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/

In The News:


How Your Small Company Can Compete Against Big Brands in PPC
Search Engine Journal
While you may not be in a position to buy full page print ads in national newspapers or produce commercials for TV, pay-per-click (PPC) marketing is a channel that still allows small advertisers to play on the same field – if they know how. In this ...


Forbes

The Four Most Popular Myths About Paid Advertising: Debunked
Forbes
To someone unfamiliar with pay-per-click (PPC), opening the Google AdWords dashboard might look like a seven-headed monster that no entrepreneur can slay. I saw this time and time again during my time at Google. It's a big reason why my co-founder and ...


Influencive

5 Tips for Companies Looking to Avoid SEO & PPC Pain
Influencive
And this means using SEO and PPC advertising. Unfortunately, far too many companies—especially startups—put themselves in a world of financial hurt because they don't take the time to make sure they're doing things right. You don't want to see your ...
7 Ad Copy Tests That Will Improve Your PPC PerformanceSearch Engine Journal

all 4 news articles »

Marketing Land

7 killer ad tips for YouTube & video
Marketing Land
You spend a lot of time, energy and advertising dollars in PPC search and social. Plus, your sales team is out there. Yet most website visitors leave without taking any of the actions you'd like them to take — either they aren't ready, or you didn't ...

and more »

Search Engine Journal

The 10 Most Important PPC KPIs You Should Be Tracking
Search Engine Journal
Quality score is the most elusive KPI amongst PPC advertisers. It is a metric created by Google that tells them how relevant your ad content is, using metrics like CTR and other performance variables like landing page experience. Advertisers find it ...

and more »

Effectiveness of search engine advertising receives too much credit
Rochester Business Journal
A savvy marketer might run a television commercial that builds awareness and triggers a search, a PPC ad that reinforces the message and provides an incentive to click, and finally a cohesive and compelling landing page that converts the prospect to a ...


Search Engine Land

Google Attribution: Is Google stepping in because no one else would?
Search Engine Land
If you're a PPC professional and you've worked for a high-tech startup, you've probably noticed that. In a fight for resources, say the proponents of spontaneous word of mouth, shouldn't product win? Is advertising truly a “tax for being unremarkable ...


Forbes

Six Key Elements Of An Effective Inbound Marketing Strategy
Forbes
Pay-Per-Click Marketing. Even though PPC marketing is a paid tactic, it still falls under inbound marketing because the ad appears when users are actively searching for something online. With paid search, you are able to pay to be at the top of search ...


Entrepreneur

7 Lucrative Online Jobs That Can Skyrocket Your Income
Entrepreneur
Pay-per-click (PPC) advertising is a massive industry. It can also be incredibly complex when dealing with fine-tuning the right audience, installing pixels for re-targeting ads, and discovering other advanced methods for reaching the right people at ...


Practical Ecommerce

AdWords Changes Coming Fall 2017
Practical Ecommerce
As a pay-per-click practitioner, I recommend “rotate indefinitely” so that ad testing is more even, and thus fair. For PPC managers, it's routine to check ad tests. But if you're unable to dedicate much time to AdWords, then “optimize” could improve ...

Google News

How to Maximize Paid Search Results

Because of increasing competition that has led to higher advertising... Read More

The Truth - Adsense Click Fraud Can NOT be Stopped

Your probably reading this article because you use Google Adwords... Read More

What The Adsense Top Earners Are Doing To Constantly Increase Their Earnings

It is really frustrating, is it not, to log into... Read More

Picking The Right Keywords For A PPC Campaign

Running a pay-per-click advertising campaign can be very expensive if... Read More

Google AdSense - A Quick Overview For Beginners

In Google AdWords, the advertisers' links show up when someone... Read More

Adwords & Adsense: A Beginners Guide

The Mechanism First a brief glossary of terms: Adwords: The... Read More

Click Fraud and How to Deter It

Pay per click (PPC) advertising continues to gain popularity in... Read More

Affiliate Strategies Of Pay Per Click Search Engines

Where are your ads being displayed?The Untold Secret Of Pay... Read More

What is Google AdSense?

AdSense may be one of the fastest and easiest ways... Read More

Seven Tips To Getting The Nost From Your Google Ad Word Investment

With Google Ad Words . . .When a person searches... Read More

AdSense Secrets - Joel Comms Google AdSense Guide Reviewed

Joel Comm is the best-selling author of a book called... Read More

The Truth About Pay-Per-Click Ads

Are pay-per-click ads the best method of getting customers to... Read More

Advertising Your Home Business With Pay Per Click Can Be Risky

An unfortunate byproduct of the pay per click advertising business... Read More

3 Strategies to Profit When Click Prices Increase (Part 1 of 3 Series)

Although the degree of increase varies among industry resources, a... Read More

Local Business Advertising & Google Adwords

"I don't need the Internet to advertise - I'm a... Read More

Five Steps to Profit from Google Adwords

Although I was marketing online since 1997 and was making... Read More

Affiliate Tips to Raise Your ROI - From Loser to Winner in 30 Days

"Todd" was keen to compete in one of the most... Read More

Google Adwords: Here is Why It Can Explode Your Business!

The beauty of Google Adwords set up is its simplicity.... Read More

PPC Search Engines Revealed - 5 Things You Need to Know

The pay per click (PPC) search engines have created a... Read More

Pay-Per-Click Fraud Exposed

Has anyone else noticed a disturbing pattern in your pay-per-click... Read More

PPC Fraud, Google Stands to Lose Millions

Google stands to lose millions if fraud continues. It is... Read More

Want Higher Adsense Earnings? Then Optimize Site Navigation

Webmasters know that Adsense generates a sizeable source of additional... Read More

Under The Covers: ClickBanks Affiliate Tracking System

The core principle of affiliate marketing is that the referring... Read More

Work At Home Business Tip - Test Everything

Dinner With Mark JoynerAbout 3 Years ago in Los Angeles... Read More

Advertising Using PPC Search Engines

Internet technology offers vast opportunities to promote your business with... Read More