiliates earn from each sale that the vendor makes. If the vendor only sells one product, I guess you could work it out yourself (or use Harvey Segal’s ClickBank Calculator), but the extra information this gives you is really useful for vendors that sell multiple items - it gives you an idea whether they are selling more low-ticket or big-ticket items.
- %earned/sale
This indicates the percentage commission that affiliates have earned through recent sales. If a vendor were never to change their commission rate, it would match that exactly. However, when a vendor raises or lowers their commission rate it may not match (it tends to track the current commission with a timelag).
For example, if the vendor currently offers 75% commission, and the %earned/sale if 60%, it indicates that the vendor has recently raised the commission rate. And if a vendor currently offers 50% commission, and %earned/sale is 60%, it indicates the vendor has recently lowered the commission rate.
- %referred - indicates what percentage of the vendor’s recent ClickBank sales came through affiliates.
There is a common misunderstanding that a low %referred somehow indicates payment processing leaks (remember ClickBank only gives affiliates credit for sales made through ClickBank - and the affiliate does not get credit if the vendor receives payment through another payment system like PayPal or 2Checkout, etc.). That is NOT the case. Remember ClickBank can only track ClickBank sales.
So what this number is really telling you is how good the vendor is at marketing themselves, as compared to all their affiliates combined. If it’s high, it means the vendor relies on affiliates to make most sales. If it’s low, it tells you the vendor is getting most sales by their own marketing efforts.
This number can actually give some important clues to find vendors that you’ll want to affiliate link to - because if you find a vendor with a relatively low %referred, it may mean that you will have little affiliate competition - and could have a relatively clear run at promoting this vendor. This will probably work best if you can find marketing/promotion channels that the vendor themselves isn’t using. For example, if the vendor’s relying on SEO - you could use AdWords, or Pay Per Click Search Engines, or Ezines.
- Gravity
I’ve never seen a precise explanation of what this number means, but in broad terms it is known to reflect the number of active affiliates who have made recent sales. A higher number means more affiliates.
Again, this can give you a clue as to which vendors to promote. If you see a vendor with a low gravity, it could mean their is little affiliate competition to promoting this particular vendor.
So how do you choose which vendors to promote?
First, the obvious stuff:
- Good Commission Rates
ClickBank vendor’s can offer up to 75% commission rates. Obviously not all do, and there are many excellent vendors (who can be profitable to promote) who offer lower rates - but personally I tend to look for at least 25%, and preferably 50%.
- Target
Find vendors who tie in with your site’s theme, and your audience’s interest.
- Product and Sales Page
Check out the vendor’s sales page, and see if you think that it’s a product that can sell. Is the sales letter professional? Do they have their own domain name? Does the product look good?
- Watch Out for Obvious Leaks - Especially Payment Processing Leaks
Check the vendor’s sale page for obvious leaks: Is the vendor focused on making the sale through ClickBank?
Remember you don’t get commission on any AdSense, banner ads, etc., on the vendor’s page. I’m not saying the vendor’s page should contain nothing but the sales pitch (sometimes vendors actually sell better by providing additional information on their site) - but rather there should be at least some kind of sales pitch, and the sales pitch should be the main focus of their page.
Additionally, the biggie: you want to look out whether the vendor accepts other methods of payment than ClickBank. If you see a PayPal or 2Checkout or StormPay (etc.) link - remember you won’t get ClickBank affiliate commissions for any sales the vendor makes those ways (and a little side note: since ClickBank itself now processes PayPal, I really don’t see why any ClickBank vendor should put a PayPal Buy Now button on their site).
And then the information from the PAYOUT STATS:
- More Competiton = Bad, Less Competition = Good
The underlying principle should be obvious, but I’m always surprised how many affiliates seem to ignore it - that’s why (for example) you’ll see 5 or 10 or more competing AdWords ads on Google for some search terms related to some ClickBank products - and none for many others which could be just as, if not more, lucrative, per sale.
Always be on the look out for stuff that you can promote and help sell, which other affiliates are not effectively marketing - remember, the combination of a low %referred and low Gravity can help you find good candidates
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