Is it unethical to create a rebate site?

Discussion in 'ClickBank' started by lilac2, Jan 30, 2009.

  1. #1
    Since most affiliates are earning 60% plus from CB products would it be unethical to start a website and offer customers "cash back" when those people purchase a product using a specific hop link?

    E.g. if the publisher is offering 75% commission would it be OK to start a site where I offer customers that use the hop link I give 25% cash back?

    It sounds a bit unethical at first look but I just can't find a logical reason as to whether it is. The publisher still gets paid the same so I'm not sure. Thoughts?
     
    lilac2, Jan 30, 2009 IP
  2. terryd

    terryd Well-Known Member

    Messages:
    1,667
    Likes Received:
    25
    Best Answers:
    0
    Trophy Points:
    115
    #2
    I think you find that under Clickbank TOS it is against their rules, you cannot give a rebate.
     
    terryd, Jan 30, 2009 IP
  3. NCMedia

    NCMedia Well-Known Member

    Messages:
    1,827
    Likes Received:
    98
    Best Answers:
    0
    Trophy Points:
    115
    #3
    It is extremely frowned upon - it is called incentivizing with a monetary rebate. Both you and the pub would get reported and other affiliates would want to kill you. This is also a way a publisher can claim it's an affiliate doing it but could be a quiet internal publisher account/setup cornering the market & bypassing affs.

    Imagine if 100 aff's were all offering cash rebates everywhere for the same offer (xx of which could be owned by the pub) - would be a mess, you might think it may bring more sales, and who knows it just might... But it causes too much comotion. Non monetary incentivizing is ok imo (eg. buy from my link then email me and I'll include a free xyz ebook - but never actual money).

    N.
     
    NCMedia, Jan 30, 2009 IP
  4. MedicAffiliate

    MedicAffiliate Peon

    Messages:
    355
    Likes Received:
    4
    Best Answers:
    0
    Trophy Points:
    0
    #4
    It's only encouraged by the most desperate of publishers, the rest will simply report you and have you banned for this tactic. This is because people reading your webpage who end up buying the product also end up contacting the publisher himself asking for the rebate, forgetting that it's your site they read it in.

    In any case, if someone's interested in the product, chances are they aren't going to economize too much on it (plus it just seems plain scammy). You would have much more success if you offered some more PLR products and mentioning their "value", supposing the product goes for $49, you can say that these ebooks are being bought for $30-40 by others and that your hoplink would lead them to the most advanced product of it's kind and that you'll email them the "outdated" products that still have incredibly useful information. This has the effect of getting your consumer very interested, and also building a huge amount of credibility for the product you promote.

    Anyways, it's a good thing you decided to ask first...having your acc. banned can be like a sudden heart attack.

    Good luck,
    Medic.
     
    MedicAffiliate, Jan 30, 2009 IP
    JoseArmando likes this.
  5. JoseArmando

    JoseArmando Active Member

    Messages:
    807
    Likes Received:
    47
    Best Answers:
    0
    Trophy Points:
    70
    #5
    Great post MedicAffiliate
     
    JoseArmando, Jan 30, 2009 IP
  6. Ripped

    Ripped Well-Known Member

    Messages:
    2,151
    Likes Received:
    55
    Best Answers:
    0
    Trophy Points:
    165
    #6
    I saw about something about this in the Clickbank TOS, you're not allowed to offer a monetary rebate, you might get banned by CB for doing that
     
    Ripped, Jan 30, 2009 IP
  7. Zibblu

    Zibblu Guest

    Messages:
    3,770
    Likes Received:
    98
    Best Answers:
    0
    Trophy Points:
    0
    #7
    Rebate sites would be a really really *really* bad trend to start. Think about it. Eventually everyone would have to give huge rebates to compete and our profits would be driven down. Clickbank should not allow rebate sites.
     
    Zibblu, Jan 30, 2009 IP
  8. venrooy

    venrooy Active Member

    Messages:
    804
    Likes Received:
    13
    Best Answers:
    0
    Trophy Points:
    80
    #8
    I know that fatwallet has been doing that for years. They don't do it with clickbank products, but they do it with many other affiliate programs. They must be making a killing doing it, because they just opened up a shop near my house and employ dozens of workers.

