online business services guarantee; common legal obligations, best guidelines

Discussion in 'Legal and HR' started by Teri Mason, Jan 8, 2011.

  1. Teri Mason

    Teri Mason
    uix_expand uix_collapse
    New Member

    Joined:
    Jan 8, 2011
    Messages:
    1
    Likes Received:
    0
    Hi!
    I have an online products and services business; what are some of the common legal obligations in terms of gaurantee and the best guidelines that make for a fair and equitable exchange between (me) the business owner and the client?
     
  2. Fergal

    Fergal
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Nov 18, 2007
    Messages:
    10,575
    Likes Received:
    1,165
    Teri a lot will depend on the exact nature of the products and services you provide and on the way you would like to do business. I've seen sellers of ebooks vary between two extremes when it comes to guarantees. Some offer a no questions asked full refund, upon request within 60 days. This means that if the customer wants to get their money back, all they need do is contact the seller and request it, within the allowed 60 days. The seller knows that only a certain proportion of their customers will use this guarantee and that the increase in sales they achieve by offering the guarantee will probably more than make up for any refund requests they receive.

    On the other extreme some sellers will state that as they are selling digital products that in effect can't be returned, they do not offer any money back guarantee. This means that once the buyer makes the purchase there is no way for them to get their money back. This will put many buyers off and result in lost sales.

    Some sellers opt for a middle ground, especially those promoting products or services in the make money online niche. These sellers offer a full refund if the buyer can demonstrate that they tried the methods outlined in the ebook but that they did not work for them. This helps to reduce the level of refunds because it places the onus on the buyer to show that they took some action and made the effort to at least try the concepts in the digital products.

    If you are confident in the quality of your products and services and your business has not yet achieved a level of reputation where demand is high for your products and services, it would be worth seriously considering offering a no quibble guarantee. You could restrict the guarantee to ten days if you wished. Offering a guarantee like this will give first time buyers much great confidence when doing business with you and hence greatly increase the probability that they will purchase from you.

    Good luck with it!

    [Thread moved to Business Advice, Business Questions & Online Business Forums section]
     

Share This Page