Sell An Info Product w/o Giving Refunds

25 replies
I'm considering writing an eBook but the refund horror stories are something to consider. Does anyone have experience selling eBooks without a "money back guarantee" on their squeeze page? How much does that guarantee really affect sales?
#giving #info #product #refunds #sell #w or o
  • Profile picture of the author Ben Gordon
    It's really hard in the internet marketing niche due to all the competition you have offering refunds. But if you're outside of it then it's completely possible.
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  • Profile picture of the author Joseph Robinson
    Banned
    I don't have personal experience selling without a refund guarantee; but have seen more than just a couple members on here claim that they go without them. BIG Mike comes to mind immediately. I'm pretty sure he said he launched one not too long ago and got well over 400 sales with no refund attached to the offer.
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    • Profile picture of the author fin
      You have to decide if the serial refunders will outnumber the people who won't buy it without the guarantee.

      The choice is yours...
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      • Profile picture of the author myob
        In my experience as an affiliate marketer, a conspicuous display of a "money-back" guarantee in promotions sends conversions through the roof. When you establish expectations that are fulfilled as delivered and not overly hyped, refunds generally are insignificant relative to the much higher volume in sales.
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  • Profile picture of the author MartinBuckley
    bathunter,

    If your ebook provides the information you advertised it would, you really shouldn't have to many refund requests.

    I have been selling a few money making ebooks online for a few years now and I would say I get maybe one refund request for every 15-20 sales and honestly the refund request are bogus they just wanted something for nothing.

    I hope this helps and I wish you much success,

    Martin
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  • Profile picture of the author Jonathan 2.0
    It's probably not good “business sense” however if a person didn't like my product and/or didn't get any value from it, I'd rather they asked for a refund.
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  • Profile picture of the author YonghoShin
    3 possible reactions when someone sees your sales page, with a guarantee:

    1. They would've bought the product anyway, with or without a guarantee (SALE)
    2. They wouldn't have bought with no guarantee, but they'll give it a try because in the worst case, they could always get their money back (SALE)
    3. They won't buy, even if there's a guarantee on it (NO SALE)

    So people in groups 1 or 3, the guarantee won't make a difference. But it'll make a huge difference for people in group 2, because it's what "pushes them off the fence" to buy your product.

    Depending on your relationship with the people visiting your site, that can range all the way from 10% to 80%.

    My recommendation: unless you have a strong relationship with whoever you want to sell to, and they clearly see you as an authority, offer a money-back guarantee so they're more comfortable with buying.
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  • Profile picture of the author LP Copywriter
    I've never written a sales pitch without one. It shows you stand behind your product 100%, and are willing to put your money where your mouth is. I've also never had a client return to me complaining about an excess of refund requests. It happens much less often than you probably thing.

    As others have stated already, a guarantee is not a necessity. Though it definitely wouldn't hurt to test both options and see what the returns are on each.

    If this issue is the only thing holding you back from pursuing this, please, don't let it.
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  • Profile picture of the author AbrahamGuzman
    Hey bathunter, I would suggest that you do add a "Money Back Guarantee". Money Back Guarantee gives your prospects safety when buying giving them the option to NOT buy your product or DO buy your product. I am guessing you are horrified with the idea that people will take advantage of your eBook once they see your "Money Back Guarantee" Don't worry about that, if that does happen they will be the ones who don't succeed and you will build credibility with your prospects. Money Back's also tells your customers that your content is too good that you are offering the Money Back Guarantee, which in the long run build's trust with your prospects.

    Money Back Guarantees are a great way for letting people know you are genuine and unique among other marketers also. Hope this message was beneficial to your understanding of "Money Back Guarantees" and I know I used that word a lot here on this message.

    To your success,

    Abraham
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  • Profile picture of the author Campbell24
    Thanks for the perspectives everyone. I guess I was just worried about opening myself up to "giving back your profits" to serial refunders. I'll probably end up going with one once I make an eBook.
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    • Profile picture of the author WillR
      Originally Posted by bathunter View Post

      Thanks for the perspectives everyone. I guess I was just worried about opening myself up to "giving back your profits" to serial refunders. I'll probably end up going with one once I make an eBook.
      There's a very simple answer to your question.

      Which is going to make you more money?

      1. Not writing an ebook because you are worried about a few refunds...

      2. Writing an ebook, making sales and refunding a few of those sales...

      A strong guarantee definitely increases your sales, there's absolutely no doubt about it. That's exactly why you see everyone using them nowadays. In fact in the IM industry it's now kind of expected. If you don't offer one people will make their own assumptions as to why you haven't.

