You’ve probably heard of ClickFunnels. If you’re a marketer, you may have used the funnels to grow your email lists. Or, if you’re a store owner, you may have used it to grow your store.
The fact is, ClickFunnels is one of the most popular affiliate marketing platforms available, and it has been extremely successful. So much so that the company behind it, ConvertKit, became a publicly traded company on the NASDAQ.
The question is: How much commission should you expect to earn with ClickFunnels? Let’s dive in and find out.
The Structure Of A ClickFunnels Membership
If you’re new to affiliate marketing, you’ll want to learn a little bit about how ClickFunnels works. To start, when you create a membership site using the tool, you’re going to want to have a few options as to how you want to handle the payments.
You can either use PayPal or Google Wallet to collect the payments. PayPal is the most popular option. However, if you’d rather not use a third party service to handle your payments, you can use Google Wallet.
One of the amazing things about ClickFunnels is that it gives you an entire membership site, already set up for you. So, you don’t have to worry about setting up a basic website, or finding a payment processor. All of that is taken care of for you.
PayPal Is The Most Popular Option For Handling Affiliate Payments
If you decide that PayPal is the best option for handling payments for your affiliate marketing endeavors, then you’re going to want to go over a few things with them before you get started.
First, you’ll want to create a PayPal account. If you don’t have one yet, you can sign up for one here. Once you’ve got that set up, you can navigate to the PayPal dashboard, and click the Get Started button.
Next, you’ll want to create a business or personal PayPal account. This is important if you’re going to be receiving payments from multiple sources. For example, if you own a business and are also receiving payments from customers for freelance work, you’ll want to use a business PayPal account to handle those transactions.
Setting up a business account is easy enough. Once you’ve got that set up, you can move onto the next step.
Creating A PayPal Subscription
To create a PayPal subscription, you’re going to want to do the following:
- Navigate to the subscription page on the PayPal dashboard
- Click the Create Subscription button
- Enter a name for your subscription in the Name field
- Select a frequency for your subscription in the Frequency field (you can choose once a week, once a month, or once a year)
- Set a price for your subscription in the price field. You can either set a fixed price or a price based on a discount (e.g., 10% off for the first year)
- Click the Create Subscription button to confirm.
Once you’ve created a PayPal subscription, you can send out an email to your subscribers, inviting them to subscribe. You can also visit the subscription page on the PayPal dashboard, and monitor the subscribers who’ve joined your organization.
How Much Commission Should You Expect To Earn?
Okay, now that you’ve got your PayPal account set up and ready to receive payments, you can start generating cash from your affiliate sales.
To begin with, you’ll want to pick a commission rate that you think is fair. As a starting point, you might choose 10% when there are no other commissions applied. So, if you’re running a sale for something that’s generating $100 in revenue, and you decide that you’ll give the buyer 10% of the sale price as commission, then you’re going to make $10 off the sale. It’s as simple as that.
As you can imagine, there are a lot of variables to take into consideration when attempting to determine how much commission you’re going to make on an affiliate sale. Your product or service, the sale amount, the lead amount (if there is one), the type of contract you’ve signed with the customer (e.g., one-time sale versus continuous sale), and whether or not the customer is a new or returning customer, are all factors that can affect how much money you make.
It’s also important to set your expectations appropriately. Just because a customer has purchased a product from you, or signed up for your newsletter, doesn’t mean that they’ll automatically become a paying customer. It’s important to remember that you’re selling an offering of value, and not just a product. So, while it’s never fun to disappoint an interested party, it’s also important to be realistic about your projected earnings.
Determining How Much To Charge
If you decide to use a fixed price for your subscription (i.e., you set the price beforehand, and don’t depend on any discount to generate revenue), then there are a few things you’ll want to do before sending out the invoice. First, you’ll want to put a small fee on the subscription to cover the cost of buying the SaaS application you’re selling. Then, you can apply the rest of the money to your commission. So, if you’re making 10% off the sale of a $100 product, you’re going to earn $10. But since you’ve got a $5 fee to cover the cost of the product, you’ve actually only earned $5 off the sale. Just something to keep in mind.
One of the most important things to consider when setting the price for your product is how much money you’re making on your other affiliate sales. $100 sounds like a great deal for a product that only costs $5 to make. But if you make only $10 off a product that costs you $100 to make, then you might want to reconsider the price. You’ll need to make sure that the cost of the product is higher than the revenue you’re making, to ensure that you can still make a decent profit.
If you’ve made it this far, then congratulations! You’re about to learn a lot about affiliate marketing and how much commission you can expect to make from it. So, what’s next?
The truth is that there’s a lot more that you can do with ClickFunnels, once you’ve gotten the hang of it. You can create a Shopify store, sell your own products, or even sell affiliate products. The sky is the limit.
With affiliate marketing, you’re only as good as the products you promote. So, it’s important to do your homework, and find high-quality products that you can promote for profit. If you do that, then you’ll be able to make a good living, and continue creating value for your customers.