If you are new to affiliate marketing, the idea of earning commissions for promoting other peoples products can be both exciting and confusing. How do you know how much you will earn? How is the sale tracked and reported? When will you get paid for the sales you have driven?
Here is a simple overview of how ClickBank commissions work:
- You find a product to promote and create a customized HopLink.
- You promote the product online.
- A customer clicks on your HopLink, goes to either to one of our website (or directly to the Clickbank checkout page) and ends up purchasing the product.
- The customer purchases the product from ClickBank and you receive credit for promoting the sale.
- Your commission is calculated based on the net sale price (see below) and credited to your account within two minutes of the sale.
How Commissions Are Calculated and Reported
Every ClickBank product has a commission rate that is set by the vendor, ranging from 1% to 75%. When you drive a sale to that product, ClickBank processes the sale, applies its charges, then calculates the commission rate based on the remaining net sale amount. Heresis an example of how much you will earn on a one-time purchase product with a 55% commission rate:
Retail Price: $29.95
Subtract 7.5% + $1: -$3.25
Net Sale Amount: $26.70
55% of Remainder: $14.69
Therefore, as the referring affiliate for this sale, you would earn $14.69.The maximum commission you can earn on a single sale is $150.
Obviously, the goal of being an affiliate is to get paid for your efforts. To receive your first commission payment, there are two requirements:
- You must reach your ClickBank payment threshold, which you set in your ClickBank Account Settings.
- You must meet ClickBanks Customer Distribution Requirement.
For more details about these requirements, please see ClickBanks Accounting Policy.
Once you have met these two requirements, you can start receiving payments. For more details about ClickBanks payment schedule see Paychecks.
If you are located in an eligible country, once you have received two paper checks from ClickBank within a 12-week time period, you can start receiving payment via direct deposit. Once you become eligible for direct deposit, you can specify this as your payment method in Account Settings->Payment Information. If you are not within a country supported by direct deposit you may be eligible to receive wire payments.
Refunds and Chargebacks
One question you may have is whether you will still receive your affiliate commission if the product is returned or if the customer requests a chargeback on the purchase. Unfortunately, the answer is no. All money is returned to the customer, so the vendor and affiliate must return their portions of the sale as well.
Because of the 60-day return period for all ClickBank products, ClickBank must utilize a return allowance to cover the possibility of returns.
Q: I misspelled my ClickBank nickname in my HopLink and I know I have made sales! Can I get that money?
A: Possibly. If the misspelled nickname you used belongs to another ClickBank user, we cannot transfer that money to your account. However, if the misspelled nickname does not belong to anyone else, you can contact customer service for access to that account. All sales made using that nickname will be listed in the accounts sales reporting, even though the account did not exist when the sales were made. However, we cannot transfer money from that account to your main account.
Q: Can vendors cheat affiliates by undoing the commission on a sale, or by pretending that a sale was returned?