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Can I totally disallow refunds

by presi
22 replies
What if I do not want to entertain any refund and make all sales final. Sometimes it may so happen that the value of the product is significant enough to allow refunds. For example, if am selling an analytics software, in this case a refund just can't be issued cause the software once purchased will remain with the client for as long as he wants. Its quite typical for offline marketing too, like customers cannot ask for a refund once they have purchased a television.

check this out for instance(its not any affiliate link or something): List Building Black Ops - How to Build a Profit-Pumping List of Super Subscribers in Record Time — Michael Cheney
he's offering no refunds. But what if customers initiate a chargeback? am a bit confused
#disallow #refunds #totally
  • Profile picture of the author kursat
    If you put that the product is not refundable - than you do not need to offer any refunds. But the client needs to know that before ordering...
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    • Profile picture of the author Asadullah72
      Originally Posted by kursat View Post

      If you put that the product is not refundable - than you do not need to offer any refunds. But the client needs to know that before ordering...
      100% true...
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  • Profile picture of the author Raydal
    Of course. Just make that a condition for ordering. Just keep in mind
    that your conversion is LIKELY to drop and you may still get chargebacks.

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  • Profile picture of the author Jan Brzeski
    You can, but I wouldn't recommend it.

    Make sure your product is of high quality and you won't get many refunds at all.

    Cheers,
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  • Profile picture of the author art72
    I am a firm believer people will refund even if the product is superb, as freebie seekers do it all the time with digital products.

    But, I also believe; if you have a quality product your refunds will be significantly lower, and offering a No-hassle Money-Back Guarantee will likely fetch more conversions, as that reassurance goes a long way with honest buyers.

    I would absorb the refunds, and concentrate on delivering a quality product with a guarantee. If your refunds get higher than 5% or higher...I'd concentrate on the feedback of the customer, and fix the problem.
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    • Profile picture of the author presi
      Originally Posted by art72 View Post

      I am a firm believer people will refund even if the product is superb, as freebie seekers do it all the time with digital products.

      But, I also believe; if you have a quality product your refunds will be significantly lower, and offering a No-hassle Money-Back Guarantee will likely fetch more conversions, as that reassurance goes a long way with honest buyers.

      I would absorb the refunds, and concentrate on delivering a quality product with a guarantee. If your refunds get higher than 5% or higher...I'd concentrate on the feedback of the customer, and fix the problem.
      thanks art72, very useful. Now I have a number to work with(that 5% refund rate is not too far off the ballpark, is comforting)
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  • Profile picture of the author Gambino
    I don't really see the big deal with offering refunds if you stand behind your product. The lost sales by not offering a refund will likely be more than the amount you refund if you have a solid product. Especially if your customers have no idea who you are.

    We sell physical products, with a 90 day money back return policy, and have had 1 return in over 2 years now.
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  • Profile picture of the author Randall Magwood
    Just let them know that you don't offer refunds. And make sure they know this before they purchase. So you have to make it very clear to them. But this *may* decrease sales just so you know. It *may*.
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  • Profile picture of the author quadagon
    You have to check the consumer law where you are trading. Here in the UK there are statutory rights which guarantees refunds in a set amount of time for various reasons.
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  • Profile picture of the author allegandro
    I would never buy a product without refund possibilities.

    I see it like this, if you offer a refund, it means you really have great trust in your product.
    Because you have it and you offer that refund possibility, more people will buy it.

    And sure some people will ask for a refund, but still your income will be higher than offering no refund, because less people will buy it.

    Another option could be, give them a free trial period.
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    • Profile picture of the author presi
      Originally Posted by Gambino View Post

      The lost sales by not offering a refund will likely be more than the amount you refund if you have a solid product. Especially if your customers have no idea who you are.
      Originally Posted by allegandro View Post

      I see it like this, if you offer a refund, it means you really have great trust in your product.
      Thanks Gambino, allegandro
      Am a newbie and its my first promotion(in IM)...maybe building trust is more vital than anything else, at this stage
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  • Profile picture of the author David Beroff
    Originally Posted by presi View Post

    For example, if am selling an analytics software, in this case a refund just can't be issued cause the software once purchased will remain with the client for as long as he wants.
    Allow all the refunds they want, but when they do, simply disable that particular license, so the software becomes useless. Seems fair.
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    • Profile picture of the author presi
      Originally Posted by David Beroff View Post

      Allow all the refunds they want, but when they do, simply disable that particular license, so the software becomes useless. Seems fair.
      thanks david,
      while this works well with cloud-based-apps, is not doable for apps more apt to run locally at the client's machine.
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      • Profile picture of the author Sid Hale
        Originally Posted by presi View Post

        thanks david,
        while this works well with cloud-based-apps, is not doable for apps more apt to run locally at the client's machine.
        Of course it does...

        Even desktop apps can access the internet to verify a valid license and be disabled in the absence of same.

        Software (whether web-based, desktop, or mobile app) are ideally suited for license registration and can be verified online as long as the client machine has internet access.

        How do you think Microsoft, Apple or Google determine whether you need a given patch release installed?
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        • Profile picture of the author presi
          Originally Posted by Sid Hale View Post

          Of course it does...

          Even desktop apps can access the internet to verify a valid license and be disabled in the absence of same.
          but such schemes are too easy to circumvent. for instance, once i found my app being used unlicensed where the client had used his firewall to block communication to my servers.

          Anyways, am free of such concerns nowadays cause with the advent of cloud apps, it becomes impossible to abuse. And 90% of my apps reside in the cloud now.

          IM is kind of different in it that freebie seekers still have their way. But I see the industry going in the "cloud direction" somewhat and things might get harder for them in IM too.
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  • Profile picture of the author superowid
    Provide demo version with limited feature and time. Then provide a button to buy a license for full version. All software are sold this way.
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  • Profile picture of the author LesterRussell
    Refunds are part and parcel of a digital product. Unless you have a demo or trial session available, a refund is how you can give assurance to your buyer that your product delivers what is promised.

    But if you are looking to avoid meeting freebie seekers by removing refunds, its going to be a hard battle because they will find every and any loophole available to get a freebie if they are really determined.
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    • Profile picture of the author JohnMcCabe
      Here's a couple of quick questions which should help you...

      1. Which would you rather have, refunds or chargebacks?

      2. What is the opportunity cost to you to spend the time you already have worrying about a handful of freebie-hunting cheats?

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      • Profile picture of the author presi
        Originally Posted by JohnMcCabe View Post

        Here's a couple of quick questions which should help you...

        1. Which would you rather have, refunds or chargebacks?

        2. What is the opportunity cost to you to spend the time you already have worrying about a handful of freebie-hunting cheats?
        wow..neat thinking
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  • Profile picture of the author Aussie_Al
    Pretty sure Matt Furey does not offer refunds on any of his products

    And it has definitely not hurt his sales
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    • Profile picture of the author JohnMcCabe
      Originally Posted by Aussie_Al View Post

      Pretty sure Matt Furey does not offer refunds on any of his products

      And it has definitely not hurt his sales
      How do you know this?

      Have you seen side-by-side accounting for both approaches?

      Furey sells a lot, but you have no idea whether or not he would have sold even more by offering refunds?
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  • Profile picture of the author 64wegrow
    Do you have your own merchant account or are you using some other sort of payment gateway?

    If you are utilizing another companies services, than I am sure they will have a vested interest in what type of return/refund policy you are offering. I don't think many payment processors would like their vendors not allowing ANY sort of return for whatever reason.

    As a follow up to the above, offering at the very least some sort of assurance of quality/value will go a long long way...for your potential buyers and also whichever third party payment processing company you are using.
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