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The $100 MBA Show

MBA2630 Q&A Wednesday: Is My Refund Policy Too Generous?

The $100 MBA Show

Omar Zenhom

Entrepreneurship, Business, Careers, Marketing

4.82.2K Ratings

🗓️ 28 May 2025

⏱️ 9 minutes

🧾️ Download transcript

Summary

Is your refund policy helping or hurting your business? Striking the right balance is crucial—too generous, and you risk losses; too strict, and you may scare off buyers. Rita sent in this question for Omar, and if it's on your mind too, this episode is for you. Press play!

Transcript

Click on a timestamp to play from that location

0:00.0

Rita asks, is her refund policy too generous? This is a great question because your refund policy

0:05.4

isn't just a footnote on your website. It's a trust builder. It can also be a conversion killer.

0:11.7

So how generous is too generous? In Rita's case, she has a 30-day, no-questions-asked money-back

0:17.7

guarantee for her online program. So let's break down and find the sweet spot that protects your business and makes your

0:25.0

customers feel safe.

0:26.6

And hey, if you have a question you want me to tackle in a future Q&A Wednesday, head on

0:30.7

over to 100mBA.net slash Q and ask away.

0:35.1

And apologies for my voice.

0:37.1

It's a little bit hoarse today. I don't know why,

0:38.8

but the show must go on. So let's get into it.

0:46.3

Welcome back to the $100 MBA show. I'm your host, Omar Zen Home, where I deliver practical

0:51.0

business lessons three times a week, Monday, Wednesday, and Friday

0:54.5

to help you start, grow, and scale your business.

0:59.5

So let's break it down. I found that refund policies actually matter more than you think.

1:04.5

A generous refund policy can actually increase conversions. Why? Because people are afraid of risk. They're free of wasting their money.

1:13.1

They're afraid of making a mistake. A clear, confident refund policy says, we stand by what we sell.

1:19.7

If it's not for you, that's okay. You can have your money back. It lowers resistance. It creates

1:25.2

trust and creates confidence that this person actually is standing

1:28.2

behind their products. But here's the catch. If your refund policy is too open-ended, too

1:35.2

vague, or too long, two things can happen. Now, I'm speaking in generalities here, but this is what

1:41.2

I found. That number one, you attract refund abusers,

1:44.8

people that treat your product like a rental. And number two, you train your audience not to take

...

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