Money-Back Guarantees

Enrique

Enrique

New member
It appears to be something consumers look for in the web hosting business, but in some cases users abuse this guarantee.

Share your opinions and experiences about whether or not offering Money-Back Guarantees to your costumers!
 
I had 4 people abuse this in the beginning. They waited (and this is no sarcasm) until 3 hours before the guarantee would have expired to leave. We stopped doing these months ago, and not only have we filtered the bad customers out, we are running a lot more smooth business.
 
xAviaCEO said:
We stopped doing these months ago, and not only have we filtered the bad customers out, we are running a lot more smooth business.
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Did it affect the number of signups you received after doing this change?
I think not offering a Money-Back Guarantee can filter the bad customers out, but there are potential customers that look for this guarantee too. What do you think?
 
Well i have 750+ customers in only 6 months of true business. I guess that speaks for itself :) ... Might be worthy to note that we have only ever lost 4 paying customers for "quality" reasons.

So i think its safe to say it was a good move :)
 
An easy solution for this is to start offering trials limited by reasonable time frame.

For example, you can just charge clients $1 to check that they are paying customers. And give them 10days or a week to test-drive your services.

There may be users who can take advantage of this offer, but not all of them will, because the truth is - its a pain in one place to be moving from host to host every week and use those trial offers. Moreover, I don't even know if they can find so many services out there who offer trial-periods.

Most importantly, if they like your services - they won't have any logical reason to go away.

Best,
 
I think money back guarantees attract clients because it proves you are reliable in most cases because you let them try out your services.
 
Money-back guarantees show that you have confidence in your own business and are ready to exceed the customers needs.
 
1000rpm said:
Money-back guarantees show that you have confidence in your own business and are ready to exceed the customers needs.
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Could be, but then all the same hosting customers (who have poor experience with other hosts, especially with billing) have doubt about the ability for companies to make real and fast refunds and not make it a long-term process. These are my first thoughts when I see a company that offers Money Back guarantee.

Now if a company would let me test-drive their service for, say, 15 days - and if it performs well - then I'd feel better giving it my money.

What do you guys think of that?
 
You mean like a free trial? The problem with that is people will sign up and abuse your servers without even paying a dime and there will be no easy way to charge fines for misuse.
 
Artashes said:

Now if a company would let me test-drive their service for, say, 15 days - and if it performs well - then I'd feel better giving it my money.

What do you guys think of that?
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Nada...Thats not an option for this gal's company.
You set yourself up for spammers, abusers, whatever.
 
1000rpm said:
You mean like a free trial? The problem with that is people will sign up and abuse your servers without even paying a dime and there will be no easy way to charge fines for misuse.
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I know its a risk, but you can always set the site to be disconnected after a certain amount of transfer and other resources are used by the test-user. This will allow you to play safe.
 
Well, I don't offer a money back guarantee per se. I mean, webhosting has gone so cheap these days. Who wanted a money-back guarantee for only $4?? I mean, think of the hassle it cost. If they don't trust our 'big' account yet, they can try our smaller one :)
 
Hey look at my post up there :-p lol!

Anyways, my stance stays the same on this issue, especially with it being cheaper now a days.
 
I don't see any reason to not offer a money back guarantee. Of course we take a closer look at the websites before the end of the money back guarantee to be sure there is no abuse.
 
When we did have money back guarentees the customers abused this to no end. Some even attempted to cancel and sign up again. So we stopped this and we can safley say that it hasn't affected our sales in any way shape or form. It's how your company's overal performance is told by the customers via word of mouth that drives our business.
 
last year i signed up with a host, and they didnt' register my domain or set up the hosting after i paid for it, affter about 5 emails within the first two weeks i requested a refund, no reply, requested a refund again, no reply, did it one more time got a reply saying refund would be paid, then after a month came and gone they billed my cc again with still no refund, after hunting down the company's ceo (who still lived with his mum btw) i rang and left a message and got a refund finally, but so much hassle to get a refund, i think if people should offer it they should stand up to it,

we don't offer a refund or 30 day money back guarantee but if someone was truly dissatisfied we would probably refund them partially.
 
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