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30 day money back guarantee

Discussion in 'Making Money' started by a0rta, Aug 25, 2008.

  1. a0rta

    a0rta Regular Member

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    Occupation:
    Travel Agency owner - Recently outsourced my clien
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    Anyone who is selling products with 30 day money back guarantee who have any statistics of how many refunds they have to make?

    I was thinking of selling my own products and offering payment possibilities through trialpay as well as PayPal and offering 30 day money back guarantee for both of these payment methods. Just thought that will be a killer offer for any product... Get it for free ($29.90 value) and full price back if not satisfied!

    The problem is just that I wonder if people will sign up for trialpay and then demand a refund just to get out the money out since they don?t have to pay actual money to get the product in the first place. As it seems to work for people who pay through PayPal one thought would be that it will work even better if a customer doesn't have to open up their own wallet to pay for the product. On another hand.. It might attract people who just take the chance to get some money out from it and who wasn't interested in the product in the first place. I am not interested in becoming a money machine for others (except through the money they can make from the info my products will provide the...).

    So what I in short wonder is if people tend to use the money back guarantee or if they just are too lazy to care about it?

    Anyone who sell products with money back guarantee and who have statistics (even though it probably will depend on the product price and the product in itself) is more than welcome to come with some figures so I can at least predict if this is a smart thing to do or not. Suggestions in general are also more than welcome.

    Anyone here have experience from trialpay both people who have used it to buy stuff as well as people who sell products and who can give me an review of their service compared to payment through PayPal?
     
  2. twinkletoes

    twinkletoes Junior Member

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    Return rates are generally low if the product is decent.

    There are 2 month return policies on clickbank products.

    It is such a long time, I think a lot of people just forget they can still return it.

    You will sell more offering a 30 day money back guarantee.

    You can also charge a dollar, and tell the person they will be billed the balance after x amount of time. You can set it up as a subscription with paypal.

    Best is to just offer the guarantee, and not spend your earnings until the guarantee time is expired.
     
  3. catman08

    catman08 Junior Member

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    When i started out selling i knew from corey rudl that strong guarantees are important. I also was worried about high refund rates ... but the truth is ... refunds are very, very low if any. You get more sales by offering a guarantee.

    Now i always give at least a 30 day money back guarantee sometimes i even offer double your money back guarantee. I think this is fair for users to try and see if the product is for them. Of course you need to have a good product in the first place ;-)

    cheers
    catman

    P.S. In my opinion everthing that has no refund guarantee ... needs better observation/checking ... most of the times those deals are scma like deals.
     
  4. MoneyMafia

    MoneyMafia Regular Member

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    Refund rate on my sites is around 3-4% .. If you answer support questions fast can be even lower.
     
  5. bmph8ter

    bmph8ter BANNED BANNED

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    Just be sure to deliver what you promise and the number of refunds you make won't matter. Maybe a percent or 2 will be really hard to please asshats that will want their money back.
     
  6. RealMarketer

    RealMarketer Newbie

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    My refund rate is around 5% . If that helps ...
     
  7. a0rta

    a0rta Regular Member

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    Thanks! It sure helps... :)
     
  8. kouxx

    kouxx Junior Member

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    are you talking about software and ebooks?

    how can you give someone the money back on those products?
     
  9. frenchboy

    frenchboy Jr. VIP Jr. VIP Premium Member

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    You tell them to erase the ebook from their computer. It is super easy to just download the ebook, get a refund and keep the ebook, but most people are too lazy and honest to do so
     
  10. kouxx

    kouxx Junior Member

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    this is crazy...
    they don't even give you a refund on software and books in offline stores
     
  11. Tilt4832

    Tilt4832 Regular Member

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    What about Visa/MC/PP time limits, would it be wise to extend the refund policy beyond the point that V/MC/PP would default to the buyer? Or does it not matter?

    I'm thinking that is what CB is doing
     
  12. qwertyboy

    qwertyboy Newbie

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    Last month my refund rate was 2.89%, for a product
     
  13. battman323

    battman323 Regular Member

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    if your product is good, expect a 10% refund rate, 20% if it's really expensive no matter how good it is (buyers remorse).

    You'll always make more money by offering the guarantee. Keep 20% of what you make stored away so you can always give refunds with a smile.
     
  14. MaskedMarketer

    MaskedMarketer BANNED BANNED

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    Some stores will give you a refund and others will let you exchange.
    What about Am0zon? Will they let you return/ exchange?

    And there is a huge trust factor in selling ebooks.. some are over priced and some are not. a money back guarantee helps remove some of the risk in purchasing an ebook.
     
  15. anon7

    anon7 Newbie

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    My refund rate is 1.3% on one product (Clickbank) and so far, 0% on the other which is on a physical CD manufactured via Kunaki. :)
     
  16. siberia77

    siberia77 Registered Member

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    This is very true. I have read articles on marketing where it's clear the advantage of giving long guaruntee times is people will simply forget, or delay asking then forget. The longer the possible refund period the fewer people ask for it apparently.
    I guess like anything though, testing and trial is the way to go. Offer 30 day for a while, then boost it to 60 day and compare.
    Either way the increase in sales gained by offering a guaruntee will reap dividends. You will sell more extra copies than ask for their money back.
     
  17. dddd

    dddd Jr. VIP Jr. VIP Premium Member

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    gosh, your products must suck ;)

    honestly, I never had more than 3% refunds yet on my products, why do you guys chose products nobody wants...

    at the end it comes down to: testing testing and testing anyway


    PS: Trials are not worth it from my point of view, that's where people jump of the wagon - if they don't have to pay a cent, it's easy to cancel the "pay later thingy" to avoid costs - do it the other way around, charge first and offer refunds and you're way better off (from my experience and statistics)
     
  18. Schub

    Schub Newbie

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    Refund rates not only depend on what your product is, they also vary based on the type of customer you have. For example, a male in his twenties will be much quicker to ask for a refund than a 50 year old woman. (Based on experience, I guess you could call it sterotyping)

    Obviously shipped products will have a much lower refund rate than downloadable products due to the hassle of returning it.

    Pricepoint wise, once you get over the $50 price "barrier" refund rates will start to climb, since it "hurts" more to pay for the product. Thats prob why low priced products can be so profitable, who is gonna take the time to ask for a refund on a $10 product?