Clickbank is one of the largest and most popular platforms for digital product marketers. However, like any platform, it comes with a number of fees and charges that marketers need to be aware of. In this article, we will take a deep dive into the fees involved in using Clickbank for your business, including transaction fees, payment processing fees, and more.
Introduction
Clickbank is an online marketplace that allows marketers to sell their digital products, such as eBooks, courses, and software. With a user-friendly interface, powerful marketing tools, and a large network of affiliates, it is easy to see why Clickbank is such a popular choice for digital product marketers.
However, before you start using Clickbank, it’s important to understand the fees involved. While some of these fees are unavoidable, it’s important to know what they are so you can factor them into your business plan and budget. In this article, we’ll discuss the various fees involved in using Clickbank, including transaction fees, payment processing fees, and more.
Transaction Fees
The first fee that you’ll need to consider when using Clickbank is the transaction fee. This fee is a percentage of the sale price of your product, and it is charged every time a customer makes a purchase. The exact amount of the transaction fee varies depending on the product and the vendor, but it typically ranges from 7% to 15%.
For example, let’s say you are selling a product for $100. If the transaction fee is 10%, you’ll pay $10 for each sale. This may seem like a large chunk of your profits, but it’s important to remember that the transaction fee covers the costs of processing the payment and providing support for the customer.
Payment Processing Fees
In addition to the transaction fee, you’ll also need to consider the payment processing fee. This fee is charged by the payment processor, such as PayPal or Stripe, and it covers the cost of processing the payment and transferring the funds to your bank account. The payment processing fee typically ranges from 2.9% to 3.5% of the sale price, plus a fixed fee of $0.30.
For example, let’s say you are selling a product for $100. If the payment processing fee is 2.9% + $0.30, you’ll pay $3.20 for each sale. This may seem like a small fee, but it can add up quickly if you are making a lot of sales.
Affiliate Commissions
If you decide to use affiliates to promote your product, you’ll also need to consider the cost of their commissions. Affiliates are marketers who promote your product and earn a commission for each sale they make. The commission is a percentage of the sale price, and it varies depending on the product and the vendor.
For example, let’s say you are selling a product for $100 and you offer a 50% commission to your affiliates. If an affiliate makes a sale, they’ll earn $50 and you’ll earn $50. While this may seem like a high cost, it’s important to remember that affiliates can bring in a large number of sales and help grow your business.
Subscription Fees
One of the most common fees that Clickbank charges is the subscription fee. This is a monthly charge that is taken from your account for being a part of the platform. The subscription fee is usually between $29.95 and $49.95, depending on the level of account you have. Some of the higher level accounts may have additional features, such as more storage space or more advanced reporting, that may make the higher subscription fee worth it for some marketers.
Transaction Fees
Another fee that Clickbank charges is the transaction fee. This fee is taken whenever you make a sale through the platform. The transaction fee is usually between 5% and 7% of the total sale price, depending on the level of account you have. This fee is taken in addition to any other fees that may be applicable, such as the subscription fee.
Payment Processing Fees
In addition to the transaction fee, there are also payment processing fees that are involved in using Clickbank for marketers. These fees are taken whenever you make a payment to a vendor or when a customer makes a purchase from you. The payment processing fee is usually between 2.5% and 3.5% of the total payment amount. This fee is taken in addition to the transaction fee and any other applicable fees.
Refunds
Another fee that is involved in using Clickbank is the fee for refunds. Whenever a customer requests a refund, Clickbank will take a fee to process the refund. The fee for processing a refund is usually between $5 and $10, depending on the level of account you have. This fee is taken in addition to any other fees that may be applicable, such as the transaction fee or the payment processing fee.
Chargebacks
In addition to the fee for processing refunds, there is also a fee for chargebacks. A chargeback is when a customer disputes a charge on their credit card and the credit card company reverses the charge. When a chargeback occurs, Clickbank will take a fee to process the chargeback. The fee for processing a chargeback is usually between $20 and $30, depending on the level of account you have.
Other Fees
In addition to the fees listed above, there may be other fees that are involved in using Clickbank for marketers. For example, some Clickbank accounts may have a monthly minimum charge or a fee for adding new products. Be sure to read the fine print of your account agreement to make sure you are aware of all the fees involved in using Clickbank.
Frequently Asked Questions (FAQs)
Q: What are the fees involved in using Clickbank for marketers?
A: The fees involved in using Clickbank for marketers include subscription fees, transaction fees, payment processing fees, refunds, chargebacks, and other fees. The specific fees will vary depending on the level of account you have with Clickbank.
Q: How much is the subscription fee for a Clickbank account?
A: The subscription fee for a Clickbank account is usually between $29.95 and $49.95, depending on the level of account you have.
Q: How much is the transaction fee for using Clickbank?
A: The transaction fee for using Clickbank is usually between 5% and 7% of the total sale price, depending on the level of account you have.
Q: How much is the payment processing fee for using Clickbank?
A: The payment processing fee for using Clickbank is usually between 2.5% and 3.5% of the total payment amount.
Other Fees to Consider
Aside from the transaction fees, there are also other costs to consider when using Clickbank as a marketer. These costs are optional but could be necessary depending on the marketing strategy.
Advertising
Clickbank offers various advertising options to help market your product. Some of these options include sponsored product listings, banners, and display ads. The cost of these advertising options will depend on the type of advertising, the length of time, and the target audience.
Software and Tools
There are various tools and software available on the market that can be used to help with the marketing of products on Clickbank. Some of these tools can help with keyword research, tracking and optimizing campaigns, and automating repetitive tasks. The cost of these tools will vary, and some may be free, while others may require a monthly subscription fee.
Virtual Products
For digital products, there may be additional fees for hosting and storage. For example, if you are selling an ebook, you will need to pay for storage space for the file. There are also websites that offer free hosting for digital products, but there may be restrictions on the size of the files or the number of downloads.
Conclusion
Clickbank is a popular platform for marketers to sell digital and physical products. It is important to consider the fees involved when using Clickbank as a marketer, including transaction fees, advertising, software and tools, and hosting for digital products. By understanding the fees involved and considering the costs, marketers can make informed decisions when using Clickbank to sell their products.