New Clickbank color coded risk tier accounts

by 337 replies
Just logged in to my clikbank account and I see a new notice from clickbank

You can read more about it here
Refunds and Chargebacks

Taken directly from this page

The new risk tiers are composed of 6 color-coded tiers, each with an indication of the risk management level for the account:

Violet Tier – Lowest risk account, great performance, exceptional customer satisfaction
Blue Tier – Low risk account, great performance, strong customer satisfaction
Green Tier – New or Good quality with good customer satisfaction
Yellow Tier – Some risk issues, these should be identified and corrected
Orange Tier – Major risk issues which must be improved, account termination potential
Red Tier – Out of compliance with risk standards and must be improved as soon as possible, at risk of account termination


and my account is considered Moderate risk :confused: hmm

Just updating everyone here.

Have a nice day

Brandon
#main internet marketing discussion forum #accounts #clickbank #coded #color #risk #tier
  • Profile picture of the author Mr. Ken Russell
    Yeah.. I was surprised when I logged into my CB account too.. What the hell? My main account even got a warning. No wonder everybody is migrating to different platforms..



    Uh oh... Additional fees. Allowance is already being enforced at a much higher percentage:

    • Profile picture of the author Brandon Sean
      Originally Posted by Nio93 View Post

      Yeah.. I was surprised when I logged into my CB account too.. What the hell? My main account even got a warning. No wonder everybody is migrating to different platforms.. Definitely considering doing the same.

      The thing is my refund rate is usually below 5% on average. So not sure why im getting a "moderate risk" Oh well lets see in a few weeks time if i an improve my "risk" level

      Anyways I see this as a good move by clickbank, if your an affiliate, you'll now know which products are worth promoting, which are nt and also for vendors to improve on their existing products.
  • Profile picture of the author John Romaine
    Id like to know how these clowns come to these conclusions. I have a product listed there that rarely gets refunds and its apparently "HIGH RISK"

    They can terminate my account for all I care. Cant wait to get outta there.
    • Profile picture of the author Wayne
      Just logged into my account, and am at moderate risk (green).

      If it helps to clean up their marketplace from products that have high refunds and chargebacks, it may be a good thing. Will have to wait and see how it works out.
  • Profile picture of the author David Keith
    My main account is green tier. not too bad i guess. But i don't do all that much on CB these days so it doesn't really matter too much to me.
  • Profile picture of the author David Keith
    wow did yall check out the additional fees? These are crazy high.

    Refunds and Chargebacks
    • Profile picture of the author John Romaine
      Originally Posted by David Keith View Post

      wow did yall check out the additional fees? These are crazy high.

      Refunds and Chargebacks
      So for high risk, some numbskull orders my product, then intentionally refunds, and I GET PENALIZED for it. These dickheads have lost the plot. That means a $97 product refunded costs me $106.

      One word David ---> DITCH.
    • Profile picture of the author kindsvater
      It looks like ClickBank is evaluating refunds from the both the vendor and the affiliate, and instituting new fees to weed people out.

      If your product generates a lot of refunds the new fees will force you out. If, as an affiliate, your referrals result in a lot of refunds it may not be profitable for you.

      I presume this will end IM product sales in ClickBank, maybe most products - although it remains to be seen what refund rate will result in an orange or red rating. Will a ____% refund rate be good or bad?

      Maybe Visa and MasterCard are starting to clobber ClickBank from their end.

      ClickBank has become too well known as the place to get products for free with its automatic refund policy, and now the company is trying to do something about it to raise the quality of its marketplace. The problem, though, isn't just product quality, it is that ClickBank allowed itself to become the land of the free.

      If you want to take out a competitor, especially a new one ....

      .
  • Profile picture of the author David Keith
    Well, the reality is that CB is just a middle man in most ways. Their merchant providers and PP or the FTC must be all over their asses for them to make these kind of changes.

    Those are some big additional fees that are going to send merchants running for the hills.

    Hell, even many adult/ very high risk merchant providers fees are less than CB now.

    I don't really care they don't mean much to me, but this will put the hurt on a lot of folks.
    • Profile picture of the author GoodnightSweetRatRace
      I'm in the moderate risk, even though my overall refund rate is 6.1% which I think is pretty good. :confused:

      Anyway, I like this change, because this is gonna push a lot of scammy vendors out of the Marketplace and hopefully eventually improve the reputation of Clickbank.
    • Profile picture of the author OnlineAddict
      Originally Posted by David Keith View Post

      Hell, even many adult/ very high risk merchant providers fees are less than CB now.
      Adult is 15% per transaction and mostly even 5% holdback for 6 months, how can you even compare that to clickbank?
  • Profile picture of the author John Romaine
    They can set as many color codes as they like. Ditching CB was on my "to-do" list anyway. This has just bumped it up a few places.
  • Profile picture of the author Tim3
    Just another example of greed and profiteering.

