ClickBank Knowledge Base /General Account Help/Tools & Features

Joint Venture

Melissa
posted this on December 26, 2012 13:18

ClickBank Joint Venture allows ClickBank vendors and affiliates to partner with other people in a wide variety of ways, allowing for many types of relationships to be supported via the ClickBank platform. For example, with a Traditional JV Contract, a ClickBank vendor can automatically share a portion of their earnings from each sale with a copywriter, customer service manager, content creator, or whomever they wish. Since ClickBank automatically handles the administrative headaches, it’s now easier than ever to work with partners on your ClickBank products or promotions.

Joint Venture includes four different types of JV contracts you can create, with each serving a unique and useful function:

  • Traditional JV Contract- Allows a product vendor to give a portion of their earnings from a sale to another client, such as a partner, copywriter, designer, customer service manager, or anyone they wish.
  • Upsell JV Contract- Allows a product vendor to upsell another vendor’s product and split the proceeds of the sale however they wish.
  • Affiliate Referral Contract- Commonly referred to as 2nd tier affiliate commissions, this type of JV allows a product vendor to share a portion of their earnings with an affiliate manager or JV broker who referred the affiliate that led to a particular sale.
  • Affiliate JV Contract- Allows two or more affiliates to share the affiliate commission on a sale. This is a great way for affiliates to partner on an advertising campaign or collaborate on projects.

Please note that in order to be paid by ClickBank, each member of a Joint Venture contract must have a ClickBank account.

The following article contains all of the instructions needed to set up and manage each type of Joint Venture contract, as well as important notes and considerations regarding each.

Setting Up a Traditional JV Contract

Traditional JV Contracts allow vendors (product owners) to share revenue from sales of their products with other parties. There are many potential uses for this feature, but some common examples may include:

  • Paying a copywriter, virtual assistant, customer service manager or Web designer a percentage of sales, as opposed to a flat fee
  • A vendor who handles the sales and marketing aspects of selling a ClickBank product but wishes to share revenue with a subject matter expert who creates the actual content of the product or provides ongoing support
  • Partners who create and sell a product together

To set up a Traditional JV contract, take the following steps:

  1. Click Settings
  2. Click My Contracts
  3. Click Create Contract
  4. Under Name, create a unique name for this specific contract. For example, you might choose “Copywriter” or “Designer.”
  5. Under Contract Type, choose “Traditional JV Contract.”
  6. Under Contract Partner Account Nickname, enter the ClickBank nickname (account name) of the ClickBank client with whom you wish to share a portion of each sale.
  7. Under Product, you can choose All Products or choose the product number for a specific product if you only wish to share earnings for a single product.
  8. For Commission %, choose the % of your share of each sale that you wish to share with your partner. Please note that this % is of your share as a vendor from each sale, rather than from the total sale amount.
  9. Optional: If you want to set a maximum amount of earnings you will pay out to your partner, you may enter it in the Maximum Payout field.
  10. Optional: Instead of a maximum amount, you can instead enter a maximum # of transactions on which you will share earnings with your partner before the contract is automatically ended. This is an easy way, for example, to give a copywriter a share of the first 500 sales.
  11. Set a Start Date for the contract.
  12. Optional: You may set a specific End Date for the contract.
  13. Optional: By checking the Requires Mutual Termination box, each partner in the contract will be required to agree to cancel the contract. If this is not selected, either party can choose to end the contract at any time.
  14. Read and agree to the terms and conditions.
  15. When you have completed these fields, click the Submit button. Your partner will receive an email asking them to confirm the contract.

Important Notes Regarding Traditional JV Contracts 

  • For sales of a specific product, or all products within a vendor’s account, earnings may be split among up to 5 other ClickBank accounts.
  • Traditional JV Contracts apply to the following transaction types:
    • Standard product transaction (one-time sale)
    • Initial sale of a recurring billing product
    • Rebill transaction for a recurring billing product
    • On shippable media products, the product owner and contract creator will retain all shipping and handling fees.  The transaction is split for JV partners for the remaining amount of the transaction.
    • For vendors with multiple contract types on the same product, it is important to note that an Upsell JV Contract will pay out the partner prior to a Traditional JV Contract, which will pay out prior to any Affiliate Referral Contract.

