When it comes to selling online courses, one of the questions potential customers will have is about the ability to get a refund in case they don’t like the course or it isn’t as good as they hoped it was. That’s where the money-back guarantee comes in.
Many course creators don’t include a money-back guarantee or have one that is very vague. It’s a missed opportunity to drive more conversions, so in this guide, you’ll learn about the WHY behind using this tactic on your sales pages (and emails), and how to write a money-back guarantee that inspires trust and confidence in your potential customers.
The psychology behind money-back guarantees
The loss aversion principle is a cognitive bias that describes how people tend to place more value on avoiding losses than on achieving gains. In other words, the negative emotions associated with losing something are stronger than the positive emotions associated with gaining something of equal value.
This principle manifests in a variety of ways, such as when people hold onto losing stocks longer than they should, or when they’re willing to pay more to avoid a potential loss than they would be to achieve an equivalent gain.
According to the Prospect Theory of behavior, which was developed by psychologists Daniel Kahneman and Amos Tversky, people experience more regret from losing something they already have than they do from not gaining something they didn’t have to begin with.
One common tactic to reduce loss aversion is to use a money-back guarantee.
By offering a guarantee, you are essentially taking away the risk of loss for potential customers, which can make them more likely to invest in your product or service.
Other tactics include reframing the situation so that the focus is on potential gains rather than potential losses, or using social proof to show that others have successfully overcome similar fears or concerns.
Ultimately, reducing loss aversion involves finding ways to mitigate the perceived risk associated with a decision, whether it’s through guarantees, testimonials, or other tactics.
Here are some examples
Copy elements of a money-back guarantee
A money-back guarantee can be a powerful tool for selling online courses. By following the tips outlined in this guide, you can create a guarantee that inspires trust and confidence in your potential customers, and ultimately leads to more sales.
Start with a strong opening statement
The opening statement of your money-back guarantee should be bold and attention-grabbing. You want to make it clear to potential customers that you stand behind the quality of your course and that they have nothing to lose by investing in it. Here’s an example of a strong opening statement:
“We’re so confident in the value of our course that we’re willing to offer a 100% money-back guarantee if you don’t see results within the first 30 days.”
Clearly outline the terms of your guarantee
It’s important to clearly outline the terms of your money-back guarantee so that potential customers understand what they’re getting into. This includes:
The length of the guarantee (e.g. 30 days, 60 days, etc.)
The conditions under which the guarantee is valid (e.g. completion of all course modules, active participation in the course, etc.)
The process for requesting a refund (e.g. email, phone, etc.)
The timing for receiving the refund (e.g. same-day refund, 24hr refund etc)
Be sure to communicate these terms clearly and prominently on your sales page so that potential customers can easily find and understand them.
Address common objections
Some potential customers may be hesitant to invest in your course because they’re not sure if they’ll see results, like the content, be able to apply the lessons.
So, to address these concerns, you can include language in your money-back guarantee that assures them that you’re committed to their success. For example:
“If you follow the steps outlined in our course and don’t see results, we’ll work with you one-on-one to help you achieve success. If, after that, you’re still not satisfied, we’ll issue a full refund.”
OR maybe you just want them to give this a try. Reduce the friction, by making it simple:
“If you don’t love the program within 14 days, just email our support team at email@example.com and we’ll refund 100% of your money. No questions asked.”
Use social proof
One way to inspire trust in your money-back guarantee is to include social proof, such as testimonials from satisfied customers. This helps potential customers see that others have found value in your course and that they too can achieve success. Here’s an example of how you might incorporate social proof into your money-back guarantee:
“We’ve helped 1000+ realtors hit 6 figures within 12 months with our course, and we’re confident that you’ll be satisfied too. But if for any reason you’re not, we’ll give you your money back – no questions asked.”
One of the main benefits of a money-back guarantee is that it helps reduce the friction potential customers may feel when considering investing time, money, energy and their hopes.
By offering a guarantee, you are communicating to them that there is little to no risk involved in purchasing your course. This can help to overcome any doubts or fears they may have about the course, making it easier for them to make a decision.