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Complete Clickbank Refund Guide For Clickbank Affiliates
If you are an online affiliate promoting Clickbank products, you will probably notice that there is a 90-day refund policy for each product.
Endorsements Can Kill Your Clickbank Sales Efforts! Lots of sales mean nothing if your referred customers demand their money back.
Refunds cannot be completely avoided. When you start advertising, you need to choose the right product. Calculating the average payback rate for the Clickbank product you’re promoting is a good way to decide if promoting it is worth your time and effort.
Visit the Clickbank Marketplace for some important payout statistics. Every Clickbank product comes with information to help you determine if it is a good affiliate product or not.
%/Sale: How much you earn as a percentage of the total price of the product, commission.
$/Sales ($ Earned/Sales): The average net amount earned per affiliate referred sales in the past, including refunds and Clickbank fees. With this number, you can see the actual performance of the products you want to promote.
The average payback rate for a Clickbank product is:
(Affiliate Commission – $/Sales)/ Affiliate Commission = Average Payback Rate
Affiliate Commission = (Product Price – Product Price * 7.5% – $1) * % of Sales
For example, you look at the Clickbank marketplace and see that ViralPDF is priced at $67, $28.92 earned/sold, and has a commission rate of 51%. So the ViralPDF affiliate commission is 51% * (67 – 67 * 7.5%-1) = $31.10 and the payback rate is (31.10 – 28.92) / 31.10 =7.00%. Not bad in my experience.
The average payback rate for Clickbank products is around 10%. With a 5% or less cashback rate, congratulations on finding a great product. With a bounce rate of 11-20% (or higher), you should consider promoting other ads.
And you should notice that you cannot accurately calculate the refund rate if a Clickbank seller sells different products at different prices. I will tell you how to check if this seller has multiple products. Enter the payment URLs in your browser:
http://1.vendor.pay.clickbank.net/, [http://2.vendor.pay.clickbank.net/..].
If you get a 404 error [http://2.vendor.pay.clickbank.net] then that seller has only one product in the Clickbank marketplace.
Another factor is when sellers change their prices as well. Realize that it won’t work if the seller offers different products/prices.
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