About A Negative ClickBank Refund Rate

In this post I’ll explain you why for some products you will see a negative ClickBank refund rate.

The definition of the ClickBank refund rate

A ClickBank refund rate means how many customers out of 100 ask for a refund.

For example, if a ClickBank refund rate is 3%, it means that 3 out of 100 customers ask for a refund.

The ClickBank refund rate formula

As defined in the ClickBank Help Center, ClickBank subtracts 7.5% + $1 from every sale. That’s why, the formula used by ClickBank refund rate calculators is:

EST = (Price * 0.925 – $1) * (PPS / 100%)
Where:
EST is the estimated affiliate revenue
Price is the product's price
PPS is the vendor's %/sale

RR = (1 – EPS/EST) * 100
Where:
RR is the ClickBank refund rate of this product
EPS is the actual $/sale from the ClickBank Marketplace stats

Where can you find calculated refund rates of ClickBank products?

In CBGraph you can open any vendor’s stats and get the "Items + Refunds" report.
There will be estimated affiliate revenues and refund rates for all products of the vendor.

But some vendors have a negative refund rates in this report…

What does a negative ClickBank refund rate mean?

Fact is that every vendor may have up to 500 different items, such as different products, discounts, combinations of product, etc.

But for every vendor ClickBank provides only the average $/sale received by affiliates who sold any item of the vendor.

So, it’s just impossible to calculate refund rates of products of a vendor who sells a lot of products or actively gives discounts! If you see negative or huge refund rates, just ignore them.

However, a lot of vendors sell only one product and don’t give discounts. Although they have created many items, they use only one. In such case, there will be a correct refund rate near to the main item.

Try to avoid selling products with refund rate more than 3%. Usually such products have a low quality and don’t provide any value to people.

Category: ClickBank

Tagged as: CBGraph, ClickBank Guide

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