Joint Venture

Joint Venture contracts let ClickBank vendors and affiliates partner with other people and share revenue in a variety of ways.

The following subjects are covered in this article:

Overview

Joint Venture contracts let ClickBank vendors and affiliates share revenue 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.

There are four types of Joint Venture contracts you can create:

  • Traditional JV Contract – Lets a product vendor 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 – Lets a product vendor upsell another vendor’s product and split the proceeds of the sale however they wish.
  • Affiliate Referral Contract – Lets a product vendor 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 – Lets two or more affiliates share the affiliate commission on a sale. This is a great way for affiliates to partner on an advertising campaign or collaborate on projects.

NOTE – Each member of a Joint Venture contract must have a ClickBank account.

Each party involved in a Joint Venture contract is notified of changes to the contract, and must approve the contract for it to take effect.

Contract Notifications and Approvals

As contracts are created and changed, the parties involved are notified. Each contract must be approved by all parties before it takes effect. If the contract owner makes a change to the contract, the change must be approved by the partner before it takes effect. Finally, if the contract owner attempts to terminate the contract, the contract partner is notified, and if the contract is set to require mutual termination, the contract partner must approve the termination before it takes effect.

Notifications occur as follows:

Contract Creation

When someone creates a joint venture contract, we send an email notification to the potential contract partner that includes the contract terms. Once this email is sent, the potential contract partner can also see the proposed contract in their My Contracts page. At this point, the contract's status is Pending Approval.

NOTE  – You can create a contract for a product before the product has been approved by ClickBank.

Contract Approval

Once a contract has been created and presented to the potential contract partner, they can view the terms and click Approve to initiate the contract. We send email notifications to the contract creator and contract partner, indicating that the contract is active, and the approved contract is visible in the My Contracts page. At this point, the contract's status is Active.

NOTE – Contracts do not take effect until their start date, even if they are active.

Product Changes

If the contract owner changes an element of the product such as the product title, affiliate commission rate, or referred affiliate list, we send an email notification to the contract partners that explains the change. The product change does not require approval from the contract partners; the notification is only to inform them of changes that could impact their revenue. The contract is still active.

Contract Changes

If the contract owner attempts to change the terms of an active contract, we send an email notification of the proposed change to the contract partner. If the contract partner views the new terms and clicks Approve, the new terms take effect. Until the contract partner approves the new terms, the old terms remain active and the new terms are in the Pending Approval status.

Contract Termination

Contracts can be terminated. The required approvals vary depending on the terms of the contract.

If the contract creator did not select "Requires Mutual Termination" when creating the contract, then either party can open the contract and click Terminate to terminate the contract. We send an email to the other party informing them that the contract has been terminated. The contract's status is Terminated.

If the contract creator selected "Requires Mutual Termination" when creating the contract, then the contract remains active until both parties have terminated it. Either party can open the contact and click Terminate. The contract's status is set to Termination Requested, and we send the other party an email informing them that termination has been requested. The second party can open the contract and click Terminate to terminate the contract, setting the contract's status to Terminated. We send the first party an email informing them that the contract has been terminated.

Payment Order

This is the order in which the proceeds from a sale are paid out to the involved parties.

  1. Fees and Taxes – ClickBank’s fees and any applicable taxes.
  2. Affiliate Portion – The affiliate's commission for the sale is taken from the remaining amount. The commission is divided between the following parties in this order:
    1. Affiliate JV Contract Partner – If the affiliate has one or more Affiliate JV contracts that apply to the vendor for this sale, the percentages specified in those Affiliate JV contracts are paid to the contract partners.
    2. Affiliate – The remaining amount of the affiliate portion is paid to the affiliate.
  3. Vendor Portion – The remaining amount is paid to the following parties in this order:
    1. Upsell JV Contract Partner – If this product was sold in an upsell flow defined by an Upsell JV Contract, the percentage specified in that Upsell JV Contract is paid to the other vendor.
    2. Traditional JV Contract Partners – If the vendor has one or more Traditional JV contracts, the percentage or amount specified is paid to the partners in those contracts.
    3. Affiliate Referral Contract Partners – If the sale was driven by an affiliate included in an Affiliate Referral Contract, the percentage specified in the Affiliate Referral Contract is paid to the contract partner.
    4. Vendor – The remaining amount of the vendor portion is paid to the vendor. The vendor also receives the shipping and handling fees for physical or hybrid products.

Reporting and Analytics

Contract owners 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 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.

Traditional JV Contracts

Traditional JV Contracts let vendors share revenue from sales of their products with up to five 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.

