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Money-Back Guarantee for Intangible Products

    • 740 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,

    • 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.

    Kurt Ehlert
    Area Developer
    Athletic Nation Franchise Corp.

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

    • 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!

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