You stumbled on a sales video, which started off with a frustrating or painful problem. You can relate to the problem so you became convinced to solve it. As it turns out, you need to watch the whole presentation to know the solution that will eliminate the problem once and for all.
And so the company introduced the product. As you learn every feature and detail one-by-one, you discover how amazing it must be to have the product right now.
30 minutes after, you’re fired up and wanted to buy the product. As the video offers how much it costs, they flashed something that placed the nail in the coffin:
A “no questions asked”, 30-day money-back guarantee that comes with a bonus.
You immediately took the offer, believing it’s the best product out there. You knew that if you’re not satisfied, you can always return it and get your money back.
But wait, hold on!
Before you hit that buy button, I’ll first give you tips on how money back guarantees work. Please listen as what I’m going to say is important if you truly want to make the most out of your money.
The truth is, not all guarantees work and there’s a risk of you getting scammed. So read this guide first and you’ll be happy you did so.
How Money Back Guarantee Affects Buying
MBG is a strategy that has existed for centuries which dates back to the 18th century (according to Wikipedia). In fact it’s so effective that it continues to be used as of this moment.
As a buyer, you are given the option to return the product or cancel the service if it’s not working for you. It’s a neat method, and it definitely reduces the risk and eliminates the barrier between the consumer and producer.
Money back guarantee also signals to buyers that a product has greater value than those that don’t have one. But as you’ll see later, that is not always the case.
If you combine low risk and higher perceived value, what do you get? A large audience of loyal customers whom you’ve built trust with. If you leverage MBGs effectively, you can build a raving fan base willing to pull out their credit cards every time you sell something to them.
Unfortunately, truly awesome businesses are hard to find nowadays.
Questions to Ask Before Buying Guaranteed Products
Whether you buy offline or online, it’s inevitable that you’ll meet total strangers along the way. Competition is tough, so sellers and companies market their products/services in every way possible just to get your money.
But when you encounter someone trying to offer a 30, 60, or even 90 day guarantee with special bonuses, don’t give in to their promises yet until you answer these questions:
1. Is the business capable of returning your money? Go ahead, investigate and learn more about the seller before agreeing to buy their products. Once you know a lot, make a decision using your gut feeling. If you feel something’s not right, listen to that and pass on the offer.
2. Where do you ask for a refund online? A lot of transactions are made online, which are normally done through websites or payment platforms like Amazon or ClickBank. Surely, you can feel secure if you pay through these authoritative sites and ask for refund. But what if you’re unfamiliar of the website? Then you have to learn the refund procedure first.
3. Are their promises realistic? I remember discovering a “make money online” product claiming to generate you $1,000+ in a week. Here’s the funny part, if they find out that you don’t reach that target, the company is willing to give you $1,000 right from their pockets! What an outrageous and daring act, isn’t it?
4. What kind of product or service are you buying? Use your common sense. Some companies require you to exert a lot of effort and time just to ask for a refund. And yes, they do take advantage of this sometimes. Unless you can handle the process, I’d recommend you refuse the offer and find something more convenient.
How to Avoid Costly Mistakes with Your Money
I just gave you guide questions on how to handle advertisements and sales pitches proudly boasting their money back guarantee. But to really prevent yourself from making huge mistakes, here are additional tips to ensure 100% protection for your money.
1. Stay away from expensive offers. If you stumble on a company you don’t know and they ask you money by the hundreds ($100 or more), then be more careful. Even if they have a 30-day guarantee, it’s very unlikely that they’ll return your money especially if the website looks shady. You might wait an eternity before you get your cash as they’re going to make the refund process longer than usual.
2. Study the company’s reputation and track record. Look for social proof from niche forums and authoritative blogs to see if the company is trustworthy or not. A lack of information normally means less online presence and credibility. So do your due diligence and act on what you’ve learned.
3. Read the policies concerning guarantees and refunds. A lot of people fall prey for the fine print as a result of not reading the terms and conditions of the company. So from now on, I want you to read the refund policies especially if you’re taking on a huge purchase.
4. Test the customer support and observe how they respond. Go to the contact page and ask anything. From there, determine how fast they respond to your queries. If they have no reply within 24 to 48 hours, or if their message looks unprofessional, then you have the right to speculate their products and services.
What’s Better than a Money Back Guarantee? A FREE Trial
If I have to give an honest opinion on money back guarantees, I’d say they are awesome marketing tools, especially if the company that sets them provides high quality products. It helps businesses generate more sales and build a huge customer base.
But if I would suggest a better pricing model, I recommend a free trial on the product.
Free tools and services allow you to take a glimpse of the value a business provides and signals more confidence on what the seller is offering.
If by chance you’re a business owner or someone who wants to start an online business, I would recommend this platform to receive high quality training and tools. It has a free trial with no time limit, so it won’t hurt to create an account because you don’t need a credit card to get started.
What do you think of money-back guarantee? Do they really work on your part? Come share your thoughts and opinions in the comments section.