Clickbank's Return Allowance (Interest Thievery!)

Discussion in 'ClickBank' started by Lay The Best, Dec 22, 2009.

  1. #1
    Hi Guys,

    Just coming up to 12 weeks of using Clickbank, so I should be getting Release's back now that should roughly cancel out my Allowances each week.

    I've been reading Clickbank's Accounting Policy on their website though and am I correct in assuming that they effectively take an Allowance on the Release?? So they take 10% originally, then when this is released to you, they take 10% of that again! (Basically 1% of the original Allowance) ??

    Their policy gives the following formula:

    Return Allowance = allowance percentage (typically 10%) x [(previous balance) + credits - debits + allowance release]

    Ignore the (Previous Balance) part because this always resets to zero, but Say for example I'd earned exactly $500 every week for 12 weeks with no refunds. Come the 13th week, my payment would be calculated as follows:

    Credits ($500) - Debits (0%) + Allowance Release ($50) = $550

    Return Allowance being 10% of the above = $55!

    This extra $5 is basically 10% of the Allowance Release and recycling 1% of the Total Credits earned 12 weeks ago! In my eyes this is daylight robbery of money that could be earning interest in my bank account - not Clickbank's!!!

    Anyone else agree with my above calculations and think that it's wrong for Clickbank to be doing this??
     
    Lay The Best, Dec 22, 2009 IP
  2. Lay The Best

    Lay The Best Peon

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    #2
    Anyone? Just want to make sure I've come to the correct assumption...
     
    Lay The Best, Dec 22, 2009 IP
  3. peterzeller

    peterzeller Peon

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    #3
    Yes, Clickbank takes allowance on allowance releases. And I think this is wrong too, because you will never reach a 0$ net account, CB will always owe you some pennies. But anyway, because of the minimal payment amount, I never complain. And the checks are still nice ;)

    But you're right, this is kind of unfair.
     
    peterzeller, Dec 22, 2009 IP
  4. tonysanders

    tonysanders Member

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    #4
    wow, thanks for highlighting that. hmmm. maybe i should go back to see how much those guys owe me.

    do they round up or round down 0.005? :D
     
    tonysanders, Dec 22, 2009 IP
  5. Smitten

    Smitten Well-Known Member

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    #5
    CB is a business, not a charity. So they can use that allowance to deal with refunds and various expenses. It's not that high margin, and you eventually get the money back unless you have refunds... I don't see reason for fretting over this.
     
    Last edited: Dec 23, 2009
    Smitten, Dec 23, 2009 IP