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Refunds Crippling Our Business - Help!

by tanay2088
27 replies
First off - apologies if this is the wrong section.

We've recently launched a plugin that was in high demand (in our niche) and fulfilled a big need.

Since it accomplished basic functionality, and is still considered a "work in progress" - we are still selling the plugin, along with offering excellent tech support, as well as a dedicated Facebook user group.

We've offered an unconditional "30 days or your money back" policy for this plugin - and it is backfiring massively on us. We're bleeding money just because many people show up with unrealistic expectations about the plugin, or refuse to contact Tech Support and just need their money back.

Any expert warriors that can advise us about adding a few fair refund policy terms, to our purchase agreement? Something you may have used in the past, and helps us make our case against ignorant customers from buying the plugin expecting miracles and immediately asking for refunds?
#business #crippling #refunds
  • Profile picture of the author savidge4
    Originally Posted by tanay2088 View Post

    First off - apologies if this is the wrong section.

    We've recently launched a plugin that was in high demand (in our niche) and fulfilled a big need.

    Since it accomplished basic functionality, and is still considered a "work in progress" - we are still selling the plugin, along with offering excellent tech support, as well as a dedicated Facebook user group.

    We've offered an unconditional "30 days or your money back" policy for this plugin - and it is backfiring massively on us. We're bleeding money just because many people show up with unrealistic expectations about the plugin, or refuse to contact Tech Support and just need their money back.

    Any expert warriors that can advise us about adding a few fair refund policy terms, to our purchase agreement? Something you may have used in the past, and helps us make our case against ignorant customers from buying the plugin expecting miracles and immediately asking for refunds?

    First and for most 30 days no questions asked is not out of the ordinary.

    Instead of projecting apon your client base for being idiots.. may by you should look at how you are representing your product to determine the conflict that makes you think they are over expecting. Maybe you simply are under delivering?

    Just to throw it in there I have 4 plugins that I have released in the last year, and have had exactly 1 refund in over 4000 sales.

    Basically stop whining and make it right.
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  • Profile picture of the author Ron Killian
    I agree with savage, sure sounds like your over selling the product. You'll always have those people that don't read directions or don't contact support, but if the products delivers as promised, there should not be as many as your describing.

    I say the same, fix the plugin. Sure better than trying to get out of refunding unhappy customers. Sounds like it needs to be fixed anyways.

    Also seems strange that your selling something that only delivers basic functionality and is a work in progress.
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    • Profile picture of the author salegurus
      Originally Posted by tanay2088 View Post


      Since it accomplished basic functionality, and is still considered a "work in progress" - we are still selling the plugin, along with offering excellent tech support, as well as a dedicated Facebook user group.
      Maybe you should have finished it before launching?
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  • Profile picture of the author kilgore
    Originally Posted by tanay2088 View Post

    Since it accomplished basic functionality, and is still considered a "work in progress" - we are still selling the plugin, along with offering excellent tech support, as well as a dedicated Facebook user group.
    If it's still a "work in progress", maybe it's not ready for prime time. Usually in the software world, that would be considered "beta" software and you'd either not release it or release it for free. After all, it doesn't make sense to make your users pay to be free Q/A testers for you.

    Like the poster above said, if you're getting that many refunds the problem is likely with you -- not your users.
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  • Profile picture of the author WillR
    I've sold a lot of products to marketers over the years and I've found the best refund policy for softwares, plugins, etc is an 'It Works as Advertised" refund policy. This way people cannot simply change their mind. So long as your product does everything it says on the sales presentation (and it should) then people cannot get a refund. The only time they are entitled to a refund is if the product does not work as advertised which is totally fair enough.

    I've found this to be the fairest refund policy for both parties. After all, people who have read the sales page and bought the product really have no reason to be asking for their money back unless the product is not working as it should.
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    • Profile picture of the author professorrosado
      Originally Posted by WillR View Post

      I've sold a lot of products to marketers over the years and I've found the best refund policy for softwares, plugins, etc is an 'It Works as Advertised" refund policy. This way people cannot simply change their mind. So long as your product does everything it says on the sales presentation (and it should) then people cannot get a refund. The only time they are entitled to a refund is if the product does not work as advertised which is totally fair enough.

