Now I know if you have a clickbank account you probably have already seen the message from clickbank regarding the new risk management tier policy taking effect on January 2nd, 2013 . It has not been implemented yet, however clickbank has allowed its users to have a preview of whats in store for clickbank in 2013. The only problem is that there are many users who are very concerned about the impact this new policy will have on your clickbank account. To make it short, if your account has a refund rate above 15% then your clickbank account is in danger. Continue reading below for more information on how this clickbank risk management tier policy works. Here is what a good account looks like, it would be a different color based on how good or bad your account is.
What is the CB Risk Management tier policy and how does it work?
Before anything read this sentence that I pulled out of the clickbank.com risk tiers page, here it is: “By risk, we mean the potential risk of a customer refund or chargeback, based on historical account and network data.”.According to clickbank, this new risk management tier policy will help clickbank offer better quality products, and enhance customer satisfaction. How will this happen? The tiers will eventually delete clickbank accounts that are selling crappy products on clickbank. How will they know if the product being sold is crappy? They will be able to determine whether it is a horrible product or not based on its refund rate. So if it has a refund rate higher than 15% it is considered risky, it will also be subjected to extra fees to your account and or termination of that account.
How can your account be subjected to fees or termination?
When this policy is implemented on January 2nd, 2013, your accounts standing will be measured based on the new point system. You will start out with 100 points. If your account is considered high risk (above 15% refund rate) you will loose points every day and be subjected to refund fees, if your account is not considered low risk (below 15% refund rate) you will not loose points or be subjected to refund fees. There are two levels of high risk accounts, the orange tier(borderline) account and the red tier (unacceptable) account. The orange account would loose 1 point per day and the red account would loose 2 points per day. When you reach zero, your account will be removed. As far as the other good accounts, they will only gain 1 point per day. The maximum amount of points you can reach is only 100 (which is what your start out with). Oh I also forgot to explain the transaction fees. If you are an orange vendor account you will have a $2.00 transaction fee account, for read accounts it would be for $4.
What is my opinion on this risk management policy?
I think the idea is an amazing idea, I fully understand why they are doing this. My only problem is there expectations. I think anything higher than 15% is not risky, what think it should be is anything higher than 27% is risky. There are many professional marketers who have there refund rate around the 20’s. If you ask me, I think a 20% refund rate is good. I think clickbank is just expecting products that are beyond perfect. Just take a look at some of the best selling products on clickbank. Courses like, Google sniper 2.0, Work from no home, and mobile monopoly 2.0 that are proven to have methods that work, they are not scammy products. According to Cbengine.com, all of these courses have a refund rate higher than 15%. So if this policy is implemented with its current expectation of a refund rate lower than 15%, all of these amazing courses will eventually be removed from clickbank. That will make it harder for vendors to sell, and harder for affiliates to find a good product to promote. This will make clickbank users eventually flee from clickbank to use another affiliate network. In fcat, the risk management tiers have not even been implemented yet and people are already saying that they will leave clickbank. Click here to see what people are saying about this new rule.
After reading through this forum and seeing peoples opinion on this, I saw some people complaining about the chargeback fees rule on their accounts. I saw that even a couple of charge backs can take your account from good standing to a high risk. I think this should not be changed and it should be left how it is. To me it seems like you get punished the worst if you get a charge back instead of a refund. Clickbank is doing this for one reason. To make it short, if clickbank continues getting charge backs they will eventually loose their ability to sell products.
UPDATE: I sent a message to clickbank asking them to consdier lowering their high expectations because it can potentially hurt affiliates, vendors and it will destroy clickbank. After a couple of messages being sent back and forth, I got a solid reason on why the expecations are so strick. You will understand to. Just read the image below of the email.
Feel free to leave a comment below on your opinions towards the clickbank risk management tiers 🙂