100% Affiliate commision refund issue..

Yes, the idea with these scripts is for you to be in contact with your affiliates. When a refund is requested you send a message to that affiliate. They are expected to return the money.

This is stated in the TOS... let me rephrase that... stated VERY CLEARLY in the affiliate TOS.

Sure, you will lose out every now and then, but to build a healthy list of buyers it's well worth it.

Also, you have to keep in mind the OTO after the initial sale! Very important to have one and not pay 100%. Pay your affiliates 25% or 50%.

If an affiliate does make the choice to be an online moron you simply pull their AffID and keep 100% of the traffic they send until they yank their head out of their butt and fork over the money.

All in all this system works great IF:

#1: your product is high quality with low refunds
#2: You have an OTO paying out 25% - 50%
#3: You're marketing to your buyer list every month
#4: You keep in contact with your affiliates

Stick to those 4 rules and you'll be all good!

I do it all the time without an affiliate "contract" and have no nightmares.

I ask the affiliate to pay the refund. If they don't respond right away, I pay it.

With a very low refund rate, I just consider it a cost of business and move on.

Of course, most of the products I sell this way are not very expensive, so it makes sense to spend as little time as possible in managing these things. I'm not going to spend a lot of time and effort chasing an affiliate because time and effort usually cost more than the refund anyway.