Hi,

We just had a customer signup, then cancel 3 days later because his site was using too much bandwidth. 6gb's in 3 days is alot, and this is a perfect example of it working against you.

What was he hosting?

looks like a spammer to me

Well, at least he cancelled after three days, istead of after twenty-eight.

A moneyback guarantee will _always_ work against you in some form or another. When you issue a refund based on a moneyback guarantee, you are out that cash and out the time and resources used by that account, however small or large it may be.

The only way it helps you is marketing. :)

I guess that is something we all have to deal with. Or maybe we should put in our TOS/AUP that the 30-day money back is only valid if the user has used less than 1/3 of their monthly bandwidth?

Advertising 30 day money back offer and then adding restrictions to it can cause repercussions. Then again you could not offer it at all if you wasn't willing to take the risks involved. :)

When the 30day refund policy acts against you

I guess that's the price you have to pay sometimes. :)

I just chalk it up as the cost of doing business. I think the '30 day' thing helps when you're trying to woo a new signup, so...

And it works better when it's unconditional, so tagging it with conditions isn't a good option.

I've been thinking about doing an article about this very subject actually. Anyone NOT offer a 30 day guarantee? It would be interesting to see how your signup ratio's are compared to those that do offer it.

30 day money back, is to settle the fears of prospective clients. Adding restrictions just creates more fear.

We have had very few people actually ask for their money back. If I saw a new client using 6GB in three days, I would check to see what they are doing and my guess would be they are doing something they shouldnt be. :)


Zach

:eek: that is a lot of BW.. WOW..

If it is in your TOS that they can't spam I would keep their money.

We have had a few of them and in some cases it is better to credit them then fight for weeks and them dispute the charges anyway but again that does happen in all kinds of businesses. Think about all the people that use something they need and return it to Wal-Mart when they are done. Sure Wally get a credit but the employee cost it took to sell, stock and return that would be just as much.

Sad but chalk it up to experience and laugh it off.

:D

Robert

Actually it was a very popular anime site, he has now moved to bluedomino.com, which offer "Unlimited"

Originally posted by Myacen
Actually it was a very popular anime site, he has now moved to bluedomino.com, which offer "Unlimited"
bluedomino deletes sites if they usem ore than about 15-20GB

I think offering an unconditional 30 day money back guarantee is a great way to let customers know you are being honest, and if it doesn't work out for any reason at all they can get their money back. Putting in restrictions would make the guarantee worthless.

Sure you might lose money from time to time in cases like this, but hey the guy might have been otherwise pleased with your service and recommend you on! :)

Originally posted by avara
I think offering an unconditional 30 day money back guarantee is a great way to let customers know you are being honest, and if it doesn't work out for any reason at all they can get their money back. Putting in restrictions would make the guarantee worthless.

Sure you might lose money from time to time in cases like this, but hey the guy might have been otherwise pleased with your service and recommend you on! :)


Funny you should post today on this.. One of the people we cancelled for spamming and Did give his money back he left without really being to upset, but anyway he did refer someone to us. Now maybe they will do something worse but I guess I have to agress with you..

Robert

30 day money back guarantee is fine as long as they don't violate your AUP/TOS. If the guy was a spammer and violated such then he should not get his money back (provided you can back up your claim).

we dont offer 30 money back, been burned by that
however if somebody is a sleeze they will charge you back and if you DONT have a signed authorization to bill the cc you dont stand a chance......done deal

same goes for the non refundable setup

you can try to convince the client that they dont get the setup back but unless you have a signature the chargeback wins every time regardless of other documantation including spamming offenses