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Protect From Fraud Refunds with WSO

by backlinkmasters
20 replies
Hello everyone!

I am starting to work on my first ever WSO, and I had a quick question about refunds.

I am planning on offering a 100% money back guarantee on the product, but I'm afraid that people will just buy the product, take in the information, and then just ask for a refund. I know obviously some people will have a real reason for a refund, and I have no problem giving them one, but I don't want people asking for a refund just to get the money back, even though they liked the product.

Is there any way to weed out the "fraud" refunds? Are there tips on figuring out if the person really wasn't satisfied with their products?

Or is this not really a big problem with WSOs? My product would only be priced at around $7-$10, so it wouldn't be too much that people would spending.

Any help on this issue would be greatly appreciated!

Thanks in advance!
#fraud #protect #refunds #wso
  • Profile picture of the author kindsvater
    Fraudulent refund requests will happen. Often, seconds after the fraudster has downloaded your report again to make sure they have it to use.

    JVZoo has a unique reporting feature where fraudsters can be banned and sellers can see how many have been banned and by how many sellers. There are thousands of buyers who have been banned by multiple sellers, which is indicative of how big of a problem this can be in IM.

    One strategy -

    Put a time delay on the refund policy.

    Example: Test it out and if after a week you decide it is not for you, then ask for a refund during the following 30 days.

    I have tested many different refund policies. This one is quite effective.

    .
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    • Profile picture of the author backlinkmasters
      Originally Posted by kindsvater View Post

      Fraudulent refund requests will happen. Often, seconds after the fraudster has downloaded your report again to make sure they have it to use.

      JVZoo has a unique reporting feature where fraudsters can be banned and sellers can see how many have been banned and by how many sellers. There are thousands of buyers who have been banned by multiple sellers, which is indicative of how big of a problem this can be in IM.

      One strategy -

      Put a time delay on the refund policy.

      Example: Test it out and if after a week you decide it is not for you, then ask for a refund during the following 30 days.

      I have tested many different refund policies. This one is quite effective.

      .
      Originally Posted by George Wright View Post

      Not much you can do about it.

      I did recently notice that PayPal is taking an active interest in helping Digital Product Sellers. It will be interesting to see how that works out.

      In the mean time, Just present the best product you can and it will be appreciated by most of your buyers.

      Serial refunders, not much you can do your first time out.

      George Wright, P.S. Edit: Except for what Brian said.

      Thanks both of you!

      I'll try out that strategy of having a time delay on the refund! And I'll also be using JVZoo, so hopefully their reporting will help!

      And yeah I kind of thought that there wasn't much I could do, because I want to give refunds to legitimate cases for sure. I'll just have to make sure to try and keep a close eye on the refund requests, hopefully I won't have many or any!

      Thanks again!
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  • Profile picture of the author George Wright
    Not much you can do about it.

    I did recently notice that PayPal is taking an active interest in helping Digital Product Sellers. It will be interesting to see how that works out.

    In the mean time, Just present the best product you can and it will be appreciated by most of your buyers.

    Serial refunders, not much you can do your first time out.

    George Wright, P.S. Edit: Except for what Brian said.
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  • Profile picture of the author datingworld
    There is nothing much you can do.
    Serial refunders and ungrateful people will always come up with refunds. Time delay on refund might reduce the number somehow but serial refunders will be knocking your door even you put time delay.
    My advice is to remember one thing, if you are offering something to internet marketers, then you need to have a big heart and patience as there are many ungrateful people around and they know how to waste their time and your time.

    Good Luck
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  • Profile picture of the author Brent Stangel
    Make sure you brand the hell out of it.

    I never count a sale as a sale until after the refund period. I've done away with 30 days and now offer 7 days on everything. I think a lot of people realize after a couple weeks that they are never going to act on the information and figure they'll just get their money back.
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  • Profile picture of the author backlinkmasters
    Thanks to both of you for your input!

    Yeah a 7 day money back period might be good! Maybe combine that with the time delay, like after a week, if they don't like it, they have 7 days to get a refund?

    I'll have to make a plan for it before I release the WSO, thanks everyone!
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  • Profile picture of the author WillR
    First of all I would have a fair refund policy. The refund policy I always use is that they get their money back if the product does not work as advertised on the salespage. That's fair enough and works fine for software type products. As for courses, etc, it's a little harder to have a refund policy like that.

    But know this. Facebook will side with the seller in 99% of all digital purchases. I have not lost a refund/dispute in the last year as a seller. So people can try but they won't get their money back... unless ofcourse its a valid reason in which case you should return the money.
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  • Profile picture of the author mrrightme
    I don't like those guys who download and refund . Every time I just say no even though they spoil my thread.
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  • Profile picture of the author George Wright
    From the PayPal Page...

    Reduce Fraud
    Our extensive security measures and understanding of the unique vulnerabilities related to digital goods commerce help reduce chargebacks and risk related operational costs before they happen – saving you time, money, and increasing overall customer satisfaction.

    Entire Page....

    https://www.paypal.com/webapps/mpp/digital-goods

    George Wright
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  • Profile picture of the author richaado
    I think I might create a product in the future too.

    I'm thinking you should do what the others have said. Maybe offer a 30-day guarantee, but put a requirement on it, like they must try it out for a few days or a week before they can refund.

    But by then, most people will probably forget to refund and the 30 days will pass.

    Good luck!
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by backlinkmasters View Post

    I know obviously some people will have a real reason for a refund
    This is the observation that concerns me, a little. I'd be most uneasy about listing something for sale here as a WSO if I knew beforehand that some people would "obviously have a real reason for refunding". I'd want to change that, myself, and be sure before I started selling it that nobody would have a real reason for a refund. I think that's fairly easy to do, too - by describing the product very honestly, not using "blind copy", not using any income claims, and making sure in the sales copy that nobody buys it expecting one thing when it's actually another.


