April 7, 2020
3 Insider Tips: How to Give a Money Back Guarantee Without Getting a TON of Refunds

3 Insider Tips: How to Give a Money Back Guarantee Without Getting a TON of Refunds

hey everyone it’s neil patel and today i’m gonna be teaching you guys how to provide a money back guarantee without getting a ton of refunds here’s the first thing that people don’t tell you about money-back guarantees most people do it just because they want to increase their conversions but in reality you should be providing money-back guarantees whether you have a physical product or a software-as-a-service because you want to create the best user experience possible just put yourself in the customers shoes if you’re not happy with something what do you want your money back I know I would and that’s why you should provide a money-back guarantee yes at boost conversions on how many people go from being a visitor into a sale or a lead but still you want to make sure you’re not just doing this for conversion aspect but you’re doing it because you want to provide the best user experience if you look at some of the best companies out there like Amazon if you’re unsatisfied with anything they’ll gladly take the product back in exchange you know for giving you back the money so you know what there’s not much of a risk but that’s like people keep going back to Amazon because they trust them so now let’s get started with some tips that will help you generate more sales by providing the money-back guarantee and of course reduce how many refunds you’re getting the first tip I have for you is build amazing product or service if your product sucks you should get a lot of refunds because it sucks to be taking people’s money and duping them out of their cache if your service sucks people should also be requesting their money back but really take the time and energy to build amazing product private provide amazing service because if you do that what will happen is people won’t just buy from you but they’ll tell others their friends their family about the experience they had with your company and they’re gonna be much more likely to buy the second tip I have for you is provide a larger money back guarantee timeframe than 30 days well I learned over the years and I’ve done a beat us about this is there’s a 30-day money-back guarantee there could be a forty day there could be 45 days there can be 60 there could be 90 heck you can even do a year you can pick the timeframe but what I found out is when I did a a B test on a 30 day money-back guarantee versus a 60 day money-back guarantee I generated around 7% more sales it was simple people thought oh wow they really believe in their product or service because they’re not willing to just back it up for 30 days but they’re willing to back it up for over 60 days so by providing a more time what you’ll find is more people will convert and we also found out that our refund percentage stay the exact same so by increasing our window from 30 days to 60 days we didn’t get more refunds it was instead we just got more sales the next tip I have for you if your physical seller like an ecommerce store make people ship back the product to get their money back if you’re gonna give some of their money back you should get your product back as well and what you find is a lot of people will want your product they were just hoping to get their money back without giving you back the product but by doing this you’ll also get less refunds now if you have a software-as-a-service and this is the next step for you don’t just let people cancel and get a refund by just clicking a button make them email or if they’re not gonna email have a form on your website that makes them leave a reason why they’re cancelling why they want their money back and not just a word or two before they can click the I want a refund button make them leave at least a few sentences this will give you meaningful insights on why people want a refund and you can then take that data make your product make your service better and I’ll help boost your conversions heck you can even do that with a physical product when someone wants a refund you can also ask them why so thank you for watching I hope you’re implementing these tips they work you don’t need to do a ton of them but just follow these you’ll get more sales less refunds thanks for watching and again please like share tell other people about the video and comment if you enjoyed it or have any questions

43 thoughts on “3 Insider Tips: How to Give a Money Back Guarantee Without Getting a TON of Refunds

  1. Hey sir! I love your content so much!
    I want to tell you that you are giving knowledge for seo also but can you give some knowledge on business also?
    The small topics like money back guarantee and other problems you came across in business.
    It would be great to learn from an experienced person.

  2. Please answer this sir. (Just want to know your opinions)
    Whats the case for providing SEO services? Whats the time frame of guarantee and in this case what if we spend money on campaigns but they cancel it?

  3. Makes total sense. Neil what other strategies worked with a money back clause that really lowers the friction when making a purchase…

  4. Will tjis work for vitamins a supplements? What if the opened and used 50% of the product? Should i give a refund even if the bottle is 50% used and they claim they didnt get any benefit?

  5. I was stunned to see a "non-orange" thumbnail!

    I thought the video was uploaded by some other channel.😁😂

  6. I started offering website installation, seo and speed optimization. Any tips?

    My clients always respect and love my work. That's why, I love doing this thing.

    I am just 17 years old. And earned more than $1500+ online. I am preparing for IIT-JEE. Hope you know something about IIT-JEE exam, one of the toughest exam in Asia.

    I just passed out class 12th of school.

    Love your videos, they help me to provide my best to my clients.

  7. hey Neil, I really like the idea of 60-day returns.
    With our product, it only contains a months worth of supply.
    Are you saying that even after they purchase the 2nd bottle following the first month, if they don't like the results after the 2nd month they can return?
    Or should we be coming out with a bottle that has 2 months worth of product and has the return policy for the product?

    For your 3rd Tip, you say that customers should return the product if they don't like, our product are capsules. Is there a way to have this great idea for supplements? As we are in the Cannabis Industry ( The medical side nothing to do with getting high or phycoactive.)

    Thanks, Neil!

  8. Killing it with these tips as usual and just in time for me as I am launching my new product/service soon! Thanks Neil keep it up!

  9. Hello Neil, thank you for the 3 tips on providing Money back guarantee, quick question are you fan of Free trial offers on services such as SEO or Facebook Marketing, I am finding people are receptive when trying your service and for facebook I do ask them to comit to a minimuum ad spend

  10. Hello Neil, I've no question about of this video. I just wanna to confirm it you. Have you make an any video for how to research a best product for online selling? Please share it with me because in your channel lots off video are there.

  11. Hey Neil, I heard rumours that you are planning to release free alternatives to SEO tools like Ahrefs, SEMRush, etc.?😍

  12. Great topic, insightful lessons – thx for sharing your knowledge, Neil!

    I was taught never pitch the return policy because 1) you're planting seeds of doubt that creates a second guess situation, possibly sabotaging your sale… And 2) you will definitely get more returns, not because buyer's remorse or the products didn't provide satisfaction or even exceed expectations, but because you attract ppl who buy to try with the intent to return, regardless of quality or experience.

    That being said, we definitely had a return policy. Do you have data showing its better to pitch it across the board? If not, what is the qualifier that determines it's necessary and worth the risks?

    Did you hear Amazon kicked off most of its users who had a high return rate? I'm not sure if it was abusive or just following the return policy to the letter, but clearly there's bounds of reason even for Amazon.

    I understand requesting physical products back first would be the logical way to go if you offer a return policy. Have you A/B tested restocking fees? What if it's a consumable product – only unopened returns? That's Amazon's policy but it seems counter intuitive if you wanted them to get the experience in the first place. But if you're unhappy and complain to a restaurant about your meal, chances are you'll get a refund and they get nothing back, except a happier customer. It's not apples to apples comparison, but I'd say that's a positive user experience. Do you have any data on that?

    Thanks for doing what you do, Neil!

  13. Your posts are so nice and direct.. most times I forget to like' after watching… because to execute the tips has swallowed my consciousness

  14. Hey Neil, do you have any ideas how this could be implemented for a digital marketing agency who offers SEO?

  15. My questions are:

    1). How can I offer a money-back guarantee as a service provider and

    2) How can I prevent this money-back guarantee from being abused?

    I provide branding and website design services.

    Over the course of 5 years, I have had 4 people demand their money back after we had a full brand launch (files delivered, website up, etc). This has left me traumatized and afraid to offer a money-back guarantee.

    Thank you so much for your reply!

Leave a Reply

Your email address will not be published. Required fields are marked *