      I've found this to be the fairest refund policy for both parties. After all, people who have read the sales page and bought the product really have no reason to be asking for their money back unless the product is not working as it should.
      Great Advice - I would also add:
      If you need to raise working capital through preliminary sales, then offer the plugin as Will suggested, give a deep discount for immediate buyers with an extensive upgrade policy to full functionality as it is developed. Basically, offer the plugin with complete (life?) upgrades and bonuses - with NO REFUND policy. Describe what you envision the plugin to develop into. This should do you well all around.

      P.S. If you repackage your offer well enough, you could email your refund list with an updated "try us again" offer to see how many you can woo back to you. If done first, this may indicate to you how good your new offer is.
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  • Profile picture of the author rodelu
    You have to set the expectations right and not over sell it. Sounds like people are not getting what they thought they would get. Could you share your sales page?
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  • Profile picture of the author chrisuchi
    the truth is , if your plugin actually delivers there will be less refund
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  • Profile picture of the author Work1099
    Originally Posted by tanay2088 View Post

    First off - apologies if this is the wrong section.

    We've recently launched a plugin that was in high demand (in our niche) and fulfilled a big need.

    Since it accomplished basic functionality, and is still considered a "work in progress" - we are still selling the plugin, along with offering excellent tech support, as well as a dedicated Facebook user group.

    We've offered an unconditional "30 days or your money back" policy for this plugin - and it is backfiring massively on us. We're bleeding money just because many people show up with unrealistic expectations about the plugin, or refuse to contact Tech Support and just need their money back.

    Any expert warriors that can advise us about adding a few fair refund policy terms, to our purchase agreement? Something you may have used in the past, and helps us make our case against ignorant customers from buying the plugin expecting miracles and immediately asking for refunds?
    Unrealistic expectations likely stem from having set an unrealistic expectation in your sales materials. It's worth never letting your claim exceed what you can deliver. Doing so may raise sales, but also raises returns.

    You may also consider making the refund process require that they contact your tech support and request one (not using a one-button return). This allows you the opportunity to speak with them and find the problems they are facing.

    If it's a technical support issue, you'll have the opportunity to resolve it with them before offering a refund. Often times, clients will be glad to have this happen, because they can now use the software as they originally desired.

    If it's a product quality issue, that will also come out. Embrace it as an opportunity to improve your product so returns go down. Collect information from these people on what the problems are exactly and consider using that information to make improvements.
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  • Profile picture of the author sbucciarel
    Banned
    For software, templates, and plugins here's what I use

    NO REFUND. Period. Don't buy it unless you really want it.
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    • Profile picture of the author Jack Sarlo
      If they're asking for a refund it's not their problem but yours. Probably the product isn't as good as the prospect imagined after reading the sales copy, meaning it's not what the prospect wants, as simple as that.

      Just make it better, start getting feedback from them, ask them why they refund and use it to improve/fix the plugin.

      Or figure out in anything else the plugin is lacking.

      Know that you're the problem not them if you really want to fix it.

      Making no refund policy or changing anything for refund doesn't solve the problem (and can ruin your reputation and future sales quickly - especially if they start using social media to share their negative experience) - 15 day instead of 30 makes no difference - they still will refund. It sounds to me there's something really annoying in the plugin that is effecting every user.

      It's obvious.

      If you can you can also start a forum, get them to join and leave feedback about any bugs, problems and a section for requesting new features.

      Your goal is this: To acquire as much information as possible from the users of this plugin - to know it's pros/cons. You can also give it for free to some testers for feedback.
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  • Profile picture of the author tanay2088
    Thanks everyone. This thread has been educational, and frankly humbling. I appreciate everyone who took out the time to reply.
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    • Profile picture of the author Tyler Pratt
      Why not ask your customers why they are requesting a refund. Find out what is not working for them.

      Once you get the right feedback from your customers then you can go to work and make the changes.
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      • Profile picture of the author JohnMcCabe
        Originally Posted by kilgore View Post

        If it's still a "work in progress", maybe it's not ready for prime time. Usually in the software world, that would be considered "beta" software and you'd either not release it or release it for free. After all, it doesn't make sense to make your users pay to be free Q/A testers for you.
        Unless, of course, your name is "Microsoft"...
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        • Profile picture of the author Tim3
          Originally Posted by JohnMcCabe View Post

          Unless, of course, your name is "Microsoft"...
          Lol of the week

          ... only MS do it ass-backwards, they start off with a good product then wreck it with 'improvements'
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          • Profile picture of the author Tom B
            Banned
            Tanay, it sounds like your customers may be buying something that isn't living up to what they thought they were buying.

