Who's ran/owned a product and offered lenghty return periods?

Sonny Forelli

Sonny Forelli

Well-known member
May 8, 2008
2,330
89
48
Liberty City
If so can anyone share any data points regarding whether returns are evenly dispersed, front loaded, or rushed in just before the end?

Talking 60+ days for a full (or better) refund. Non continuity.

I ask because I think I can lucratively market an extended return period but obviously have a bit of chicken/egg scenario with regards to acquisition cost and scaling if on a 90 day return policy that's very lucrative I'm going to see a ton of idiots shoving in on day 85.

(I don't think this is the case, in fact I'd wager the longer the more time for people to forget- but this is purely speculation).

Thanks
 


I have no experience on the matter... BUT, I remember listening to an interview on hardtofindseminars.com about a extremely successful marketer who offered lifetime returns. He basically said straight up that "he's not fucking around!"

Based on that, returns were pretty much non-existent and front-end conversions were higher. Add in the fact that its super cool for the customer, and they just might recommend you to friends for being so awesome.

Kinda the same idea how Zappos.com is so successful. They are awesome with the free-shipping both ways policy, and customers love it and rave everywhere about it.

food for thought
 
I always factor in a potentially high attrition rate when planning (you have to, especially with Clickbank since it's basically a two month, one click refund process).

You're right - usually people DO forget. In my experience, no matter what the product or delivery method, people request refunds the most within the first 7 days and it drops off like a brick after that.

If you can, offer a small barrier for refunds. I'm assuming its a physical product you're shipping? If so, require that they include a printout of their emailed receipt plus any unused/undamaged remaining contents of the order for refund. Just printing something out and boxing something up is enough "trouble" to keep the majority of your refunders from going through the trouble.
 
Garrett said:
I have no experience on the matter... BUT, I remember listening to an interview on hardtofindseminars.com about a extremely successful marketer who offered lifetime returns. He basically said straight up that "he's not fucking around!"

Based on that, returns were pretty much non-existent and front-end conversions were higher. Add in the fact that its super cool for the customer, and they just might recommend you to friends for being so awesome.

Kinda the same idea how Zappos.com is so successful. They are awesome with the free-shipping both ways policy, and customers love it and rave everywhere about it.

food for thought
Click to expand...

I should add that a badass return policy instantly removes any doubt in peoples minds and gives you bulletproof credibility for being legit. Not to mention people might buy more per order due to hitting the right buttons. When I observe my friends and the other non-marketing souls Im forced to see every day buy shit, they always bite because "I have 1 year to return it" or "its got this feature which does this for me! AWESOME!!!!!" quite interesting to watch people justify their purchases hahaha
 
Dare Devil said:
I always factor in a potentially high attrition rate when planning (you have to, especially with Clickbank since it's basically a two month, one click refund process).

You're right - usually people DO forget. In my experience, no matter what the product or delivery method, people request refunds the most within the first 7 days and it drops off like a brick after that.

If you can, offer a small barrier for refunds. I'm assuming its a physical product you're shipping? If so, require that they include a printout of their emailed receipt plus any unused/undamaged remaining contents of the order for refund. Just printing something out and boxing something up is enough "trouble" to keep the majority of your refunders from going through the trouble.
Click to expand...

Good tip- my plan was the barrier as well - that is product shipped back after return auth. obtained via phone/email to customer service with both trying to offer additional products in lieu of money back.
 
I have a 6 month return policy.

Most if not all will happen within the first week to first month. After that it is very uncommon I will get a refund request.

I have tested this and I get less refunds with a longer period.

This is for software that is downloaded.

If you have a physical product, it will be less refunds if you request it returned. I have been thinking of adding physical products instead of downloadable.
 
freakin said:
I have a 6 month return policy.

Most if not all will happen within the first week to first month. After that it is very uncommon I will get a refund request.

I have tested this and I get less refunds with a longer period.

This is for software that is downloaded.

If you have a physical product, it will be less refunds if you request it returned. I have been thinking of adding physical products instead of downloadable.
Click to expand...

great info thank you, yes the product is physical and it will need to be returned after an automated return authorization process is completed on the site (again happy to return anything someone doesn't like- but they'll need to get off their ass and mail it back)
 
Garrett said:
I should add that a badass return policy instantly removes any doubt in peoples minds and gives you bulletproof credibility for being legit. Not to mention people might buy more per order due to hitting the right buttons. When I observe my friends and the other non-marketing souls Im forced to see every day buy shit, they always bite because "I have 1 year to return it" or "its got this feature which does this for me! AWESOME!!!!!" quite interesting to watch people justify their purchases hahaha
Click to expand...

