Here are some frequently asked questions about CPA on ClickBank from Sellers. They have been separated into the following categories:
- What to Know Before Offering CPA
- Benefits of Offering CPA
- CPA vs. RevShare
- The CPA Commission Calculator
- CPA and Affiliates
- CPA Offers
- CPA Attribution and Reporting
- CPA Commission and Seller Payments
- Additional Resources and Related Articles
What to Know Before Offering CPA
Q: What do I need to know before creating a CPA offer?
A: The first thing you need to know before you create a CPA is that, in order to offer CPA, you must have an established account history on ClickBank. This is because the ClickBank CPA Calculator takes into account historic account data when it calculates the best CPA rate to offer.
Secondly, there are a few things you need to keep in mind like:
- With CPA, some joint venture (JV) contracts are not split. If you own traditional JV or affiliate referral JV contracts, note that earnings will not be split in cases where an affiliate earned CPA commission on the initial sale.
- Affiliates are not debited for refunds and chargebacks. When you opt to pay affiliates CPA commission, it is important to understand that in the event of a return or chargeback, ClickBank covers the fees and taxes portion of the sale, and your account will be debited for the remainder of the refund amount.
- If you are selling a physical product, it’s important that you provide your cost of goods (COGs). Adding COGs affects your profitability metrics and the commission calculation. If you do not include COG information when you add a product to ClickBank, these tools will only reflect sale information, not profitability.
- In order to pay affiliates based on CPA, you must maintain a positive account balance. If your balance falls below $0, your account will revert to your revenue share commission settings.
Q: I’m a seller who is inexperienced with CPA. How do I know if I’m ready to offer CPA?
A: Run your numbers. Before you jump into CPA, really get to know what you’re earning, what your current affiliates are earning, and what you stand to earn with super-affiliates promoting on CPA. This kind of deep dive will level up your game as a seller in general and also help you familiarize yourself with CPA.
For new CPA sellers, it’s especially important to know the risks associated with CPA. As a seller offering CPA, you assume the burden of all returns. This means that affiliates who promote for CPA commission and facilitate a conversion will not be on the hook if that customer requests a return.
If you do go negative on CPA, your offer will automatically switch back to RevShare as a safeguard for both sellers and affiliates.
Q: Will I be required to pay a deposit to use CPA on ClickBank?
A: No. ClickBank doesn’t require a deposit. This is because CPA commission is paid directly from the sale--not from escrow. We use our CPA calculator to determine the highest payable amount for each affiliate and seller pairing, which helps reduce the risk of an account balance going negative. (In the event an account balance does go negative, we simply pause CPA commissions and switch back to RevShare.)
Benefits of Offering CPA
Q: Why should I offer CPA?
A: By offering CPA, you attract the type of affiliates who only promote (or prefer) CPA offers because of the predictability it provides. These affiliates typically have a larger ad spend budget and can generate a level of traffic that you wouldn’t be able to achieve otherwise. Even though you’re accepting the liability for returns, with super-affiliates, you’ll still be able to generate more sales.
The cherry on top is that, by offering CPA, you don’t limit yourself to only that type of commission. You can still allow revenue share (RevShare) commission on the same offer.
Q: What is so great about CPA on ClickBank? Is it different from other CPA networks?
A: There are a few things that make CPA on ClickBank stand out from the other CPA networks…
CPA vs. RevShare
Q: Can I offer both revenue share and CPA on the same offer?
A: Yes. Unlike some other affiliate networks, ClickBank doesn't require sellers to choose between paying only RevShare or CPA commission on an offer. Sellers can set both, which means affiliates have the ability to earn either. This empowers both the affiliate and the seller to optimize and scale.
The CPA Commission Calculator
Q: Does the ClickBank CPA Commission Calculator take into account rebills?
A: Currently, the CPA Commission Calculator only takes into account initial sales when computing a CPA rate.
CPA and Affiliates
Q: How can I let affiliates know that I am willing to offer CPA commission?
A: You can let affiliates know that you’re willing to offer CPA commission via your ClickBank Marketplace listing.
Q: Who is the ideal CPA affiliate?
A: The ideal CPA affiliate could be any affiliate who wants to earn their commission upfront at a set amount. This appeals most to affiliates who have ad spend costs and require predictability to manage and optimize their ad campaigns.
There are many different types of affiliates who want to promote CPA, including general affiliates who prefer the simplicity of the model. The best way to figure out which affiliates are ideal for you is to get to know them through communication.
