Do you get refund requests for your 'money-back guarantee' offer?

7 years ago

I don't offer this kind of refunds for my products because I have found people by the products, see how much work that they have to do then, ask for a refund after they have all the information.

Instead...I only give refunds to people who actually tried to use my products and were unsuccessful.

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planbmeds

7 years ago

Originally Posted by webmarke

I don't offer this kind of refunds for my products because I have found people by the products, see how much work that they have to do then, ask for a refund after they have all the information.

Instead...I only give refunds to people who actually tried to use my products and were unsuccessful.

And how will you determine that?

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ForumGuru

Banned 7 years ago

Last launch - Zero refunds

14 years of selling online to the general public - only a couple of refunds, if that.

I have found if you deliver what was advertised refunds are not an issue.

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Junaid khawaja

7 years ago

Originally Posted by ForumGuru

Last launch - Zero refunds

14 years of selling online to the general public - only a couple of refunds, if that.

I have found if you deliver what was advertised refunds are not an issue.

Hi, thanks for sharing your valuable experience. So the bottom line is to deliver what you have promised in your marketing, and refunds will not be an issue. Great! But you said you do made some refunds. I would like to know what was your criteria before you finally decided on making a refund? Was it something like "No questions asked" refund? Thanks. Cheers! Junaid

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ForumGuru

Banned 7 years ago

Originally Posted by Junaid khawaja

Hi, thanks for sharing your valuable experience. So the bottom line is to deliver what you have promised in your marketing, and refunds will not be an issue. Great! But you said you do made some refunds. I would like to know what was your criteria before you finally decided on making a refund? Was it something like "No questions asked" refund? Thanks. Cheers! Junaid

The one and only unsatisfied customer full refund that I can remember making was on a print that a customer was not satisfied with. If I remember correctly, it was some sort of misunderstanding so I refunded the customer and let them keep the print no questions asked. I lost a few bucks but I hope the customer felt better in the end. I don't think I had any kind of formal refund policy posted other than something in my FAQ about satisfaction is guaranteed.

I have made a few partial refunds, and an occasional other refund due to not having a high enough resolution image on file for a client's end use. If that happens then I simply refund or replace whatever original was not suitable, and the rest of the ticket remains the same. Sometimes a customer will make an order for a high resolution image without a reasonable expectation of how large a specific image can be printed without substantial degradation. Or they just don't have a clue and/or failed to read the FAQ. When this happens (and it is rare) I give the client a refund.

My business is a bit different than most others on here because I basically only sell my own images and graphics, image and graphics packs, prints, and advertising.

If someone is not happy with what I sell them I do not have problem refunding their money.

As far as my first launch on here went, I offered a public 14 day money back guarantee only to folks that could not access the product. I decided to use that policy here because of nature of the product, the massive value I offer Warriors, the extremely detailed sales page and license displayed, and the substantial bandwidth that is used when downloading the 5GB image package.

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Steve B

7 years ago

Originally Posted by Junaid khawaja

What if the requester, fails to implement the solution you were offering and now blames on you - asking for a refund?

First of all, I do believe it is important to offer a money back refund when you can (it may not be appropriate for every type of product). But I don't do it for the reason you stated - to be seen as an authority.

I think the most important reason to offer the refund is to reduce the risk felt by your prospect contemplating a purchase. Guarantees help consumers to feel like they have "an out" or a way to reclaim their money if the product is lousy or if they don't like it for some reason. Most vendors that have tested offers with guarantees vs. without guarantees will tell you that a guarantee helps to increase sales.

Many vendors will "qualify" their guarantees to include language suggesting that the buyer must show proof that he actually followed the system laid out in the product if he wants his money back.

Personally, I find such language pretty confusing to most buyers - and the vendor should avoid buyer confusion whenever possible. How do you prove that you have followed the advice given in the product?

I think it's better to have the mindset that a certain percentage of refunds will be asked for no matter what the vendor does. Factor that percentage into your overall pricing scheme and then don't worry about giving a full refund when the exception happens. I would keep track of any who ask for a refund and if it happens twice I would show the customer the door.

Just my thoughts,

Steve

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Junaid khawaja

7 years ago

Originally Posted by Steve B

First of all, I do believe it is important to offer a money back refund when you can (it may not be appropriate for every type of product). But I don't do it for the reason you stated - to be seen as an authority.

