As a new vendor- How do I make sure I'm not harmed by refund scams?

by mistae
8 replies
Basically, as a vendor new to the affiliate game, I'm trying to make sure I avoid any pitfalls. I'm a member of JV Zoo, and have been contacted by some interested affiliates from outside North America. JV Zoo recommends you only accept using unfamiliar affiliates with delayed payments. The scam here, of course, is that they'd buy the product, get the commission, then return the product at the vendor's loss. My concern is whether this can happen even with delayed payments. I know ClickBank is notorious for granting refunds to anyone who asks, but I'm not sure how JV Zoo handles them and how that corresponds with the delayed payments for affiliates. Can anyone help clarify this so I better understand?

Are there any other things I should look out for when taking on a new affiliate?

Thank you!
#harmed #make #refund #scams #vendor
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  • Profile picture of the author Brent Stangel
    You can set conditions for new affiliates:


    State that you do not pay commissions on self-referrals. If you have an affiliate information/tools page make sure you state it there too.

    Brent
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  • Profile picture of the author writeaway
    You might want to also look up their company name or paypal email address to see if people have complained about them in the past.

    Where there's smoke there's fire
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  • Profile picture of the author Elizabethlim
    Hi , I've a case to share with u. I'm selling a product in JVZoo, a customer asked for refund base on the reason that he did not buy the product. Payment done through PayPal, and I've given the necessary supporting proofs, however, they took the liberty to refund. Stating no protection for digital products! So do I have a choice! Saw that PayPal does offer protection to sellers, you may want to check this out to cover any refund..
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  • Profile picture of the author EPoltrack77
    Yes make sure you set the affiliates to delayed payment. Maybe unless they have say 500 sales under their belt. I would focus on getting good affiliates and don't worry about the negative so much. Its just how people are and you can have the best product and some might just ask for a refund but in your product is of value it will be very low or none at all.

    Also network with other vendors in your niche and you can add their product say on your download page and they can do the same for more good buyer traffic.
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  • Profile picture of the author posinfo1
    I think that you are wise to consider how to avoid begin scammed by affiliates. I agree that you should put affiliates who do not have a track record on JVZoo on delayed payment.

    On a positive note, I hope that you do really well with sales
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  • Profile picture of the author Kurt
    In some ways you're in a Catch-22 situation. You need to protect yourself while you also need to recruit affiliates to sell for you and most good affiliates will want to have instant payments. It works both ways, as a number of vendors don't seem to pay their affiliates and affiliates that have instant payments are much more likely to promote for you.

    In addition to total sales, look at the country they're from. Affiliates from the US, Canada, UK, Australia are generally safer than from some other countries.

    Check out how long they've had a JVZoo account. Over a year? Less than a year?

    Pay attention to their refund rate. I'm suspicious of any affiliate with a refund rate of over 10%. A high refund rate doesn't always mean they're committing fraud, only that their marketing methods may not be the best and they may be doing things like spamming and a high refund rate will hurt you when trying to recruit affiliates.

    The reality is the 80/20 rule is in full effect. A couple of good affiliates will make almost all of your sales. I know it's not fair for those starting out in affiliate marketing, but applicants with no or few sales rarely make any sales for you, while also being the biggest risk for you. So don't feel you have to approve all affiliates that apply, even if you put them on delayed they can still be a risk.
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    • Profile picture of the author discrat
      Originally Posted by Kurt View Post




      The reality is the 80/20 rule is in full effect. A couple of good affiliates will make almost all of your sales. I know it's not fair for those starting out in affiliate marketing, but applicants with no or few sales rarely make any sales for you, while also being the biggest risk for you. So don't feel you have to approve all affiliates that apply, even if you put them on delayed they can still be a risk.
      Yep, funny how that figure has been consistent for many years now for us IMers
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  • Profile picture of the author newxxx
    if you put a "No Refund" policy on your site, plainly below the product purcahse tab, can you protect yourself that way saying thata you not give product refunds, and if they feel uncomfortable about that, then they should not buy the product or participate with your program ???


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