Shocking Facts You Never Knew About ClickBank

by Gobala Krishnan

We written a lot about ClickBank on this blog, including our Clickbank review, introduction to ClickBank hoplinks and conversion tracking for ClickBank affiliates. Now we should probably tell about the scary stuff no one told you about ClickBank.

Unlike most affiliate networks, there’s a real good chance that you will never get paid from ClickBank unless you’re making regular commissions via their network. Here are three reasons why.

1. You Need To Make At Least 5 Sales

You will never get paid if you make one or two sales. In fact, you need to make at least 5 sales (best case scenario) to actually get paid the first time.

According to ClickBank:

ClickBank will withhold payment of any account balance until the following criteria is met:

  • Sales made with 5 or more different credit card numbers; and,
  • Sales made with two different payment methods (either Visa, MasterCard, PayPal or European Direct Debit(ELV)). Note: PayPal purchases do not count toward the minimum 5 different credit card numbers.

This requirement is in place to help prevent Affiliates from abusing the ClickBank Affiliate program by using their accounts for the sole purpose of fraudulently collecting rebates and/or discounts on their own purchases.

Once you have met the Customer Distribution Requirement, your account will begin issuing payments normally, in accordance with our Accounting Policy, beginning on the next payment issuing date.

What this means is that a single sales doesn’t matter. 100 affiliate sales don’t matter either if everyone paid via their VISA credit cards or PayPal. Make sure you understand this requirement, as it closely relates to the next shocking fact you never knew about ClickBank.

2. There’s a “Dormant” Fee Up to $100 a Month

Yes, if you do not make any new commissions, ClickBank will penalize you for it. Deductions start at $1 per “Pay Period” which is every two weeks in ClickBank.

According to ClickBank:

Accounts with a positive balance but no earnings for an extended period of time are considered dormant. Dormant accounts are subject to a charge of $1 per pay period after 90 days of no earnings, $5 per pay period after 180 days of no earnings, and $50 per pay period after 365 days of no earnings.

ClickBank income

The above example is from one of my joint venture ClickBank accounts. Unfortunately, after the initial sales for this product none of the partners (including me) bothered to do anything about the income. We thought we’ll just leave it there till be can get more JV partners to promote the product. That never happened however.

From several thousand dollars in the year 2007/08 you can see how this had depleted to $0 simply because this account was dormant and we had set the minimum payout to $5,000. Last year we had $50 deducted from our account every pay period, which is biweekly, resulting in a $100 deduction per month. Needless to say in a couple of months our earnings were completely wiped out.

I only realized this after checking that dormant account. We should have taken the money out sooner while there was still something to be paid out.

3. You May Never Get Paid

If you decide to promote Clickbank products, you need to keep it going till you get past the minimum 5 sales requirement, and set your minimum payout as low as possible, to actually start getting paid. If you decide to “take a break” from ClickBank you may return a year later to find that your earnings have disappeared.

There’s a real chance that you may never get paid from ClickBank despite all your hard work promoting their products as an affiliate. Be glad you read this!

{ 18 comments… read them below or add one }

crespo August 23, 2011 at 11:03 am

WOW, The screen shot shock me!

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Kevin August 23, 2011 at 4:38 pm

I can say that I’m not always the best at reading manuals or such, but how deep did you have to go to unearth this information. I was aware of 3 mailed checks before auto deposit but I have never seen this information.
Yet, I don’t ever see myself leaving $5,000 in any ClickBank account.

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Gobala Krishnan August 23, 2011 at 5:02 pm

Actually, it’s in ClickBank’s accounting policy: http://www.clickbank.com/accounting.html

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Michael Brown August 23, 2011 at 9:32 pm

Been there, done that, yes they will start sucking $2,$5 or more out of your account on a weekly basis. I finally prevailed upon them to release a $100 after they had depleted the account by $50, now I am going into the negative. On top of that I think I am losing commissions due to theft, My tracking says I am sending clicks their way, their tracking says it never happened. I wish Pay Dot Com represented more of the niches I am involved with.

Thanks for this post.
Michael Brown

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Eruwan Gerry August 24, 2011 at 3:10 am

Thanks for the reminder Gobala. Most of the time we don’t bother to go deep into any network’s policy. So your tip is a crucial reminder to us whenever we join any network in the future.

