Complete Clickbank Refund Guide For Clickbank Affiliates

refundI wrote this guide in Ezineartcles.com and I decide to put it on my blog to share it with you.

If you’re a Internet affiliate that promoting Clickbank products, you will probably notice that there is a 90-day refund rule for each product.

Refunds can kill your Clickbank sales efforts! Lots of sales means nothing if your referred customers request their money back.

Refunds can not totally be avoided. What you need is to choose the right product when you start promoting. Calculating the average refund rate of the Clickbank product that you want to promote is a good way to decide if it is worth your time and efforts to promote.

Visit the Clickbank Market Place, you are provided with some important payout stats. Every product at Clickbank has some information attached to it, which can help you determine whether it is a good product for affiliates to sell or not.

%/sale: How much you earn as a percentage of the total price of the product, the commission rate.

$/sale ($Earned/Sale): The average net amount earned per affiliate per referred sale in the past considering refunds and the Clickbank fees. With this number, you can have an inner look at the real performance of the products you want to promote.

The average refund rate of a Clickbank product is: (Affiliate Commission – $/sale)/ Affiliate Commission = Average Refund Rate

Affiliate Commission= (Product Price – Product Price * 7.5% -$1) * %/sale

For example, you check the Clickbank marketplace and see the price of ViralPDF is $67, $Earned/Sale is 28.92, and the commission rate is 51%. So the affiliate commission of ViralPDF is 51% * (67-67 * 7.5%-1) =$31.10 and the refund rate is (31.10-28.92) / 31.10 =7.00%. Not bad in my experience.

The average refund rate of Clickbank products is around 10%. With a 5% or less refund rate congratulations you find an excellent product. With an 11%-20% (or higher) refund rate you should consider promoting other ones.

And you should notice that you can’t calculate the refund rate with any accuracy if a Clickbank vendor is selling different products with different prices. I will tell you how to check if this vendor has multiple products. Type payment URLs like this in your browser: http://1.vendor.pay.clickbank.net/, http://2.vendor.pay.clickbank.net/… If you get a 404 error on http://2.vendor.pay.clickbank.net then this vendor has only one product in the clickbank marketplace.

Another factor is when vendors change their pricing too. Realize that if a vendor offers different products/price this isn’t going to work.

Here’s a little tool for you. I just developed this Clickbank Refund Rate Calculator that can automatically calculate the refund rate, clickbank fees and the actual revenue of the clickbank product you are promoting.

Check it yourself.

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