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Clickbank: Retailer or Payment Processor?

by keyon
10 replies
No doubt there is some confusion out there about what kind of business CB actually operates. Of course you can read CB's own definition on their website, but that can still leave you scratching your head a little about what the company really does.

I suppose from a purely technical standpoint, CB can call themselves a "retailer," but I think the term is bit of a stretch. Retailers typically work to form direct relationships with customers - building brand recognition through advertising, marketing, and sometimes even product packaging: if I buy a shovel at Kmart, I write my check to Kmart.

What happens at CB just isn't the same thing. Customers rarely know anything about CB until they click an "add to cart" button or sometimes not until they get a credit card statement. When customers buy a CB product, they generally assume they are buying from the affiliate, no?

Call it what you want, but for practical purposes, CB is still a payment processor in my mind.
#clickbank #payment #processor #retailer
  • Profile picture of the author Anonymous Affiliate
    Technically, they're a reseller.

    In practical terms, they're an affiliate network + payment processor.
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    • Profile picture of the author Alexa Smith
      Banned
      In law, they're a retailer.

      Which is why they explain so openly that they are.

      The contract of sale is formed between the retail customer and ClickBank itself, not (as when products are sold using a payment-processor like PayPal or whatever) between the customer and the product's "vendor". In law, regarding the contract and the parties' respective rights arising under it, ClickBank is actually the vendor (which explains quite a lot of their terms of service and why they're rather different from others).

      In practical terms, as AA says, they're an affiliate network + payment processor with unusual terms of service (which arise because they're actually a retailer!).
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  • Profile picture of the author JoeMack
    Does it really matter whether they are considered a retailer or payment processor?

    I mean, Alexa Smith pretty much gave you the answer you wanted. Were you just curious for curiosity's sake, or were you concerned about it for some other reason.

    JoeMack
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    • Profile picture of the author keyon
      Originally Posted by JoeMack View Post

      Does it really matter whether they are considered a retailer or payment processor? Were you just curious for curiosity's sake, or were you concerned about it for some other reason.
      Not a big deal, really. I just see a lot of threads where OPs (including myself) get corrected about the technical definition of CB's business function. Although I think it's good for affiliates to understand how the CB business works (as I mentioned, some people are definitely confused about this topic!), I think some replies/arguments get a little nit-picky with the terminology, which as you said, probably doesn't really matter.

      In an earlier post I made about ClickBank, the definition did happen to be pertinent to my argument, but that's another topic I'll let drop for now
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      • Profile picture of the author Alexa Smith
        Banned
        Originally Posted by keyon View Post

        as I mentioned, some people are definitely confused about this topic!
        Agreed.

        Originally Posted by keyon View Post

        I think some replies/arguments get a little nit-picky with the terminology
        They do, and I'm at least as guilty of that as anyone else, and sometimes slightly more so. It does perhaps reduce the chances that people get/stay confused about various topics, though, so I don't apologize too much for it - only a little bit.

        http://www.warriorforum.com/main-int...ml#post8036432
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        • Profile picture of the author keyon
          Originally Posted by Alexa Smith View Post

          It does perhaps reduce the chances that people get/stay confused about various topics, though, so I don't apologize too much for it - only a little bit.
          Alexa, I'm glad you've been willing to help clarify the issue in other posts. Without your comments I would have never dug into the details of how CB really works. I really appreciate that!
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  • Profile picture of the author John Romaine
    They're a bank, man.
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    BS free SEO services, training and advice - SEO Point

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  • Profile picture of the author Not So New
    I would say payment process first ...

    But we have to agree they are geniuses : )

    Shawn
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