I'd have to go with the general consensus on this one. Refund policies seem to be a pretty standard way to boost sales. As mentioned before, the best way to handle it is to go in with it understanding that it is a necessary evil and plan for refunds. Some of the folks i have worked in the past few months with expect refund rates of up to 30%!

Another interesting bit about offering a refund is as a metric for affiliate performance. Consider two affiliates. Affiliate A brought in 50 sales and Affiliate B only brought in 25. At first Affiliate A looks like the guy we should be giving a little more attention to. But after 60 days, Affiliate A had 30 refunds while Affiliate B only had 5 refunds. Both affiliates resulted in 20 sales, but with a 60% refund rate you might want to consider the type of offers you are allowing Affiliate A on. At the same time, i'm going to take Affiliate B out for a beer and see if we could cook up a JV, because my products obviously work for his list.