Today I got an email from Clickbank about their updated refund policy. If your refund rate is higher than 15% over a 60 day period or have chargeback rate higher than 1% you will be subject to additional panalties.
There are benefits to it but there is also a downside due to Clickbank’s no-questions asked money back guarantee.
We all know that there a plenty of serial refunders. I mean if someone knows they can get their money back the next day after purchase they will try to find a reason to refund.
It makes it hard for marketers that sell legitimate software products for example.
On the other hand, this will help weed out the shitty 1-click software BS that has penetrated Clickbank’s marketplace.
Some of these marchants in E-Business/Marketing category have a refund rate higher than 60% …no joke
For example, here is screenshot that proves it.
I highlighted 2 colums here. Left one shows credits earned and right one shows refunds lol This was a screenshot shown on the Secret Traffic Solution webinar to make you believe that you can start making money with a push of a button overnight (after $997 payment)
I am guessing Clickbank doesn’t want to approve some of their products so now they are trying to find just a few people to hand them over $997 instead of 100 people paying $37 🙂
Anyway, that just shows that these guys are having a hard time getting approved on Clickbank and now they will have a hard to time getting their money.
I imagine that if your refund is that high Clickbank will increase the “Allowance” they keep in case there are more refunds in the future.
I think Clickbank is moving in the right direction. But it would also be great if they did something about the serial refunders who get a refund simply because they don’t like your ecover graphic.
What’s also very interesting is that refunds aren’t actually bad in niches outside of internet marketing. If you are selling an ebook on how to build something or how to get rid of something then you probably have nothing to worry about.
Clickbank actually states that the new change will affect only a small number of vendors and we all know who exactly they are talking about.