If you have been involved in internet marketing for any length of time, you would have come across courses which have really strong money-back policies.
A couple of examples come to mind:
1. “If you do not like my product, just ask for a refund within 60 days, no questions asked!”
2. “Get my amazing system at zero risk! It comes back with a full 60 day money back guarantee! You have nothing to lose!”
3. “Amazing system sold for $XXX at no risk! Try it at no risk at all with a 60 day money back guarantee!”
Now, I will be the first one to admit, a money back guarantee is really helpful to the customers because they can actually test your product or service out and it reduces their risk.
However, you would be surprised how many marketers out there are promoting rehashed crap using this guarantee and getting away with it.
See, marketers know that including a strong guarantee will boost sales by as much as 500%. Why? Because most people are risk averse.
No one wants to lose their cash to a person sitting behind a computer in another country. This is true especially in a niche which is notorious for hype and misinformation i.e. internet marketing.
On the other hand, imagine a product sold with a “no refunds allowed” message. Would you buy it?
Not if it is backed by a strong brand, a famous personality or an expert.
However, using a money back guarantee plays wonders as it dramatically increases sales.
Research shows that these kind of guarantees almost always generate huge profits. Even if there are some refund requests, the money made is far more than money lost due to refunds.
The irony, however is the fact that even if customers do not like your product, many of them will forget to ask for a refund.
A 60 day money back guarantee plays on customers’ psychology in the sense that a typical person will forget about his/her purchase within the first month or two.
You would be surprised how many of my friends actually wanted to ask for a refund but totally “forgot about it”.
Does it mean that the marketers out there are “cheaters”, swindling us out of our hard-earned cash?
But it does mean that they know how customers react.
If you sell your own product, add a “No questions asked, 60 day money back guarantee” and see how the sales increase.
Chances are, if you are making USD 3000 per month on a certain product, such a guarantee will increase the sales to USD 6000 or even USD 9000 per month.
On the other hand, if you purchase a product and do not like it, ask for a refund immediately before you forget about the product and waste your money 🙂