#243 [Web TV] Tips on Refund Policies

 

To Refund or Not? That is The Question.

In today’s super-short video, I answer a great question from viewer Julie Lewin about refund policies, a.k.a. Money-Back Guarantees. Here’s a few of the things I cover:

  • Why have a refund period anyway?
  • When to offer one and when NOT to
  • Some legal things to be aware of
  • When a refund policy can attract the wrong people

What do you reckon? Refund or not?

Love to hear your thoughts.
 

Transcript

Hello and welcome, Janet Beckers here with your wonderful Web TV tip of the week. Answering a question this week from one of our community members, Julie Lewin, who asked in our Facebook group, refund policies. Janet, you know, why have them? Should you be strict? How long should I go for? So there’s quite a few questions to answer there, but I thought I would just give you some things to think about yourself.

What is a refund period? So that says that, you know what, you can have my program and this is usually only used with things that are not as a service, that’s being delivered straight off. So you know here’s my digital product, have a look around and if it doesn’t feel right to you you’ve got X number of days, X number of months to be able to send it back to me and say, ‘Look I don’t want to have part of this.’ And I will refund your money.

Now why would you do this anyway? Is it because people are expecting when they sign up for your program that they’re going to go, “This is not what I was sold. This is not good. I want a refund.” May I hope that is not the reason. I hope that you are not so overselling, and not being honest, and not giving enough information that people could make that informed decision. And I’m sure, you are not gonna do that. So why have a refund period anyway? The reason for it is to increase conversions of your sales. That is the reason these are given.

You know, because when it comes to legalities, every state, every country has their own law are around when a refund needs to be given. So for these two, for example, I give a 30-day guarantee. That is way beyond what is required by law. But I do that as a risk reversal. So it is my way of saying, “You know what, I’m taking the risk you’re going to log in and download everything and keep it. But you know what I’m so confident in what I’m offering you that, you know what, I’m going to take that risk.” So that’s why you’re doing it, to increase conversion. So there’s one less objection for people to be signing up for your program. So of course, you deliver when you get there so they’re going to be very, very happy with what they’ve got.

So when shouldn’t you give a refund? Now there’s a few times where I do not give a refund. For example, if I am providing a one-on-one service, you know, where there is something with my higher end clients where I’m going to be delivering a lot of my time to them straight-off there is no refund on that. And the other reason why you would do that is, do you want people coming into your programs who have the mentality of, “Oh look, I can just back out of this any time.” When I’m working with people on a higher level, I’m not one to attract people who have that mentality. I want people who are all in or all out.

When it comes to digital programs, sometimes people will purchase something and then they’ll now gradually use it over time. So they may not have that same kind of like, “I’m in for it, baby.” So think about yourself in your business on what things are you more than happy to offer a longer refund period. In what circumstances are you going, “You know what, I don’t want to attract people that are even thinking that they want to have a refund.” Or in what circumstances you’re going, “You know what, I can’t give a refund on this because I’m already delivering as soon as people sign up with it now. Before it’s even just been a couple of days.”

So my question to you: What’s your experience with refunds? Now this is quite a big topic and I will go into this in much greater depth down the track to be able to give you some really good content on this, but I’m glad to give you just something to get you started thinking about your refund policies. Why you have them? When are you going to keep them? And when wouldn’t you have them? Hey, lot of your comments down below and share this video with any of your friends in business who have got the same question. Bye.

 

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