What Happens When Referrals Cancel or Request Refunds?

Understand how refunds, cancellations, and subscription downgrades affect your affiliate commissions.

Quick Answer

When customers request refunds within 60 days of purchase, the corresponding commission is reversed from your balance. After 60 days, refunds don't affect your commissions—they're permanent. Subscription cancellations stop future commissions but don't reverse past earnings. Heritage Web's 7-day refund policy and 60-day clawback period protect both quality and fairness.

Refund Timeline & Impact

Within First 60 Days

Scenario 1: Commission Not Yet Paid

What Happens: Commission simply removed from pending balance
Your Balance: Reduced by refunded amount's commission
Example: Customer refunds $100 lead → $30 pending commission removed
Action Required: None—automatic adjustment

Scenario 2: Commission Already Paid

What Happens: Negative balance created
Your Balance: Deduction from future earnings
Example: Customer refunds $300 in leads → -$90 applied to next commissions
Recovery: Must earn enough to offset before next payout

After 60 Days

What Happens: No impact on your commissions
Your Earnings: Remain permanent
Heritage Web: Absorbs the refund cost
Why: Rewards long-term relationships and protects affiliates

Types of Refunds & Cancellations

Lead Purchase Refunds

Full Refund

Customer requests within 7-day window
Entire purchase amount refunded
Your 30% commission reversed
Example: $200 lead refunded = $60 commission reversal

Partial Refund

Sometimes granted for quality issues
Commission adjusted proportionally
Example: 50% refund = 50% commission reversal
You keep commission on retained portion

Subscription Cancellations

Monthly Sponsor Cancellation

Past Commissions: Keep all earned commissions
Future Commissions: Stop after cancellation
Example: Customer pays 3 months ($75) then cancels
- You keep: $22.50 (3 months × $7.50)
- You lose: Future monthly commissions

Annual Sponsor Refund

Within 60 Days: Full commission reversal ($72)
After 60 Days: You keep commission
Downgrade to Monthly: Treated as new subscription
Non-Renewal: No impact on earned commission

Enterprise & Custom Packages

Contract Cancellations

Often have specific terms
Refunds follow contract stipulations
Commission reversal based on refunded amount
Partial services may mean partial commission

Payment Disputes

Chargebacks treated like refunds
60-day rule still applies
Failed payments may delay commission

Grace Periods & Special Cases

7-Day Grace Period (Subscriptions)

When subscription payment fails:

Customer gets 7-day grace period
Services continue during grace
Commission pending until resolved
If recovered: Commission proceeds
If cancelled: No commission for that period

Pro-Rated Refunds

Some subscriptions may be pro-rated:

Commission adjusted to match
Only paid portion generates commission
Common with annual plans cancelled mid-year

How Reversals Work

Automatic Adjustments

The system handles reversals automatically:

Refund Processed: Customer service processes refund
Commission Calculated: 30% of refunded amount
Balance Updated: Within 5-10 minutes in your portal
Notification: Email alert about adjustment
Report Update: Shows as reversal in reports

Negative Balance Scenarios

If reversals exceed available balance:

Negative Balance Created: Shows as negative in portal
Future Earnings Applied: Next commissions offset negative
Payout Blocked: Cannot request payout until positive
Carries Forward: Negative balance doesn't expire

Minimizing Refund Impact

Quality Referrals

Target genuinely interested prospects
Set accurate expectations about services
Educate about Heritage Web's value
Focus on long-term clients over quick sales

Diversification

Refer multiple customers to spread risk
Balance one-time and recurring revenue
Focus on enterprise clients (lower refund rates)
Build buffer of available commissions

Monitor Patterns

Watch for unusual refund patterns
Track customer satisfaction signals
Adjust targeting if high refund rate
Communicate concerns to Heritage Web

Important Notes

60-Day Protection: After 60 days, your commissions are safe
Account Attribution: Refunds don't remove customer attribution
Future Purchases: Customer can still buy within 12-month window
No Penalty: High refund rates don't result in account termination

FAQs

What if a customer disputes after 90 days? Your commission is safe. Heritage Web handles disputes after 60 days without affecting your earnings.

Do free trial cancellations affect me? Heritage Web doesn't offer free trials. All purchases generate immediate commission subject to refund policy.

Can I see why customers refunded? Specific refund reasons aren't shared for privacy, but you can see refund transactions in reports.

What about customers who downgrade from sponsor to free? You keep earned commissions but lose future monthly earnings. It's treated as a cancellation, not a refund.

If a refunded customer buys again, do I earn commission? Yes, if still within their 12-month window and they make new purchases, you earn 30% commission.