A few days ago I bought a £47 ebook that promised to talk me through the step-by-step process of making money from affiliate marketing. I already make some money from affiliate marketing so I’m not a complete newbie, but I wanted to up my game and learn from someone with more experience. When the course creator shared a voucher code that would bring the price down to £39, I decided to invest in it.
Unfortunately, I ended up disappointed. After completing it in the space of half an hour I felt like I came away having learned next to nothing. I wanted a refund.
There’s just one problem. As anyone who’s purchased an online course or ebook from a small business owner will know, getting a refund on these digital products is notoriously difficult. Most creators outright refuse to give refunds and are honest about this on the sales page.
This particular ebook creator writes: “Due to the nature of the product being an instant download I cannot offer refunds.”
I thought about emailing her and listing all the reasons I’m unhappy with her product but what will that achieve? Even if she gave me a refund, how would that serve other customers? I don’t want her to give me a refund just to avoid a negative review and then not improve the product.
Eager to turn a negative into a positive and encourage course creators to rethink their approach to returns, let me explain why I’m tired of ‘no refund’ policies.
‘No refund’ policies are the norm but they allow inadequate products to go unchallenged
I want to make it clear that I don’t think a person is an arsehole simply for having a no refund policy on their digital product. I’ve taken dozens of courses in my time (not once have I ever asked for a refund FYI) and most of them had similar rules. It’s become the norm and very few creators are willing to question it.
I think there’s a very real problem with people not completing online courses for whatever reason and then deciding the course was ineffective, but what if the digital product is genuinely shit?
Over on infopreneur Facebook, wannabe educators are often discouraged from embracing compassionate returns policies. “They knew what they signed up for” is a sentence I’m tired of reading.
I spoke to a few friends who’ve created online courses, ebooks or other types of digital products to find out how they feel about giving refunds to unhappy customers.
“How can I give them a refund on something they already have and get to keep?” One friend asked me. I do understand the dilemma. It must be frustrating to pour years worth of knowledge into a digital product only for someone to consume it all and decide they want their money back.
I think there’s a very real problem with people not completing online courses for whatever reason and then deciding the course was ineffective, but what if the digital product is genuinely shit? What if you can’t be arsed finishing it because it’s a waste of your time? What if you know the person who sold it to you didn’t put their all into it and they haven’t provided you with much value?
Should you really sit there and keep your mouth shut just because you read the words ‘no refunds’ before plucking your card from your purse? Presumably, you wouldn’t have signed up for it if you knew it was going to be bad.
In my case, the idea that I get to keep the ebook I’d like to return is an insult. I don’t want to keep it. I would happily delete it from my laptop and never look at it again. It’s of little value to me. Keeping it isn’t doing me a favour.
It is, however, making me really tempted to leave write a bad review on my website to warn others.
When you have a blanket ban on refunds, you need to expect bad reviews
I have a theory that very few people want to leave a small business owner a bad review. But when you deny your customers the right to a refund, you give them very little choice. Of course they’re going to tweet about your shortcomings, warn their friends not to buy from you, or write a scathing blog post calling you a contreprener if you’ve said “Soz! No refunds!” in response to their carefully-worded concerns.
If someone takes the time to privately outline why they’re unsatisfied, it’s worth listening to them.
If bad reviews don’t bother you, that’s cool, but if someone takes the time to privately outline why they’re unsatisfied, it’s worth listening to them. Failing to do so could cause a snowball effect of bad press. When one person speaks out, others may follow!
And chargebacks!
When you refuse a customer a refund, there’s also a chance they might dispute the payment with PayPal, Stripe or whichever method of payment they used to purchase your digital product. This can cost so much time and money that sometimes you’re better off sorting it out yourself from the start.
- lucky for you, the system tends to work in your favour
I honestly believe most customers are too scared/busy/overwhelmed to speak out against those they believe have ripped them off.
Why is it my responsibility to protect this person’s reputation? Why does it feel like there’s pressure to prioritise small business owners selling the courses over the small business owners or individuals buying the courses?
I also think that many online courses are set up in such a way that the customer is painted out to be the problem if they fail. How often do you see influencers and course creators say “if I can do it, so can you!” or “the only person standing between you and success is you!” This can put the responsibility of course completion solely on the customer, even though the course creator should be doing everything they can to help them get results.
I’ve heard from people who’ve requested a refund on an online course only to be told they’ll only get their money back if they’ve attended all webinars, submitted several worksheets, and have proved they’ve put their all into the course. Who can blame people for giving up at this hurdle!
I can guarantee that when this customer fails to submit the required documents and gives up on pursuing the refund, the course creator will assume they’ve achieved some sort of victory. “I sure caught out that lazy so and so!” they’ll say to their friends, unaware that the customer was simply too busy with work and family responsibilities to fill in all the worksheets. Sometimes you can sign up for an online course with the very best intentions and the honest belief you’ll complete it, only for life to get in the way. If the purchase is expensive, this can cause panic, guilt and shame.
In my opinion, this is partly why so many course creators get away with selling substandard products.
In my case, the person who created the ebook in question is another money blogger. We follow each other on Twitter. We’ve spoken on social media on a couple of occasions. We have friends in common. I don’t want to speak ill of this person and steal her bag! But I’ve also given her £39 of my money and don’t believe she has given me £39 of value in return. It’s nothing personal but I don’t like being ripped off either. Why do I have to bite my tongue and ‘be kind’? Why is it my responsibility to protect this person’s reputation? Why does it feel like there’s pressure to prioritise small business owners selling the courses over the small business owners or individuals buying the courses?