Setting Up an Upsell JV Contract

An Upsell JV Contract is used when one vendor wants to offer another vendor’s product as an upsell to his or her own existing product.

For example, Vendor A only has one product of his own to sell, but would like to offer an upsell to increase his average order size. He finds Vendor B’s product, which is relevant and attractive to the same audience. He contacts Vendor B and asks to include Vendor B’s product as an upsell offer after the sale of his own product. Vendor B agrees, so they create an Upsell JV Contract and split the proceeds of any upsell sales of Vendor B’s product 50/50 after fees and affiliate commissions have been assessed.

To set up an Upsell JV Contract, take the following steps:

  1. Click Settings
  2. Click My Contracts
  3. Click Create Contract
  4. Under Name, create a unique name for this specific contract. For example, you might choose “Upsell Partner” or the partner’s name, if you have more than one contract.
  5. Under Contract Type, choose “Upsell JV Contract.”
  6. Under Contract Partner Account Nickname, enter the ClickBank nickname (account name) of the ClickBank vendor with whom you wish to share a portion of each sale.
  7. Under Product, you can choose All Products or choose the product number for a specific product if you only wish to share earnings for a single product.
  8. For Commission %, choose the % of your share of each sale that you wish to share with your partner. Please note that this % is of your share as a vendor from each sale, rather than from the total sale amount.
  9. Optional: In Affiliate Commission %, you may set the commission % that any affiliate who promoted the initial sale will receive from upsell purchases.
  10. Optional: If you want to set a maximum amount of earnings you will pay out to your partner, you may enter it in the Maximum Payout field.
  11. Optional: Instead of a maximum amount, you can instead enter a maximum # of transactions on which you will share earnings with your partner before the contract is automatically ended. This is an easy way, for example, to give a fellow vendor a share of the first 500 sales.
  12. Set a Start Date for the contract.
  13. Optional: You may set a specific End Date for the contract.
  14. Optional: By checking the Requires Mutual Termination box, each partner in the contract will be required to agree to cancel the contract. If this is not selected, either party can choose to end the contract at any time.
  15. Read and agree to the terms and conditions.
  16. When you have completed these fields, click the Submit button. Your partner will receive an email asking them to confirm the contract.

Important Notes Regarding Upsell JV Contracts

Upsell JV Contracts can be used for the following transaction types only:

  • Standard product transaction (one-time sale)
  • Initial sale of a recurring billing product
  • Rebill transactions for a recurring billing product

For Upsell JV Contracts, the Contract Owner can create an Upsell JV Contract with as many accounts as desired since only 1 other account can initiate the upsell flow for a given transaction.

When transactions occur, the order of operations for calculating who gets paid what amount is as follows, in descending order:

  1. ClickBank’s fees and any applicable taxes
  2. The affiliate’s portion of the transaction
  3. Upsell JV Contract – If this product was sold in an upsell flow defined by an Upsell JV Contract, the Upsell terms will deduct the amount payable according to that contract for the Contract Partner
  4. Traditional JV Contracts – The amount paid to up to 5 other Contract Partners
  5. The remaining amount paid to the Contract Owner

Setting Up an Affiliate Referral Contract

An Affiliate Referral Contract is typically used to allow a ClickBank vendor to work with an affiliate manager or JV broker, who will recruit affiliates to promote the vendor’s product in exchange for a portion of each sale generated by those affiliates.

For example, Vendor A meets Affiliate Manager B at a conference or in an online forum. Affiliate Manager B knows many affiliates in the relevant niche, and offers to recommend Vendor A’s products to those affiliates. Vendor A and Affiliate Manager B can create an Affiliate Referral Contract that will pay Affiliate Manager B 20% of Vendor A’s portion of each sale made by one of the affiliates referred by Affiliate Manager B.

Affiliate Referral Contracts can also be used to allow vendors to “bonus” specific affiliates above and beyond the normal 75% commission by putting the affiliate’s nickname in their lists of referred affiliates and agreeing the share of the vendor’s earnings that the affiliate will receive as a “bonus.”

