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Clickbank Refund Rate Calculator
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The Clickbank Refund Rate Calculator allows you to estimate the refund rate of any product being sold on Clickbank, thereby saving you from buying something which could be a waste of money.
For those who don't know, Clickbank is a third party market place where sellers of digital (downloadable) products can advertise their wares to affiliates (resellers). The resellers can resell the sellers' products for a commission on sales.
Clickbank acts in the interest of the buyers by vetting products for fraud (but not quality), and guarantees refunds of 57 days. This means Clickbank will refund the buyer and get the money back from the seller.
For this Clickbank charges the vendor (not the buyer) an administrative fee of 7.5% plus $1 on all sales.
Additionally, to protect itself Clickbank monitors the number of refunds a product is getting, and adjusts the affiliate/seller payouts accordingly. The more refunds a product gets the more is deducted.
To alert affiliates to products which have high refund rates, Clickbank publishes the payouts per sale ($/sale) for each product, provided the product is not too new or is making at least some sales. Here is an example:
If we look at the actual affiliate earnings per sale (Total $/sale) and compare it to the earnings if there were no refunds (taking into account commission %/sale and Clickbank fees) we are able to calculate the product's refund rate.
Please note the refund rate is an estimate as it does not account for multiple products by the same vendor, will vary over time (as refunds fluctuate) and requires a reasonable number of sales to get a good statistical sample size.
Furthermore, it is difficult to gauge subscriptions as buyers may take months, if ever to cancel. This will skew the result. However if the $/sale is less than one month's subscription, then not many buyers are staying beyond the first couple of weeks.
However, in the absence of any other guides, the Clickbank Refund Rate is accurate enough for our purposes, and that is to avoid buying a product which gets a lot of refunds.
With the product price taken from the sales page (see sales page inside the clickbank marketplace) and using the affiliate information taken from there, we can now calculate the refund rate:
In this case the refund rate is 1.71%. Considered very low, so you shouldn't be disappointed with the product.
Use our Clickbank Refund Rate Calculator together with Clickbank Directory whenever you buy any products from Clickbank.
Simply follow the instructions in the calculator box on the Clickbank Directory search results page for the product you are checking out.
Make sure you don't get ripped off!
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