            I would do my best to contact those buyers that refunded to figure out exactly what is happening. Even if you have to give them the program for free.

            The feedback is worth more at this time because you're sitting blind right now.

            With that feedback you can either rework your sales process or build some more features to coincide with what your customers are actually wanting to buy.

            You have a good opportunity here to make your product a lot better. The good news is you're getting sales. Now you just need to bring up your product to your customer's expectations and your refunds should go down.
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            • Profile picture of the author marciayudkin
              My experience is that in a situation like the one you described, in most cases the description of the product is not clear.

              If you can find out what customers' expectations were, you can then rewrite the product description so that they have the correct expectations. You may have to be explicit about what the product won't do to get those refunds down.

              This assumes that there aren't serious technical problems in the product itself, of course!

              Good luck,
              Marcia Yudkin
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    • Profile picture of the author sbucciarel
      Banned
      Originally Posted by tanay2088 View Post

      Thanks everyone. This thread has been educational, and frankly humbling. I appreciate everyone who took out the time to reply.
      Just for clarification purposes, if your refunds are due to a plugin that is not functioning as described, I don't recommend a No Refund policy. I have one, but I rarely ever have a request for a refund. My policy effectively eliminates serial refunders and those who want to get something for free.
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  • Profile picture of the author Geeked Labs
    Originally Posted by tanay2088 View Post

    First off - apologies if this is the wrong section.

    We've recently launched a plugin that was in high demand (in our niche) and fulfilled a big need.

    Since it accomplished basic functionality, and is still considered a "work in progress" - we are still selling the plugin, along with offering excellent tech support, as well as a dedicated Facebook user group.

    We've offered an unconditional "30 days or your money back" policy for this plugin - and it is backfiring massively on us. We're bleeding money just because many people show up with unrealistic expectations about the plugin, or refuse to contact Tech Support and just need their money back.

    Any expert warriors that can advise us about adding a few fair refund policy terms, to our purchase agreement? Something you may have used in the past, and helps us make our case against ignorant customers from buying the plugin expecting miracles and immediately asking for refunds?
    Yes, I would make my product not suck. It does wonders for refunds.
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  • Profile picture of the author DubDubDubDot
    Originally Posted by tanay2088 View Post

    people show up with unrealistic expectations about the plugin
    Are you planting these unrealistic expectations through hyped up marketing?
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    • Profile picture of the author DaveSchwReno
      Why not ask your customers why they are requesting a refund. Find out what is not working for them.

      Once you get the right feedback from your customers then you can go to work and make the changes.
      I liked a whole bunch of the replies but this one absolutely takes the prize.
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      • Profile picture of the author timfleagle
        since your plug in obviously has glitches and is a work in progress do not ask for payment anymore switch to a donate button. most people will be purchasing you plug in are going to want something that works out of the box. Good way to beta test your product without pissing people off.
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  • Profile picture of the author tonyharte
    Definitely look to get some feedback from people requesting refunds you can quickly setup something in survey monkey or a similar tool and send the link in a message asking kindly for feedback so you can improve your product. Best of Luck!
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  • Profile picture of the author teepee
    I disagree. It's SCAMS that are crippling our business.

    Do away with scams and you will eliminate refunds.
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    • Profile picture of the author Jack Sarlo
      Originally Posted by teepee View Post

      I disagree. It's SCAMS that are crippling our business.

      Do away with scams and you will eliminate refunds.
      you're an alien? what shit is that? xd
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    • Profile picture of the author sbucciarel
      Banned
      Originally Posted by teepee View Post

      I disagree. It's SCAMS that are crippling our business.

      Do away with scams and you will eliminate refunds.
      There are just as many buyer scammers as there are seller scammers. There are buyers who share your product on BH sites, there are serial refunders who just buy stuff and then request a refund, usually fairly quickly, so they can get products for free.
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      • Profile picture of the author JohnMcCabe
        Originally Posted by teepee View Post

        I disagree. It's SCAMS that are crippling our business.

        Do away with scams and you will eliminate refunds.
        Originally Posted by sbucciarel View Post

        There are just as many buyer scammers as there are seller scammers. There are buyers who share your product on BH sites, there are serial refunders who just buy stuff and then request a refund, usually fairly quickly, so they can get products for free.
        Whether buyer or seller, do away with the scams and refunds virtually disappear, right?
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