Joint Venture Contracts

Overview

Joint venture contracts let ClickBank sellers and affiliates partner with other people to share revenue in a variety of ways. This allows for a wide array of business relationships to be formed via the ClickBank platform. Note: Each member of a joint venture contract must have ClickBank account and must approve of the contract for it to take effect. 

 

This article contains the following sub-articles. Click the link to jump to the section that best suits your needs. 

• Types of Joint Venture Contracts 
• Joint Venture Contracts and CPA 
• Joint Venture Contract Notifications and Approvals
• Joint Venture Payment Order 
• Joint Venture Reporting and Analytics 
• How to Create Joint Venture Contracts 
• Managing and Editing an Affiliate List for an Affiliate Referral Contract 
• How to Approve or Terminate a Joint Venture Contract

 

 

Types of Joint Venture Contracts 

There are four types of joint venture contracts: 

 

Traditional Joint Venture Contract
This joint venture contract (also known as a JV contract) allows a product seller to give a portion of their earnings from a sale to another client. Contract owners can share revenue with up to five other parties. Common contract partners include: partners, copywriters, designers, customer service managers, virtual assistants, product developer, etc.

Joint Venture Upsell
The joint venture upsell (also known as JV upsell) allows a seller to upsell another seller's product and split the proceeds of the sale however they wish. The seller who owns the product or products to be included creates the contract and the seller who owns the PitchPlus upsell flow approves the contract. 

For example, Seller A only has one product of their own to sell but would like to offer an upsell to increase their average order value. Seller A finds Seller B's product, which is relevant and attractive to the same audience. Seller A contacts Seller B by finding their contact information in the ClickBank Marketplace and asks to include Seller B's product as an upsell offer. Seller B agrees, so Seller B creates a JV upsell contract to split the proceeds of any upsell sales of Seller B's product 50/50 after fees and affiliate commissions have been paid. If Seller B's product is physical, the shipping and handling charges are not included in the split and are handled entirely by Seller B. 

 

Affiliate Referral Contract
An affiliate referral contract allows a seller to share a portion of their earnings with an affiliate manager or joint venture broker who referred the affiliate that led to a particular sale.

For example, Seller 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 Seller A’s products to those affiliates. Seller A can create an affiliate referral contract that will pay Affiliate Manager B 20% of Seller 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.

 

Affiliate Joint Venture Contract
An affiliate joint venture contract allows two or more affiliates to share the affiliate commission on a sale. When setting up the contract, the split can either apply to all affiliate commissions, or only apply to sales from specific sellers. 

Oftentimes affiliates will create affiliate JV contracts if they are working with another affiliate on an advertising campaign, swapping lists, or working in a mentor/mentee relationship. 

Affiliates can have multiple 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 A, 30% with Affiliate B, 40% with Affiliate C, and you would then keep 10% of sales for yourself. Once you are sharing 100% of your commissions (whether for a specific seller or amongst all sellers), 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. 

 

 

Joint Venture Contracts and CPA 

If an affiliate earns CPA commission, the seller earnings will not be split for any traditional JV or affiliate referral contracts you own. This is true for all sales in that order including the initial sale, upsells and rebills. The affiliate earnings will still be split if the affiliate earning CPA commission has any affiliate JV contracts. 

 

If you have any JV upsells in your upsell flows, the seller contracts on the JV upsell will be split as normal. Please note that like other upsells after a CPA commission is paid, the affiliate will earn $0.00 on the JV upsell. Note: If the affiliate on the sale earns revenue share commissions, all the JV contract splits will be processed normally. 

 

 

 

Joint Venture 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.

