I know some of you promote Clickbank products, whether it be magic related or something totally unrelated. Take it from me, promoting the RIGHT product is the key to success, and as marketers we do not always know the right product. We THINK we know the right products, and then the stats prove us wrong. Clickbank has already tallied the info we need to make informed decisions. Here's an interesting article by Brad Jones telling us how to read and process those stats..
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The Most Profitable Clickbank Products To Promote..
Advertise on this SiteEverybody wants to know which Clickbank products to promote! Ain't this the $64,000 question? To begin to understand the most profitable Clickbank products to promote, you first need to understand a little about how Clickbank groups their products and how they are ranked. Clickbank basically has four factors by which they organize the products in their database.
% Earned Per Sale. This is the average commission earned per affiliate per referred sale.
$ Earned Per Sale. This is the average net amount earned per affiliate per referred sale. This figure is affected by refunds, chargebacks etc. Hence, it is Net.
% Referred. This is simply the percentage of the Publisher’s sales that are referred by affiliates.
Gravity. This is the number of unique affiliates that made a commission by referring a customer to a publisher’s product and the customer purchasing the product. Clickbank lists it not as an actual number but as a weighted sum. Gravity is basically a measure of the popularity of a product and how well the product is selling. A higher number would indicate that a product is selling well. Of course, this means that there are others selling the product, which means that there is competition. What is a high number? 40 or higher would be what I would call high.
So, How Do We Use These Numbers? I think the best way to use the information Clickbank provides to us regarding the digital products in its database is to first aim for products with a fairly high gravity number but that also have a low refund rate percentage, which equates to promoting a product that is selling well but also is being refunded at a low rate. This would indicate a quality product. (Remember that just because a product sells well does not mean it is a quality product, it may just have a fantastic, high converting sales page and the actual product may be a dud, thus prompting many refunds. So, we need a way to calculate Refund Percentage Rates.
How To Calculate Refund Percentage Rates Here is a formula to use in order to calculate the Refund Rate of Clickbank products:
(Product Price – 7.5 percent) - $1 = Clickbank’s commission on each product sold Product Price After CB Commission x Payout percentage = Your Affiliate Commission - $Earned Per Sale = The Refund Difference ($Refund Difference / Affiliate Commission) x 100 = Refund percentage Let’s Try An Example With A Current Clickbank Product We’ll use The Forex Trading Machine as our example.
Data:
Product Price = $97.00
$ Earned/Sale = $40.15
Payout % = 50%
So,
Clickbank Commission = ($97 X 7.5%) + 1 = $8.28
Post Clickbank Commission Price = $97 - $8.28 = $88.72
Affiliate Commission = $88.72 X 50% = $44.36
Refund Difference = $44.36 - $40.15 = $4.21
Refund Percentage = ($4.21/$44.36) X 100 = 9.49%
What does this mean to us? Well, first off, I think that any product with a Refund Percentage of less that 10% is a quality Clickbank Product. Clickbank will tell you that every product can be assumed to have an inherent 5% Refund Percentage Rate due to consumer fraud. So, less than 10% is pretty good.
Why do we care? Because you don’t want to spend your time and money promoting a product that is going to end up generating a lot of refunds. You would, in essence, be wasting your money, as a high Refund Percentage will certainly lower your Return On Investment. Remember, Return On Investment is simply measured as the amount it costs you to generate a certain amount in sales. If you spent $5 in Google Adwords® promoting a product and you made $10 from this advertising, your ROI would be 100%, which is excellent.
Generally speaking, products with High Refund Percentages yield a lower ROI. Not good. So, I would stick with promoting products with a low Refund Percentage in order to prevent a low ROI and also promoting high quality products with high customer satisfaction just makes sense.
Brad Jones is an author and businessman with a background in internet marketing and investment planning. His primary goal is to educate others on how to increase and preserve their wealth. For more information on his latest venture please visit http://www.infoproductmax.com
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