James here. Today, I’m going to address the question, what is a normal refund rate? Well, the way that I would answer that would depend on a few things. I would want to know, what are you selling, who are you selling it to, and how are you selling it? And from that information, I’ll be able to get a closer prediction.
So in an extreme example, if you are selling a launch-style product under high pressure with aggressive sales copy to a relatively cold audience on a deadline, then you might expect a higher refund rate. It could even be double digits, which would be unfortunate. Now on the other end of the spectrum, if you are selling a high-quality product in a normal sales cycle, that really solves someone’s problem, that is not aggressively pushed and is not hyped up with all sorts of risk reversal, then you might expect a very low refund rate, somewhere around 1 percent, which is what I’ve enjoyed, and I prefer business this way.
Now some people might say, oh, if you don’t have a very high refund rate, you’re not selling hard enough. I don’t know, you’re probably damaging your reputation as well. So keep that in mind. I hope some of this is useful, and pick where you want to be on the refund rate scale.
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