If you’ve ever created an online course or sold something digital, you’ve probably wondered: does a money back guarantee work? Should you even offer one in the first place?
It’s a great question — and one I hear all the time. Let’s break it down in simple, real-world terms so you can figure out what’s best for you and your business.
First, What Is a Money Back Guarantee?
A money back guarantee is basically a promise to your customers that if they’re not happy with what they bought, they can get their money back within a certain time frame.
It shifts the risk away from your buyers and puts it on you. It’s like saying, “Hey, I believe in my product so much that if you don’t love it, no problem — I’ll give you a refund.”
The Two Types of Guarantees
When it comes to money back guarantees, there are two main types you should know about:
1. No Questions Asked Guarantee
This is the simplest one. The customer buys your product, and if they don’t like it — for any reason — they can get their money back, no questions asked.
For example, in my guitar courses (which are about $297), I offer a 60-day no questions asked guarantee. If someone emails us and says they want a refund, we give it to them. Easy.
Why do I do it? Because arguing with unhappy customers isn’t worth the stress. I’d rather keep my brand reputation strong and move on.
2. Qualified Guarantee
This type requires the customer to do certain things before they can get a refund. Maybe they have to complete all the modules, attend live calls, or turn in homework assignments.
This is more common for higher-ticket programs — like coaching programs that cost $2,000 or more. It helps make sure people actually give the program a real shot before deciding it didn’t work for them.
When I Say “No Refunds”
For my high-level coaching program (which costs around $3,000), I don’t offer any refunds. Why?
Because it includes live coaching and instant access to all the materials. I only want people who are fully committed — not half-in and already thinking about quitting before they even start.
But here’s the key: you have to be super clear about this. Put your no-refund policy right on your sales page and checkout page. That way, there are no surprises later.
Are Refunds Bad for Business?
In the beginning, refunds can feel like a punch to the gut. You might be thinking, “I really need that money!” — and I get it.
But here’s the thing: refunds are just part of doing business online.
In my guitar business, our refund rate is usually around 5%. So if we make $10,000 in sales, we might refund about $500. And that’s totally fine.
I even tell my team to go ahead and process refunds quickly. We’re not in the business of fighting with people or teaching them lessons on “commitment.” We just want folks to be happy. If someone isn’t, I’d rather they get their money back and move on.
So… Does a Money Back Guarantee Work?
Yes — it definitely can.
Offering a money back guarantee makes it easier for people to take the plunge, especially if they’re on the fence. When they know they can get a refund if it doesn’t work out, they’re much more likely to say “yes” and give your course a try.
I personally like a 60-day window. It’s long enough for people to really test out the course, but not so long that they forget about it completely.
Should You Offer One?
At the end of the day, it really depends on your style and your business.
If your goal is to reduce risk for your buyers and make them feel more comfortable, a money back guarantee can be a great idea. But if you run a high-ticket program with live support, it might make more sense to have stricter terms — or even a no-refund policy.
Just make sure you’re upfront and clear about whatever policy you choose.