Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : 30-day Money Back Guarantee

[arxor]

How does this work exactly? I mean if they use 29 days of hosting and come and say I want my money back, what do i do? How does this work exactly? Current web hosts, how do you handle it? I'm working on writing my refund policy, but not sure how to work it exactly.

I realize if they use 1/2 a month, they get 1/2 back, but besides that? What if its like 2 days before there month is over?

[IMeanWebHosting]

Normally a 30 day money back guarantee suggests that you'll give them 100% back regardless how much they've used. I've never seen a guarantee that only gives you half back if you use 15 days...? That would be like getting a computer with a 30 day money back guarantee that was $1000, then taking it back on the 15th day because it broke and only getting $500 back because you used it for half of the guarantee period...

[arxor]

Well thats crazy is it not? They use 28 days of the month with my hosting, and then the next day ask for there money back? I can understand if we haven't been stable etc, but if we have had excellent uptime and support and then they ask for there money back? You would give them it all?

[IMeanWebHosting]

Yes, that's the whole point of offering the 30 day money back guarantee. If you want to do what you are saying, that is just pro-rating, not a money back guarantee.

[jmaskell]

Offer either a 7 day or 14 day money back guarantee. They are unlikely to ask for a refund during that period.

Also, put a clause into your TOS stating that you will only give refunds if there have been technical problems with the hosting, that way you wont get people trying to use you as free hosting for a week, two weeks or a month etc.

[IMeanWebHosting]

Yep, exactly. Offering them money back for whatever they don't use is NOT the way to go. If I saw a 30 day money back guarantee, cancelled after 20 days, and got 1/3 of my money back, I'd be pretty mad.

[pmabraham]

Greetings:

Unless a money back guarantee has fine print, typically it is a 100% refund with no questions ask.

On a 30 day money back guarantee, this means a customer can use the service for 30 days (30 days = 30 days; the above 28 or 29 days does not equal 30 days -- just being clear as a guarantee period typically includes ALL days) and drop the service because it rained 5 " rather than 4.9" on a given day even though the almanac stated it should be 4.9".

Thank you.

[scottc]

If you provide good support you don't need to worry about clients cancelling after 29 days - it will rarely happen. We've always had a money back guarantee and I'll bet it's been a good 18 months since anyone took us up on it.

Scott

[CactusCounty]

Originally posted by scottc
If you provide good support you don't need to worry about clients cancelling after 29 days - it will rarely happen. We've always had a money back guarantee and I'll bet it's been a good 18 months since anyone took us up on it.

Scott

We offer a money back guarantee as well, though ours extends to cover any prepaid months should the client decide to leave....

And it hasn't once been taken up on in over two years. I really wouldn't worry about too much fine print, unless your target market is the bottom-of-the-barrel hosting customers.

[SwishConnect]

We also offer a 30 Day money back guarantee.

We essentially use the guarantee as a way of giving the customer confidence in our services...that if we don't live up to our promises they can leave without losing a cent.

We have a page on our site dedicated to explaining our 30 Day money back guarantee, including the fact that is an unconditional full refund. We have the details mentioned in our Billing Policy, but it is a good idea to have a page dedicated to it. For example,
http://www.swishconnect.com.au/..../web_hosting_guarantee.html

All in all, it is a great way to put a potential customer at ease, and I don't feel it has been abused by any customers...well not so far any way (touch wood)