The following events prompt notification to all parties involved:

 

Contract Creation

When a ClickBank user creates a JV contract, ClickBank sends an email notification to the potential contract partner that includes the contract terms. Once the email is sent, the potential contract partners can see the proposed contract in their My Contracts page. 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. Once they have approved the contract, ClickBank sends an email notification to the contract creator and contract partner indicating that the contract is active and has been set to Active in the My Contracts page. Note: Contracts do not take effect until their start date even if their status on the My Products page indicates that 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, an email will be sent from ClickBank 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, an email will be sent from ClickBank to the contract partner outlining the proposed change. 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 previous 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 contact creator did not select Requires Mutual Termination when creating the contract, then either party can terminate the contract at any time. If a contract is terminated, ClickBank sends an email to any other parties involved informing that the contract has been terminated. Once a contract is terminated, the status on the My Contracts page will change to 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 ClickBank sends 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. Once both parties have terminated the contract, ClickBank sends the party that initiated the termination an email indicating that the contract has been terminated.  

 

 

Joint Venture Payment Order  

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

 

Paid 1st: ClickBank's Fees and Any Applicable Taxes

The first pay out from the sale proceeds go to pay ClickBank's fees and any applicable taxes. 

 

Paid 2nd: Affiliate Portion 

The second portion that is paid out of the proceeds is the affiliate portion. If the affiliate has one or more affiliate joint venture contracts that apply to the seller for the sale, the percentages specified in those contracts are paid first, then the remaining affiliate portion is paid to the affiliate. 

 

Paid 3rd: Seller Portion

The remaining portion of the proceeds are the seller's portion. If the product was sold in an upsell flow defined by an JV Upsell Contract, the percentage specified in the JC Upsell Contract is paid to the other seller.

 

If the seller has one or more traditional joint venture contracts, the percentage specified is paid to the other seller. 

 

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.

 

The remainder of the proceeds is paid to the seller. The seller also receives the shipping and handling fees for physical or hybrid products.   

 

 

 

Joint Venture Reporting and Analytics 

There are two parties involved in a joint venture contract: the contract owner and the contract partner. The contract owner is the initiating party and receives full details for all transactions the occur involving products that are under contract. 

 

Contract partners have a limited view of transactions. They receive instant notifications regarding transactions (if instant notifications have been enabled) and the Transactions Display will include sales and refunds however contract partners are not able to view personally identifiable information or contact data. Additionally, contract partners are not able to view analytics details on JV transactions (including Hops and impressions). 

 

To learn more about joint venture reporting and analytics, check out this article. 

 

 

How to Create Joint Venture Contracts

To create joint venture contracts follow the steps for the type of contract you wish to create.

• Traditional Joint Venture Contract 
• Joint Venture Upsell Contract 
• Affiliate Referrals Contract
• Affiliate Joint Venture Contract

Note: Once a joint venture contract is terminated or expired, all new sales and existing re-bills will no longer be split after the date that the contract ends.

 

Traditional Joint Venture Contract

Step 1: Log in to your ClickBank account.

 

Step 2: Click the Account Settings tab. 

 

Step 3: Click My Contracts.  .

Step 4: Click Create Contract. 

 

Step 5: Enter the contract details. 

• Name: Enter a name for the contract that is memorable and identifiable. 
• Contract Type: Select Traditional JV Contract.
• Contract Partner Account Nickname: Provide the account nickname of the ClickBank client with whom you wish to form the contract. 
• Product: From the Product drop down menu, you can select specific products you wish to apply the contract to, or you can select All Products to apply the contract to all of the products in that specific ClickBank account. 
• Commission %: Specify the commission percent you wish to split with the contract partner. Note: This is a percentage of your total share as a seller, not a percentage of the total sale.
• Shipping & Handling delivered to JV Partner: Check this box if you wish to pass the shipping and handling charges to the JV contract partner. This can be used if the partner is handling the order fulfillment. 
• Payout Maximum: This option allows the contract owner to apply a maximum payout to the partner. Select No Maximum to make the payout amount unlimited. Select Set Amount  to limit the payout amount, or select Select Number of Transactions to limit the payout to a set number of transaction. 
• Start Date: Select a start date for the contract. The contract takes effect at 12:00 AM US Pacific Standard Time (PST) on the specified date. 
  End Date: Select an end date for the contract. Note: Setting an end date is optional.
• Comments/Description: Enter a description or any relevant comments for the contract. 
• Requires Mutual Termination: If this box is checked, the contract can only be canceled if all parties agree to cancel it. If you do not check this box, either contract party can choose to cancel the contract at any time. 

