Evan Carmichael advises giving refunds even after the 30-day guarantee expires. He argues that refusing costs you goodwill and mental energy, while a refund keeps both sides happy and lets you focus on creating value instead of managing resentment.
How should you handle cancellations and refunds? So I got a question from one of my suppliers, Ed, and maybe supplier is not a great word. Ed's a good friend. Ed is my website hoster. So my website is with his company, BounceWeb, and he wrote in to me with a question, and he was asking about cancellations and refunds. And he's struggling with people who want their money back. So he has a 30-day money-back guarantee. If you're not happy, you get your 30 days you have your money back in full, but he has people complaining past that 30 days. People who want their money back afterwards and they're complaining. So what do you do? Now, I love Ed. My website used to go down constantly from all the traffic that we got, and since moving over to him, it hasn't gone down. So for that reason alone, Ed, I need to do at least one video for you. You've saved my business multiple times. But Ed is a guy who gets service, okay? If I email Ed with a question, a problem, he is on it at 2 in the morning, whenever I need the help, he is on it doing it. So I I gotta answer this question. Here's my view on cancellations and refunds, okay? And you know what, before getting into that, let me share some beliefs that I have. This will help guide my opinion. The first is I don't like charging people when they don't feel like they're getting value, okay? Maybe that's something in me. I like to please people. I wanna feel good about what I'm doing, the service. In the products I'm providing, and I want people to feel like they got incredible value for what they're buying. So if somebody's buying one of my $7 Zugu guides, I want them to feel like they're getting way more value out of that than the $7 that we're charging. And this goes all the way up to the brands that I may charge hundreds of thousands of dollars to for services that I'm giving them. I want, I want people to be over-the-moon happy with what I'm delivering. If they're not, then I'm not happy. It doesn't make me feel good, okay? And Ed's the same kind of guy, and you should be too. You shouldn't feel happy about ripping off your clients. I don't want people to be unhappy with what I'm giving them. The second one is I hate dealing with hassle and crap in my business, okay? I try to avoid it at all costs. And a lot of times when people write in with cancellation requests and they're being, you know, they're just being a negative person. They're being the little man, right? They're being the little man. They're hating on your business even though you've done everything right. You're not gonna please everybody. You're still gonna have the people who will find a reason to hate on your company. Don't fight with them. You know, I don't know, I would just give them what they want. I would give them the refund. Past 30 days, whatever. I wouldn't care about it for a couple reasons. One, again, you don't want people to be unhappy, and it's not a marketing thing. At least for me, it's not, it's not a marketing thing. When I do that, if I give somebody a refund, I don't care because they're gonna go tell their friends about how bad it was or how great it was, right? I don't care what they're gonna think. It's for me. Like, I don't, I don't feel good with people feeling like they didn't get quality out of what I was creating. And the second one is that I don't wanna deal with all the negativity that comes from some of these customers, right? If somebody's just hating on your business and you have this rule, well, it's past 30 days, so I'm not gonna give you your money back. If you value service, if you value good relationships, then having that one customer hate on you and fight with you, it's not just gonna impact you for that 10 minutes that you're in that discussion. It's like the rest of your day you're gonna be thinking about this. This is gonna be a cancer on the rest of your day, maybe the rest of your week. At least for me it is. If I'm fighting with somebody on something, like, I just gotta let this go. I don't care, they can win, I don't need to win, but I don't want to think about this all week because it's preventing me from doing other things that are way more important. So Ed, if I were you, I would just give it to them. Let them be happy. Let yourself be happy. Rid yourself of the negativity that they're dumping on your business and focus your efforts and energies on positive things that are gonna make you feel good, create amazing things, and help change the world. Believe. For those of you watching, you like the videos, let me know what you think. Leave a thumbs up below. Leave a comment. I want to know what you think about cancellations and and refunds? Am I crazy? Is this what you do? I wanna know your thoughts, leave it below. If you have a question for me too, you can leave it below, I'll make a video response. And subscribe to the channel if you wanna see more videos like this. Thank you guys so much, and I'll see you soon.
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