Creating a Traditional JV Contract

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

  1. Log in to your ClickBank account.
  2. Click the Settings tab.
  3. Click My Contracts.
  4. Click Create Contract.
  5. Enter the contract details:
    • Name – Enter a name for the contract. For example, you might choose “Copywriter” or “Designer.”
    • Contract Type – Select Traditional JV Contract.
    • Contract Partner Account Nickname – Enter the account nickname of the person with whom you want to share your sales revenue.
    • Product – You can select All Products to apply the contract to all products in your account, including initial sales and rebills, or select a specific product to apply the contract only to initial sales and rebills from that product.
    • Commission % – The percentage of your earnings to share with the contract partner. This is a percentage of your share as a vendor, rather than a percentage of the total sale amount.
    • Shipping & Handling delivered to JV Partner – The shipping and handling charges are given to the JV partner. This can be used if the partner is handling your order fulfillment.
    • Payout Maximum – This option lets you apply a maximum payout to the partner. You can select No Maximum to make the payout amount unlimited, select Set Amount to limit the payout amount, or Set Number of Transactions to limit the payout to a set number of transactions.
    • Maximum Payout – If you selected Set Amount in the Payout Maximum field, enter a maximum payout amount.
    • Maximum Transactions – If you selected Set Number of Transactions in the Payout Maximum field, enter a maximum number of transactions.
    • Start Date – Select a start date for the contract. The contract takes effect at 12:00 AM, US Pacific Standard Time, on the specified date.
    • End date (Optional) – Select an end date for the contract.
    • Comments/Description (Optional) – Enter a description or comments for the contract.
    • Requires Mutual Termination (Optional) – If you check this box, the contract can only be canceled if all parties agree to cancel it. If you do not check this box, either party can choose to cancel the contract at any time.
  6. Read and agree to the terms and conditions, then check the box indicating that you have done so.
  7. Click Submit.
    We will send an email to your contract partner asking them to confirm the contract.

Upsell JV Contracts

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

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

You can create Upsell JV Contracts with as many accounts as desired since only one other account can initiate the upsell flow for a given transaction.

Creating an Upsell JV Contract

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

  1. Log in to your ClickBank account.
  2. Click the Settings tab.
  3. Click My Contracts.
  4. Click Create Contract.
  5. Enter the contract details:
    • Name – Enter a name for the contract. For example, you might choose the name of the other vendor, or the name of their product.
    • Contract Type – Select Upsell JV Contract.
    • Contract Partner Account Nickname – Enter the account nickname of the vendor who wants to offer your product as an upsell.
    • Product – You can select All Products to apply the contract to all products in your account, including initial sales and rebills, or select a specific product to apply the contract only to initial sales and rebills from that product.
    • Commission % – The percentage of your earnings to share with the contract partner. This is a percentage of your share as a vendor, rather than a percentage of the total sale amount.
    • Affiliate Commission % – The percentage of the earnings on your product to share with the affiliate who promoted the initial sale.
    • Payout Maximum – This option lets you apply a maximum payout to the partner. You can select No Maximum to make the payout amount unlimited, select Set Amount to limit the payout amount, or Set Number of Transactions to limit the payout to a set number of transactions.
    • Maximum Payout – If you selected Set Amount in the Payout Maximum field, enter a maximum payout amount.
    • Maximum Transactions – If you selected Set Number of Transactions in the Payout Maximum field, enter a maximum number of transactions.
    • Start Date – Select a start date for the contract. The contract takes effect at 12:00 AM, US Pacific Standard Time, on the specified date.
    • End date (Optional) – Select an end date for the contract.
    • Comments/Description (Optional) – Enter a description or comments for the contract.
    • Requires Mutual Termination (Optional) – If you check this box, the contract can only be canceled if all parties agree to cancel it. If you do not check this box, either party can choose to cancel the contract at any time.
  6. Read and agree to the terms and conditions, then check the box indicating that you have done so.
  7. Click Submit.
    We will send an email to your contract partner asking them to confirm the contract.

Affiliate Referral Contracts

An Affiliate Referral Contract lets a ClickBank vendor 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 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 give specific affiliates an additional commission by listing that affiliate as their own affiliate manager, giving them the additional commission when they drive a sale.

Managing Affiliate Lists

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.