Step 6: Read and agree to the Joint Venture Contract Terms and Conditions. Check the box to indicate that you have done so. 

 

Step 7: Click Submit. Once you submit the contract, ClickBank will send an email to the contract partner asking them to confirm the contract.  

 

 

Joint Venture Upsell Contract

Step 1: Log in to your ClickBank account. 

 

Step 2: Click the Account Settings tab. 

 

Step 3: Click My Contracts.  .

Step 4: Click Create Contract. 

 

Step 5: Enter the contract details. 

• Name: Enter a name for the contract that is memorable and identifiable. 
• Contract Type: Select Upsell JV Contract. 
• Contract Partner Account Nickname: Provide the account nickname of the ClickBank client with whom you wish to form the contract. 
• Product: From the Product drop down menu, you can select specific products you wish to apply the contract to (including rebills), or you can select All Products to apply the contract to all of the products (including rebills) in that specific ClickBank account. 
• Commission %: Specify the commission percent you wish to split with the contract partner. Note: This is a percentage of your total share as a seller, not a percentage of the total sale.
• Affiliate Commission %: Enter the percentage of the earnings you your product you wish to share with the affiliate who promoted the initial sale. If you do not specify a percentage, the affiliate is paid according to your account's standard commission rate.
• Payout Maximum: This option allows the contract owner to apply a maximum payout to the partner. Select No Maximum to make the payout amount unlimited. Select Set Amount  to limit the payout amount, or select Select Number of Transactions to limit the payout to a set number of transaction. 
• Start Date: Select a start date for the contract. The contract takes effect at 12:00 AM US Pacific Standard Time (PST) on the specified date. 
  End Date: Select an end date for the contract. Note: Setting an end date is optional.
• Comments/Description: Enter a description or any relevant comments for the contract. 
• Requires Mutual Termination: If this box is checked, the contract can only be canceled if all parties agree to cancel it. If you do not check this box, either contract party can choose to cancel the contract at any time. 

Step 6: Read and agree to the Joint Venture Contract Terms and Conditions. Check the box to indicate that you have done so. 

 

Step 7: Click Submit. Once you submit the contract, ClickBank will send an email to the contract partner asking them to confirm the contract.

 

 

Affiliate Referral Contracts

Step 1: Log in to your ClickBank account. 

 

Step 2: Click the Account Settings tab. 

 

Step 3: Click My Contracts.  .

Step 4: Click Create Contract. 

 

Step 5: Enter the contract details. 

• Name: Enter a name for the contract that is memorable and identifiable. 
• Contract Type: Select Affiliate Referral.
• Contract Partner Account Nickname: Provide the account nickname of the ClickBank client with whom you wish to form the contract. 
• Commission %: Specify the commission percent you wish to split with the contract partner. Note: This is a percentage of your total share as a seller, not a percentage of the total sale.
• Payout Maximum: This option allows the contract owner to apply a maximum payout to the partner. Select No Maximum to make the payout amount unlimited. Select Set Amount  to limit the payout amount, or select Select Number of Transactions to limit the payout to a set number of transaction. 
• Start Date: Select a start date for the contract. The contract takes effect at 12:00 AM US Pacific Standard Time (PST) on the specified date. 
  End Date: Select an end date for the contract. Note: Setting an end date is optional.
• Comments/Description: Enter a description or any relevant comments for the contract. 
• Requires Mutual Termination: If this box is checked, the contract can only be canceled if all parties agree to cancel it. If you do not check this box, either contract party can choose to cancel the contract at any time. 

