15 {{ upvoteCount | shortNum }}
15 {{ upvoteCount | shortNum }}

30 day, 60day, 90 day or NO guarantee

by ikuret75
12 replies
I'm not up to speed to the treand about adding a guarantee.

In the past I was actually told that,

*There is only a little difference (if any) in conversion whether or not you have guarantee.

*"Guarantee for life (unlimited time)" has the best conversion if you add a guarantee,
and not so many customers actually use this gurantee. (customers forget about it)

*If your gurantee expires in a short time (like 30days), more people tend to ask refund

*All in all, refunds you pay cancel out the increase of the conversion

Basically I heard adding a gurantee is not worth it considering many things.
It was a long time ago. (4-5 years ago)

But, now I notice most products have "risk free guarantee" of 30-90days.
Is it the way to go these days?Any recent research about it?
Maybe bad economy changed the trend?

Thanks
#60day #day #guarantee
  • Profile picture of the author wjtyoung
    The answer is to test but in almost every situation a guarantee will increase response and the longer the guarantee period the higher the boost will be.
    {{ DiscussionBoard.errors[2011208].message }}
  • Profile picture of the author ikuret75
    Thanks wjtyoung!

    I hear that some customers who actually satisfied with the product still use the guarantee and get refund, and overall it does not make so much difference.
    How do you think about this opinion? And I wonder why the trend is more for 30-90days guarantee, not 180 days or things like that....

    Don't get me wrong, I am not going to sell crappy products with no guarantee, but just wondering how much difference it makes.
    {{ DiscussionBoard.errors[2011322].message }}
  • Profile picture of the author Loren Woirhaye
    A guarantee is one way to do risk reversal
    in your offer.

    Risk reversal won't often work to sell something your
    prospect doesn't aleady have real desire for, but if
    you are not a trusted seller, it can help get a skittish
    buyer off the fence.

    Try testing with and without it. Even if you don't offer
    a refund period, if you sell downloadables through Paypal
    you have no control because the buyer can open a
    dispute and get a refund. On digital products the
    buyer will always win PayPal's dispute process.

    Some marketers, notably Jim Straw, have found that
    not offering a guarantee hasn't substantially reduced
    sales. Many software programs don't come with
    a money-back guarantee if the seal is broken.

    Some marketers, notably Dan Kennedy, have found
    in their own businesses that offering a 365 day money
    back guarantee seldom results in refund requests and
    tends to bump response, especially on bigger-ticket
    sales.
    Signature
    {{ DiscussionBoard.errors[2011360].message }}
    • Profile picture of the author Ben Bergmann
      Originally Posted by Loren Woirhaye View Post

      A guarantee is one way to do risk reversal
      in your offer.

      Risk reversal won't often work to sell something your
      prospect doesn't aleady have real desire for, but if
      you are not a trusted seller, it can help get a skittish
      buyer off the fence.

      Try testing with and without it. Even if you don't offer
      a refund period, if you sell downloadables through Paypal
      you have no control because the buyer can open a
      dispute and get a refund. On digital products the
      buyer will always win PayPal's dispute process.

      Some marketers, notably Jim Straw, have found that
      not offering a guarantee hasn't substantially reduced
      sales. Many software programs don't come with
      a money-back guarantee if the seal is broken.

      Some marketers, notably Dan Kennedy, have found
      in their own businesses that offering a 365 day money
      back guarantee seldom results in refund requests and
      tends to bump response, especially on bigger-ticket
      sales.
      I actually think it's the other way round with paypal. If the buyer files a dispute and you as the seller tell paypal that it was a digital product, paypal will close the dispute almost immediately and the buyer won't get any money whatsoever.
      {{ DiscussionBoard.errors[2011390].message }}
      • Profile picture of the author ikuret75
        Originally Posted by Ben Bergmann View Post

        I actually think it's the other way round with paypal. If the buyer files a dispute and you as the seller tell paypal that it was a digital product, paypal will close the dispute almost immediately and the buyer won't get any money whatsoever.
        Would that be different if a buyer buys through clickbank or just Paypal?
        It's confusing because you can also pay using Paypal on clickbank, right...?
        {{ DiscussionBoard.errors[2011418].message }}
        • Profile picture of the author Ben Bergmann
          Originally Posted by ikuret75 View Post

          Would that be different if a buyer buys through clickbank or just Paypal?
          It's confusing because you can also pay using Paypal on clickbank, right...?
          Yes, if a buyer buys through Clickbank they will always issue a refund within the 60 days and it doesn't matter if he paid with Paypal or not.
          {{ DiscussionBoard.errors[2011469].message }}
  • Profile picture of the author Andy Fletcher
    It's definitely something you'll want to test for yourself but the goal of offering a refund guarantee is to put all the risk on you. Sure some people will buy then refund but those are sales you wouldn't have got anyway so it doesn't really matter.

    The reason most people go for 60 day guarantees is because it's a Clickbank requirement and the maximum PayPal refund period before you have to send the money direct.

    Cheers,

    Andy
    Signature
    {{ DiscussionBoard.errors[2011372].message }}
  • Profile picture of the author ikuret75
    Loren, thanks for detailed information about some findings by other markeeters!

    Andy, Yes Paypal and clickbank - I totally forgot about it... no wonder I noticed mostly 30-60days guarantees.
    {{ DiscussionBoard.errors[2011393].message }}
  • Profile picture of the author ikuret75
    Thanks Ben! It is more clear now for me about that.
    {{ DiscussionBoard.errors[2012507].message }}
  • Profile picture of the author Vanquish
    The purpose of a guarantee is to knock down buyer resistance and one of the age old questions of "is this a scam" that many newbies associate with when they first take a look at an internet marketing product page.

    In my experiences it is best to offer a one year guarantee because

    a)it ads credibility since all they usually see is typical 60 money back guarantees.
    b) it gives your product a higher perceived value because you are so confident about it.
    c) It results in less refunds because people tend to forget about the long time frame.
    d) results in more sales and happy customers.
    Signature
    Nothing to sell, only value to give and new knowledge to learn.
    {{ DiscussionBoard.errors[2012528].message }}
  • Profile picture of the author chuck vegas
    It's odd, but it makes sense if you think about it.

    The 60-90 guarantees seem to instill the most confidence AND result in fewer refund requests. Here's how I see the logic in that.

    Too many people are out there downloading everything they can get their hands on, or afford this month, just to fill up their hard drive. I have another post coming on that. Those people download everything, but never actually take action. So if you offer them a 60-90 day guarantee, they forget. If you tell them they have a week, or 10-14 days, they note it, grab your stuff and request the refund. But the very sad truth is, if you give them a 60-90 guarantee, they think, "I have plenty of time to try this out" and never do and then forget about your guarantee.

    I'm not the only one here. I've read posts from people in this industry who know WAY more than I do, and have been at this WAY longer than I have.

    The best to all of you!
    Chuck Vegas
    {{ DiscussionBoard.errors[2013498].message }}
  • Profile picture of the author Mrs S
    Thanks for asking this question ikuret as I always wondered about the effects of the guarantee period.

    I like Chuck's thinking about the longer the guarantee the less likely they are to remember. Might try that one myself.
    {{ DiscussionBoard.errors[2013610].message }}

Trending Topics