    The whole thing stinks, if they want affiliates to do well they should stop being secretive about product refund rates and make them available, then nobody will promote the crap, all the dishonest vendors will crash and burn, the honest one's with poor products will go away and improv them, customers will get get better value for money, and affiliates will make a nice profit, and so will CB.

    As it happens I have not used my own account for a long time and it is considered 'moderate risk'
    My own interpretation is... moderate risk of being legally ripped-off in the future, needless to say I won't be sending CB any more sales.

    There are plenty more fish in the sea, let's all bale out and see what happens to CB then. I forsee another policy change PDQ.
  • Profile picture of the author David Keith
    if you look at the chart on the page i linked to, it kinda seems like maybe the affiliates are also going to be on the hook for an extra charge back fee if they are labeled high risk.

    So maybe it has to do with the refund/chargeback rate you produce as an affiliate?
    • Profile picture of the author vendor
      Good Post!
      My Vendor account has been marked as "LOW RISK" (blue).
      However, i feel it is high time to jump ship.
      The tide is turning on clickbank and it's only a matter of time until all that made them "clickbank" is gone.

      The future is very clear to me:
      Many Vendors and affiliates will move to EU based payment/affiliate tracking processors and in the future possibly Asian processors
      will also pick up on the US slack.

      That is the sound of inevitability
  • Profile picture of the author Wayne
    Originally Posted by Chris Kent View Post

    Two things to note.

    First of all, this is for vendors.

    Second, green is actually good. "Moderate risk" sounds bad but it isn't. My guess is that green is the default for all accounts, including affiliate accounts where the person has never been a vendor. edit: have just checked 3 of my accounts and all are green.
    Actually, this is for vendors and affiliates. Affiliates will also now be charged fees for refunds and chargebacks depending on which risk category they are in.
  • Profile picture of the author yukon
    As of 12:16 PM - 11/5/2012 I'm officially dumping Clickbank, I'm done.

    I'm a Moderate Risk. I've never had a chargeback (not in IM niche) so that Green tells me they are full of $hit, I'm obviously low risk (no chargebacks). They can change the color daily.

    * Risk management tiers are assessed on a daily basis.
    This is the 3rd negative experience I've had with CB in less than a week.

    They can kiss my moderate a$$.
  • Profile picture of the author SShip
    [DELETED]
  • Profile picture of the author Vikram73
    Same here - my affiliate account which has few refunds is the same moderate risk as you guys. Funny thing is I stay away from Internet Marketing & Forex to avoid refunds :-)

    Looking at my transactions I had:

    - 0% refunds in Aug
    - 2% refunds in Sept
    - 0% refunds between 0ct 1st - Oct 15%
    - 5% refunds between Oct 15 - present

    This is going to really put the internet marketing and Forex niches into hot water at CB and put CB into some hot water because as much as I avoid those 2 niches I do think that a big chunk of their revenue is coming from there.

    If they want this to work they'll have to look at data over a several month time period. I suspect the high refund rate I saw recently was due to server administration issues and people not getting their downloads from the vendor.

    It took the vendor a few days to work these issues out but customers rightfully upset requested their money back and CB granted it.

    Everything is working as it should be and somehow this is 'Moderate Risk'.
  • Profile picture of the author Josh Monroe
    It is strange indeed.

    One of my testing accounts has over 100 sales, four refunds and a chargeback yet it's considered to be in the "highest risk" category?

    Four refunds and a chargeback out of 100 sales I would say is pretty darn good on ClickBank..
    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by Josh Monroe View Post

      It is strange indeed.

      One of my testing accounts has over 100 sales, four refunds and a chargeback yet it's considered to be in the "highest risk" category?

      Four refunds and a chargeback out of 100 sales I would say is pretty darn good on ClickBank..
      It depends on what the average is for that product, Josh, perhaps: if it's 2%, then your 5% might be high risk? (For my account, for anything I promote, 4 refunds and 1 chargeback out of 100 sales would be a disaster. It depends what you're promoting it, doesn't it?)

      Originally Posted by vendor View Post

      Many Vendors and affiliates will move to EU based payment/affiliate tracking processors
      Until their upline service providers start cracking down in the same way and for the same reasons as ClickBank's, 2Checkout's and Plimus's, maybe. If they're not already the same upline service providers, that is ...
  • Profile picture of the author xxxJamesxxx
    Oh this should be fun...

    ...Gonna log into my accounts now and see what the crack is, but seeing what's been said here... It ain't looking good!