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recommends August 24, 2011 at 8:01 am

So good affiliate sell got it..

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Leah August 28, 2011 at 3:45 pm

What about the affiliate link? If people promote the product and people click, look, leave and then the guru sends a few mailings out and the person clicks their link and buys who gets the commission? The guru guy right?

So most people are out there greasing the wheels for the big list owners and advertisers. Find a couple of partners and only buy through each others links and call it a day! I want to start my OWN affiliate network – how hard can it be? Partners wanted. Anyone? Darn it!

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Gobala Krishnan August 28, 2011 at 3:56 pm

I think you’re referring to “last cookie referrer” – -that’s common in almost all type of affiliate programs. The last person to refer overwrites earlier affiliates cookies and he gets the commissions. Doesn’t really matter is he’s a “guru” or god or the devil. You too may have benefited from last cookie referral, you just don’t know about it.

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adam August 28, 2011 at 9:26 pm

Setting your minimum to 5000 is not very smart. you know better than to overlook something like that, or you should.
they deducted out of my dormant account too for a few months came to around 140.00, no biggy.
this stuff is like survival of the fittest in a very real sense.:)

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Bo September 30, 2011 at 3:38 am

So set your minimum payout to $10, duh…

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sheisshe December 14, 2011 at 6:27 pm

why in the hell should they even be allowed this crazy practice of “punishment”, I mean, they get to keep their cash longer in their “bank”. the people who actually makes them all that cash in the first place are put in a insano system where they first are having a hard time getting their salary, then it’s being depleted,haha crazy fools!!
but I guess it’s a “private bank”, just like your “federal reserves”, hahahaha!!!!

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Jupiter Jim March 2, 2012 at 9:09 pm

Gobala,

I was looking to review some affiliate programs for a client who wants to do this. Thanks for sharing this invaluable information!

I minimum of 5 sales is ridiculous!

Thanks again,

Jupiter Jim

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Marcy April 2, 2012 at 12:00 pm

Hi Gobala

I’ve heard some shockers in my time, but this certainly takes the biscuit.
It’s so common that we just tick the Terms & Conditions checkbox and hit the [Sign Me Up] button, without actually reading the policies and being aware of penalties. It’s like putting your signature to a contract you haven’t read – albeit digital.

The legalese is boring but I for one will try to take more time reading policies here on out.
If you don’t mind I’d like to send my site visitors to this post to make them more aware too.
(email me if that’s a problem)

Thanks for sharing,
Marcy

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nanette carlton July 15, 2012 at 12:11 pm

I am so disappointed and consider clickbank to be a scam. They swindled me out of my hard earnt money, by deducting monies from my account just because I did not reduce the threshold payment, which again, was due to my ignorance. For newbies, don’t please trust them, you would think that if you had credit in your account, they would be earning interest on it. In fact, they are scamming you by deducting money from your account if you take no action and are in credit. This is a nasty business and I hate them for it.

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Gerard July 25, 2012 at 12:28 am

Hi Gobala,

Thank you for sharing this invaluable information. As Marcy said, I never take the time to read all the terms and conditions. To be honest, I was not aware of these 5 sales minimum nor that there were some penalties for not making any subsequent commissions.

I guess we have to spread the word. If you don’t mind, can I point my readers to your page? This way they can read the information themselves.

Thank you again for sharing.

Best regards,

Gerard

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Jinson March 16, 2013 at 2:10 pm

I have more than 5 sales and I got paid. My question is there any requirements on rebilling as I have over 5 sales in rebill but no fresh sales. There is no more new sales this month but I have 9 sales from rebill would that affect my payment process ?

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Brett Nelson April 15, 2013 at 3:04 am

Interesting, didn’t realize there were penalties for this. They now have new penalties related to return and chargeback rates, which are even more difficult to track per unit than seeing the blanket (in your case $50) penalty.

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Clickbank are theives! April 16, 2013 at 1:58 pm

Clickbank are theives, nothing more, nothing less. I watched my balance slowly trickly from $59 to $0 over a few months. Nothing justifies stealing webmasters’ money. I will no doubt be removing their products from my site.

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