To set up an Affiliate Referral Contract, take the following steps:

  1. Click Settings
  2. Click My Contracts
  3. Click Create Contract
  4. Under Name, create a unique name for this specific contract. For example, you can enter the Affiliate Manager’s name or other unique details.
  5. Under Contract Type, choose “Affiliate Referral”
  6. Under Contract Partner Account Nickname, enter the ClickBank nickname (account name) of the ClickBank client with whom you wish to share a portion of each sale.
  7. For Commission %, choose the % of your share of each sale that you wish to share with your partner. Please note that this % is of your share as a vendor from each sale, rather than from the total sale amount.
  8. Optional: If you want to set a maximum amount of earnings you will pay out to your partner, you may enter it in the Maximum Payout field.
  9. Optional: Instead of a maximum amount, you can instead enter a maximum # of transactions on which you will share earnings with your partner before the contract is automatically ended. This is an easy way, for example, to give a copywriter a share of the first 500 sales.
  10. Set a Start Date for the contract.
  11. Optional: You may set a specific End Date for the contract.
  12. Optional: By checking the Requires Mutual Termination box, each partner in the contract will be required to agree to cancel the contract. If this is not selected, either party can choose to end the contract at any time.
  13. Read and agree to the terms and conditions.
  14. When you have completed these fields, click the Submit button. Your partner will receive an email asking them to confirm the contract.

 

Important Notes Regarding Affiliate Referral Contracts

The contract owner and partner can establish terms for the contract and then manage a list of affiliate accounts on the fly.  This means that the owner sets up the contract with the partner and then adds or removes affiliate nicknames for any referred affiliate from the partner.

If a vendor sets up more than one Affiliate Referral Contract and the same affiliate nickname is added to the contract, the system will reject the nickname and indicate that it is already associated with a different Affiliate Referral Contract.  This will prevent a scenario where the same traffic can result in payments to multiple brokers/affiliate managers.

When managing the list of referred affiliate account nicknames, any changes to the list will result in an email to the contract partner.  This will allow the contract partner to understand which traffic-driving accounts will result in compensation.

Setting Up an Affiliate JV Contract

Affiliate JV Contracts are similar to Traditional JV Contracts, but are intended to let affiliates split the proceeds of a sale. When setting up the contract, the split can either apply to all affiliate commissions you earn, or only apply to sales from specific vendors.

Reasons for setting up an Affiliate JV contract include scenarios such as:

  • Affiliates working together on an advertising campaign
  • List swaps
  • A mentor/mentee relationship

Affiliate JV Contracts are unique in that you may have several of these contracts operating at once, but the total Commission % you can share among all of your Affiliate JV contracts cannot exceed 100%. For example, you could share 20% of your sales with Affiliate 1, 30% with Affiliate 2, 40% with Affiliate 3, and you would then keep 10% of sales for yourself.

Once you are sharing 100% of your commissions (whether for a specific vendor or amongst all vendors), you will not be allowed to create any more Affiliate JV Contracts. Within this 100% limit, you can have as many or as few Affiliate JV Contracts as you wish.

To set up an Affiliate JV Contract, take the following steps:

  1. Click Settings
  2. Click My Contracts
  3. Click Create Contract
  4. Under Name, create a unique name for this specific contract. For example, you might use the other affiliate’s first or last name.
  5. Under Contract Type, choose “Affiliate JV Contract.”
  6. Under Contract Partner Account Nickname, enter the ClickBank nickname (account name) of the ClickBank client with whom you wish to share a portion of each sale.
  7. Optional: Vendor Account Nickname(s), you can specify one or more vendor nicknames, separated by commas. If you make any affiliates sales for this vendor’s products, you will share the commission with your Affiliate JV partner(s).
  8. For Commission %, choose the % of your share of each sale that you wish to share with your partner. Please note that this % is of your share as an affiliate from each sale, rather than from the total sale amount.
  9. Optional: If you want to set a maximum amount of earnings you will pay out to your partner, you may enter it in the Maximum Payout field.
  10. Optional: Instead of a maximum amount, you can instead enter a maximum # of transactions on which you will share earnings with your partner before the contract is automatically ended. This is an easy way, for example, to give an affiliate mentor a share of the first 500 sales.
  11. Set a Start Date for the contract.
  12. Optional: You may set a specific End Date for the contract.
  13. Optional: By checking the Requires Mutual Termination box, each partner in the contract will be required to agree to cancel the contract. If this is not selected, either party can choose to end the contract at any time.
  14. Read and agree to the terms and conditions.
  15. When you have completed these fields, click the Submit button. Your partner will receive an email asking them to confirm the contract.

