JVZoo, Clickbank and Paypal – Fees Comparison

There are many different online transaction processing sites that can handle your sales, but when you are selling your own product you need to compare fees before you commit. Years ago I used to be a power seller on Ebay and boy did those fees add up at the end of the month?

Below I have given three examples of payment methods I use. I am looking to process payments efficiently with low fees. I also need to take into account the online affiliate management options so I can share commissions to affiliates. Not all payment processing is the same so I thought I would give real examples of fees charged and features available.

JVZoo Fees

JVZoo is new to the scene but has simplified the task of selling a product so I thought I would give it a go. They do things very different and I have added one product into their system to see how it works.

Charges

.40 through JV Zoo

.57 through Paypal

.97 total

The actual purchase went through paypal anyway so the buyer payed me directly and then JVzoo billed me for .40 cents. If I had recruited affiliates for this product they would have go their commission right then and there also.

Key Features

1. Instant affiliate payments
2. Instant sales notification
3. Refunds handled by the vendor, not JV Zoo
4. Global cookies for each vendor
5. Instant tracking of sales and statistics

Let’s look at the details of each of these points.

1. This is something different, the affiliate and the vendor get paid as soon as there is a sale. Clickbank involves a whole list of hoops to jump through before getting your first payment.
2. Notifications of sales are instant. Both affiliates and vendors get notified and paid immediately.
3. Refunds are done manually by the vendor in JVZoo. Not like Clickbank where you have no real control of this process.
4. Fourth point, to quote JvZoo “By sending a buyer to one of our vendors you are automatically cookied to any other product that vendor may have in our market place.” This is great because it means that you get paid for other product sales from the same vendor.
5. Lastly, JVzoo gives you instant stats that show how many visitors and clicks you have received, how many sales you have made, your conversion percentage and also the EPC (earnings per click) for each individual campaign.

Clickbank Fees

Charges

8.22 net

$1.75 fees

Each time you sell a product through ClickBank, without respect to the location of the buyer, we purchase the product from you at wholesale price, which for standard products is 92.5% of the approved retail price, less $1. Therefore, on each sale ClickBank effectively keeps 7.5% plus $1. This takes place before affiliate commissions are paid out.

Here’s an example:

Your product sells for $100.

ClickBank purchases the product from you for $91.50. (92.5% of $100, minus $1)

You have chosen to pay a commission of 50%, so 50% of the remainder goes to the referring affiliate, which equals $45.75.

You earn $45.75 on the sale.

Advantages to Using Clickbank

• You get listed in the Clickbank marketplace.
• Click bank has truck loads of affiliates on board looking for products to promote.
• Clickbank has a great reputation.
• The products seem to be better quality.

Please note that you need to pay $50 to activate an account to list a product. This is a one time fee.

Straight Paypal

Paypal is the most basic way to collect money on the internet. All you have to do is create a buy it now button, or incorporate your Paypal ID into a fancy shopping cart. Either way we could call this the bare bones of payment processing when it comes to selling your own products. It also turns out to be the cheapest.

Fee $0.54

Your fees can be as low as 1.1%, based on your previous month’s sales volume. This means the more you put through your Paypal account the lower your fees will go. When you get to $5,000.00 AUD per month you can then apply for a Merchant Rate account. The standard rate for receiving payments of 2.4% plus .30 cents.

Therefore if I sold something for $100 AUD then the fees would be $2.40 plus $0.30.

This is extremely cheap but there is no real affiliate management for a simple account. You have to upgrade to start paying affiliates a commission. It is not as easy as the other payment options. It is not as easy as the other options as there is no product market place where your product can be listed to attract affiliates.

Read more: Understanding Clickbank Gravity