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Loyalty-Builders Help Lower Your Refund Rates Drastically - And Your Boost Profits!

Aug 23, 2007
A bugbear for infopreneurs is refunds. While it is thrilling to receive notifications about making sales, the joy is tempered by a nagging fear that the buyer may seek a refund.

How can you avoid refunds? What can you do to take extra special care of your buyers, so they are not tempted to return their purchases? And even if a refund does happen, how to turn it into continuing income streams over the long term? We'll look at these issues, and discuss the 3 loyalty-builders that will lower your refund rate drastically.

Take Away All Risk By Giving Longer Guarantees. A powerful guarantee can EXPLODE sales... but also carries the risk of a higher refund rate. The 'flexibility' and force of your risk reversal is in direct proportion to your refund rate. Let's say your guarantee states:

"Buy this. Test if for 5 days. If you completely read the ebook, put the lessons to use, but don't see results, simply email us with proof that you read the book, and send us a link to the website you built using the information - and we'll return your money after 30 days". This is a 'conditional' guarantee. A buyer must first read your ebook, take action, show proof - and then will get refunded 30 days later.

Your refund rate will likely be very low with such a guarantee... but so will your sales. On the other hand, if your guarantee states:

"Buy this. Take a look. If you don't like it - for any reason at all - let us know and we'll return your money... no questions asked!"

This kind of guarantee can triple your sales - and even if it doubles your current refund rate, you will still make more in profit than before!

Faithfully Represent Your Product To Minimize Buyer Remorse. If your sales letter 'pitches' your product or service with a lot of hyperbole and exaggeration, using emotionally laden power copy simply to 'close' more sales... your refund rate will be greater.

On the other hand, a reasonably presented, carefully thought out, clearly denominated sales promise that your product can deliver to most prospects will naturally lower your refund rate to the bare minimum. They may still happen - but for extraneous reasons.

Make Your Offer Irresistible - And Better. There's powerful psychology involved in huge promotions. Everyone wants to be a part of the crowd, to hop on a bandwagon, to avoid being 'left out'. So they buy.

Knowing, understanding and empathizing with this emotional angle in the buying process is critical to handling such feelings, and overcoming 'buyers' remorse'. You can take a lesson from offline businesses, and send out a 'stick letter'... a short letter thanking the customer for buying, explaining that the order has shipped and giving an estimated time for delivery. But it doesn't stop there.

The letter goes on to talk about the purchase just made. To explain why the decision was a good one. To paint a picture of how the future will be with the product or service the buyer will use. The goal is to once again make the buyer feel upbeat about the investment s/he just made.

It goes on to reinforce the guarantee, the risk-free nature of the transaction, and reassuring a buyer about your support through the period of use. As an information marketer online, you simply have no excuse to NOT use such a process. A simple email, even set up in your autoresponder sequence, can go out to every buyer within 24 hours of purchase, explaining all these things.

By implementing these 3 simple steps into your online selling process, you will be able to eliminate most, if not all, refund requests - assuming that your product is of good quality and the sales letter represents it realistically.
About the Author
Internet infopreneur Gowri Cumba has built many profitable online information resources, and shares powerful tips to help you also build wealth from information resources on the "Internet Infopreneur Tips" blog. Read more infopreneur articles or register for the free ezine - infopre-tips@aweber.com
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