Why Offering a Money-Back Guarantee Will Make You More Money
Every sale you make is a small victory, particularly in the beginning, so the idea of giving that hard-earned money back may seem crazy. You already made the sale and put the money in the bank. Why give it back? What do you have to gain? The answer is simple: more sales. And who doesn't want that? If you're not convinced, let's examine some of the myths and realities about offering a money-back guarantee.
Myth: People will take advantage of the offer to get a free product.
What's to keep someone from reading the entire thing and then returning an unusable copy back to you with its spine cracked, page corners folded, and a few unidentified food stains? Yes, it's a legitimate concern, but I can tell you from my experience and the experience of other self-published authors I know that only a very, very small percentage of people will actually take advantage of the guarantee. Most people understand you are trying to make a living and respect that. If you delivered the goods in your writing, they'll want to keep it!
Myth: You shouldn't offer a money-back guarantee on an eBook.
Surely you don't want to offer a full refund on a virtual book, since there's no physical product to give back. They can just take the book and run, so to speak. But just like with print copies, you'll find that a very small percentage actually request a refund. Over the years, I have suspected a few people of taking advantage of the offer, but overwhelmingly, returns are legitimate: people who had problems downloading the file, accidentally purchased two books, or got something entirely different than they were expecting. Those that are taking advantage? Well, they probably wouldn't have spent money on it in the first place, but instead they are being exposed to your writing. Who knows? Maybe they'll become a fan and consider actually purchasing the next book. All you've lost is the time it took to process the refund.
Reality: You'll remove their fear that they will waste money.
When you start, you're a unknown commodity, and even if you're a more seasoned self-published writer, most of the people you run into won't be familiar with your work. It's natural for people to be concerned to make the purchase. How do they know they'll enjoy your work? But you know they will, and you're letting them know just how much you believe in your book by offering a money-back guarantee.
Reality: You're building trust with your customers.
When you make a purchase from a site like eBay, it's likely that you check the reviews out before you hit "buy." You wouldn't make a purchase from just anyone. You want some assurances in advance. A money-back guarantee can help provide that level of comfort with your readers, and those that are on the edge about making the purchase will be more willing to take the leap!
Reality: You'll come out ahead of the competition.
A customer may be debating between your book and a book from another author. A money-back guarantee can make your book stand out. After all, your local bookstore probably isn't offering that guarantee, and many other self-published authors probably aren't either. Why would someone go buy the other guy's book when you have nothing to lose be reading your book?
