Clickbank has undergone many changes this year and the most highlighted change is their new risk management tiers system. This is a color coded system with 4 colors and each one means a different level of risk.
Initially all the accounts will be given 100 quality points, good accounts with color (green, blue or violet) will be awarded 1 point every day, and orange corresponds to borderline accounts which will lose 1 point a day. Red means unacceptable accounts that will lose 2 points per day and when it reaches 0 sales will be halted from this account and it will be suspended.
Accounts with less than 1% chargeback and less than 15% refund rates are considered to be at lower risk.
According to clickbank this rating system is updated every day and it is introduced for a better customer satisfaction and to minimize refund rates. One way it is great news for customers but for affiliates who are promoting products from internet marketing niche it is a bad news. The reason is simple many people who buy products from this niche refund often even if the product is good, so that they get the product for free but this is going to be a big problem to many affiliates with the introduction of the new rating system from march 2013.
Until clickbank does something else to tighten up their refund policies so that free product seekers find it difficult to refund, it is a problem for both vendors and affiliates promoting clickbank products. Some tips to avoid refunds are listed below.
For affiliates, try to avoid crappy internet marketing products until something is done about the refund policies by clickbank. Other markets or niches have ultra low refund rates so concentrating on these niches would be a great idea to maintain a lower risk account. You can offer bonuses to buyers if they did not refund, 60 days after buying.
For vendors, get your trusted affiliates whitelisted and allow only those who can get you the real deal. Mail out your customers with fresh updates and given them free lifetime updates if possible. Also follow up the customers and help them get the most out of their purchase by regularly mailing them with useful info. I read a good post on warrior forum that says offer your digital products in the form of CD or DVD and with a condition that is – if the buyer wants a refund he or she has to bear the return shipping charges (sounds like a good idea).
If you have better ideas to avoid being an higher risk account holder, please feel free to share with us.