      Instead of focusing on the very small number of sales that get refunded because of your refund policy, focus on the large number of extra sales you get by having that refund policy in the first place.
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  • Profile picture of the author kumah
    giving a refund is one way to build your reputation,would u buy a car from toyota,if they don't give u a few yrs warranty?just my 2 cents....
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  • Profile picture of the author Ken Hoffman
    Couple of thoughts. The exceptions of "no guarantee" are rare AND there is almost always another strategy in place to counter prospect's objections of the lack of guarantee.

    Rather than selling an Ebook, sell a physical printed product. Yes, it costs more, but you can also charge more because a tangible product has more perceived value. It takes time and energy to return it rather than just sending an email. So less people will ask for a refund.

    Also, there are strategies to reduce refund rates substantially such as an effective "stick" letter...added bonuses they only get after the purchase is final. EX. after the 30 day guarantee.

    It's definitely something you need to think about BEFORE marketing. You need to think about it when creating the offer and even when creating the product.
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  • Profile picture of the author Joel Gray
    For the majority of your online sales letters you want to offer a guarantee, this will help your sales and if you are selling a good product your percentage of refund requests should not be out of line. Now sometimes when I sell PLR stuff I will go with no money back guarantee but that would depend on what type of PLR product I am selling.

    Joel
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  • Profile picture of the author Ken Reno
    Don't let fear of serial refunders hold you back on giving a guarantee (standing behind your product)

    The people who find value in what you offer will FAR outweigh the serial refunders on any promotion so don't sweat them at all man just do what you do!
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  • Profile picture of the author paulie123
    Offer a refund for a physical product, no refund for a downloadable.
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  • Profile picture of the author Monetize INTL
    Hey bud -- Assuming you are somewhat in a high risk processing scenario: I'd rather get a refund than a chargeback ANY day. Excess chargebacks will shut your merchant account down. Refunds won't.

    My customer service guys are quick to issue refunds for that exact reasons.

    Sure we lose profit margin on the front, but our merchanting has never raised a red flag.
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  • Profile picture of the author manicmethods
    Whether you offer a money back guarantee or not won't stop people starting disputes on PAypal which pretty much ALWAYS go in the buyers favor.
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  • Profile picture of the author samuelford
    it helps to adjust your priorities.

    You should view your ebook as a hook to get email addresses. Any profit you make is a bonus. You will capture way more customers if they feel relaxed from having a money back guarantee. your front end ebook should only be viewed as a exactly that - to capture the customer.

    That way, even if you have to refund a person, you wont be bitter about the refund AND you will still have their email address so that you can market to them in the future.

    So my advice would be to not look at the ebook as the "be all and end all" ...but rather as an email snatcher (which in my opinion is better than money, it means future recurring money)

    Maybe plan a value ladder and not solely an ebook:

    Ie.

    1.cheap or free ebook (with refund policy)
    2. average priced product to complement ebook (same niche and for about $47)
    3. Big back end offer (high value for big bucks)


    Thats where the real money is and it took me a long time to realise that. I was after the quick fix like many marketers. But you wont have a secure business until you have a list in my opinion. Quick fix methods are too volatile.

    Thanks,
    Sam.
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  • Profile picture of the author eman1
    You should not need to be concerned about refunds if your are offering a product that is truly in high demand and is a high quality product.


    A solid product guarantee will definitely increases your sales in the long run. That's exactly why you see internet marketers using them. In fact in the internet marketing industry it's now kind of expected. If you don't offer one, people will wonder why.
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  • Profile picture of the author ExpertSEOServices
    There are some serious refund hunters here on the WF. Getting the ebook and then asking for a refund within minutes.
    As long as you provide quality information and deliver as you promise then your sales should out do your refunds and it should not make too much difference if you have a few refunds.
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  • Profile picture of the author Kunj K
    If you're in the infoproduct business and are worried about refunds you're in the wrong business. Do your utmost to create the best product you can, give your customers great support and surprise bonuses from time to time and you'll be fine. The 25-50% refund horror stories you're hearing are for the CB launch scammers. "Auto Crap Robot" type things. If you don't offer a MBG, you will kill your sales.
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  • Profile picture of the author Warrior X
    I think, in the US at least, a 30-day return policy is a legal requirement. Smart marketers decided to turn it into a benefit, instead of a liability.

    -Jeremy
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  • Profile picture of the author digimix
    The only digital product I saw offered without a refund was a graphics package by one of the big Plr seller in the forum of a WSO. He was very brash about it too, saying something like "I will not be offering a refund on this, it is graphics, take a look at it, buy it if you like it don't buy it if you don't. It's that simple" made sense to me.
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  • Profile picture of the author digimix
    If you read Tim Ferris' book "the 4hour work week" he shows the maths behind the the offer. Where a MBG may look frightening at first but it shouldn't because the psychology behind it is very well proven. You make more sales with the money back guarantee. Get this he even offers a 90 day double money back guarantee. Yes double money back!!! And he said his refund rate fell dramatically while his sales more than doubled.
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