What is ClickBank Formula?
ClickBank formula is the software to help you determine how much money you can afford paying, and not beyond that, on PPC (Pay Per Click) market for each ClickBank’s product. In other word, how far can you pay for Pay Per Click so you won’t lose your profit on selling ClickBank’s product?
How does ClickBank charge you?
For each product you sold click bank would charge you 7.5% of the product price plus $1. If the product price is $100, click bank will take away $7.5 + $1 = 8.5. You’re your commission would be calculated from 91.5. Let’s say the payout commission is %75 you will earn 68.62, not $75.
How can you gain profit from using ClickBank Formula?
Each product on ClickBank market place, there are information, roughly, telling you how well the product are. These information are gravity, earn/sale, popularity, % referred, Payout Commission. Below are the definitions for each of them:
$/sale
How much affiliates have earned per sale in the past (taking refunds into consideration)
%/sale
How much you earn as a percentage of the total price of the product (50% is the norm, 75% is a great percentage)
% referred
How many of the sale mad are referred by affiliates (100% mean all of the sales are from affiliates)
gravity
How popular the product is, in other word, how many affiliates have sold the product recently. This is not a real number (so gravity of 100 does not mean 100 affiliates have sold a copy in the last two weeks), but generally the higher the gravity, the more popular the product is.
Payout Commission
The percentage the affiliates would have for each sale was made (see “How does ClickBank charge you” section for the calculation detail.)
If you could add the product’s price to the list then you would know the most PPC you could pay to gain profit and one more thing you would get is how much had the product been refunded. That would also tell you if the product really worth buying and selling. Again, the ClickBank Formula would calculate all of these for you.
How to use ClickBank Formula?
For each product you want to sell from ClickBank you would need product’s price, earn per sale, payout (product’s commission) and your expected CTR (Click Through Rate). For the product price you could get it from the merchant’s website, the other two (earn per sale and payout commission) you could get it from ClickBank. The last one, CRT, you have to estimate the possible click you could get before being able to sell once. The other information you may need are, product’s ClickBank ID (the one you are going to sell), product’s name, product’s URL, product description and hop link if you like. Even better, all these information, including the value you get from calculation, could be saved for later use. Here is how you do it.
- Go to ClickBank Marketplace find the product you think is going to make money. Grab the information needed i.e. earn per sale, commission, ClickBank ID, product’s name, product’s URL, product description.
- Go to the merchant’s website find the product’s price.
- Estimate your CTR (the default value is 100).
- Click on [Calculate] button, all the information would be calculated for you, these information are, post ClickBank commission, affiliate commission, refund difference (%), refund amount ($), PPR ($). The last one which is PPR is the one we concern the most; this number will tell you that you can’t pay beyond this amount, unless you want to lose your profit. But this is the rough figure; you may be able to sell the product on the 101st click, who knows? For me I’d rather be on the save side, though.
- Click [Save] to save all information to the database for later usage.
Other feature
You could change your ClickBank’s nickname and replace every product’s hop links in your database with these new ClickBank’s nickname. To do this after changing the ClickBank’s nickname just click on [replace hop links]
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