With all the talk about complying with the FTC over the past few episodes, it should come as no surprise that the organization also has guidance on money-back guarantees. Money-back guarantees are a heavily used sales tool and, sometimes, they honestly make me cringe. 

In this episode, I discuss how to structure money-back guarantees. You’ll learn about the most common money-back guarantees and how to create better, compliant policies. 

Please subscribe if you haven’t already. And if you like the show, I’d love it if you’d give it a review wherever you listen to podcasts!

 

In this episode:

[02:29] - Danielle starts the episode with a short review of the Federal Trade Commission’s primary goals.

[03:25] - Don’t make the mistake of thinking you can get around FTC compliance with selective language!

[04:21] - As long as you follow the FTC’s rules, you can put parameters on your money-back guarantees.

[05:00] - Danielle describes the most common money-back guarantees she sees in the online business space.

[06:16] - How do you build better money-back guarantees? Danielle’s #1 recommendation is pretty simple.

[07:33] - Do this if you get customer complaints about your money-back guarantee.

[07:59] - Make sure any time-based conditions are well-defined. Danielle illustrates why.

[08:58] - Danielle provides an example of how you can structure a 14-day money-back guarantee for an offer like an online course.

[09:27] - Proof-based money-back guarantees are the most complicated. How do you lessen the chances of yours becoming a problem?

[11:01] - The show wraps with your recommended action steps.

 

Links & Resources:

Businessese

Liss Legal