Creating an Affiliate Referral Contract

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

  1. Log in to your ClickBank account.
  2. Click the Settings tab.
  3. Click My Contracts.
  4. Click Create Contract.
  5. Enter the contract details:
    • Name – Enter a name for the contract. For example, you might choose the name or the organization of the referral partner.
    • Contract Type – Select Affiliate Referral.
    • Contract Partner Account Nickname – Enter the account nickname of the ClickBank client with whom you wish to form the contract.
    • Commission % – The percentage of your earnings to share with the contract partner. This is a percentage of your share as a vendor, rather than a percentage of the total sale amount.
    • Payout Maximum – This option lets you apply a maximum payout to the partner. You can select No Maximum to make the payout amount unlimited, select Set Amount to limit the payout amount, or Set Number of Transactions to limit the payout to a set number of transactions.
    • Maximum Payout – If you selected Set Amount in the Payout Maximum field, enter a maximum payout amount.
    • Maximum Transactions – If you selected Set Number of Transactions in the Payout Maximum field, enter a maximum number of transactions.
    • Start Date – Select a start date for the contract. The contract takes effect at 12:00 AM, US Pacific Standard Time, on the specified date.
    • End date (Optional) – Select an end date for the contract.
    • Comments/Description (Optional) – Enter a description or comments for the contract.
    • Requires Mutual Termination (Optional) – If you check this box, the contract can only be canceled if all parties agree to cancel it. If you do not check this box, either party can choose to cancel the contract at any time.
  6. Read and agree to the terms and conditions, then check the box indicating that you have done so.
  7. Click Submit.
    We will send an email to your contract partner asking them to confirm the contract.

Editing the Affiliate List

You can edit the affiliate list for an existing Affiliate Referral Contract.

  1. Log in to your ClickBank account.
  2. Click the Settings tab.
  3. Click My Contracts.
  4. Click List Contracts.
  5. Find the Affiliate Referral Contract in the list of contracts, then click the Action icon.
  6. Click Edit Affiliate List.
    The Group Editor page is displayed.
  7. (Optional) Add one or more affiliates:
    • Enter them in the Accounts (Comma Delimited) field and click Add Account(s).
    • Click Import from CSV file, choose a CSV file, and click Upload.
  8. (Optional) Remove one or more affiliates by selecting them in the list of active accounts and clicking Remove.
  9. Click Save.

Affiliate JV Contracts

Affiliate JV Contracts let two or more affiliates split the proceeds of a sale. When setting up the contract, the split can either apply to all affiliate commissions, 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

You can have several Affiliate JV contracts operating at once, but the total commission percentage 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 cannot create new Affiliate JV Contracts.

If 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.

Creating an Affiliate JV Contract

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

  1. Log in to your ClickBank account.
  2. Click the Settings tab.
  3. Click My Contracts.
  4. Click Create Contract.
  5. Enter the contract details:
    • Name – Enter a name for the contract. For example, you might choose the affiliate's name.
    • Contract Type – Select Affiliate JV Contract.
    • Contract Partner Account Nickname – Enter the account nickname of the ClickBank client with whom you wish to share a portion of each sale.
    • Vendor Account Nickname(s) (Optional) – Enter 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 partners.
    • Product – You can select All Product to apply the contract to all products in your account, or select a specific product to apply the contract only to earnings from that product.
    • Commission % – The percentage of your earnings to share with the contract partner. This is a percentage of your share as an affiliate, rather than a percentage of the total sale amount.
    • Payout Maximum – This option lets you apply a maximum payout to the partner. You can select No Maximum to make the payout amount unlimited, select Set Amount to limit the payout amount, or Set Number of Transactions to limit the payout to a set number of transactions.
    • Maximum Payout – If you selected Set Amount in the Payout Maximum field, enter a maximum payout amount.
    • Maximum Transactions – If you selected Set Number of Transactions in the Payout Maximum field, enter a maximum number of transactions.
    • Start Date – Select a start date for the contract. The contract takes effect at 12:00 AM, US Pacific Standard Time, on the specified date.
    • End date (Optional) – Select an end date for the contract.
    • Comments/Description (Optional) – Enter a description or comments for the contract.
    • Requires Mutual Termination (Optional) – If you check this box, the contract can only be canceled if all parties agree to cancel it. If you do not check this box, either party can choose to cancel the contract at any time.
  6. Read and agree to the terms and conditions, then check the box indicating that you have done so.
  7. Click Submit.
    We will send an email to your contract partner asking them to confirm the contract.

Approving a Contract

You can approve a contract created by another person.

  1. Log in to your ClickBank account.
  2. Click the Settings tab.
  3. Click My Contracts.
  4. Click the Action icon for the contract.
  5. Read and agree to the terms and conditions, then check the box indicating that you have done so.
  6. Click Approve.

Terminating a Contract

You can terminate an existing contract. Depending on the contract settings, this may require confirmation from the other party in the contract.

  1. Log in to your ClickBank account.
  2. Click the Settings tab.
  3. Click My Contracts.
  4. Click the Action icon for the contract.
  5. Click Terminate.
    If the contract does not require mutual termination, it is terminated.
    If the contract requires mutual termination, the other party is notified of the request. Once they also follow this procedure, the contract is terminated.
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