Q: How do I control which affiliates promote my offer?
A: Yes! You have total control over which affiliates promote your offer. With CPA, you set and approve the affiliate directly. No one can promote your offer on CPA without being specifically established. There isn’t a “default” CPA rate. With RevShare, you can offer a general commission or set “affiliates require approval” and manage your commissions through Commission Groups.
Q: How do I ensure that I get high quality affiliates and minimize my risk?
A: The best way to get high quality affiliates is to communicate with affiliates. Ask questions about their background, their experience on ClickBank or other networks, their history with CPA, and their traffic sources. You can also ask an affiliate to promote for RevShare commission first as a test.
Q: How much CPA traffic can I expect?
A: The amount of traffic you get depends on the affiliate. You should also consider how scalable the product is. The best way to get a big affiliate with lots of traffic to send is to have a high-converting offer, regardless of commission type.
Q: What is the best way to structure a CPA offer?
A: The best way to structure a CPA offer is to know your numbers and consider your costs per affiliate. To help sellers do this, ClickBank created the CPA Commission Calculator that does this math on your behalf. Because the calculator takes into account the cost of goods (COGs) associated with a product, it’s important to keep those updated in your account.
Related: How to Use CPA on ClickBank
Q: I’m new to ClickBank but have an established offer. Can I offer CPA right away?
A: If you’re new to CPA but not to ClickBank, then yes--you can start offering CPA to affiliates right away. If you’re brand new to ClickBank, you will have to start your offer with RevShare commission to establish account history. There are a couple of reasons why this is a good thing: One, it negates the need for escrow or a CPA deposit. Two, it allows us to help you set the appropriate commission based on your actual account history.***
Q: How do I know if my CPA rate is competitive with other ClickBank offers?
A: The most important thing to an affiliate is earnings per click (EPC). Just because something pays more commission doesn’t mean that it will ultimately be more profitable. Make sure that you’re in communication with your affiliates--the relationship works if both the seller and affiliate are winning.
Q: How do I know if my CPA rate is competitive with other offers on other networks?
A: ClickBank is committed to making sure that sellers set CPA rates that overpay their affiliates and cost them in the long run. We work to eliminate that risk through the CPA Commission Calculator. We want you and the affiliate to be profitable in the long run so we’re invested in creating a win/win/win situation for sellers, affiliates, and ClickBank.
CPA Attribution and Reporting
Q: How does attribution work with CPA on ClickBank?
A: Attribution with CPA on ClickBank works exactly the same way it does with RevShare commission. Affiliates use referral links to promote an offer and ClickBank uses various attribution tracking methods to determine the affiliates attribution on the sale including cookies and device fingerprinting. Using these methods ensures that the sale is properly credited to the last referring affiliates and the due commission is paid accordingly.
Q: How is the reporting done with CPA on ClickBank?
A: The ClickBank CPA Commissions Reporting provides robust reporting and analytics to show sellers the profitability of the CPA commissions you have set. For more information on reporting for CPA, check out this article.
CPA Commission and Seller Payments
Q: What are the payment types? Does ClickBank offer net30 or net15?
A: ClickBank issues payment every week or every two weeks depending on the payment schedule you prefer. For more information on ClickBank payment schedules, check out this article.
Q: How do I get paid?
Q: How do I pay for the CPA commission that affiliates earn?
A: CPA commission comes directly from each CPA conversion rather than from escrow or a deposit account. Whenever a transaction occurs, ClickBank pays each party the designated amount into their account. This amount is then sent to the affiliate two days after the pay period end.
Q: Can I pay more in CPA commission than the price of the initial purchase in my sales funnel?
A: Yes! CPA commission can be more than the value of your initial sale, but cannot exceed the value of the total order, which includes initial sale, order bump, and all upsells.
Additional Resources and Related Articles
- OFFICIAL GUIDE: CPA on ClickBank
- BLOG POST: ClickBank CPA is Now Available!
- BLOG POST: CPA vs. RevShare: Official ClickBank Guide to Affiliate Revenue Models
- PODCAST EPISODE: ClickBank Now Has CPA!
- KNOWLEDGE BASE ARTICLE: How to Use CPA on ClickBank
- KNOWLEDGE BASE ARTICLE: CPA is Available on ClickBank
- KNOWLEDGE BASE ARTICLE: How do I set commission for my product?
- YOUTUBE VIDEO: ClickBank Now Support CPA Marketing