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Clickbank| Article #321 : THE COMPLETE CLICKBANK GUIDE – PART 7

In this installment of our series on Clickbank, we’ll conclude with Clickbank’s policies. It seemed like we’d never get here, but we made it and we’re almost done.

Dormant Accounts

Accounts with a positive balance but no earnings for an extended period of time are considered dormant. Dormant accounts are subject to a $1 charge per pay period after 90 days of inactivity. A $10 per pay period charge applies after 365 days.

I hope that is clear enough. In other words, if after 90 days you make no sales, you get charged $1 for every pay period. If this goes on for more than a year, you get charged $10 for every pay period. This can really add up after a while. So either keep selling or close up your account.

Taxpayer ID Number Requirement for US Based affiliates Earning Over $600

ClickBank highly encourages US based affiliates earning over $600 a year to obtain an IRS issued Employer Identification Number (EIN) to input into your account as a taxpayer ID number. If you do not have one already, you may get yours at the IRS web site. Note that this is a free process. The IRS will either provide your number online, or mail it to you. Once you have obtained your EIN please be sure to key it in to all of your ClickBank accounts, in this 9-digit format: 12-3456789. This helps to simplify the year-end 1099 reporting requirement. In any event, US based affiliate accounts earning over $600 are required to have a taxpayer ID number of some kind linked to their account, at a minimum a social security number. If inputting a social security number, be sure to use the proper 9-digit format including dashes: 123-45-6789.

Note: The taxpayer ID number input to your account must match the payee name on the account. If you are utilizing a business payee name but reporting under an individual social security number, you will need to fax a completed IRS W-9 form to us at 208-342-3934. Be sure to include a cover sheet that indicates your account nickname.

Second note: If you are utilizing a US address but are a beneficial resident of a foreign country, you will instead need to fax a completed IRS W-8ben form to us at 208-342-3934. Be sure to include a cover sheet that indicates your account nickname.

This is a lot of legal mumbo jumbo for what simply comes down to this. If you live in the United States and make over $600 a year through Clickbank, you have to report your income to the IRS, which means you have to get either an SS# or a EIN. If you don’t live in this country, you’re very lucky. Enjoy your earnings on the house.

Customer Distribution Requirement

ClickBank accounts cannot be used for the sole purpose of collecting rebates or otherwise extending credit to yourself or others. In compliance with US law, ClickBank will withhold payment of any account balance until it contains standing sales made with 5 or more different credit card numbers, including at least one Visa card, and one MasterCard. PayPal and eCheck purchases do not count toward the minimum.

In other words, you can’t beef up your sales stats by purchasing with your own credit cards. You need to have real people buying your products. Just a word of warning.

And there you have it. In our next volume, we’ll move into the actual sign up process with Clickbank and other things you’ll need to know as an affiliate and vendor.

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