    James Scholes
  • Profile picture of the author Mr. Ken Russell
    Yeah I'm done. InfusionSoft here I come.
  • Profile picture of the author Wayne
    Chargebacks probably hurt much more than refunds, since it is putting Clickbank's merchant account at risk, so even if you only have very few chargebacks it might put you in the high risk category.
  • Profile picture of the author bougalo
    I looked at my CB account this morning, and freaked out when I saw those "Risk management tier". One would hope that CB will send out emails to alert us of it first. lol
  • Profile picture of the author Josh Monroe
    Someone needs to come up with a system where if someone refunds the product "instantly" then they get "instantly" locked out of the product.

    Would be hard to do for ebooks, but if you placed everything inside a members area which requires usernames and password then stress the fact that if they refund they WILL lose access immediately, could cut down on the serial refunders.

    All you would need to do is lock your amazon buckets and then the user would have to physically download all the content inside the members area (and some users don't know how to do this anyway).

    Whats the sense in someone refunding a product but keeping full access to it?
    • Profile picture of the author Gaz Cooper
      Originally Posted by Josh Monroe View Post

      Someone needs to come up with a system where if someone refunds the product "instantly" then they get "instantly" locked out of the product.

      Would be hard to do for ebooks, but if you placed everything inside a members area which requires usernames and password then stress the fact that if they refund they WILL lose access immediately, could cut down on the serial refunders.

      All you would need to do is lock your amazon buckets and then the user would have to physically download all the content inside the members area (and some users don't know how to do this anyway).

      Whats the sense in someone refunding a product but keeping full access to it?
      I have a platform/product launching soon that does just that all automatically

      Gaz Cooper
  • Profile picture of the author Scott Strickland
    This is crazy...if anything is "high risk" it is CB's refund policy.

    Who wouldn't like to have their cake and eat it too?

    Make these digital products so they are disabled and unusable for the customer after they request a refund, and you will see the refund rates drop.

    Every sales page (in my niche) I have ever read for a CB product brags how the risk is all on the merchant, and if they buy and are not satisfied they get a full refund, and get to keep the product as well...in most cases.

    Some products that are on a membership site, or a software product get disabled.

    For PDF products or downloadable video products, the customer (and CB-charging us fees) wins, and the vendor and affiliate lose.

    They need to take a hard look at their refund policy - if they could disable PDF/video products somehow, this will stop the cyber-crooks from stealing digital products.

    Which is the REAL problem here, not just bad merchants and affiliates.

    I don't see CB being able to keep this policy, it will drive everyone away, they might as well close.
    • Profile picture of the author vaital
      The Fall Of Clickbank

      Harming affiliates for the crappy products vendors come up with...
    • Profile picture of the author jacob hiller
      Originally Posted by Scott Strickland View Post

      This is crazy...if anything is "high risk" it is CB's refund policy.

      Who wouldn't like to have their cake and eat it too?

      Make these digital products so they are disabled and unusable for the customer after they request a refund, and you will see the refund rates drop.

      Every sales page (in my niche) I have ever read for a CB product brags how the risk is all on the merchant, and if they buy and are not satisfied they get a full refund, and get to keep the product as well...in most cases.

      Some products that are on a membership site, or a software product get disabled.

      For PDF products or downloadable video products, the customer (and CB-charging us fees) wins, and the vendor and affiliate lose.

      They need to take a hard look at their refund policy - if they could disable PDF/video products somehow, this will stop the cyber-crooks from stealing digital products.

      Which is the REAL problem here, not just bad merchants and affiliates.

      I don't see CB being able to keep this policy, it will drive everyone away, they might as well close.
      As far as disabling the product... it would be a real hassle on vendors to do it most of the time.

      Our platform "http://www.myebookmaster.com" disables refunders when they refund automatically via the API which is nice...

      I think it's important that everyone does it so people don't see CB, and think.. free product!...

      But for repeat offenders I would think that CB and CC companies try to stop predatory folks.
    • Profile picture of the author Robert H Cwik
      Originally Posted by Scott Strickland View Post

      This is crazy...if anything is "high risk" it is CB's refund policy.
      ---cut---
      They need to take a hard look at their refund policy - if they could disable PDF/video products somehow, this will stop the cyber-crooks from stealing digital products.
      ---cut---
      Wouldn't a simple statement like "digital delivery, refund not possible" do the trick here? Put what you need on the download page with instructions how to download the content and that's it.
      It is assumed that having paid for the product, one has downloaded the content. If and how they use it, it's their problem.

      Purchase = consent to no refund.
  • Profile picture of the author joseph7384
    [DELETED]
    • Profile picture of the author yukon
      Originally Posted by joseph7384 View Post

      As an affiliate, how can one determine what color level risk a product is before making a decision to promote that product. Obviously this should be a concern also.

      I doubt that will help.

      I was selling a non-IM product with literally no chargebacks & still flagged as a moderate risk.

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