Published on March 1st, 2013 | by Pascal van den Essenburg
ClickBank Already Eliminated Their Risk Tier Fees
Shortly after they launched their new Risk Tier system, ClickBank has already pulled back some of the changes that were introduced recently. They also temporarily removed the Marketplace star ratings and with that they are also eliminating the attached fees assessed from the Risk Tier system.
They wrote in the newsletter: “Our first in-market tests went really well and provided us with some great feedback that showed we are on the right way in helping our affiliates to identify better quality products to promote,” said the ClickBank’s director of marketing Eric Boles.
The Marketplace Star Ratings disappears, for now.
The star rating where first displayed next to every product listings within the Clickbank Marketplace. The main goal was to indicate a vendor’s risk level. The rating ranged from 1 to 5 stars and was intended to sort of rank the refund and chargeback performance history of the vendor.
ClickBank does still have plans to resume the star ratings in the Marketplace after they improved it.
“We honestly think it can be even better and more useful with some further tweaks and refinements,” ClickBank Stated. “While we work on these tweaks and refinements, we have removed the star ratings completely – but they will be back in upcoming months.”
There was not a single comment on a specific date when the star rating system will be re-implemented again.
No more Risk Tier fees!
One significant change that never will be returning is the associated (and ridicules) fees that were charged to both affiliates and vendors based upon their product’s Risk Tier rating.
ClickBank implemented this risk tiers to help gauge account performance and risks by assigning color coded risk tiers depending on the total amount of refunds or chargebacks are associated with the account. The lowest available performance risk tier color rating of Red indicates too many refunds and chargebacks, while the best performance risk-tier with the color Violet indicates a low amount of refunds and chargebacks.
Using this Risk Tier system, ClickBank previously assessed fees based upon the user’s risk tier color-rating. As an example, an affiliate account with a low-level Red color meant the account was charged $3 dollars for every refund made by a customer and $5 dollars for every chargeback. While on the opposite end, a Violet rated account wasn’t charged for either a refund or chargeback. Also Vendors were charged additional markup fees.
The fees were very controversial among a lot of ClickBank users who objected to these additional fees placed on affiliates and high-risk vendor accounts.
“We have discovered that simply providing our clients with this insight has been so effective that we will no longer be planning to assess the revised fees, as we have achieved all of our quality objectives across the platform.” ClickBank said. “Our Risk Tiers will still be displayed and they are still very important, as we still will be using them to identify quality issues with vendors so we can make business decisions to move forward.”