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Side Hustle School

Ep. 2926 - Q&A: “Is it wise to offer a money-back guarantee?”

Side Hustle School

Chris Guillebeau / Onward Project

Business, Entrepreneurship, Careers

4.83.3K Ratings

🗓️ 4 January 2025

⏱️ 6 minutes

🧾️ Download transcript

Summary

In today’s episode, we help a photographer decide whether to offer a money-back guarantee for his services. Learn how to build trust with clients while protecting your business from potential downsides.

Side Hustle School features a new episode EVERY DAY, featuring detailed case studies of people who earn extra money without quitting their job. This year, the show includes free guided lessons and listener Q&A several days each week.

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Transcript

Click on a timestamp to play from that location

0:00.0

Guess what? Discover is accepted at 99% of places that take credit cards nationwide. You heard it right, 99%. If you don't think so, maybe it's time to face facts. You're stuck in the past. Based on the February 24, Nilsen Report. Learn more at Discover.com slash credit card.

0:22.6

Lemonada. Lemonada.

0:27.7

Is it wise to offer a money back guarantee?

0:35.9

What's up, friends?

0:36.5

What's up, side hustlers?

0:38.4

Thanks for tuning in today. In this episode, we're going to help a photographer decide whether to offer a money back guarantee. What's up, friends? What's up side hustlers? Thanks for tuning in today.

0:43.2

In this episode, we're going to help a photographer decide whether to offer a money back guarantee for his services. There's a lot you could say about this topic. And the answer might be different if you're

0:47.6

providing a service than if you're selling a product. But either way, let's talk about how to build

0:51.3

trust with potential clients or customers while protecting your business from potential downsides. It's good to offer a money back guarantee if that

0:58.7

increases conversion or it generates trust and allows customers to, in fact, purchase from you.

1:04.2

But it can also increase your risk. So we'll talk about both sides of it. We've got a listener in

1:08.4

Toronto. He wants to do this guarantee, but of course, as noted, is worried about potential downsides, maybe somebody taking advantage of it. We've got a listener in Toronto. He wants to do this guarantee, but of course, as noted,

1:11.7

is worried about potential downsides, maybe somebody taking advantage of it. So let's consider

1:16.1

whether offering a guarantee is a smart move or when it might be. And I'll also give you a specific

1:20.7

tip that I think is really important as you're building out a new offer. If you're thinking of

1:24.3

selling something this year, hopefully this will be helpful to you. Detailed question and my answer in a short action-packed episode. It's coming right up.

1:43.5

Hi, this is Marcus from Toronto, Canada. I run a small photography business, and I've been thinking

1:48.9

about offering a money-back guarantee on my packages. See, my idea is that it might make people feel more

1:54.9

confident about booking, especially since my services aren't cheap. But I'm worried it could backfire if people take advantage of it or if it puts me in a bad financial spot.

2:06.7

Is offering a guarantee a smart move, or is it more trouble than it's worth?

2:11.3

How can I structure it to protect myself while still building trust with clients?

2:18.8

Marcus, thanks for the call.

...

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