My thoughts exactly.

I have another site where I offer a LIFETIME guarantee. This site has been running for nearly 3 years and the refund rate is totally fine - as good as or better than any I have experienced; at last estimate it was around 2-3%.

Most of the returns come within the first week, then there seems to be another return point around 6-8 weeks, but beyond that returns are VER VERY VERY rare.

Don't worry about the extra returns. What happens is (according to an old Dan Kennedy tape I have) that offering an outrageous guarantee, like a lifetime guarantee and really hamming up the reasons why you could get a refund will increase refund rates marginally, but will increase conversion rates by much much more.

I think this works especially well if it is a higher price product, a hard sell, a weird product, a totally new product with no real exact competition, or just something totally new to that person - it converts people who are on the edge, unsure, skeptical - they have no risk, nothing to lose.

My guarantee is a mini sales pitch in disguise :) and I think another Dan Kennedy story is that the "best guarantee text" ever was from a cosmetics face cream company who said something like "If your friends don't think you've had a face lift" we will send your money back - apparantly that had a really positive effect on conversions and did little difference to actual refund rates.

Dan
 
Most people who profit from big guarantee are selling something legit or have a fair price.

If rebill guys who sold shit at $150 put in a lifetime guarantee...
 
submp3s said:
My thoughts exactly.

I have another site where I offer a LIFETIME guarantee. This site has been running for nearly 3 years and the refund rate is totally fine - as good as or better than any I have experienced; at last estimate it was around 2-3%.

Most of the returns come within the first week, then there seems to be another return point around 6-8 weeks, but beyond that returns are VER VERY VERY rare.

Don't worry about the extra returns. What happens is (according to an old Dan Kennedy tape I have) that offering an outrageous guarantee, like a lifetime guarantee and really hamming up the reasons why you could get a refund will increase refund rates marginally, but will increase conversion rates by much much more.

I think this works especially well if it is a higher price product, a hard sell, a weird product, a totally new product with no real exact competition, or just something totally new to that person - it converts people who are on the edge, unsure, skeptical - they have no risk, nothing to lose.

My guarantee is a mini sales pitch in disguise :) and I think another Dan Kennedy story is that the "best guarantee text" ever was from a cosmetics face cream company who said something like "If your friends don't think you've had a face lift" we will send your money back - apparantly that had a really positive effect on conversions and did little difference to actual refund rates.

Dan
Click to expand...
awesome, thanks very much. Tim Ferris notes the same in the 4 hour workweek. That is- slight increase in returns, however exponentially greater surge in conversion/volume which more than makes up for it.

I'll move forward with a very aggressive guarantee.
 
My last products came with a 5 year warranty as it involved aluminium and moving parts. We had a warranty professionally written up, that specified the following:

"Acts of Nature such as wind/fire/water etc that damage are not covered by warranty"

Only manufacturing defaults were covered, and if there was one it was usually found within the first 24 hours of owning the product.

99% of the problems that arose were from outside elements, so we just carried heaps of spares and sold them at very reasonable prices.

We originally had a 12 month warranty, but our biggest competitor offered 5years, and we were definitely losing business because of it.

A warranty is not a guarantee though, and we had a 20% restocking fee on all "changed my mind" refunds.
 
Sonny Forelli said:
awesome, thanks very much. Tim Ferris notes the same in the 4 hour workweek. That is- slight increase in returns, however exponentially greater surge in conversion/volume which more than makes up for it.
Click to expand...

PWN those mom & pop shops with your savvy ways!

At this point in my life, I really believe he who markets the best (i.e. smartest relationship guy) WINS in the end.

I was just thinking the other day how ... if I wanted to build a list in some market... why not go out of pocket and do something NO-ONE does for the entry subscribers? Like maybe buy and ship them something that rules - something that they would find useful, like a book or a special cream they need to feel better about themselves (non-rebill of course, the REAL shit).

I can only imagine what that would do for loyalty, links, word-of-mouth marketing. Sure, you go out of pocket initially, but you have buyer for life out of it.
 
You must log in or register to reply here.
Top Bottom