You wouldn’t hesitate to return a £9 book to Waterstones if you’d changed your mind and you can even return audiobooks you’ve already listened to on Audible. Requesting a refund isn’t usually considered a personal attack on the business in question but when it comes to digital products, sending an email to a course creator and saying “is it okay if I get a refund because X, Y, Z?” is more likely to result in your character and morals being questioned in an entrepreneurs’ Facebook group than it is to actually turn into a refund.
If you have a loyal fan base and your product is good, the occasional refund won’t matter
There isn’t much data about digital product refunds but according to easydigitaldownloads.com, around 9% of all completed sales were later refunded. In a blog post praising the benefits of flexible returns policies it says: “In the past, like many other digital product sellers, we tried to save almost every refund request we received. Terrified by the impact it would have on our business and our bottom line, we’d go back and forth with customers attempting to resolve their not-easily-or-quickly-resolved issues. This resulted in unnecessary stress for our team, and our customers were unhappy with the drawn-out process.”
This is why I’m pleading with you to scrap the No Refund policy from your digital product!!! Instead of focusing on the small number of people who ask for a refund, focus on those who don’t. If you have a devoted following who love to support you and happily throw their money at you whenever they get a chance, these are the people you should be devoting your time and attention to.
I spoke to Emilie from Millennial Saves about this. She said: “I have a few digital products including an ebook/workbooks - I’d happily accept redunds. I’ve never had a request but I’m happy to accept because I know the value provided in my products so if someone couldn’t get anything from it, they weren’t the intended audience anyway. I also have a refund policy for coaching clients I have. It’s important to me that customers have control of their money and if I, an educator, cannot educate them, they shouldn’t have to pay for it.”
Instead of focusing on the small number of people who ask for a refund, focus on those who don’t. If you have a devoted following who love to support you and happily throw their money at you whenever they get a chance, these are the people you should be devoting your time and attention to.
Giving a refund could lead to a future sale
While I stand by my argument that most loyal fans would rather avoid confrontation than ask for a refund from someone they respect and admire, if a fan does get in touch, they’re probably not coming to you from a place of anger, judgement or negativity. Perhaps they made an impulse purchase, misread some of your sales info, or realised they can’t really afford it. Maybe it’s Just. Not. For. Them. No matter what their reason, would it not make sense to just give them their money back and save yourself the stress and hassle of sending emails back and forth to get to the bottom of it?
I’m a member of a Facebook group for online course creators and spotted a post from another member which read: “Unfortunately one of the participants has decided the course isn’t for them and would like a refund. Here’s where it get a little sticky… The participant has been a client with our company for about two years and has done many in person courses and private sessions. We’d hate for there to be any loss of friendship. With your experience, would you suggest explaining to them that there is no possibility for a refund at this point? Would you refund them? Or do you have an alternative solution?”
Of course you’d refund them! If a customer has clearly shown that they care about your brand and they regularly spend their money with you, why would you deny them a refund because ONE course isn’t the right fit for them? Approving the refund could lead to further sales and good press in the future.
If someone wants to rip off your digital product, they’ll do that whether you give them a refund or not
One educator I spoke to said: “I guess I just worry that I’ll give someone a refund and they’ll go on to sell what I’ve created with other people.”
I understand this concern but unfortunately, if someone wants to sell your creation for their own financial benefit, they can do this whether you give them a refund or not.
It’s a sad reality that many online courses and ebooks are plagiarised and sold online at a discount. Don’t tarnish your reputation by lumping genuine customers in with the scammers! Have a bit of faith!
There are creative ways to avoid giving everything away for free
If you’re worried you’ll get refund requests, here are a few options to consider:
Drip-feed each module week by week. Instead of granting access to the whole course as soon as a customer signs up, drip-feed the content out. If you set a 30 day refund policy, this means you could set some of the modules to go live after the deadline so that only those who stick around can access them.
Add bonuses once the refund policy has expired. If you’re eager to provide the whole course upfront, you could drip feed bonuses or provide them only to those who complete the course and decide they’re happy with it.
Provide value that can be taken away. This could be monthly webinars, group catch-ups/seminars on Zoom, a Facebook group or a resource library that’s regularly updated. If someone copies all the info from your course before insisting on a refund, at least you can take the stuff above away from them.
At some point during the course, ask them if they’d like to continue. Now, I don’t think this idea is perfect but I think it’s preferential to a blanket ban. If your course is designed so all content is unveiled gradually, you could give participants the option to opt out at an early stage and get their money back. 25% of the way through could be a good place to offer this option, as this should be enough time to work out whether what they’ve signed up for is indeed for them.
To learn more, I found this video from Glenn Allen really helpful:
Use customer refunds as a learning opportunity
Next time a customer asks you for a refund, try to use it as a learning opportunity - even if you’re convinced you’ve done nothing wrong and your product was great value for money.
Regina from Publish Your Thing writes: “If 20 – 30% of the people who invest in a program want their money back […] it is less likely that it’s related to the client and their sense of personal responsibility, and more likely that they can’t understand the value of the program yet, or that they were confused during the buying process, or that the program doesn’t do what it said it would. All of those things are on us as the course creators.”
Here are a couple of options to consider: “I’ll absolutely process that refund for you. Would you mind telling me a bit more about why it’s not for you? Helping people achieve X, Y, Z is something I feel strongly about and your honesty could help me make some improvements that can help other students.”
Or, if the person has already given you a list of reasons they’re unhappy and you think you can rectify it, you could follow in Audible’s footsteps and offer them an incentive to stay. For example, this could be a couple of one-to-one coaching calls or you could offer to create an exclusive tutorial to rectify a particular problem they’re facing.
Hopefully, you’ll get some feedback but if you don’t it’s not the end of the world. Think about how common refunds are in virtually every other industry. It’s only natural that some people will be unhappy with their purchases and perhaps the best thing you can do is have faith in them instead of assuming they’re trying to rip you off.