I think the most important reason to offer the refund is to reduce the risk felt by your prospect contemplating a purchase. Guarantees help consumers to feel like they have "an out" or a way to reclaim their money if the product is lousy or if they don't like it for some reason. Most vendors that have tested offers with guarantees vs. without guarantees will tell you that a guarantee helps to increase sales.

Many vendors will "qualify" their guarantees to include language suggesting that the buyer must show proof that he actually followed the system laid out in the product if he wants his money back.

Personally, I find such language pretty confusing to most buyers - and the vendor should avoid buyer confusion whenever possible. How do you prove that you have followed the advice given in the product?

I think it's better to have the mindset that a certain percentage of refunds will be asked for no matter what the vendor does. Factor that percentage into your overall pricing scheme and then don't worry about giving a full refund when the exception happens. I would keep track of any who ask for a refund and if it happens twice I would show the customer the door.

Just my thoughts,

Steve

Hi steve, excellent response as always.

I liked the idea of keeping a percentage in your pricing for an estimated number of refunds.

I was recently looking at a vendor who was offering a course on freelancing. He used the word "Insurance" and was offering confusing guarantees like "If you show me how you followed my solution inch by inch and it still didn't work; I will give you a complete refund."

In other words, you can never get a refund (because you can never prove). This trick works well, yet it confuses those who knows marketing tactics and language.

Thanks for your great input!
-J

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chyanitseospecialist

7 years ago

Originally Posted by Junaid khawaja

Hello Warriors, I understand that giving money back guarantees are now a must-have for most of the products. Especially, information courses and programs. It really presents you as an authority and shows your confidence in your product. I liked how Bushra Azhar gave a real strong guarantee on one of her course:

"If you aren't 100% satisfied, and I mean even 1% unhappy, I want you to immediately return it. I mean it, I don't want your money. I value our relationship and my reputation more than a few hundred bucks. So please, try the product for 30 days (even though you will get everything in 5 days, I am giving you 25 more days to be completely sure and be utterly satisfied) I won't take anything less!
So go ahead, buy now - you have plenty of time to go through everything and decide if this is a right fit for you. But you'll never know unless you take a chance and invest in yourself.."

Well, I know some of the warriors here have done numerous successful launches in past. And this makes me really curious to know: Do you offer money-back guarantees on your courses? If yes, how many refund requests do you receive? And how do you deal with them? What if the requester, fails to implement the solution you were offering and now blames on you - asking for a refund?

]

This is a common practise and most of the time its the requestor who do not take any action once he realize that there is work involved .His hunt for shiny object continues having said that if someone asks for a refund then you have to gladly offer it if it is with in the stipulated time or else your reputation may take some pounding .Yep sometimes it gets a bit frustrating but then you have to deal with that

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sumit@247easysupport

7 years ago

Originally Posted by Junaid khawaja

Hello Warriors, I understand that giving money back guarantees are now a must-have for most of the products. Especially, information courses and programs. It really presents you as an authority and shows your confidence in your product. I liked how Bushra Azhar gave a real strong guarantee on one of her course:

"If you aren't 100% satisfied, and I mean even 1% unhappy, I want you to immediately return it. I mean it, I don't want your money. I value our relationship and my reputation more than a few hundred bucks. So please, try the product for 30 days (even though you will get everything in 5 days, I am giving you 25 more days to be completely sure and be utterly satisfied) I won't take anything less!
So go ahead, buy now - you have plenty of time to go through everything and decide if this is a right fit for you. But you'll never know unless you take a chance and invest in yourself.."

Well, I know some of the warriors here have done numerous successful launches in past. And this makes me really curious to know: Do you offer money-back guarantees on your courses? If yes, how many refund requests do you receive? And how do you deal with them? What if the requester, fails to implement the solution you were offering and now blames on you - asking for a refund?

I believe, it depends on the nature of the business. Customer satisfaction money back guarantee gives confident to your prospective customers and they feel that they can claim refund if for any reason they are not get expected result. It will help to increase sales. Your refund offer should be simple instead of confusing and tricky.

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EPoltrack77

7 years ago

You want it as low as possible. Under 5%! If the refund rate is high it can not only be your product but you could be saying something different on your sales page than what you are delivering. Optimize and try to get the number lower. Nice thing about online is its all a numbers game.

