CONVERTencourage you to refund the money because with all of the social media
available to the prospects, they can easily exploit you or your product. You
really don’t want to give someone a reason to give you a bad name through
social media. Just make sure your prospects are happy.
You’re apt to encounter those unhappy buyers who want a refund. Sometimes in
those situations, you may have already paid an affiliate for the sale. After the 30
day refund period has expired, you pay the affiliate. If you have a $497 product,
after those 30 days are up, you pay the affiliate the 50% or whatever the rate is.
So the affiliate makes their $250, but now your buyer wants a full refund. If you
explain the situation to your buyer, sometimes you can offer them the half of a
refund and they’ll accept. If you refund them their entire $497, you’ve just gone
in the hole for $250. You can respond to them by reiterating the 30 day
guarantee, and telling them you’ve already paid the affiliate, saying you can no
longer offer a refund. If they persist about the refund, usually an offer of half, or
whatever it is you made off of the sale is sufficient enough for them not to press
the issue further
In general, the digital product refund rate is usually about 15%. Physical
products have a refund rate of about 7-8%. A book, video course, or anything
like that has a much lower refund rate but it’s also more difficult to get set up
and fulfilled. ClickBank actually started to charge vendors as a penalty to get
their refunds under 15%. Since a lot of those vendors make money with online
products, they have refund rates of 30%, 35%, or even 40%. There are issues
with refunds, so you want to try and keep yours as low as possible.
There are some customer retention strategies that you can dive into if refunds
get to be a problem. You can offer half of the money back, or you can tie in
some physical products as well. In order for them to actually get the refund they
want, they have to send their physical product back to you, which can cost them
some shipping and handling as well. There are quite a few ways you can get
customers to stay with you, but you always want to make sure you have their
best interest at heart because everyone does have a voice, and that can
eventually tarnish your product or name.
If they ask for a refund, give it. If it’s after the refund period, then tread lightly.
It’s really the best advice I can give. By having a guarantee, you’re going to be
making a lot more money.