Methods to Calculate ClickBank Refund Charge In 4 Straightforward Steps

Methods to Calculate ClickBank Refund Charge In 4 Straightforward Steps

Methods to Calculate ClickBank Refund Charge In 4 Straightforward Steps

Methods to Calculate ClickBank Refund Charge In 4 Straightforward Steps

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For individuals who promote merchandise from ClickBank, you may need to be aware of the refund charge of those merchandise. It would not be very clever to advertise a product with excessive paying fee but in addition with excessive refund charge. There are 4 straightforward steps to calculating the refund charge for ClickBank merchandise.

The system is solely like this:

Step 1: (Product Worth – 7.5%) – $1 = Internet Fee

We start with calculating the Internet Fee the place the system is (Product Worth – 7.5%) – $1.The share of seven.5% and $1 are literally ClickBank’s fee fees as an affiliate community to deal with all of the processing and administration. So by subtracting ClickBank’s fee off the product value, this equals to your ‘Internet Fee’.

Step 2: Internet Fee x Payout Proportion = Affiliate Fee

That is the place you multiply your Internet Fee with the Payout Proportion, it then equals to your Affiliate Fee.

Step 3: Affiliate Fee – $Earned/Sale = Refund Distinction

Acquire the Refund Distinction, you merely minus your Affiliate Fee over the Earned/Sale worth.

Step 4: ($ Refund Distinction / Affiliate Fee) x 100 = Refund Proportion

The Refund Distinction divided by the Affiliate Fee, multiplied by 100 then this equals to your Refund Proportion.

Now let’s reveal it extra clearly with an instance. I’ll use “Stream On-line Films” as our instance product. There are 3 variables we have to take into accounts.

Product Worth = $45.95

$Earned/Sale = $25.21

Payout Proportion = 75%

The product value is definitely $45.95. The product pricing may be discovered by clicking on the ‘View Pitch Web page’ that can direct you to the gross sales web page provide and all that you must do is to seek for the product value. For Stream On-line Films, you would want click on on “Get Entry”, register your electronic mail handle and you will be taken to the gross sales provide web page the place you possibly can see the product value. In different instances, the merchandise value can often be discovered by scrolling right down to the underside of the gross sales provide web page.

The Earned per Sale quantity is obtained from the primary column of the ClickBank’s market search outcomes. For Stream On-line Films the Earned per Sale quantity is $25.21. For this product, the payout share is 75%.

So now let’s work on the calculation.

Step 1: ($45.95 – 7.5%) = $41.50 (Internet Fee)

You could begin by taking the Product Worth, minus off 7.5% of ClickBank’s fee, minus a greenback and that equals to your Internet Fee.

Step 2: ($41.50 x 75%) = $31.13 (Affiliate Fee)

Then utilizing your Internet Fee, multiply it by 75% of the Payout which equals to your Affiliate Fee; on this case, it might be $31.13.

Step 3: ($31.13 – $25.21) = $5.92 (Refund Distinction)

Then minus off the Affiliate Fee with the Earned/Sale worth and you will get a Refund Distinction of solely $5.92.

Step4: ($5.92 / $31.13) = 19.01% (Refund Proportion)

The Refund Proportion is then calculated by $5.92 divided over the Affiliate Fee and multiplying it by 100. This equates to a comparatively excessive refund share of 19.01%.

This goes to point out that this product is reasonably profitable as a result of 19.01% of their clients have requested for a refund. There are various merchandise on the market with numerous refund share. Refunds are regular in gross sales and advertising and marketing. Usually the type of refund charge you’d need to look out for in a product is something between 0 – 10%. In fact, the decrease the refund charge, the higher.

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