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Anyone Been Banned For High Refund Rates?

Discussion in 'Clickbank' started by MrBeastsOnToast, Apr 4, 2014.

  1. MrBeastsOnToast

    MrBeastsOnToast Jr. VIP Jr. VIP Premium Member

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    Hi Guys,

    One of my affiliate clickbank accounts has just hit 22% refund rate. Has anyone got any experience with being banned for a high refund rate? Do they actually ban? How long do i have / what is the process?

    Thanks!
     
  2. Gogol

    Gogol Elite Member

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    22% is nothing. Just chillax. They will ban you once you go past 95%. I used to be in the 50%+ range once upon a time. I changed the vendor and started promoting a competitor and now I am in the blue zone again. Just give it sometime and stop promoting that vendor if possible.
     
  3. mikeisright

    mikeisright Regular Member Premium Member

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    Simple answer: Yes. You can get banned for high refund/chargeback rates either as an affiliate promoting trashy programs or as a vendor. It never happened to us but we have witnessed competitors within the same niche get booted very quickly when reaching a certain absurd refund limit.

    Mike.
     
  4. Gogol

    Gogol Elite Member

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    I would also like to add a secret ( or may not be a secret here afterall) to the thread that I realized. If you promote a product which has a monthly subscription, you will have less refund rate. That happened to me at-least. Try promoting a subscription based product which has good gravity.
     
  5. mancar487

    mancar487 Jr. VIP Jr. VIP Premium Member

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    Yes you can get banned for persistently high refund rates

    Firstly, check where the problem lies - is it with the vendor (low quality product), or are you promising your visitors claims that go above and beyond what the vendor offers? For example, if the vendor has a good qaulity product claiming a 10lbs weight loss in two months, but you promise your visitors a 20lbs weight loss in one week, then the problem lies in your promotion.

    If the problem is with the vendor - stop promoting their product ASAP. Another way to get your overall refund rate down is to promote products of high quality with very low refund rates. There are many products on CB with very good refund rates. For example, all of our products have a refund rate below 1.5% because they are of the highest quality in their category, deliver what they promise, and (perhaps the most important) - we offer a top notch after sales service were we take the customer by the hand and guide them to make sure they use our products correctly and achieve the results they are looking for.
     
  6. mikeisright

    mikeisright Regular Member Premium Member

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    Finding products with lower refunds rates can only be achieved by testing the products yourself as most vendors (if asked) will obviously turn the refund/chargeback figures in their favor.

    You are welcome to test all of our products (or we can provide actual screenshots from each of our CB accounts) to prove that our unmatched quality of information and superior affiliate and customer counseling and support service (in most languages which CB operates with) have been responsible for our less than 1.8% refund rate.

    Mike.
     
  7. Shane1

    Shane1 Registered Member

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    There is risk, but I doubt it's at 22%. I think you'll be fine even if you dip into unacceptable. Eventually, there's a threshold that will catch up to you, though. Of course, nowadays it's real simple to tell your risk assessment at a glance just by one quick peek at the account, but they dropped that plan to autoban like Google.
     
  8. mikeisright

    mikeisright Regular Member Premium Member

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    But why should one live on the edge like that even if 22% is an acceptable refund
    figure, Clickbank wise (which it isn't)? Somehow, it doesn't strike me as a long term
    business plan.

    Mike.
     
  9. mancar487

    mancar487 Jr. VIP Jr. VIP Premium Member

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    Even if at the moment 22% may not lead to a ban, CB may change their guidelines overnight, and you may not have enough time to fix this. Indeed last year they rolled out a system wherein if you have a high refund rate, you'd get fined for each refund (even as an affiliate). Although they scrapped that just a few days after launching it, they may still bring it back.
     
  10. mikeisright

    mikeisright Regular Member Premium Member

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    Banning from CB (as told by our representative) really depends on several elements (not only on the refund/chargeback ratio) but also on the sales activity of your account, past history and current legislation.

    Mike.
     
  11. Shane1

    Shane1 Registered Member

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    True. As the rates are based at least in part on lifetime account performance, a high refund rate could well take a long time to fix.
     
  12. mancar487

    mancar487 Jr. VIP Jr. VIP Premium Member

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    It's actually a shame that CB doesn't include an indication of a product's refund rates (in the way they do for gravity) in the marketplace. My team has suggested this to CB several times, as we feel it would lead to higher quality products which in turns means more money to affiliates and a better reputation for CB in general.
     
  13. mikeisright

    mikeisright Regular Member Premium Member

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    I agree with the above and would add chargeback rates and even overall customer satisfaction rates (measured by the number of legitimate complaints on a product).

    Mike.
     
  14. Shane1

    Shane1 Registered Member

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    They did that for about 2 months.
     
  15. mancar487

    mancar487 Jr. VIP Jr. VIP Premium Member

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    I think it was less, but in that time I remember seeing a lot of vendors clean up their act. I do hope they bring it back.
     
  16. mikeisright

    mikeisright Regular Member Premium Member

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    Why would they take these crucial refund statistics off is beyond me. I guess there was and still is some hidden motive (probably a financial one).

    Mike.
     
  17. mancar487

    mancar487 Jr. VIP Jr. VIP Premium Member

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    I believe the reason for taking it off was because such a system may have had an strong impact on MMO product sales, as these products are high volume sellers on CB YET they are also notorious for their high refund rates. Still, in my opinion this was a short-sighted move as in the long term it would have helped clickbank increase its reputation and sustainability. I also believe that with the FTC regulations getting stricter and stricter, CB will soon need to re-think these products, and hence why affiliates should not ignore high refund rates (apart from the fact that this is money lost).
     
  18. mikeisright

    mikeisright Regular Member Premium Member

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    If that is true (as I assumed in my previous post), then hiding the refund statistics due to financial motives would be a very shortsighted move, for more than one reason.

    Mike.
     
  19. mancar487

    mancar487 Jr. VIP Jr. VIP Premium Member

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    It is obviously just my own opinion, but it's the only reason I can think of. It is interesting that most vendor I've talked to do agree on showing an indication of the refund rates, yet the system was retracted extremely quick! Maybe if enough of us vendors pass on such feedback to CB they'll reconsider it. The official reply I got each time I brought this topic up was somewhat vague and along the lines of 'we're continuously looking for ways to improve both publishers and customer experience'.
     
  20. mikeisright

    mikeisright Regular Member Premium Member

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    We'll, as we all know and are aware of, hiding these figures would do the opposite of enhancing both vendor and affiliate experiences.

    Mike.