Step 6: Read and agree to the Joint Venture Contract Terms and Conditions. Check the box to indicate that you have done so. 

 

Step 7: Click Submit. Once you submit the contract, ClickBank will send an email to the contract partner asking them to confirm the contract.

 

 

•  

Affiliate Joint Venture Contract

Step 1: Log in to your ClickBank account. 

 

Step 2: Click the Account Settings tab. 

 

Step 3: Click My Contracts.  .

Step 4: Click Create Contract. 

 

Step 5: Enter the contract details. 

• Name: Enter a name for the contract that is memorable and identifiable. 
• Contract Type: Select Affiliate JV Contract. 
• Contract Partner Account Nickname: Provide the account nickname of the ClickBank client with whom you wish to form the contract. 
• Seller Account Nickname(s): Enter one or more seller account nicknames, separated by commas. If you make any affiliates sales for this seller's products, you will share the commission with your Affiliate JV partners. Note: This is an optional field. 
• Commission %: Specify the commission percent you wish to split with the contract partner. Note: This is a percentage of your total share as a seller, not a percentage of the total sale.
• Payout Maximum: This option allows the contract owner to apply a maximum payout to the partner. Select No Maximum to make the payout amount unlimited. Select Set Amount  to limit the payout amount, or select Select Number of Transactions to limit the payout to a set number of transaction. 
• Start Date: Select a start date for the contract. The contract takes effect at 12:00 AM US Pacific Standard Time (PST) on the specified date. 
  End Date: Select an end date for the contract. Note: Setting an end date is optional.
• Comments/Description: Enter a description or any relevant comments for the contract. 
• Requires Mutual Termination: If this box is checked, the contract can only be canceled if all parties agree to cancel it. If you do not check this box, either contract party can choose to cancel the contract at any time. 

Step 6: Read and agree to the Joint Venture Contract Terms and Conditions. Check the box to indicate that you have done so. 

 

Step 7: Click Submit. Once you submit the contract, ClickBank will send an email to the contract partner asking them to confirm the contract.

 

 

1.  

Managing and Editing an Affiliate List for Affiliate Referral Contracts

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

 

If a seller 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. 

 

To edit the affiliate list for an existing affiliate referral contract, follow the steps below. 

 

Step 1: Log in to your ClickBank account.

 

Step 2: Click the Account Settings tab

 

Step 3: Click My Contracts 

 

Step 4: Click List Contracts. 

 

Step 5: Find the affiliate referral contract in the list of contracts, then click the Action icon. 

 

Step 6: Click Edit Affiliate List. This will display the Group Editor page. 

 

Step 7: To add affiliates, enter the account nickname of the affiliate you wish to add into the Accounts field (comma delimited) or by importing them from a CSV file.  

To remove affiliates from the list, select the affiliate you wish to remove from the list of active accounts and click Remove.

 

Step 8: Click Save. 

 

 

How to Approve or Terminate a Joint Venture Contract 

Follow these steps to approve a contract created by a contract owner. 

 

Step 1: Log in to your ClickBank account.

 

Step 2: Click the Account Settings tab.

 

Step 3: Click My Contracts.

 

Step 4: Click the Action icon associated with the contract you wish to approve. 

 

Step 5: Read and agree to the terms and conditions, then check the box indicating you have done so. 

 

Step 6: Click Approve. 

 

To terminate a contract, follow these steps. Note: Depending on the contract settings, terminating a contract may require confirmation from the other party in the contract. 

 

Step 1: Log in to your ClickBank account.

 

Step 2: Click the Account Settings tab.

 

Step 3: Click My Contracts.

 

Step 4: Click the Action icon associated with the contract you wish to approve. 

 

Step 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.

 

Additional Resources 

• Blog: Secret ClickBank Feature: The Joint Venture Contract 
• Blog: Share the Love With ClickBank Joint Ventures 
• Blog: 5 Things You Need to Know About Joint Ventures