Important Notes Regarding Affiliate JV Contracts

In the event that an Affiliate JV Contract is active and the contract owner promotes a product that also results in an upsell flow, any upsell commission received will be split according to the terms of the Affiliate JV Contract.  

Working with JV Contracts

As contracts are created, changed and modified, the parties involved will be notified and have an opportunity to approve or terminate based on the nature of the terms specified. 

Notifications occur as follows:

Contract Creation

When a Contract Owner creates a contract for a product, the email address associated with the account nickname identified as the Contract Partner will receive an email containing the proposed terms of the contract. In addition, the Contract Partner’s “My Contracts” page will be updated so they can view the terms of the contract. At this point, the contract is in a state of ‘Pending Approval.’

Please note that it is possible to establish contracts prior to approval of any corresponding product.  This will allow you to get relationships in place before a product is approved and enabled for sales.

Contract Approval

Once the Contract Partner agrees to the terms of the contract and clicks ‘approve,’ the contract is initiated and all sales of the associated product will split revenues between the Contract Owner and Contract Partner according to the agreed-upon terms. Email notifications will be sent to both parties and their “My Contracts” pages updated to indicate that the contract is now ‘active.’

Contract Change

In the event a Contract Owner (in this case, a Traditional JV Contract) determines that they wish to change an element of the product such as product title, affiliate commission rate, referred affiliate list, product price, etc., the parties involved in the contract will receive a notification indicating that the product has been updated.

This does not require any approval or confirmation by either Contract Owner or Contract Partner; this is used simply to inform the parties that an element may have changed that could affect the revenue received for each transaction.  The contract is still in an ‘active’ state. If the Contract Owner attempts to change the revenue share rate for a Contract Partner, approval will be required and the new terms will be “Pending Approval.”

Contract Terminated 

Either party may elect to terminate a contract if the mutual termination clause was not selected upon contract creation. Once this occurs, the Contract Owner account will retain the Contract Partner’s portion of any sales from this point forward.

If the contract is terminated, both accounts will receive email notifications and the status on the “My Contracts” page will change. In the event that an optional ‘mutual termination’ clause exists for the contract, then upon selecting ‘terminate,’ the partner will receive an email indicating that there is a request to terminate the contract. The partner must confirm this termination before the contract will be terminated.

Applying JV Contracts to Products

It is important to note that any JV contract related to a specific product will begin paying out the revenue splits to the partner according to the terms of that contract, effective at 12:00AM U.S. Pacific Time Zone, the morning of the start date specified.  This also applies to in-process rebills for recurring products.

Important: Any active contract for a subscription product will pay out on all initial sales and rebills for that product, not just new sales. Should you wish to split revenue only on new subscription sales, you must create another product within your account for the JV contract. This also applies to any product sold as an upsell if you establish an Upsell JV Contract with a partner who has previously sold the recurring product with the contract in an upsell flow.

Reporting and Analytics

Contract Owners will receive full details for all transactions that occur for products against which there are JV contracts. Contract Partners have the same view as an affiliate; they will receive instant notifications if these have been set up for them, transactions display will include sales and refunds for the products, but no personally identifiable information or contact data will be given to the Contract Partner. In addition, there are no analytics details on JV transactions for Contract Partners (e.g., Hops, Impressions, etc.).

In the Transactions view and in Master Account view, all JV-related transactions are indicated visually with an icon. Clicking on the icon reveals details of that transaction, allowing the parties to view the breakout for their revenue.  The Contract Owner will see all splits for JV Contract Partners, including upsells.  The Contract Partner will only see their revenue share.

 
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