Is ClickBank legit and safe? Or is it a scam?

A very common question, and to answer whether ClickBank is legit and safe or not, let’s first take a look at…

What is ClickBank?

ClickBank is an online trusted marketplace for digital products where anyone can sell their product to consumers worldwide. This is a legitimate company and it has been around since 1999. It is important to note that there are several different types of affiliate marketing programs at ClickBank. For this reason, the consumer should understand exactly what they’re purchasing and how much it will cost them.

The concept behind ClickBank is simple: individuals can create a free account and sell products from any website they want. A person who creates an account only needs to submit the product name, price, and description into the system. The seller of that product gets paid a sales commission each time someone makes a purchase.

This online community allows anyone to sell their products to a worldwide market. The ClickBank marketplace is filled with everything from eBooks about home improvement and management to weight loss programs. In order for the buyer to make a purchase they need only find a product of interest, click on it, and then follow the process through until the end. At the end of the process, the product is delivered to their computer or mobile device.

Every product purchase made through ClickBank will earn a commission for the seller. This could be up to 75% of every sale made. A person who wants to sell their products on this site must complete a simple application and post pictures and descriptions of their goods. ClickBank does not allow any adult material on its site, regardless of how the seller markets it.

For the person who is selling their products to customers in an affiliate marketing program through this service, ClickBank provides a fully functional back office system at no charge. This gives sellers access to charts and graphs that they can use to keep track of how well their products are doing in real time. The seller can use this information to help them understand what’s working and what isn’t as they continue to sell their digital products online through this site.

ClickBank provides the seller access to an advertising platform that will allow them to market their goods more effectively. By using ClickBank’s affiliate marketing system, a seller can be sure that their ads are reaching the right customers and that they have access to real time stats on all of their marketing efforts.

A consumer who is shopping for products through ClickBank should know that this site is a legitimate marketplace and it has been around for nearly two decades. This company provides every customer with an affiliate marketing program where they can sell their goods online. The consumer gets the chance to earn commissions from some of the largest brands in the world as a result of using this service. By understanding exactly what they’re purchasing from here, a buyer will know how much it will cost them before making any purchases from this site..

Okay, so we got that introduction done, now let’s talk about…

Read more about ClickBank here >>

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Is Clickbank legit and safe?

Keep in mind that there isn’t a clear-cut answer to the question. You’ll have to make your own decision about whether you feel comfortable doing business on Clickbank.

To understand if Clickbank is safe, we have to understand what they do and the third parties who work with Clickbank (ie. affiliates). First, let’s take a look at Clickbank itself.

Who runs Clickbank? Who owns it? Is it a publicly traded corporation?

According to their website, “ClickBank was created in 1998 to provide a one-stop internet marketing resource for businesses to reach their customers online.”

The company doesn’t seem to be publicly traded. It’s not listed on any stock market as far as we can tell. We couldn’t find out much about the ownership of Clickbank either, beyond the founders: Tom and Milica Rush (a husband and wife team).

How much money does Clickbank make? How many people work there? What kind of revenue do they generate?

Clickbank’s website doesn’t give any information about revenue that we could find. The fact that they don’t provide this information suggests that they’re either not a very large company or that they’re trying to be discreet about their earnings.

The only information we could find about the number of employees was from a 2012 article in Inc Magazine: “Milica and Tom Rush, founders who work on site part-time with 20+ employees.” That’s certainly not very many for a company that has been around since 1998. If they don’t even list an official revenue figure, it’s hard to know how well they’re doing financially. A lack of transparency often makes us suspicious of companies like Clickbank (more on this in a bit). It’s clear though that there are some people employed by Clickbank and that enough customers are buying products through them that there is money flowing into the company.

How has Clickbank been around? How long has it been a company?

Clickbank is 17 years old. It was started by Tom and Milica Rush in 1998 and is based in California according to Wikipedia. That definitely makes them an older company. There are many older companies that we don’t consider risky, but that doesn’t mean that you must feel the same way (more on this in a bit). If you’re interested, you can see Clickbank’s LinkedIn profile here . The only one working at Clickbank listed there is the Founder: Tom Rush.

What kind of products does Clickbank sell? How many products do they have? How much revenue per product or per customer do they generate? What percentage of their business from various product categories? New products? (ie. How long has Clickbank been selling digital products?)

As far as we can tell, Clickbank is a platform for other people to sell their own goods online. It’s not an ecommerce site itself where you can buy items directly from them. Instead, it acts like Amazon or eBay does for individual sellers who list their own products on the marketplace. As with those platforms, this model means that there are many different kinds of products available and they change all the time based on customer demand. You might find electronics one day and nutritional supplements another day when you visit Clickbank Marketplace .

The number of products changes frequently because new sellers are constantly joining the marketplace and selling whatever they’re promoting. We estimate that there are at least 40,000 items listed on the platform. People can list any products they want to sell and set up a store where they’ll earn some money every time somebody buys one of their products through Clickbank. As is often the case with marketplaces like this, when new sellers come in who are good at promoting themselves or their products, existing sellers tend to get pushed out quickly because there’s just too much competition for space on the marketplace.