    I'm not really sure what I think about this one. I'd have to think about it more. I do know that there's the possibility of circumventing other affiliate's profits once it becomes known that refunds are being given.
     
    venrooy, Jan 30, 2009 IP
  9. NickE83

    NickE83 Well-Known Member

    Messages:
    261
    Likes Received:
    7
    Best Answers:
    0
    Trophy Points:
    128
    #9
    I have done this succesfully in the past, and don't see a problem with it...

    Hey, lets be real, its a competitive world out there, and a marketers got to do what it takes to survive :)
     
    NickE83, Jan 30, 2009 IP
  10. lilac2

    lilac2 Peon

    Messages:
    367
    Likes Received:
    2
    Best Answers:
    0
    Trophy Points:
    0
    #10
    It's certainly a grey issue. I'm sure some people even frown upon offering "bonuses" for when a person makes an order through their hop link instead of someone else. It's a case of Marketing vs. Good Manners I guess.
     
    lilac2, Jan 30, 2009 IP
  11. terryd

    terryd Well-Known Member

    Messages:
    1,667
    Likes Received:
    25
    Best Answers:
    0
    Trophy Points:
    115
    #11
    Well clickbank do and if someone reports you, you are risking your account.

    From their TOS:

    "You agree to make no such promotions promising customers rebates, coupons, tickets, or vouchers in connection with their ClickBank purchase."
     
    terryd, Jan 30, 2009 IP
  12. MedicAffiliate

    MedicAffiliate Peon

    Messages:
    355
    Likes Received:
    4
    Best Answers:
    0
    Trophy Points:
    0
    #12
    Not to mention it's really putting off to see someone offer you 5-10$ back to purchase a product you were interested in in the first place...kinda like walking into a TV store and the salesman tells you "buy this TV for $1000 and I'll give you a part of my commission...deal?". That isn't why you walked into the store but probably why you would walk out.
     
    MedicAffiliate, Jan 30, 2009 IP
  13. lilac2

    lilac2 Peon

    Messages:
    367
    Likes Received:
    2
    Best Answers:
    0
    Trophy Points:
    0
    #13
    Not really, sales people do that all the time, not to mention "Cash Back" offers in stores.
     
    lilac2, Jan 31, 2009 IP
  14. true_promote

    true_promote Well-Known Member

    Messages:
    528
    Likes Received:
    5
    Best Answers:
    0
    Trophy Points:
    138
    #14
    but you may still offer bonuses to promote your affiliate product
     
    true_promote, Jan 31, 2009 IP
  15. MedicAffiliate

    MedicAffiliate Peon

    Messages:
    355
    Likes Received:
    4
    Best Answers:
    0
    Trophy Points:
    0
    #15
    That was an example, but nice to know people are taking things seriously ;)

    And a cash back offer is nice only if the store endorses it (ie landing page here), not if the salesman whispers into your ear, sweating profusely as he promises to come to your home and drop it in your mailbox.

    You would be much more tempted if they offered, say a service warranty along with a lounge chair or PS, universal remote or iPod along with it...the store knows adding a few wholesale items along with their stuff isn't going to affect the markup much, but it makes the buyer feel good about his purchase, and even if he goes out and decides to buy what he walked in for, it's going to be your store over the others, even if it's for a few freebies.

    Okay, enough with the store metaphor for now :p
     
    MedicAffiliate, Jan 31, 2009 IP
  16. afmark

    afmark Peon

    Messages:
    209
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #16
    Hi,
    I think it is ok to provide cash-back rebates if it is not against the terms and conditions of the company. I am offering cash-back rebates to people who signed up for web hosting plan of Lunarpages and Inmotion hosting through my website. I give out $60 off coupon codes of Dreamhost web hosting. What way did you use to verify that they really sign up through your affiliate link so that you can pay them the rebates?
     
    afmark, Jul 22, 2009 IP
  17. jaysmyhero

    jaysmyhero Member

    Messages:
    98
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    43
    #17
    ahh Just doit.. They will warn you once by shutting your account down .. Dont be stupid just be smar when u doit and how you doit.. ..

    You will be fine..

    You can take this post as screwing you up.. or you can take it as helping .. LOL IF hat makes any sense at all i dont care LOL.. Just sayign dont get caught it's a world WE HAVE TO DO WHAT IT TAKE SO STAY ALIVE!
     
    jaysmyhero, Jul 22, 2009 IP