ClickBank’s New Risk Management Tiers Promote Ethical Marketing

As most of you know, I’m all about ethics in my personal and business dealings.  So I was very happy to see that ClickBank is going to implement rated risk tiers on January 2, 2013.

ClickBank is a great way to get paid and now we Internet Marketers will have less risk of penalties when refunds and chargebacks occur.  Account termination will be implemented for those accounts that continue to receive low marks on refunds and chargebacks
ClickBank’s New Risk Management Tiers Promote Ethical Marketing
That means that those who practice ethical marketing will be rated high and our risk of fees, penalties and account terminations will be less – or non-existent – depending on how we handle them.

This is all done by algorithms that can predict refunds and chargeback rates for each account.  ClickBank can then take those predictions and rate an account accordingly.  These six rating tiers are color-coded and all are indications of an account’s risk performance from past history and network data.  Here’s how they work:

  • Violet – Low risk, exceptional performance and great customer service.
  • Blue – Low risk, good performance, good customer satisfaction.
  • Green – New account, good quality and customer satisfaction.
  • Yellow – A few risk issues that account holder should correct.
  • Orange – Major risk issues that must be addressed or account will be terminated.
  • Red – Risk is out of compliance with standards.  If not improved immediately, account will be terminated.

ClickBank’s New Risk Management Tiers Promote Ethical Marketing

Individual, affiliate and partnered joint venture accounts will be assessed and then assigned a tier rating.  There is a chart on the ClickBank website that states the method used to rate which tier your account(s) will be assigned.  ClickBank bases the risk on the highest of refund and chargeback rates.

ClickBank makes it easy to understand their methods.  Most of us love charts and graphs to bring a better understanding and that’s what you’ll see when you go to their site explaining the new rating system.  And you’ll see that it can be profitable too, because those who run ethical businesses are rewarded with low refund and chargeback rates.  Click Here to Tweet this Post.

This algorithm method is sophisticated, but easy to understand.  The rating system needs to be multi-tiered because of the vast differences in how marketers and vendors run their businesses.  Ratings are updated daily, so addressing client’s refunds and problems immediately is important.  Rapid turn-around time and interaction with your customers will likely reduce those dreaded refunds and chargebacks.
ClickBank’s New Risk Management Tiers Promote Ethical MarketingClickBank will also offer a way that you can find top quality performance products for you to promote on your site. Marketplace star ratings will range from1 to 5, with 5 being of highest quality.  New marketers or vendors will receive a 3-star rating, but can soon move up when performance is reviewed.
You’ll be notified of an account that’s receiving a low score or that’s near a low rating so that you can immediately take care of the situation.  If you currently see some issues with your account ratings, be sure and take care of them before the January 2nd launch date.

I welcome this new method of rating from ClickBank and am counting on the well thought out system to weed out some of the spammer Internet Marketers and Vendors alike.

If you haven’t already heard the news about this new rating system and would like to know more about how it works and how it will impact you, visit the ClickBank site.  And, as always – tell me what you think.

Take Care,
Carol Amato

  • James

    Hi Carol,

    Thanks for sharing such an informative post about this new clickbank update. I opened my clickbank account and saw this update. I don’t understand what it’s all about, but thanks to you, now I know.

    Keep posting :).


    • Carol Amato

      Hi James!

      You’re welcome, I sure enjoy sharing what I learn. That’s the beauty of following someone’s blog….you can ride their coat tails. :-)

      Have a good evening and thanks for stopping by.
      – Carol

  • Ileane

    HI Carol,
    As a ClickBank Affiliate I was surprised to see a rating for my account when I logged in. I’m glad you explained what the different levels represent because I had no idea.

    It’s interesting though, that refunds count against the affiliate score instead of the vendor. I had two refunds charged against my account because people weren’t happy with the product they purchased. Not sure why that affects my score but I guess it works both ways.

    Thanks for the info Carol!

    • Carol Amato

      Hi Ileane!

      I just recently found out about it myself, and at first, had mixed emotions due to the issues you mention. However, I think it’s a good thing overall, and we’ll just have to try to find marketers with very low refund rates to promote.

      You’re welcome, I enjoy sharing what I’m learning.

      Thanks for stopping by to share your thoughts. :)

      – Carol