Forums: Discussions for entrepreneurs and small business.

I`m in the planning stage for some products that would be delivered via standard reports -- probably PDF documents available for download or distributed by email.

I think that a money-back guarantee would enhance my value proposition, but I`m not sure how I will ensure that I don`t give money back to customers who actually are just trying to get my product for free.  For one product, I have an idea for a 30-day grace period, during which I could probably learn whether or not they actually "consumed" the material in my report.  For other products, I`m not so sure.

What experience have you had with money-back guarantees?
If your experience was with intangible products like information, how do you guard against this potential problem?

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I`ll agree with Dale, that it often comes down to the percentages. There aren`t all that many people who make a career of ripping other people off. Sure, you`ll probably have some folks who just want your product for free, but it IS a pretty low number. And yes, it comes down to quality and value exchanged. Think of the shareware industry, which runs on the honor system. That works just fine, right?

I agree with Craig and Dale. The upside far outstrips the few who will try to game you. I can`t emphasize enough that your stuff has to be "worth it" or you will get disgruntled returns and your name can turn to trash very quickly.


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Kurt Ehlert
Area Developer
Athletic Nation Franchise Corp.
www.athleticnationtriangle.com
blog.athleticnationtriangle.com

"In saying what I have in mind, will I really improve on the silence?" - Robert Greenleaf

I agree with everyone else, too. There will always be some people who will take advantage of a money-back guarantee just to get something for free. But the idea is that your sales will be far higher with a money-back guarantee than without, so you are able to absorb the cost of those refunds.

Best of luck!



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Skip Anderson
Sales Trainer
Founder and President,
Selling to Consumers | Sales Training to Sell More

Thanks for the perspective, everyone.  I just needed some perspective, since I`ve never made this kind of offer before.

Thanks again,
Jim

If you have quality goods then it can`t hurt. This reminds me of my products guarantee. Although it is supposed to be funny..if i am ever contacted for a refund then i will honor it. To this date though, zero people have inquired about one. 

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