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Question RE: refunds and Avg. $/sale

Discussion in 'Clickbank' started by OTrap, Jun 1, 2011.

  1. OTrap

    OTrap Jr. VIP Jr. VIP

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    Do refunds affect the what the Marketplace displays as Avg. $/sale, such as in the image below?

    [​IMG]

    For example, if I make 2 sales, one for $100 and one for $200, but the $200 sale refunds, is the Avg. $/sale $150.00 (counting the sale that resulted in a refund) or is it $100.00 (not counting the sale that resulted in a refund)?

    Thanks!
     
  2. BigFatWallet

    BigFatWallet Power Member

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    Yes refunds affect the Avg. $/sale



    Neither of the two. :p

    It will be $50/sale

    $100 + $200 = $300 from 2 sales

    $300 (Gross Sale Total) - $200 (Refunds) = $100 (Net Balance for 2 Sales

    $100/2 sales = $50/sale
     
  3. OTrap

    OTrap Jr. VIP Jr. VIP

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    Ah, so they count the "sale" that ends up in a refund but they don't count the amount of that sale?

    That seems like the least sensible way to do it. Look at it as Net dollars but Gross sales?
     
    Last edited: Jun 1, 2011
  4. loamigad

    loamigad Jr. VIP Jr. VIP

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    How is that the less sensible way?
    Your gross is 300 bucks, right?
    And someone requests a refund for 200bucks..
    Is the sale avg really 100bucks now?
    You had 2 sales even if one refunded, and on the 2 sales you made 100 bucks.. quite basic math.
     
  5. OTrap

    OTrap Jr. VIP Jr. VIP

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    The math isn't the problem. The fact that you only use the net when referring to revenue, but you use the gross when referring to number of sales, seems inconsistent.

    Would it not be more consistent to use net revenue over net sales or gross revenue over gross sales? The math is the same, but this would seem more consistent, I would think.

    I'm not opposed to that as a metric (as after all, metrics are just comparisons of numbers), but measuring two stats that are not being evaluated under the same circumstances (pre-refunds and post-refunds) just seems less relevant than if they were evaluated under the same circumstances.
     
  6. ronywilliam

    ronywilliam Senior Member

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    $Earned/Sale: Average net amount earned per affiliate per referred sale. Note that this is the net earned per actual sale, and so it is impacted by refunds, chargebacks, and sales taxes. Unfunded sales, such as returned checks, do not impact this number.
    This is from the ClickBank rule book ..Hope that helps:)
     
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  7. OTrap

    OTrap Jr. VIP Jr. VIP

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    Thanks, Ronnie. That does seem to be Clickbank's official party line on the subject.