Thread by @ronaldnzimora

So this lady attended a class I put on in 2012, last year I get a call from some number I didn't recognize. It's her. She says she never got any value from that event in 2012 and would like to ask for a refund since I gave a money-back guarantee.

I asked for her account details

and had my staff send the money back to her.

The guarantee period had passed. But it didn't matte. What matters is if she got no value from it then she deserved her no back, past guarantee period or not. She could buy something else from us tomorrow, and my reputation stays...

squeaky clean. In today's world of the internet, all it takes is for someone to call you a SCAMMER, and a Google search of your name pouts that link right at the top of the search results.

You want to avoid things like this.

But this does not mean you should do refunds just...

because someone asked.

We refunded because it's was a course, it cost us almost zero to produce it, and hey, my mentor taught me to always give a my money-back-guarantee for anything I sell and to honour each one whenever asked. to.

Why should you give money-back-guaranteees?

It makes business sense. Buying is a risk, for the buyer, especially if they met you and your business online,moreso if the business is conducted without face to face interaction.

A money-back-guarantee takes the risk away from the buyer and puts it on the seller. Why is this...

important? Because it makes the buyer feel safer. It gives them more confidence to purchase. After all, if the service is below par as advertised, they can request their monies back.

But even more importantly, it gives you the seller a responsible mindset. It makes you extremely

careful about the validity and authenticity of what you promote. You will focus on creating stellar products and services because you know if they're shit,your buyers will call in their money-back-guarantees.

So it's a win for the buyer and a win for seller too and for business.

So why don;t sellers like giving money-back-guarantees?

1. Many of them know their products are shit and if they give one they will be called on it.

If this is you, STOP. You are scum is you sell something to someone you know is bad.

2. Many of them don't understand it

They think people will abuse money-back-guarantees.

It's not so, at least in my experience and I have been actively selling everyday for 10 years now.

If you have people abusing your-money-back-guarantee,its because you're either:

i. Attracting the worst kind of prospects

or

ii. You're offering the wrong kid of money back guarantees.

Let's start with (i).

Your job as a business owners is to always seek out the best prospects for your product or service.

Don't try to sell to EVERYBODY. Otherwise, you will attract time wasters and tire-kickers.

Also,don't target the bottom feeder,unless of course the bottom feeders are your target market.

Its time wasters, tire-kickers and bottom-feeders if they do buy who will abuse money-back-guarantees.

You must sieve prospects as you collect leads from advertising or social media

Then when you have the leads (interested prospects), you must PRE-QUALIFY THEM, before you pitch your product or service.

When you do this, you'll find you will be left with the best bunch of prospects. Now your concern is simply to see if they are a good fit for your offer.

On to (ii)

Second reason why your money-back-guarantees may be abused is if you're giving the wrong kind.

Different money-back-guarantees work for different kinds of services. I will use examples to illustrate.

A. If you are selling a course, where all the target market needs

is to consume information, for example, an e-book on, "How To Cut Your Air Travel Fares by 60% Each Year" you can give then an UNCONDITIONAL LIFETIME GUARANTEE. This means that it no matter how long it takes, even if they wake up 50 years later and ask for a refund they get it...

, no questions asked.

Why can you give this kind of guarantee? Because it's simply consumable info. People aren't necessarily going to use it or bother so much if it doesn't work brick-by-brick as outlined.

An unconditional money back guarantee sets them at least, and because.

its lifetime, they believe they have all the time in the world to read it,and most times, they won't. You know why? Because they bought out of curiosity and buying has scratched that itch,and its on to the next thing. All of us are like this. I have stuff I bought I havent opened

B. If you're selling an instructional course, one which requires that people actually follow step-by-step and IMPLEMENT to get a RESULT they sorely need, you offer them a CONDITIONAL, TIME-LIMITED money-back-guarantee.

Where's what that means.

So say you are selling a FOREX...

Trading Course. To get the result they want, your have to follow and actually do the work,right?

Well guess what? Most of them will not. Why? Is it because they do not want the results. Sure they want the result, but the default human state is laziness.

Following through on...

instructional step-by-step based courses is work,so many will buy it and do nothing, then one day when they decide they'll never "have the time" to go through it and implement,they will decide to ask for a refund so the money they paid for it isn't a waste.

So here's how this...

type of guarantee works.

It is CONDITIONAL,which mean that to get a refund they have to show you they have done a minimum amount of implementation. You should determine what this minimum is. So say I create a course on "How To Start Your Own Cleaning Business",my minimum can be

you should have at least registered your business name, have call cards, and bought some equipment.

Which means that you actually started, my methods just weren't enough to get you going steady.

It's also TIME-BASED because like I said, humans are lazy. You want to make sure...

they actually as fast as possible,because when they buy the course, they are excited, and hot and very hopeful. The longer time passes, they more their enthusiasm erodes, and motivation to actually do anything seeps away, so you want to make sure the guarantee is time bound to...

force them to act. So I'll say,"if you buy this course,and within the next 60 days,you actually start,register your business,print some cards and buy some equipment, and you don't land even one job within 90 days of using my methods,I will refund you every penny you spent on it."

C. If you are selling a PHYSICAL PRODUCT, you should give just a TIME BOUND money-back guarantee, contingent on your product not working as advertised, and excluding personal damage by the buyer.

So for example, I sell light bulbs, I'll say, "But these bulbs, and if they stop...

working anytime within the next 30 days, and it wasn't caused by an electric surge or tampering, I will give you our money back."

There's a twist to this also, where you add a CONDITION to it.

"If you buy our Rose Scented Shea Butter and it does not fade your ugly wrinkles...

within the next 30 days, just return the jar with whatever is left inside it, and I will refund you DOUBLE your money back, call you to apologize for wasting your time. That's how confident I am in our Shea butter, so much so I am willing put the risk on me".

See how that works?

D. If you are selling a service, your money-back-guarantee should be limited to scope of work and implementation.

Say you're a cleaning company, you say: "If we clean your house, and the next day, you find one spot anywhere we forgot to clean, call us back and we will refund 50%

, if you find two spots, we will refund every single penny you paid. We pride ourselves in our work and are willing to out the risk that you may be dissatisfied on ourselves."

Say you're a social media person, DO NOT GUARANTEE numbers. Do not say "I will get you so and so...

number of followers." How can you guarantee that? You cannot control things like that. Do not put guarantees on things you cannot control.

Simply guarantee that you will do your best work,give milestones for implementation & guarantee a refund if you dont meet those milestones.

So guarantees do work, if you know how to use them in your marketing and your sales pitches.

I hoped you've learned something from this thread.

There's more where that came from, I promise you.

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A Happy Sunday to you.

Peace!