Understanding Negative Balances and Clawbacks

Quick Answer

Clawbacks occur when a referral refunds their purchase within 60 days after you've already received commission. The refunded commission is deducted from your next payout, potentially creating a negative balance that must be offset before future payments. After 60 days, commissions are permanent and cannot be clawed back.

Overview

Heritage Web's clawback policy protects the platform while giving affiliates certainty about their earnings. Understanding the 60-day window and how negative balances work helps you manage cash flow and set appropriate expectations for your affiliate income.

How Clawbacks Work

The 60-Day Window

Days 1-30: Pending Status

Commission calculated but not yet payable
Refunds simply remove pending commission
No negative impact on your balance
Wait for commission to mature

Days 31-60: Clawback Period

Commission becomes payable after 30 days
If already paid out, refunds create clawbacks
Deducted from your next earnings
Can create negative balance

Day 61+: Commission is Permanent

No clawbacks after 60 days
You keep commission even if refunded
Heritage Web absorbs the loss
Your earnings are secure

Clawback Calculations

Full Refund Example:

Referral purchases $1,000 in leads
You earn $300 commission (30%)
Refund requested on day 45
Full $300 deducted from next payout

Partial Refund Example:

Referral pays $240 annual sponsor
You receive $72 commission
They downgrade to monthly after 2 months
Clawback: ~$60 (prorated amount)

Multiple Refunds Scenario:

Current balance: $500
Clawbacks this month: $700
Resulting balance: -$200
Must earn $200 before next payout eligible

Managing Negative Balances

Step 1: Understanding Your Balance

Log into Affiliate Portal
Check "Earnings" section
View "Current Balance" (may be negative)
Review "Pending Clawbacks" section
See detailed transaction history

Step 2: Offsetting Negative Balances

Continue promoting to generate new commissions
New earnings automatically offset negative balance
Cannot request payout until balance is positive
No time limit to restore positive balance

Step 3: Preventing Large Clawbacks

Monitor refund patterns in first 60 days
Avoid promoting to high-risk audiences
Focus on quality referrals over quantity
Build relationships with enterprise clients (lower refund risk)

Common Clawback Scenarios

Scenario 1: Buyer's Remorse

Situation: New user upgrades everything, then cancels

Day 1: Signs up, becomes sponsor, buys leads
Day 15: Requests full refund
Impact: Pending commission removed, no payout affected

Scenario 2: Payment Failure Reversal

Situation: Credit card payment fails after commission paid

Day 31: Commission paid to you
Day 45: Client's payment bounces
Impact: Commission clawed back from next payout

Scenario 3: Enterprise Partial Refund

Situation: Large firm reduces subscription

Month 1: 25 sponsors = $450/month commission
Month 3: Downgrade to 10 sponsors
Impact: Partial clawback of difference

Important Notes

No Debt Collection: Negative balances don't create debt. You're never required to pay Heritage Web. The negative simply offsets against future earnings.

Commission Expiration Still Applies: Even with a negative balance, unclaimed positive commissions expire after 365 days. Request payouts promptly when eligible.

Enterprise Referrals: Large deals have lower refund rates but bigger potential clawbacks. Always email [email protected] before referring enterprise clients to ensure proper tracking.

FAQs

Q: Can I dispute a clawback? A: Contact [email protected] with documentation. Clawbacks are only reversed if there was a system error or if the refund was reversed.

Q: What's the largest negative balance allowed? A: There's no limit to negative balances. However, extremely large negative balances may trigger account review for potential fraud.

Q: Do clawbacks affect my 2-referral minimum for payout eligibility? A: No, once you've achieved 2 successful referrals (lifetime), you remain payout-eligible regardless of refunds.

Q: How can I see which referrals triggered clawbacks? A: Your Affiliate Portal shows detailed transaction history including refunds, partial refunds, and associated clawbacks with dates and amounts.