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Junaid khawaja

7 years ago

Originally Posted by EPoltrack77

You want it as low as possible. Under 5%! If the refund rate is high it can not only be your product but you could be saying something different on your sales page than what you are delivering. Optimize and try to get the number lower. Nice thing about online is its all a numbers game.

Hi, I agree. Higher refund request means you are not delivering what you promised. As steve mentioned, we should adjust our price keeping in mind a fixed percentage of expected refund requests. This can save you from a nightmare!

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eric w

7 years ago

When you deliver on what you promise, then most people will not ask for a refund. I use them and I prefer the action refund for higher ticket items...meaning, you must show that you made effort and didn't reach a minimum goal, then I'll refund the customer.

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Regional Warrior

7 years ago

Don't offer a refund and never have to the outside world , make sure they know they buy they own

Only once a person tried it on but I emailed did you click the box before you purchased?
Yes
No refund box
yes
Bye no refund for you

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Junaid khawaja

7 years ago

Originally Posted by Regional Warrior

Don't offer a refund and never have to the outside world , make sure they know they buy they own

Only once a person tried it on but I emailed did you click the box before you purchased?
Yes
No refund box
yes
Bye no refund for you

Hi, that's interesting. But again, offering a guarantee varies from product to product. Maybe yours fall in the category of "Hell No!" guarantees! Thanks for sharing your opinion! Junaid.

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lhlouiscom

7 years ago

If people love your product then the refund rate wouldn't matter at all, but unless it's a restaurant or some physical stuff, then the store will not need a money-back-guarantee.... but online, everything money back.

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aizaku

7 years ago

As Steve mentioned..

its not appropriate for every type of product, it could also be a nightmare....

I sell downloadable prints and the price point is very low. I tested with and without; and my conversion rate didn't change

another example from hell....

back in the day, i use to sell diaper cakes from a dropshipper.

Now, should you offer a guarantee in this example, YES.

do you want to offer a guarantee, HELL NO. You effectively become the "messenger" when things go wrong, and yes, they do kill the messenger.

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minmin91

7 years ago

If the product is good you will get very low to zero refund

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yukon

Banned 7 years ago

Originally Posted by Junaid khawaja

Hello Warriors, I understand that giving money back guarantees are now a must-have for most of the products. Especially, information courses and programs.

That's insane.

The only people that advertise money back guarantees for downloadable content know their product sucks and intentionally sabotage their own business just to appease some lame sales copy idea.

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Sid Hale

7 years ago

No...

Originally Posted by yukon

That's insane.

The only people that advertise money back guarantees for downloadable content know their product sucks and intentionally sabotage their own business just to appease some lame sales copy idea.

^^^ That's insane. ^^^

If you're only selling low-end downloadable products, a guarantee may not be necessary. Offering a money back guarantee may have NO appreciable impact on the number of sales. Your "buyer" may be willing to risk $7 on an ebook, regardless of whether a guarantee is offered - but do you know that for a fact? (I'm guessing that you don't.)

On the other hand...
I can guarantee you that a money back guarantee offered on a $300 licensed software product will definitely increase your sales volume.

Regardless...
a refund costs you nothing out of pocket. Think about it. You will never get a refund request for a sale that didn't happen.

Offering a guarantee doesn't appreciably increase your refund rate, but even if 50% of the buyers who would not have bought without the guarantee subsequently ask for a refund... you still get to retain the other 50% of those customers.

Money you would NOT have received in the first place without the guarantee.

A guarantee doesn't appreciably increase your refund rate (I'm repeating myself), but it can certainly have a significant impact on the number of sales.

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PPG19 6 years ago

Originally Posted by Sid Hale

No...

Regardless...
a refund costs you nothing out of pocket. Think about it. You will never get a refund request for a sale that didn't happen.

So you are getting your customers for free ?! Have you ever heard of customer acquisition cost?
It could be cents, could be hundreds or even thousands of $
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- discrat 6 years ago
  
  Originally Posted by PPG19
  
  So you are getting your customers for free ?! Have you ever heard of customer acquisition cost?
  It could be cents, could be hundreds or even thousands of $
  
  Yes you could look at it like that. Of course getting a few serial Refunders on your List can be a long term headache
  
  - Robert Andrew
  
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  Nothing to see here including a Sig so just move on :)
  
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  PPG19 6 years ago
  
  Originally Posted by discrat
  
  Yes you could look at it like that. Of course getting a few serial Refunders on your List can be a long term headache
  
  - Robert Andrew
  
  That's the only way to look at it. Otherwise you could loose money even when making sales without even knowing.. That would be bad
  
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  Sid Hale 6 years ago
  
  Hi Robert...
  
