Affiliate Marketing - Calculating Commissions at Clickbank
==== ====For more information on commission, check out this site:http://tinyurl.com/7gyscgo==== ====You want to add affiliate marketing as a stream of income for your home based business. Youneed to focus on your business and not be distracted by unfamiliar details. It is important that youneed to be comfortable with the details of Clickbank, the most popular source of digital productsfor affiliate marketing. I am going to assume that you have registered with Clickbank and now havea nickname and a password. You are starting a home based business. It is important that youunderstand how your commission income from Clickbank is calculated. Go to the FAQ at theClickbank webpage. Go to the clickbank marketplace and click on the FAQ link in the navigationbar. Click on question 11.The formula uses the following terms:- retail price - go to the marketplace page. In the Search the Clickbank Marketplace box, type thename of the product you are interested in selling in the keyword area. Look at the search resultsuntil you find your product. Hit the View Pitch Page link to view the sales page for the product.Scroll down the sales page until you find the buy now button. Hit the buy now button. Now at theorder page, locate the price of the product and then exit the page.- commission rate - this is also found by search for your product at Clickbank. When you find yourproduct listing you will see a %/sale item which is the commission paid per sale.You must now calculate the net sales amount. That is the sales amount after Clickbank takes itsshare: 7.5% of the retail price plus $1.00. Subtract Clickbanks share from the retail price, now youhave Net Sales Amount.To calculate your commission, multiple the commission as a decimal fraction times the Net SalesAmount, i.e. 65% becomes 0.65.Here is an example.Hypothetical product XYZ retails for $50. It pays a commission of 60%.Net Sales Amount = (50 X 0.925) - 1.00 = 45.25Commission Paid = 45.25 X .6 = 27.15.Here is an example from Clickbank - Keyword EliteRetail Sales Price is $174. Commission is 58%.
Net Sales Amount = (176 X 0.925) - 1.00 = 161.80Commission Paid = 161.80 X 0.58 = 93.84.Now you know how your commissions will be calculated. This value assumes that none of yourcustomers ask for a refund. On the marketplace page for a specific product you will see an itemreported as $/sale. This value is the average amount per sale that Clickbank estimates you willreceive after adjustment for refunds.Again using Keyword Elite as the example product, the $/sale reported on March 16 2008 is$92.34. This is very close to the commission before refund allowance calculated earlier at $93.84.The importance and significance of the difference between these two values is the subject foranother discussion. The fact the difference is small, less than 5%, suggested that the marketplaceis satisfied with the product and claims very few refunds from Clickbank. Remember, theClickbank guarantee is unconditional. No questions are asked. Refunds take up to 5 businessdays. The commission income is deducted from the affiliate account when the customer claims arefund. Clickbank products carry a 60 day 100% satisfaction guarantee.For more information on Clickbank, affiliate commissionsand internet marketing please visit my blog,make comments and pick up a freeguide to internet marketing.Article Source:http://EzineArticles.com/?expert=Mike_A.==== ====For more information on commission, check out this site:http://tinyurl.com/7gyscgo==== ====