If you aren’t offering a killer guarantee for your products and services, you are leaving a fortune on the table. Here’s a classic example of what NOT to do when you are confronted with an unsatisfied customer wanting a refund.

A friend of mine who trades the stock market recently ordered an eBook from a well known marketer to check out what he was offering. Now this eBook cost her $99, so it wasn’t cheap. She read through the sales letter, and prominently displayed is his guarantee – here’s exactly what it says…

12 Month Money Back Guarantee!

10 TIMES your investment in Profits, or a 100% Refund!

We give you an IRON CLAD Money Back Guarantee – If you purchase these amazing strategies and for some reason you don’t make more than 10 times your investment of $99 back in profits, we will refund the purchase price in full!

That’s right – Make 1000% on your initial investment, or we’ll give you a 100% refund!

How can we possibly do this? Well, we know these strategies work. We know you can make them work for you (once you know them). There is only one condition – that you put them into action the way we teach you and follow our rules – if you do that we are certain you can make lots of money.

You’d think that your purchase was risk free, right? After all, it says it’s got an Iron Clad Money Back Guarantee, OK?


I won’t go into all the gory details, but let’s just say that she was very disappointed with the content of the book – it was reasonably well written, but contained nothing in the way of new information that she hadn’t read in half a dozen other entry level books on stock trading. Plus it had a LOT of filler and fluff in it’s 60 pages. In fact, it looked like the typical eBook written by a ghostwriter for a few hundred dollars – the type that is given away these days to generate leads

According to my friend, the book contained just enough information for beginner traders to get themselves into a lot of trouble trading the stock market. After reading the book, she was dismayed that she had paid so much for what was obviously nothing more that one stock trading strategy, sort-of half way explained, a couple of Camtasia videos and a lot of filler material.

She certainly didn’t think it was value for money at $99.

Now the main product this guy offers is a trading alert service that tells subscribers every time he takes a trade so they can follow along with their own money in real time if they choose to. The top level alert service costs $125 per month ($1500 per year), and the other thing that annoyed my friend was the only way you could access this service was if you had previously purchased this overpriced ebook.

The goal of the eBook is to obviously give people enough information to come to the conclusion that they need the monthly service if they want to trade the market profitably. Great idea for generating leads, if it works and delivers some useful information. But it didn’t and by now she’s thinking, nah, this one’s not for me, so she sent a short email asking for a refund, saying that the book was not for her, and thought nothing more of it.

Imagine my friend’s surprise when she received this email back shortly afterwards –

Sorry, but currently you don’t qualify for a refund. You have to show us that you tried the system by taking actual trades in the market and it didn’t work for you.

This is clearly spelled out in our Guarantee Policy on the website.



My friend thought about it, re-read the guarantee, which obviously does not comply with FTC guidelines, and fired off another email explaining in detail what she thought of the book and demanding a refund. She received a reply a short time later from the head trader himself (I’m wondering if that is really the best use of this guys time?) giving her the third degree, accusing her of ripping him off, and carrying on with all sorts of other ramblings about her needing a mindset change, having lack mentality, etc.

Well she told me what he wrote, you could have knocked her over with a feather…

Bottom Line: To get her $99 back, my friend has to risk thousands of dollars of her capital to the vagaries of the stock market based on the limited amount of basic information in the book, and test the strategy an unknown and unspecified number of times to qualify.

There are lots of things that can potentially go very expensively wrong in the stock market – bad fills from the Broker, making mistakes in the order, market crashes, company specific problems, and all sorts of unknown risks.

Testing the strategies could quite possibly have cost my friend several thousand dollars…to get a refund on a $99 ebook. Yeah right!

Now come in closely here and listen up, because this is important.

Most business owners are too afraid to offer a ‘real’ guarantee, a guarantee that removes the risk from the buyer and puts it all on them! I see this all the time. Great offers or guarantees ruined by cheesy weasel out clauses.

You’ve got to get this right. Either offer a great guarantee or don’t. Stand by your product, or don’t.

And if you can’t offer a killer guarantee on the products you’re selling now, stop selling junk and start offering your customers products that you can offer a great guarantee on. The goodwill you’ll destroy by making a weak non-guarantee like the one above will cripple your business.

So create a guarantee that removes the ALL risk from the buyer and puts it on to you instead. Make it so that anyone who buys from you can rest assured that if they don’t feel that you’ve over-delivered for any reason, they’ll get a full refund. No ifs, no buts. Just give them their money back if they aren’t delighted.

Then if people ask for a refund, make sure you give it to them immediately. If your products deliver, then this doesn’t happen very often, but it’s simply a cost of doing business!

Factor it into your pricing and get over it!

And by giving a hassle-free refund on a product that isn’t suitable to that person, you’ll leave the door open for the relationship to continue so that you can offer them something else many times in the future. You can even upsell or cross-sell them to something else right on the spot if you want to.

The main thing is to keep your customer happy, so you can continue the relationship with them in the future. They’ll continue to buy from you, and often bring their friends with them. Having a great guarantee policy can be one of the things that sets you apart from all of your competitors. Make sure you use this to your advantage

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