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Money-Back Guarantee for Intangible Products

    • 741 posts
    March 17, 2008 5:13 AM EDT
    Go ahead and guarantee your products. If you have quality products, you really don`t have to worry about issuing refunds. On average, less than 1% of consumers ever request a refund. Offering a guarantee will also increase your sales, because it will give consumers greater confidence in your products.
     
    That being said, if your products are garbage, you can expect to recive a barrage of refund requests. And your business reputation will be mud. Always give people good value for their money.
     
    Dale King
    DKing3/17/2008 1:26 PM

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    • 3 posts
    March 17, 2008 5:03 AM EDT
    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?

    • 3 posts
    March 21, 2008 4:54 AM EDT
    Thanks for the perspective, everyone.  I just needed some perspective, since I`ve never made this kind of offer before.

    Thanks again,
    Jim

    • 7 posts
    March 18, 2008 11:14 AM EDT
    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
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    • 39 posts
    July 29, 2008 12:48 PM EDT
    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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    • 9 posts
    March 21, 2008 3:38 AM EDT
    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
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