One of the biggest reasons why people might not be buying your online course is because of the risk. Many people are wary of paying for something online and, for things like online courses, it’s hard to tell if they’ll benefit from it until they pay up. By offering a money-back guarantee you reduce the risk for your customers and make it a no-brainer to buy your course.
Today, on Teach Online TV, we talk a bit more about how money-back guarantees work along with some case studies.
So the biggest concern course creators have with offering money-back guarantees is that people will abuse it and get refunds after completing the course. On the contrary, I actually find that money-back guarantees work exceptionally well and people very rarely actually cash in on them, especially if you’re providing some real value to them.
One of the reasons to do a money-back guarantee is it actually removes the risk when someone is considering purchasing your product. From their point of view, the biggest risk they have is that they pay money upfront but they don’t get what they expect back for it.
So when you offer a money back guarantee on your course or on your product, you’re taking on that risk, and it makes it that much easier for them to purchase your product. Plus as I said, very few people actually exercise money back guarantees and, if they do, it’s often very much upset by the additional conversions that you get by offering a money-back guarantee.
Now for a few specifics around doing this. Some people do a no questions asked money back guarantee. That works quite well. You can also add a bit of fine print where you make sure that people have actually completed the course or done the homework or gone through the exercises before they can get their money back.
Another really interesting one that I love is Ramit Sethi who does an 110% money back guarantee. Now Ramit’s course is about making sure that you’re going to earn some additional income by building a new business. If you don’t achieve that goal, then he actually gives you an 110% back guarantee! It’s a really uniquely way of going about it but I’m sure it helps drive his conversion rates up and completely removes that perception of risk because people are guaranteed a return on their investment even if they fail.
So I definitely recommend you trying out the money back guarantee to see what kind of an effect it has on your conversion rates. You have nothing to lose other than a couple of refunds and then you can always turn it off if it doesn’t work for you.
From what I’ve seen, money back guarantees work exceptionally well and your customers appreciate it because it addresses their concerns about paying for your product. And when they start to see value out of it, they feel even more comfortable with you as a someone that they want to work with and trust.
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