"If I told you that your funnel would shut off after 100 buyers… how differently would you treat them?"
After scaling 3 different digital products to over 100 sales a day, I've seen refund rates as high as 30% all the way down to < $3.5% refund rates (almost 10x lower refunds than another offer).
Below are seven cardinal rules, tested and tried, to consistently launch and scale online courses with a refund rate capped at a mere 5%.
And or the skeptics... here's the proof from one of my offers doing 100+ sales a day (last 3 months data):
Rule #1: Mirror Promises with Deliverables
One of the fastest ways to break trust and trigger refunds and dreadful disputes is by marketing something that does not exist, or is not congruent with your customer's experience.
Name your modules and bonuses with the exact same names you have displayed on your sales funnel.
People remember what they were promised, and if the names they see after they purchase are different then what they expected... they will label you as untrustworthy.
Rule #2: Always Overdeliver
One of the simplest ways to do this is by adding a module titled "Unadvertised Bonuses" and loading up 3-5 high-impact trainings to help them get results faster.
Make sure these unadvertised bonuses are actually valuable.
(i.e don't just toss in your old lead magnets lying around in your Google Drive).
This will skew a subtle reciprocity bias in your favour while building goodwill.
Rule #3: Race To The Relationship
People resonate with people.
Assign an accountability coach to your new customer (or a support rep) as fast as humanly possible. If you're just starting out or are a solopreneur with a course... send them a personalized welcome video to help reaffirm their decision to spend their time and money with you.
If you can assign a real person as their primary point of contact when it comes to issuing a refund... they are less inclined to break the relationship with the person instead of looking at the purchase as transactional... They will look at it as if it is a breach of trust with a friend.
Take advantage of tools like Bonjoro if you desire to automate this with a human feel.
Ringless voicemail is great for this as well - but it must sound exactly like a non-automated message - and NO pitching anything (delay upselling them or inviting them to book a coaching call on purpose).
And if you have a community, prioritize getting them into the group and introducing themselves as fast as possible so they can connect with others in a similar situation as them.
Seeing others ahead of them getting stellar results and breakthroughs will boost their motivation and consumption.
Rule #4: Showcase Case Studies
It reinforces the idea: "If they did it, so can I!"
In your very first lesson and throughout your first module, showcase testimonials and case studies of previous clients and customers who used your course to achieve their desired outcome.
Module 1 is the perfect place to re-instil their belief in your product to stick the sale.
Rule #5: Illuminate Their Path To Victory
When your new customer logs into their portal for the first time... they will likely be overwhelmed with your content if they do not see a clear path to achieving what they set out to do with your course.
Take the time to provide visuals and infographic demonstrations along with a polished presentation of the steps they will be taking with you to achieve their desired outcome.
Platforms like Canva or Piktochart can assist in creating engaging infographics.
Rule #6: Make Your Experience Greater Than Their Expectations
Promise less, deliver more.
The quality of your product should always supersede your claims. Unfulfilled promises of your product made by your copywriting is the fastest way to skyrocket your refund rates.
Every lesson, every live, and every post you make in your group should wow your customers and increase the quality of their experience.
Set appropriate expectations, and then overdeliver on them.
Rule #7: Quick Wins Matter
The best selling online courses and digital products are designed to solve a problem...
- Improve sales skills to earn more commissions
- Learn to code so you can land a high-paying job
- Learn how to run ads to get clients on retainers
- [Learn How X To Achieve Y Outcome] essentially is the name of the game
The problem is, most course creators, experts, consultants, and thought leaders fail to realize and appreciate the stage their new customer is experiencing... and overwhelm them with information but no action steps.
One of the most empowering ways to both increase the consumption of your products while simultaneously lowering refund rates is to get your new customer a win as fast as humanly possible.
The first win should be easy to attain while simultaneously providing two realizations for your customer:
a) That they can in fact, do this
b) That your course is the path to getting what they want
Your goal should be to provide a tangible result as early and easily as possible (in most cases).
A Closing Note On High Refund Rates
If the refund rates of your course are higher than 20%... in my professional, unlicensed, and heavily biased decision based on my experience...
You should start over.
(i.e. new funnel, new copy, new product)
You will never turn around a high refund rate around with slow, gradual improvements. And if the refund rate is >10%... it tells me one of two things are true:
The copy that sells the product is far too aggressive and the product cannot keep up with the promises being made to sell the course.
The product is so lacklustre that buyer's remorse is triggered as soon as they press play on module one.
Or... both.
It's better to start over from scratch and do things right instead of trying to fight your way out of a losing battle with little improvements that are damn near impossible to measure.