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Selling Digital Products Through ClickBank

Think of ClickBank as sort of like the eBay of instantly downloadable digital products. It is a vast marketplace of such products. Of course there's one little twist to the analogy: instead of being the storefront, it's more like the back room warehouse.

End-user consumers generally do not browse ClickBank for things to buy. Instead it is where you can store your product(s). It's also a place where enterprising entrepreneurs from around the world can look for things to sell.

If someone finds one of your products and decides he likes it enough to want to help you sell it he can sign up to become an affiliate, grab your link, sell your products and collect a commission on each sale he generates. These sales may take place on his website, through emails he sends out, he may create online ads such as with AdWords or in a hundred other ways.

You determine the amount of commission you are willing to pay beforehand and ClickBank takes care of everything automatically.

What kinds of products can you sell?

ClickBank only handles memberships and digital products which can be delivered instantly via digital download. You can offer a physical product, such as a book or CD but only if it's a supplement to an instant download. Specifically, ClickBank allows:

Streaming and downloadable audio files
Streaming and downloadable video files
Web site membership fees

What does ClickBank do for you?

Aside from helping you recruit a worldwide sales force of commission only sales reps, ClickBank does several other things for you:

It acts as an online shopping cart and payment processor
Takes care of delivery and product fulfillment
Provides tracking and reporting services

How much does it cost and is it worth it?

When you first sign up to sell your own products, you must pay a one-time only $49.95 fee. That fee is good for life (provided you don't violate ClickBank policies and get your account terminated) and allows you to sell an unlimited number of products in an unlimited number of categories.

Other than commissions that you pay to affiliate marketers for selling your products and a 7 percent sales commission to ClickBank, there are no other fees or costs.

Are there strategies for affiliate commissions?

ClickBank affiliate commissions are set by you but are applied in blanket form to all products marketed under your account. The minimum commission is 1 percent and maximum is 75 percent.

There are two strategies you might think of pursuing with ClickBank affiliates. The first assumes that you only want ClickBank as a payment processor and fulfillment house and would prefer that others not sell your products. In that event, set your commission percentage to 1 percent. Such a low percentage would not be worth anyone's while and no one will want to sell your stuff.

A generally more sound strategy is to set a high commission, 50 percent - 75 percent. I've even heard of some marketers offering special bonuses which must be paid manually outside of the ClickBank system, in essence making the commission rate even higher than ClickBank allows. In some cases even slightly over 100 percent.

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