Why I Don't Use ClickBank to Manage My Affiliate Program: Three Thoughts

Recently, a customer who purchased Affiliate Manager Sweetie, sent me this question:

"There was one comment you made about ClickBank that it wasn't as good because you don't find out who your affiliates are but there is software that can help with this issue."

In the course, I do believe I mentioned there are software solutions to help you collect affiliate data, but I thought I'd elaborate here and explain in 3 thoughts why ClickBank has never been my first choice for managing my affiliate program:

1. You don't have all your affiliate contact info as I stated in the course. Yes, there is software that you can use that allows you to make your affiliate go through a sign up process before you give them their hoplink. In fact all you need is a simple autoresponder sign up to capture their info before giving them a hoplink, but some of the software has more sophisticated link creation capabilities for your affiliates, so I do understand the use of the software. In fact, Jimmy D. Brown uses a similar system, but I hear he's thinking of breaking out of ClickBank with future products.

Here's the potential problem with the software: You'll only catch those that go to your site. Those who find you through the marketplace won't need to go through the sign up process.

Of course, that's a perk of the marketplace where you can get extra exposure, so why not, right? Well, my guess is that not all affiliates are browsing the marketplace randomly when they find your link at ClickBank. They see other people promoting your product and they see it's a hoplink, so they go to CB to find theirs...circumventing your system. I've done this many time, not intentionally avoiding signing up for a program, but because I saw a product that I wanted to promote on another site and then just went to ClickBank.

Again, you might think...the more affiliates the better, right? Sure but...

2. Consider that the anonymous open marketplace can open you up to spammers and other unscrupulous promoters. You have no control, can't stop a particular hoplink (other than to stop selling by ClickBank) and it is a very real loss of control. Of course, if there are spam or other serious issues, Clickbank should step in, but you'll have to wait for them to take action. But overall, you have no control to keep someone out of your program.

It's a risk to think about.

NOTE: You don't have to list your product in the marketplace, but if you don't want it listed...why not manage your own program instead?

3. Overall, you need to decide if being at the mercy of ClickBank what you really want? If ClickBank is the only way you sell your product, you really are at their mercy. You have to follow all their rules and if they change them, you have to abide. I visit forums where people are constantly complaining that:

• "ClickBank is becoming stricter on allowing certain products." Often this is in the area of the Internet marketing niche on products like email list building, etc. where there is potential for abuse. But even if your product is stellar and totally by-the-book, you may lose out because ClickBank simply wants to protect itself.
  

• "They give out refunds too easily." Now, if you have a money-back guarantee, you've gotta give people their money back, but people have learned to game the ClickBank system. They also know they don't have to directly contact the seller, so it's easy to just buy and get a refund.
  

• "People Self-Serve Discounts by Buying Through Their Own Affiliate Link": This one really bothers me for a couple reasons and I don't allow it in my own program.
  
  First of all, when an affiliate self-serves they often take commissions away from an affiliate that actually referred the sale. That completely takes away from the spirit of an affiliate program.
  
  Second of all, I do understand the need to check out a product before promoting it and sometimes it helps to get it at a discount. If an affiliate is looking for a review copy, they should contact me directly and not simply help themselves to a discount. Most people who do this on the sly have no intention of promoting anything.
  
  

If you want to do business with ClickBank, you have to accept these types of restrictions and realize that you have to do what they say or get out.

Overall (and I think I'm heading into Thought #4), it is an expensive option. Yes, it's nice that they take care of paying your affiliates (but you know you can do it with a few click of your mouse in PayPal all by yourself?) and you can get extra exposure from their marketplace, but personally I'd rather take that extra money and hire an affiliate manager to get people into my own system and working hard to promote my products.

Fee Information from ClickBank's Website:

"For most transactions, ClickBank purchases the product from the publisher at a wholesale price equal to 92.5% of retail, less a $1 stocking charge. For example: If ClickBank sells your product for $50 to the customer, you would get $50 x .925 - $1 = $45.25. For rebills associated with a recurring billing product where the rebill is less than $40, ClickBank purchases the rebill product from the publisher at a wholesale price equal to 90.1% of retail.

For affiliate directed sales, the commission percentage is subtracted from the net sale price."

That is NOT cheap.

Overall, the choice is yours and I'm speaking from my point of view. I've evaluated ClickBank, but never used it. There are also thousands of people perfectly happy with the system (and I welcome their's and everyone's comments below).

Either way, if you're thinking of selling with ClickBank, you can consult their FAQ here or share your thoughts below.