ClickBank Refunds - Hope for the Best but Prepare for the Worst

When we launch a new product, we all hope it's going to be a runaway bestseller. More than that, most of us aim to produce a product so remarkable that it generates rave reviews and achieves cult popularity. You may very well achieve all of these objectives with your product launches.

But, beware of a characteristic of the ClickBank system that may throw these aspirations into jeopardy - the 90-day refund rule.

Most merchants agree that ClickBank's rock-solid refund policy adds a great deal of credibility to their sales pitches, enabling them to make sales to even the most wary of online shoppers. The hassle-free refund procedure is also the key factor behind ClickBank's exceptionally low chargeback rate. ClickBank customers have no need to ask their banks for chargebacks, so ClickBank keeps its merchant account in good standing and we merchants all save money on chargeback penalties.

But, despite its attractions, the ClickBank refund rule is also a source of blatant abuse by a minority of dishonest buyers.

However good a product may be; however much your genuine buyers love it, there will always be a small percentage who ask for refunds. Don't be disheartened. In most cases, this is not a reflection on your product or your competence as a merchant. It is simply an exploitation of the ClickBank refund system to get something for nothing.

Around 5% of my ClickBank sales result in refunds and, judging by my discussions with other merchants, this figure appears to be about average. I have numerous glowing testimonials from satisfied customers, but there is still the occasional buyer who is, seemingly, impossible to please. Ironically, I have never yet issued a refund to a buyer who has offered a reason for being dissatisfied. Is this normal? It suggests to me that the problem lies not with the product, but with the morals of the buyer.

With the purchase of a digital product you can, if you choose, keep the product and get your money back. Online theft just doesn't get any easier than this.

ClickBank's merchant community has suggested various ways to tackle this problem. The most popular idea seems to be that ClickBank should introduce a rogue customer list, identifying serial refunders by their prior purchasing activity. Of course, the list would be confidential - merchants would simply need the option to specify whether they accept purchases by buyers in this category. This solution is not without its own problems, especially the challenge of accurately identifying buyers from one purchase to the next. With multiple credit cards and multiple email addresses, it is relatively easy to bypass the banned list, simply by creating a new online persona. But, at least this initiative offers hope of a solution to the problem.

So far, ClickBank has not announced on any plans to update its refund policy or introduce controls to protect its merchants from this type of fraud. Until something changes, merchants need to adopt a pragmatic attitude to the dilemma of sham refunds. As frustrating as it may be to see our profits willingly handed over to fraudsters, we should remember that the reassurance offered by the refund system probably pays us dividends many times greater, in the form of increased sales.

About The Author

Copyright © Tim Coulter. All rights reserved.

Tim Coulter is a consultant and software developer who helps netpreneurs to harness marketing technologies.

He is also the author of "ClickBank - The Definitive Guide" The Ultimate ClickBank Tutorial & Reference Manual.

http://www.clickbankrevealed.com/

JumpFly PPC Advertising News (blog)

Use PPC Advertising in a Declining Economy JumpFly PPC Advertising News (blog) When looking to make cuts, make sure that your Pay-Per Click (PPC) advertising budget is not on the chopping block first. PPC advertising is unique in that, ...

PPC Advertising and Geo-Targeting: SMN Webcast Thursday Search Engine Land (blog) On Thursday at 1 PM EST, join Dan Soha of Five Mill Inc as he explains the ins and outs of geo-targeting, on the SMN Webcast: “PPC Advertising and ...

JumpFly PPC Advertising News (blog)

Black Friday & Cyber Monday PPC Management Strategies JumpFly PPC Advertising News (blog) You have likely heard the terms Black Friday and Cyber Monday, but do you know how to use pay-per-click (PPC) advertising to take full advantage of these ...

PPC Advertising and Geo-Targeting is the Topic for November 12 Webcast at ... PR Web (press release) By limiting the geographic target, advertisers can increase efficiency, boost conversion rates and improve their overall ROI for PPC advertising. ...

Web Host AIT Offers Free Search Engine Ads Web Host Industry Review (WEB HOST INDUSTRY REVIEW) -- Web hosting provider AIT (www.ait.com) announced on Friday it is now offering free search ... and more »

Inconsistency in Google Maps May Be Business Killers The Social Robot (blog) You've hired the best SEM firm in town, ran PPC advertising, and created back links to entice people to visit your site. You're hoping that with more ...

New Chart: How Agencies View Client Search Marketing Budgets MarketingSherpa.com (subscription) In a world where accountants understand PPC advertising, the levels of efficiency (or minimum ROI) would increase on elastic budgets in tight times, ...

Alternatives to Google AdWords -- Worth Your Time? Search Engine Watch When you look for alternatives to Google AdWords (or even Bing or Yahoo PPC advertising), think about how people find the site you're going to advertise on. ... Google on the Move with PPC Managenent Test Betas: Keyword Search Pros to HelpClickPress (press release) all 13 news articles »

Pay-per-click Advertising: Seven Pointers for Smaller Campaigns Practical Ecommerce Managing small-budget pay-per-click campaigns (under $3000 per month) is typically more difficult than managing campaigns with higher spend levels. ...

Elephant Traffic Unveils First Transparent Web-Based Interface for Advertisers ... Reuters ... search traffic has been neglected till now but our research has shown that it delivers up to 50% higher conversions rates than standard PPC advertising. ... and more »