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/

---

Wimpy Google and Michael Jackson: Birds Of A Feather

Google Inc. is suing a Houston-based company for allegedly clicking... Read More

Successful Pay Per Click Ad Copy

Writing outstanding ad copy for pay-per-click advertising campaigns is critical... Read More

It Makes Sense to Add AdSense to Your Blog

Google AdSense is easy to install on a web page... Read More

How to Master Google AdWords - Part 2

4. Write an attractive ad - you have a very... Read More

4 Steps To A Successful AdWords Campaign

Not getting the satisfaction you want from your AdWords account?... Read More

The Truth About Google?s Adsense Affiliate Program

The truth about Google's Adsense program is that it is... Read More

10 Steps For Fighting Click Fraud

Pay-Per click fraud dates back even from the time when... Read More

A Fundamental Overview Of Pay Per Click Search Engines

Forbes magazine has reported that pay per click ad sales... Read More

Internet Advertising Options

Your online business will likely require more advertising than a... Read More

3 Tips For Adwords PPC Management

Adwords PPC Management Tip No. 1Setting up an accountIf you... Read More

Pay-Per-Click Fraud Exposed--Part II

According to Andy Jones, a member of the Best Practices... Read More

Effective Keyword Bidding Strategies

When doing Pay Per Click Advertising you'll often see "Bid... Read More

Work At Home Business Tip - Test Everything

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

Wheres the Best Place to Put Google Adsense Ads?

Why, on your web pages of course. Ok, just kidding.... Read More

Per Click - Do They Know Something We Dont?

I have utilized pay-per-click (PPC) advertising since its inception about... Read More

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

When we launch a new product, we all hope it's... Read More

ClickBank Affiliate Woes: When Tracking Breaks Down

Hardly a day goes by without a forum posting in... Read More

Adsense ? When Should You Use It?

Well I have several sites, some of them I apply... Read More

Advertising Click Fraud Rampant Online?

"Pay-per-click," by far the most popular form of online advertising,... Read More

Improved PPC Marketing Performance from Time-Tested 80/20 Principle

As marketers and business owners, we're always looking for "the... Read More

4 Ways To Get Relevant Adsense Ads On Your Site

If you're an active Adsense publisher, I'm sure you have... Read More

10 Great Things NOT to Do with Google AdSense

There is no question that you can make some good... Read More

What You Need To Know About Googles New AdWords Affiliate Policy

A lot of affiliates are selling other people's products with... Read More

Using Google AdWords to Increase your Adsense Profits

I had been using Google's Adsense program to generate some... Read More

Pay-Per-Click Search Advertising Comes First

There are a variety of advertising options available to online... Read More

AdWords Analyzer Review - Pros and Cons

Adwords Analyzer (http://tinyurl.com/a3o3o) is a remarkable keywords research tool that... Read More

Another Advantage To Pay-Per-Click Marketing

Web marketing has taken on many different shapes during the... Read More

Finding The Cheap Clicks

As anyone who uses Pay Per Click (PPC) advertising in... Read More

Market Research Means Money

I recently made a critical mistake in my progression towards... Read More

Secret Reasons Why Some Businesses Can Afford to Bid Ridiculous, Amounts On Pay-Per-Click Keywords

The other day I was talking to one of my... Read More

Are Small PPC Search Engines Really Worth The Effort?

Are Small PPC Search Engines Really Worth The Effort? The... Read More

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

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