Chargebacks
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Current model with CPA networks is as such: The advertiser defines an action that they want paid for, and at the end of the month is able to charge back transactions that canceled immediately or refunded their purchases. The CPA network usually builds this into their model and absorbs the cost of the chargeback, without charging back affiliates. With google’s model, they will automatically charge advertisers if an action occurs. As many of us already know, its very difficult to get a refund from Google, and chargebacks are generally very frowned upon in the industry. Will google deduct commissions made from publishers when tranasctions that advertisers generated get refunded? CJ has added an average “chargeback percentage” for each merchant, so that affiliates can pick and choose different advertisers to work with, whom they believe to be trusted.
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This was how Shoemoney explained how chargebacks can corrupt a CPA network..Read more here...
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