Refunds and Friendly Fraud: Solutions

In my own experience, I get about a 2% refund rate, and while it's impossible to say for sure, just judging from the tone of the requests, I'd say it's about 50-50, as you suggested.

To offer a guarantee or not - that can be a bit tricky.

Some marketers refuse all refund requests, but if you're selling through Clickbank, that's not an option. A guarantee is part of their terms of service. Also, if customers buy with a credit card, they usually have the option to request a chargeback in the worst case.

But if you're selling an intangible product (or service) via Paypal, you may be able to pull it off in most cases.

However, let me share with you my own thoughts about what you call Friendly Fraud, and others have termed "serial refunders" or "professional refunders."

I write in the self help, motivation and confidence area. If somebody feels that they're such a loser that they have to steal just to try and catch up even with others, then I figure they can read my book a thousand times, but with their mindset, they won't ever get it. In other words, they simply can NOT steal from me. They might have gotten the words, and they may have read them. But they won't get the understanding and the skills until they do a complete turnaround and stop feeling a necessity to steal.

So frankly, I no longer concern myself with the matter. Somebody asks for a refund. Fine - I send them the money along with my well wishes for a better life than they have now.

Fred Gleeck takes an interesting approach on this topic. He KNOWS people are going to pass his ebooks around or otherwise abuse the buyer relationship. So instead of fighting human nature, he has figured out a way to benefit from it. He simply includes lots of bonus download offers and upsells in his books. But the reader must be "registered" to take advantage of them. Even if they didn't pay, he still gets them on his lists for future mailings.

I kinda like that. Don't fight 'em - just set things up so you win anyway.

Cheers from warm and smiling Thailand,
Charles

Jay Abraham says the longer, the more specific, the more risky the guarantee, then the more sales you'll get.

Brad Sugars says: If your gurantee doesn't scare the pants off you, it's not good enough!

Assuming your product is genuine, forget about 'friendly fraud', just apply risk reversal until you are shaking in your boots; THEN you'll see the sales pouring in.

Bil (& Jay & Brad, &......)

Really, who cares?

It's one of those things that can never be proven and the scammers will ask for a refund even if you don't offer one, and then a chargeback failing that.

I only look at refunds when I see the number of them climbing above acceptable levels.

Go make some money.

Don't focus on this. You can't prevent or stop it. Some people are conditioned to do this.

The only way to cut it back is sending a physical product to make them return. Very few go to the effort.

Focus your time on selling the 99% who buy and don't refund.