As some of you know, I just launched a new product that is experiencing some exciting success, and after about a month since launch, my return rate is tracking at around 6.5% overall which I'm satisfied with. Most of my returns deal with people who have trouble downloading or unzipping the files. However, I was wondering how Clickbank regards products that have much higher returns than mine such as Satellite TV products, or money making products (often bought by Clickbank affiliates with their own ID's just to be returned). Does Clickbank have any issue with products that have extraordinarily high return rates such as 20-30% (which I experienced with the movie products) as long as chargebacks are kept below 1%? I notice one of the highest gravity product is the Satellite to PC product which I have never promoted myself, but I hear it has return rates exceeding 30%! In summary what I am asking is, "What is Clickbank's tolerance level for products with extraordinarily high return rates?"
I would imagine its all about business, satellite tv pays for advertising and still has a lot of users promoting it, so its still profitable. If a little guy is getting mostly refunds tho I'd imagine theyd yank it to get affiliates in that niche to promote products that refund less = more profit for clickbank.
Patchkaa - do you think 6.5% is bad? I'm just starting to wonder about publisher related topics that I never explored before as an affiliate. But back the original question - What is Clickbank's perspective? Reading through their FAQ didn't make things very clear.
if your refunds get too high they usually send you an e-mail first to warn you, then after 3 warnings they take it out thats what happened to ultimate wealth package. Established products like satellite tv to pc usually do not face this kind of problem, it is not everyone who has such high refund rates with such products, it just depends on how you promote it. Look at get google ads free, it has been selling for month despite what people say. just do not let your refund rate pass 30% or you might be in big trouble
6.5% is good I think. No matter what you are always going to have some returns, obviously you want to get them as low as possible but some people may buy with the intention of returning no matter what. As an affiliate (I've not yet published my own product although I'm looking more seriously into that recently) I've experienced about a 10% return rate on average on all of the products I've promoted. What is your product? I'm always on the look out for something new to promote.