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Sell More Online Courses With A Money-Back Guarantee

1,073 views · Published 22 February 2016 · 3:14 · Indexed 9 October 2026

Channel: Thinkific · 2016 · Education

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One of the biggest reasons why people might not be buying your online course is because of the risk. Many people are wary of paying for something online, and for things like online courses, it's hard to tell if they'll benefit from it until they pay up. By offering a money-back guarantee you reduce the risk for your customers and make it a no-brainer to buy your course. Try it using Thinkific: http://thnk.cc/20U2jkV

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Transcript:
Today on Teach Online TV we’re going to talk money-back guarantees. Should you do one and why would you do a money-back guarantee?  Who wants to give someone his money back if they have already paid you?

Well, probably not a great way of looking at it if you’re worried about giving money back. I actually find that money-back guarantees work exceptionally well and people very rarely actually cash in on them, especially if you’re providing some real value to them.

So, one of the reasons to do a money-back guarantee is it actually removes the risk when someone is considering purchasing your product, so you’re actually going to see your conversion rates go up considerably because people are considering buying that product. The biggest risk they have is they are putting money out the door and they don't get what they expect back for it.

So when you put that money back guarantee out there on your course or on your product, you're taking that risk, you’re taking the consideration away and it makes it that much easier for them to purchase your product. Plus as I said, very few people actually exercise money back guarantees and if they do, it’s often very much upset by the additional conversions that you get by offering a money-back guarantee.

So it's definitely something you can try out, if it doesn't work out for you, you can always turn it off, but definitely something that I would recommend trying out.

Now a few specifics around doing this, some people do a no questions asked money back guarantee, that works quite well, another one you can have a little bit of fine print.  I have seen where you want to make sure that people have actually completed the course or done the homework assignments or gone through the exercises before they can get  that money back guarantee.  

Another really interesting one that I have seen that I love is Ramit Sethi who does 110% money back guarantee. Now Ramit’s course is about making sure that you're going to earn some additional income, build a new business and if you don't succeed in his promises then he actually gives you a 110% back guarantee, which I think is very interesting, a really uniquely about going about it but I'm sure it helps drive his conversion rates up and completely removes that perception of risk of people that are coming in, making an investment in order to get a return.

So I definitely recommend you trying out doing the money back guarantee to see what kind of an effect it has on your conversion rates, but try it out, you have nothing to lose other than a couple of refunds and then you can always turn it off if it doesn't work for you.

But everything that I have seen and people trying to money back guarantees is that it works exceptionally well and your customers appreciate it because it removes that concern about actually paying for your product and when they start to see value out of it if they feel even more comfortable with you as a someone that they want to work with and trust. Legal Disclaimer: Thinkific is a trademark of Thinkific Labs Inc., a publicly traded company listed on the TSX (Ticker Symbol: THNC). The information and content presented are intended for general educational purposes only. While we strive to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, regarding the completeness, accuracy, reliability, suitability or availability with respect to the information, products, services, or related graphics contained in this presentation for any purpose. The use of any information or presentation materials is at your own risk.

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