IT and Business Insights for SMB Solution Providers

Rethinking My Money Back Guarantee

Since day one, I've had a simple money-back guarantee. I want my customers to be happy. I want them to come back again and again.

But now I need to put some limits on that, and I need your feedback.

My no-questions-asked guarantee was based on two things:

1) I always try to give more value than the cost of the product/service.

2) I assume buyers are good, honest people who are sincerely trying to improve their businesses.

I also try to make sure that people don't feel ripped off when I release a new product. When I release a new edition of a book, I give the new edition to people for free if they bought the old edition within the last several months. In other words, I do business the way I would want to be treated.

Every once in awhile, someone will contact me and say that a product is too simple or too advanced for them. Generally, these folks have purchased a book or a class. And of course I am happy to refund their money.

But on rare occasions I have someone who just plain wants to rip me off. This normally takes a simple form: They buy a huge bundle, log on, download everything, and immediately ask for a refund. This all takes place within an hour and involves over 1,000 pages of downloads.

In my opinion, these people are just plain thieves. They clearly see value in the products but have not had the time to evaluate or implement anything.

Recently, I had someone request a refund after five months. They took two classes, downloaded thousands of pages of downloads, and then waited five months and asked for their money back. This is probably someone who is failing at their business and has not implemented any advice. So the good news (if there is any) is that they are not able to get value from the materials. In that sense, a refund is legitimate, if not timely.

This is particularly irritating for me because I've already paid taxes on this sale from last year.

You may have heard that LL Bean had to rethink their return policy because people abused it. Well, in the last year I have felt very abused. I don't think my products have gone down hill. But abusive returns have certainly gone up.

What Do You Think?

I really want to be fair. But what's fair? I don't want to create a complicated set of rules. I really do want to allow refunds where people simply don't find value in my products. But I have been ripped off several times in the last month - to the tune of several thousand dollars.

Maybe I should feel grateful that my material is worth stealing. :-)

Here are some things I am considering:

1) All returns must be within _____30_____ days of purchase.

2) Physical books must be returned in good, resellable condition. Buyer pays for return shipping.

3) Once the downloadable content of a product has been downloaded, the merchandise is not returnable.

4) Online classes are refundable until the last day of class.

As always, I appreciate your feedback.

Thank you for your support!



About the Author

Karl W. Palachuk, is a technology consultant, author, speaker, trainer, and coach. He is the author of fifteen books. He has built several successful businesses, including two managed services companies. His books include Managed Services in a Month and The Network Documentation Workbook. Karl is a frequent trainer and speaker in the SMB Community. His popular blog can be found at He has more than twenty years experience as an I.T. professional and serves on advisory panels for several hardware and software companies.

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