Enter A Formula To Find The Product Of Two Vlues Secret Tips On Clickbank Refund Rate Calculation & Profitable Products

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Secret Tips On Clickbank Refund Rate Calculation & Profitable Products

If you are new to internet marketing, I strongly recommend you to sign up for Clickbank as it is the largest digital merchant in the world where they only sell digital products. Once you have signed up for Clickbank, you can select from a variety of products in the Clickbank marketplace and become an affiliate. If you make sales from affiliate products they will send you a commission check in the mail!

I was going through a home study course and learning something new today so I thought I’d share this with you. What I’m about to share is going to open your eyes so take some notes before you proceed.

Clickbank has many products but what determines the product that actually sells? Many people are not aware that Clickbank actually provides the following information on their market.

Here is an explanation that the above numbers are taken from Clickbank

1. $Earnings/Sales: Average net amount earned per referred sale per affiliate. Note that this is earnings per actual sale, and therefore it is affected by returns, chargebacks, and sales tax. Unfunded sales, such as returned checks, do not affect this number.

2. Future $: The average total rebill revenue earned by the affiliate due to sales from the site. Usually it is equal to the average sum of all the rebills.

3. Total $: The sum of all initial sales and rebills divided by the number of initial sales. This is the average total $ per sale including all rebates that may come from the sale.

4. Earned/Sales: Average percentage commission earned per referred sale per affiliate. This number should only vary if the publisher has changed its payout percentage over time.

5. % reference: Share of publisher’s total sales attributed to affiliates.

6. Gravity: Number of different affiliates who earn commissions by referring paying customers to the publisher’s products. This is a weighted total and not an actual total. For each affiliate paid in the last 8 weeks we add between 0.1 and 1.0 to the total. The more recent the referral, the higher the value added.

In order to determine if a product is profitable on Clickbank you can actually determine by two important numbers and those are gravity and $earnings/sales. Gravity tells you the growth of the product over the past 8 weeks, the higher the number the more popular and selling more in the market.

$Earned/sale will help you determine the product return account. Before I get into the return formula you first need to find out how much the product currently sells for online.

First of all you have to visit the product page, for this the product retails at US$ 77 which is called retail price.

If you actually calculate your commission which is 61%, your calculator should show you 46.97, instead it says affiliates only earn $36.04? Well because of the Clickbank commission, which is 7.5% + $1. Calculate this with the product price: it will take you to about $6.77.

Now the actual total profit for the affiliate and merchant is $70.23. Affiliates earn: 61% from $70.23, which results in approximately $42.84

Earnings per sale is only 36.04, what affiliates earn for each sale, where did the remaining $6.80 go? It goes back!

Here’s how you calculate the rate of return: ($6.80 / $42.84) x 100% = 15.87% rate of return. This means that this product is not too bad in quality. The guidelines should be fine to find a product with a return rate of less than 25%.

Want a shortcut to tracking profitable Clickbank products?

When I found out about this, I decided to search around Google to see if there were any tools to help me monitor profitable Clickbank and this is what I found.

This is what CBEngine calls I think the free version gives enough information to find the basics without showing the important speed numbers you see above. As you see above only available in the paid version you can actually track and which products you are doing on which is highly profitable and I think this tool will be very useful for full time internet marketers.

Nice stuff haha, feel free to leave your comments on my blog.

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