Clickbank Formula Explained

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In ClickBank market place there are many products to promote, one of the best way to promote these product is using PPC marketing. There are some factor to consider before begin promoting. First thing first, would you make profit from it? You have to limit your pay-per-click bid not let it over your about to return profit for each sale. There is tool to do the calculation this formula, I call it ClickBank Formula. But first let me show you how this ClickBank formula works.

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First thing to consider, for each of ClickBank's product you sold click bank would take away 7.5% of the product price plus $1 for the transaction issue. If the product price is $100, click bank will take away $7.5 + $1 = 8.5. You're your commission would be calculated from 91.5. Let's say the payout commission is %75 you will earn 68.62, not $75.

The ClickBank formula would go like this

Gross Revenue = Product Price - ((7.5% * Product Price) / 100) - 1)

Affiliate Commission = Gross Revenue * payout commission%

That is the formula on how to calculate how much you will get for each sale.

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Now you want to see how far you can go for each pay-per-click bid. You need to estimate how many click you have to pay before you can make one sale. Personally, I would take it from 100 clicks for each sale, if I had 2 sale for 100 clicks it does not hurt, do they?.

Let take it from the above example with the clickback' product price of $100 and the commission of %75, as already said your affiliate commission would be $68.62. You could round it up to $68 for the sake of easy calculation, but I prefer to leave it as it is. Why? because, as you may realize when we talk about PPC revenue we talk in decimal number, which is in cent. With 100 click to be able to sale once, the most PPC rate you could afford paying to promote this product would be $0.69. If you go beyond $0.69 you are likely to lost your money.

The calculation would be like this:

PPC Rate = Affiliate Commission / Click Through Rate Expected

All of this work you can use ClickBank Formula to help you work out these number plus the information of how much the product had been refunded.

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About The Author

Niramit Soonthawong invite you to grab copy of ClickBank formula tool for free at Free ClickBank Formula Tool

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