10.13.22 - On Refunds
My policy: if somebody asks for their money back, we give their money back.
Yes, you can get taken advantage of (screen better on the front end to avoid this).
Yes, you can “legally” avoid refunds through contracts and time-limited policies.
But here’s my take…
You can always get more money and more customers.
What we’re REALLY buying, when investing in ads or marketing = RELATIONSHIPS. Customers are easy to get, relationships are difficult to get and difficult to keep.
I want everyone in my “orbit” to feel protected.
In some of my brands we do services / agency type work and the policies are a bit different. We obviously can’t do all the work, set everything up, then someone use it & hack it to get all their money back.
You can’t buy a car, drive it 10,000 miles then ask for a refund. That’s ridiculous and not what I’m saying.
But in some brands like the Wealthy Consultant, we provide “consulting” and education… for some Wealthy Consultant products there is a $0 COGS and it costs me absolutely nothing to protect a relationship and do what they need in that moment.
Even if what they need isn’t “fair.”
There are nuances and special circumstances to this. But by & large (and you can ask my team, they will confirm) my policy - when someone is not satisfied - is this:
“Sure thing - keep the product, thanks for trying it out, and let us know how we can help.”
Recently, I calculated the amount of refunds I’ve made throughout my career (since 2015). The total amount was over 8-figures. My companies have refunded over 50,000 orders.
Not because the products weren’t good (obviously), but because people are people and sometimes the most important thing to optimize for is not the money but their situation.
Ask yourself this question when making money decisions:
✅ What percentage of my market has GOOD thoughts when they think about my brand?
You want that number to be as high as possible.
Revenue is easy.
Relationship is the goal.
You don’t have to model it, but it’s food for thought.
P.S. If you’re not yet in our free resource group — you’re missing out.
We share everything we’re doing inside this particular business (The Wealthy Consultant) to grow it. If you sell consulting, information or “how-to,” you’ll enjoy this group.
See you inside.
Exactly what I needed to know right now, thanks T!