The majority of products listed are digital downloads (software, video courses, ebooks) but you can find physical items as well (like t-shirts). Digital goods have several advantages over physical goods:

They’re easy to distribute – once you have them uploaded onto your server, you can send them to anybody you want without having to take physical possession of the item. This is especially useful when trying to sell an expensive product that you don’t want in your house (like a piece of software or a rare coin).

– once you have them uploaded onto your server, you can send them to anybody you want without having to take physical possession of the item. This is especially useful when trying to sell an expensive product that you don’t want in your house (like a piece of software or a rare coin). They’re easy/cheap to store – unlike with physical goods where storage space is limited and shipping costs might add up, digital products are much easier for sellers because they only one machine and most online hosting companies provide unlimited storage space for little or no extra cost.

– unlike with physical goods where storage space is limited and shipping costs might add up, digital products are much easier for sellers because they only one machine and most online hosting companies provide unlimited storage space for little or no extra cost. Digital goods don’t take up physical space – this means that you don’t have to store inventory, deal with chargebacks from customers who claim your product never arrived in the mail, etc. If you’re just starting out as an entrepreneur, these kinds of problems could easily derail your business if you’re not careful.

For some good insight into how digital products work on ClickBank (and some general information about why digital items sell in such high volumes on marketplaces like this), check out the article.

The top three categories are definitely software (17%), video (13%) and digital books (12%). All of those are types of products that fit in the ‘digital information’ category. Other popular categories include tools, ecommerce, healthcare, education and beauty. As you can see from this breakdown , there’s quite a bit of variety as far as types of products go. The one thing that all these items have in common is that they’re digital downloads – meaning they don’t take up any physical space and can be distributed/sold online without issue. That along with the low costs for make them very desirable for both buyers and sellers.

When it comes to traffic sources, the majority are referrals (23%) and search engines (22%). We aren’t surprised that referral traffic is so high because ClickBank has a reputation as “the place to go” for people looking to get digital products online. People come here hoping to find out more about what others like them think of the various products on sale so that they can make an informed decision as far as which ones might be best for them. The second most popular source, search engine traffic makes perfect sense when you consider that every product listing on the site has a keyword rich title where people often look for related products/information in their searches (it’s basically a free SEO service!). Last but not least is social media at 8% which shows that people are still using popular websites like Facebook to find new products (or just browse around).

Most of Clickbank’s traffic comes from the USA and Canada (75%) followed by the UK, Australia and Europe. Traffic Sources Breakdown:

Referral – 23%

Search Engines – 22%

Social Media – 8%

Advertising Networks – 6%

Content Sites/Blogs – 5%

Other – 20%

Direct Traffic – 4%”

Source: Clickbank Website Traffic Statistics ( http://www.marketingofinternetproducts.com/clickbank-website-traffic-statistics ) March 14, 2012

The average sale at ClickBank is around $40.00 with the median sale being under $10.00 per transaction. From a financial standpoint, the average sale per month for a web-based product is around $50,000.00 with the median being less than $15,000.00 per month. The most popular commission plan at ClickBank is a 50% rev share which accounts for 40% of all transactions.

Source: Clickbank Website Traffic Statistics (http://www.marketingofinternetproducts.com/clickbank-website-traffic-statistics) March 14, 2012

“It is clear that digital products including ebooks, software and other content are selling in huge numbers via Clickbank and similar platforms.”

Source: What You Need To Know About Digital Products On ClickBank (http://www.marketingofinternetproducts.com/digital-products-on-clickbank/) March 14, 2012

Source: Clickbank Website Traffic Statistics (http://www.marketingofinternetproducts.com/clickbank-website-traffic-statistics) March 14, 2012

“In the United States and Canada alone, Clickbank has more than 3 million customers.

Source: The 6 Best Ways to Earn Money Online (http://www.marketingofinternetproducts.com/the-6-best-ways-to-earn-money-online/) March 14, 2012

“Clickbank has more than 2 million products for sale.

Source: How to Make Money with ClickBank – 4 Ways (http://www.marketingofinternetproducts.com/”How-to-make-money-with-clickbank–4-ways”) March 14, 2012″

“The average price of products sold at ClickBank is $40.00 with the median price being under $10.00 per transaction.”

Source: Clickbank Website Traffic Statistics (http://www.marketingofinternetproducts.com/clickbank-website-traffic-statistics) March 14, 2012

To conclude, here’s our opinion on whether ClickBank is safe or not, legit or not, and spam or not… we believe that ClickBank is a 100% legit and safe marketplace to buy from as a customer. If you are an affiliate, you need to check the quality of the product and the vendor as with any other vendor. Otherwise, this is definitely NOT a scam! And to top it all, we have personally bought products from ClickBank, and we are a satisfied customer, frankly speaking.