Your say on REFUND

[mrugank]

Hello Again,

I have this question for all you guys who have a product there online. Its about the 60 days or more MONEY BACK GURANTEE that we give. A powerful marketing tactic, I agree, makes the potential costumer feel safe, right?

Now the information that we are serve or offer to masses in form of a product is actually what works for us, right??? And we also know that more than 60% of the people who purchase our product dont actually take ACTION or Leave the work half way through..

So whats the point in giving entrie unconditional money back gurantee when we know that the next time we launch a product or promote a JV prodcut, it is goin to come back as a refund from the serial refund seekers.

Cant we just say that after XYZ no of days, AFTER applying what we discussed in the module, IF u dont make any money than we refund your money back. Kindly send to us, the url or link of your website, blog or whatever you have done.....

Any suggestions ???

[Jeremy Reeves]

Guarantees make people feel more comfortable with buying.

The longer the guarantee, the more sales you're going to make. It's a basic direct response rule.

There aren't as many serial refunders as ya think. That's simply a part of business and a part of life. I don't care if you're giving away a $30,000 product for $10. There will always be a certain amount of people who refund it - however, it's probably not as high as you think.

[Grahamh]

Make your guarantee a no brainer for your buyers.

If you start putting 'terms' in there then you will create doubt and their finger may move away from the buy button.

Using Clickbank? Then you have no choice because the mandatory guarantee is 60 days.

You also have to give a guarantee when using PayPal.

In my 'offline' business I give a product lifetime guarantee and I've never had any ask for their money back.

Another very good business is called Landsend (direct clothing supplier). Their guarantee is also lifetime. You can send goods back, no matter what the reason and they will be exchanged or refunded.

Once, my wife borrowed a jacket from me to do some painting outside. Yep, she got paint on it, bur hadn't told me that she'd borrowed it.

After a quick call to Landsend, the replaced the jacket free of charge.

I've been buying from that company now for about 10 years.

Consider the lifetime value of a customer with a top notch guarantee.

Serial refunders are very much in the minority and there are ways of blocking their IP address so that they cannot buy from you again.

Graham

[essai]

There are very less peoples who ask for refund.
But we have no choice other than giving them a
money back guarantee.

This increases the sales and Increases our credibility.

Now I am building a Membership site and I am going
to try a "No refund" Method. If it works then I post
about it Here.

[Mike Carr]

I personally think that most people buy and intend to try the product and regardless of the outcome seek a refund..The one's who don't ask for a refund within the 60 days generally have just forgotten to do so after 2 months and probably realize sometime down the track that they missed the cut off date. The beauty of a 60 days refund period is that a lot of people will simply forget after a month or so. Of course there is the honest exceptions out there who purchase, love their product and are happy to part with their cash for good!

[Garland Coulson]

Refunds are just a fact of life when you do business. Guarantees generally increase sales significantly and only a small percentage of people will request a refund.

For example. Lets assume you sell a product at $47 and usually sell 100 per month. Let's assume adding a guarantee will double your sales, but 10% of people refund (a very high rate - much higher than most real life cases).

Your income without a guarantee = 100 @ $47 = $4,700

Your income with a guarantee = 200 @ $47 = $9,400 minus refunds of 20 @ $47 = -$940
$9,400 - $940 = $8,460.

So you made an extra $3,760 in income even though you had a 10% refund rate.

[Barry Weiss]

I agree that refunds are a fact of business life and the guarantee is a key component that improves conversions. It is called risk reversal where the customer has a comfort that you have confidence in your claims and product quality.

In any direct response campaign this is necessary, especially if you are not a known brand. Sure you can overcome this somewhat with a JV and co-branding, but nothing makes a prospect feel better about a purchase than a solid money back guarantee for any reason.

I also agree that the vast majority of customers are honest. The fact that many don't use the product and I've heard numbers as high as 90% for some business opportunities, is just a fact of our business model.

My personal opinion is that by adding conditions to the gurantee hurts your credibility and the value of your offer. Also you will avoid complaints by offering a clear and easy to execute money back policy.

[mrugank]

Thank You Friends and fellow Internet marketers. Learnt a good lesson here.

[charleskirkland]

Refunds make people feel safe.

Plus you have to think about all the people who take a chance on you by buying your product. These people have taken action and at the very least you get a new buyer on your list even if they get a refund.

Plus not all products are not right for everybody.

Thanks
Charles

[Anthony Buchalka]

Howdy all,

Thankfully most customers are actually very honest and the few dollars that you would save by NOT having a refund guarantee, would be quickly lost by the sales you would lose by not having a guarantee.

I have tested guarantees in many niches and always found a significantly better sales conversion rate with a refund guarantee of at least 60 days.

You can help keep your refund rate low (and thus improve your "stick" rate) by such things as;

Over deliver and exceed your customer's expectations.

for eg. Offer a surprise additional bonus soon after purchase.

Make sure your product does what your sales page says it will.

Promptly manage customer support issues.

Stagger your content (depending on your product of course).


Having a clear and prominent refund guarantee removes that lingering question is many people's mind "what if I don't like the product".

We want to remove as many buyers objections as possible.

Anthony