    .
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    • Profile picture of the author backlinkmasters
      Originally Posted by Alexa Smith View Post

      This is the observation that concerns me, a little. I'd be most uneasy about listing something for sale here as a WSO if I knew beforehand that some people would "obviously have a real reason for refunding". I'd want to change that, myself, and be sure before I started selling it that nobody would have a real reason for a refund. I think that's fairly easy to do, too - by describing the product very honestly, not using "blind copy", not using any income claims, and making sure in the sales copy that nobody buys it expecting one thing when it's actually another.


      .
      I definitely am going to do all I can so potential buyers know what the product is and what to expect before they buy, so I am not tricking or deceiving anyone. I just meant that some people could accidentally purchase it (not really sure how, but I'm sure it happens) or other reasons like that.
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    • Profile picture of the author rbates
      Originally Posted by Alexa Smith View Post

      This is the observation that concerns me, a little. I'd be most uneasy about listing something for sale here as a WSO if I knew beforehand that some people would "obviously have a real reason for refunding". I'd want to change that, myself, and be sure before I started selling it that nobody would have a real reason for a refund. I think that's fairly easy to do, too - by describing the product very honestly, not using "blind copy", not using any income claims, and making sure in the sales copy that nobody buys it expecting one thing when it's actually another.


      .
      Exactly right! That said, you can have the best product in the history of products, and
      there will be the unscrupulous, deceitful, dishonest people who are looking for something-
      for-nothing, who will always ask for a refund. It doesn't make any difference how fantastic
      or useful a product might be, there will always be some low-life individuals who will take advantage of a refund policy.

      Am I being too harsh? Too bad!
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  • Profile picture of the author TonyAG
    You can't prevent refunds. Even the most successful products give refunds, but they still make a ton of cash. A main goal of a product owner is to keep the refund rate low by delivering what is promised. If you refuse to give a refund to someone chances are that person will bad-mouth your product or business.
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    • Profile picture of the author AlexCN
      Of course, as a new product seller, you can't be happy when someone requests a refund...

      Or CAN you?

      Refund requests mean that 2 very important things are going on:

      1. Your copy is starting to convert (to at least some degree)

      2. You are starting to make sales.

      To me, both of those positives far outweigh the minor nuisance of a couple of refund requests...

      Welcome refund requests with open arms... as a matter of fact, aim for as many of them as you possibly can on your next launch. Why?

      That means you will be making even more sales that stick.

      Your self-made-dilemma is one that freezes many in their tracks, unable to take action.

      Don't be one of them.

      Alex
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  • Profile picture of the author nicholasb
    I always do a 30 or 60 day refund period, I have sold my products to tens of thousands of people and sometimes you'll get a fraudulent refunder, or a serial refunder which they can be blacklisted from ever buying anything from you.

    It;s just part of the business, create good products and your conversions will be pretty low, refunds aren't really an issue if you take good care of your customers, have good support, but they will happen.

    Don't leave any sleep over it and if anyone asks just give them a refund no questions asked.
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  • Profile picture of the author gcbmark20
    Hi,

    Refunds are just part of the game.

    But put your BEST foot forward every time you release a product and do
    your BEST to produce a top notch product and you'll find that you'll begin
    to filter out those kinds of people anyway.

    I wouldn't let this STOP YOU from moving forward with your business.

    You can TEST out different refund polices to make sure you weed out the
    bad apples from the good.

    I've found that most of my buyers out there are always happy to devour my
    products and not ask for a refund.

    And I have some come back and leave their positive feedback too.

    Like I said before always aim to deliver first and you'll find yourself in a much
    better position anyway.

    Good luck,

    Gavin
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  • Profile picture of the author jaggyjay
    Originally Posted by backlinkmasters View Post

    Hello everyone!

    I am starting to work on my first ever WSO, and I had a quick question about refunds.

    I am planning on offering a 100% money back guarantee on the product, but I'm afraid that people will just buy the product, take in the information, and then just ask for a refund. I know obviously some people will have a real reason for a refund, and I have no problem giving them one, but I don't want people asking for a refund just to get the money back, even though they liked the product.

    Is there any way to weed out the "fraud" refunds? Are there tips on figuring out if the person really wasn't satisfied with their products?

    Thanks in advance!
    Hi Backlinkmasters,

    Unfortunately, refunds are a reality of doing business. Don't spend too much time concerned about it though. The benefits of owning and launching your own products far outweigh the possibility of refunds.

    Best you can do is make sure your product delivers as promised and focus on your customers who value your offers. There may be some folks who have a legitimate issue with your product and request a refund. If so, address the issue or problem and deliver great customer service.

    But if a person is a fraudster or serial refunder, there's not much you can do (excepting weeding some out via peer system like has as Kindvater mentioned). But the possibility of refunds will still be there however.

    So, create your offer. Launch your WSO. Forget the refunders. And rock on to greatness
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  • Profile picture of the author Tsnyder
    First, of all... when you offer an unconditional 100% money back guarantee
    there is no such thing as a fraudulent refund request. By definition, it isn't
    even possible.

    Just get cozy with the fact that some people are going to exercise their right
    to get a refund for any reason or no reason.

    After all... you offered it, right? It can't be their fault for accepting it.

    Now, go concern yourself with something that matters... like how to increase
    the number of people who will recognize the value in your offer and not want
    to accept your refund offer.
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  • Profile picture of the author HelpingYouBeAnExpert
    I wouldn't worry about that I would worry more about not selling, if you sell and the refund rate is high then you can move and deal with it. But that is down the road, #1 now is finish WSO, sales letter and sell it so people pay. If you do that you are 90% there the refund rate fix is an easy fix #1 selling is the hard part. Good luck.
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