  Originally Posted by discrat
  
  Of course getting a few serial Refunders on your List can be a long term headache
  
  You don't remove those from your list????
  
  Thanks
  
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Sid Hale

6 years ago

Originally Posted by PPG19

So you are getting your customers for free

?! Have you ever heard of customer acquisition cost?
It could be cents, could be hundreds or even thousands of $

Totally free? No, but there is no direct cost to me for any refunds (as explained in the paragraph immediately following the one you quoted)...

Originally Posted by Sid Hale

Offering a guarantee doesn't appreciably increase your refund rate, but even if 50% of the buyers who would not have bought without the guarantee subsequently ask for a refund... you still retain the other 50% of those customers.

Re-read that.
Those are sales you would NOT have received in the first place without the guarantee.

The only way that offering a guarantee will have a negative impact on your bottom line is if you experience a 99%+ refund rate. If that's your experience, the problem is either with your product... or your sales platform - NOT with the guarantee.

A guarantee doesn't appreciably increase your refund rate (I'm repeating myself), but it can certainly have a significant impact on the number of sales.

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Julie Hart

6 years ago

I paid $2997 for one to one coaching which I never received and asked for a refund under the providers 30 day guarantee, that was in August and am still waiting to receive this. Which is so very disappointing to me, as I discussed my circumstances with this guy and he knew this was inheritance money I was spending and how important the training was to mt familys and our future.

So what do you do when this happens?

I have emailed and he did email back the first time to say he would process my refund, but there has been nothing since and he ignores my emails and Skype calls.

Would appreciate your advice!

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PPG19

6 years ago

Originally Posted by Julie Hart

I paid $2997 for one to one coaching which I never received and asked for a refund under the providers 30 day guarantee, that was in August and am still waiting to receive this. Which is so very disappointing to me, as I discussed my circumstances with this guy and he knew this was inheritance money I was spending and how important the training was to mt familys and our future.

So what do you do when this happens?

I have emailed and he did email back the first time to say he would process my refund, but there has been nothing since and he ignores my emails and Skype calls.

Would appreciate your advice!

If he is ignoring emails and calls you should proceed legally. How did you pay?

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JohnVianny

6 years ago

The best is MEMBERSHIP.

Once you are not satisfied, you cancel the recurrent order.

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DABK

6 years ago

Examples:

Your marketing gets 1000 to land on your sales page. You don't have a guarantee. 100 visitors buy. Your product costs $20. You have 10 refunds, so you gross $20x100-200=19800.

Same marketing, same 1000 to land on your sales page. You have a guarantee. Your product is still $20. But you have 120 sales and 15 refunds.

120x20= 24000.
15x20=300
24000-300=23700.

If all the extra buyers refund, you are still no worse off (except for bandwith and, depending on how you do refunds, time spent refunding).

Seems to me, for some products, you're always ahead with a money-back guarantee, if you have a decent or better product. For others, you can't even begin to dream of giving a money-back guarantee.

So, the question should be: is your product the kind where a money-back guarantee makes sense? Downloadable products, it seems to me, fall in the group where it makes sense; building a house/getting a mortgage and such, fall outside...

$

Originally Posted by PPG19

So you are getting your customers for free

?! Have you ever heard of customer acquisition cost?
It could be cents, could be hundreds or even thousands of $

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brutecky

6 years ago

Originally Posted by Junaid khawaja

Do you offer money-back guarantees on your courses? If yes, how many refund requests do you receive? And how do you deal with them? What if the requester, fails to implement the solution you were offering and now blames on you - asking for a refund?

Yes I do. Depending on the product I offer 3 days, 14 days or 30 days.
3 days for training, 14 days for plugins, 30 days for SaaS

Around 6% of people refund, which incidentally is also around the normal 'return rate' for a physical store. 99% of the people wo request a refund fail to implement their purchase, and about 50% of those people blame you for their lack of results when they fail to take action. I give them a refund and blacklist them so they cant buy from me anymore, you cant help these people.

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Do you get refund requests for your 'money-back guarantee' offer?

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