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

A money back guarantee can provide MASSIVE value to your brand.

0:05 I'm Neil Patel, and today I'm going to be teaching you how to provide a money back guarantee without getting a ton of refunds.

0:25 You should be providing a money back guarantee whether you have a physical product, or software as a service because you want to create the best user experience possible.

1:00 Look at companies like Amazon, if you're unsatisfied with anything, they'll gladly take the product back in exchange for giving you back the money, so there's not much of a risk. But that's why 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 a money back guarantee and of course reduce how many refunds you're getting.

1:22 How to Give a Money Back Guarantee Tip #1
The first tip I have for you is, build an amazing product or service. If your product stinks, you should get a lot of refunds because it stinks to be taking people's money and duping them out of their cash.

1:40 Take the time and energy to build an amazing product, provide fantastic service, because if you do that what'll 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 going to be much more likely to buy.

1:54 How to Give a Money Back Guarantee Tip #2
The second tip I have for you is to provide a longer money back guarantee time frame than 30 days.

2:15 I've found out is, when I did the A/B test on the 30-day money back guarantee, versus 60-day money back guarantee, I generated around 7 percent more sales.

2:52 How to Give a Money Back Guarantee Tip #3
The next tip I have for you, if you're a physical seller, like an e-commerce store, make people ship back the product to get their money back. If you're going to give someone their money back, you should get your product back as well. And what you'll find is a lot of people will want your product, they're just hoping to get their money back without giving you back the product, but by doing this, you'll also get fewer refunds.

3:14 How to Give a Money Back Guarantee Tip #4
Now if you have a software as a service and this is an exit 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 going to email, have a form on your website that makes them leave a reason why they're canceling and why they want their money back.

3:40 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 it'll help boost your conversions. You can even do that with a physical product. When someone wants a refund, you can also ask them why.

3:57 Thank you for watching, I hope you're implementing these tips, they work, you don't need to do a ton of them, but follow these tips, you'll get more sales, fewer 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.

[MariaWendt]

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!

[manavsingh]

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

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

[nadersabry]

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

[avneet]

I enjoy watching your videos so now I became a regular visitor 😊

[naturalhealthrevolution]

What about a warranty for custom print on demand electronics

[joshuaoluwole]

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

[robertjohnson]

Straight to the point! Thank you sir!!

[elitecenafan]

Neil, I'm deciding between WordPress and squarespace. Which one do you prefer?

[ShirleyOkang]

Big opportunity if it s true, tank u very much,

[hankwatt]

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!

[pushREC]

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!

[fluidframe]

Thanks! Have a physical launch on Friday! #timely!

[stefanscott]

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.

[Grunge_art_collective]

that was really helpful customer service insight. appreciate your videos. Saving us time and money..

[tmengucor]

Money Back Guarantee is very difficult to implement for softwares. Anyway, forcing customers to explain in detail the reason of their request is a very good idea

[samueldhinakar]

Impressive. You are smart in business. Thank you sir🙏🏻❤️

[EstrategaDigital]

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

[FesteTech]

Hello Great Video. How Garantee a service high ticket like a wedding cerimony? Not refund directly the service (it cost too much) but find another solution?

[punit]

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?

[natasadragisic]

Hi! What if your product is an audio file that they download, they can make a copy of the product. What do you suggest?