How does a vendor make money!?

Discussion in 'ClickBank' started by juve20, Jan 15, 2010.

  1. #1
    Hey guys

    I really keen on creating my first ebook, and then selling on clickbank.

    My question is, can a vendor make alot of money when they are giving the affliate 75%? plus all the CB fees after that!

    I have been doing some research and some vendors are making a low of $8 on a product! some of the better ones are making $20 while the affiliate makes $50!

    I hope i dont get shot down in flames for this comment. I know affiliates have to do alot of work to promote the product (and they should be rewarded), but the product idea, research and creation is ALOT of work! thats not including the websites to go with it, the banners, ppc campaigns etc etc

    Is it all a high numbers game??

    any feedback would be great.

    Thanks
    Tony
     
    juve20, Jan 15, 2010 IP
  2. Crafty Blogger

    Crafty Blogger Active Member

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    #2
    In short, by getting lots of affiliates to promote her or his product (successfully). $8 a sale can really add up, if you are making dozens or sales each day... (or more). So, yes, it's largely a numbers game.
     
    Crafty Blogger, Jan 15, 2010 IP
  3. juve20

    juve20 Active Member

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    #3
    thanks for the reply craftyblogger. Supose it is a numbers game. Would be great to find out how many products you could sell but no one would give this away.
    Would it put alot of affiliates off if the comission was 50% but they where still getting $30 a sale?
     
    juve20, Jan 15, 2010 IP
  4. alexa_s

    alexa_s Peon

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    #4
    The Clickbank fees are actually "before that", not after that. Clickbank's retailing profit-margin of 7.5% is deducted first, then the $1 extra they meaninglessly call "stocking fee" and then the remainder's divided 75/25 or however it's divided.

    Yes.

    The vendors who do best are the ones who have become good at identifying, attracting and retaining the small group of affiliates who bring in 80% - 90% of the sales, and aren't so concerned about other affiliates, it seems to me. And they're mostly successful with their 3rd, 4th, or later products, because just like everyone else, they go through a real learning-curve before eventually hitting real success.

    I think the vendors' learning-curve in this case is quite a tricky one, because often the most noise comes from all the other affiliates who only actually sell very small numbers of products (from which, exactly as you say, at $8 or something per sale, you're not going to get very far). So appearances and opinions can be very deceptive indeed.

    The ones it would irredeemably put off may be the ones you don't want.

    I think most serious affiliates look at "earnings per sale" rather than "commission %".
     
    alexa_s, Jan 15, 2010 IP
  5. evelinawilliams007

    evelinawilliams007 Notable Member

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    #5
    Well if say, you earn $9.9 per sale and getting 1000 sales daily ..

    You do the math :)

    And yeah, it's just a numbers game, but there's certain other factors other than just the number of affiliates that are promoting your product, that make certain products a long-term successful business.

    Al.
     
    evelinawilliams007, Jan 16, 2010 IP
  6. Ripped

    Ripped Well-Known Member

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    #6
    It is not that glorious being a vendor. Yes it can be profitable. But when you have lower priced products, it adds up very slowly.

    I remember for one of my products, I had only a few affiliates, and the best affiliate for that product was making more money with my product than me.

    For instance, if you're selling a product at 29$ with 75% commission, you earn 6$ per sale. You need more than 30 sales to earn 200$.
     
    Ripped, Jan 16, 2010 IP
  7. juve20

    juve20 Active Member

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    #7
    thanks for all the replys guys. Kinda see where your coming from now.
     
    juve20, Jan 16, 2010 IP
  8. powfada

    powfada Active Member

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    #8
    Glad you understand now. the hardest part is will be getting affiliates to promote your products.

     
    powfada, Jan 16, 2010 IP
  9. juve20

    juve20 Active Member

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    #9
    just out of intrest, is there a section on the forum thats for product developers? or ebook makers? i.e. CB vendors?

    thanks
    tony
     
    juve20, Jan 17, 2010 IP
  10. evelinawilliams007

    evelinawilliams007 Notable Member

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    #10
    No there isn't.

    You can discuss anything here related to Clickbank.

    Product/launches/ Marketing/ Legal Issues etc.

    Al.
     
    evelinawilliams007, Jan 17, 2010 IP