Does a money back guarantee means anything?

Wherever you go online today, you will almost always see guarantees saying:

  • 30 Days Money Back Guarantee, No Questions Asked
  • 60 Days 100% Guarantee
  • Return And Get 110% Money Back (WOAH)

Now as an entrepreneur with existing businesses, I understand the power of Risk Reversal, and it's a very powerful approach to decrease risk (actual or perceived) by the customers to entice them to make a purchasing decision, and for super brands, such as risk reversal option is very welcome, as it shows the confidence of the seller to the buyer.

BUT, can it be abused to create a false sense of security and confidence to the buyers, by conmen and scammers? Yes and yes.

Is it true if there is a guarantee, there is ZERO RISK?


This is where people are scammed, duped and cheated into buying something where the conmen and scammers have zero intention to honor the guarantee. Yes, there are many unscrupulous individuals and companies "hiding" behind the power of the almighty guarantee. And yes, they're also lying to you and me.

Guarantees to Watch Out For!

(1) Information products that are shipped to you.

You've got to be cautious about products that are mailed to you, as there are many high-ticket price products that leverage on the time it takes for a product to ship, and if you return, the amount of time it takes to ship back...and sometimes they make it difficult - they say that you MUST ship it back in the same shape and packaging it was send.

Meaning you have to package it back together if you want the guarantee - HOW HOW HOW????

(2) Companies with poor reviews.

It seems pretty straightforward, but for some reason, people seem to overlook or avoid negative reviews (the emotional pull and copy may sometimes be very strong). It doesn't matter if a product has guarantee or not, if you do your research and you see negative reviews, you should consider not buying the product at all.

Junk is junk is junk.

(3) High Ticket Prices.

Anything that are higher priced (above $500) and offers a guarantee tends to be harder to get a refund because of a simple reason: many high ticket items sales usually has an affiliate behind the sale. This means if you buy a product that is $1000 (or $997), the creator would have typically paid $500 to the affiliate.

So if you ask for a refund, that'd mean that the creator needs to refund you $1000 and claim back $500 from the affiliate, if not the creator would lose $500.

(4) Clickbank Products.

ClickBank stuff are very well known for their high refund rates, that run up to 60 or 70% refunds. And from what I've seen through the years since 2002, ClickBank seems to support a lot of scammish products. I would recommend that you stay away from ClickBank products to be safe.

(5) Sales pages that really emphasizes a guarantee.

Ok, if a product's sales page keep emphasizing their money back guarantee, be careful. Especially when it emphasizes much more on the guarantee than the product itself and what it is and what it does.

The Ultimate Guarantee…Letting You Try Before You Buy

This is the highest and best form of guarantee. Think about your experience when you walk into an Apple store, what do you see or experience?

Open concept, all the products on a beautiful display for you to hold, touch and see and fiddle with their products before you even buy. There are assistants nearby to show you how to use the products, and what you can do with the products (benefits), even without buying. And they don't get mad even if you walk out.

Amazing. Then again, hardly amazing that they're one of the most successful businesses in the world today.

Apple Store where you can try for free before you consider buying. Think about it, they have the best expert training in retail management, best design engineers and have people in MASSIVE QUEUES and high satisfaction. Retail and offline.

If you're a student, stay at home mum (SAHM), working full time or part time, or retired: you must build an online business on the side. Please don't quit your job yet, build it on the side until it's profitable enough to replace your salary, then you have more options.

It's not a luxury but truly a necessity for your future.

I've built multiple businesses (and lost multiple too) and I can tell you frankly that building a business on the internet is the cheapest/most cost-effective way to business. There are thousands of people who do so sharing on topics that they're passionate about (like how shares on passive income and online business, which is my passion…for years now).

I know I am making some money online (see my income reports), and I know my financial future is getting better and better. But it is not easy, and takes a lot of time to learn and apply but I am building my passive income internet businesses that will work for me day in, day out; serving readers and customers profitably and delivering value 24/7.

To learn how I to make money online, join my mailing list and visit my resources page to see all the tools I use actively to build money making online businesses.

join the passive income family

Don't drown in the details - get the free fundamentals of passive income and early retirement and make your first $100 online.

Join the passive income family & newsletter below and get a bonus "Boring Blueprint To Passive Income & Early Retirement"

  • Learn how I started with less than $100 in my bank account from 2005-2008
  • ...turned my life and money around and by 2014
  • ...paid up my $390,000 flat in full in less than 5 years
  • ...starting making USD 40+ online per month
  • ...invested in dividend stocks for passive dividend income for recurring cashflow...for life!

You will also get subscriber-only Passive Income Tips, Starting & Growing Online Businesses Updates, Special Offers/Discounts and More - see you on the inside!

Talk soon!


Please note that all fields followed by an asterisk must be filled in.

No spam ever - your email is never shared and you can unsubscribe anytime with one click.

Enjoyed this article? Share it with your friends by clicking one of the buttons:

Even better - share your thoughts and comments below:

Back To Top

Search In NigelChua

Current Projects

Nigel Chua

Nalco Group

Therapy Entrepreneurs

Xtend Health Asia

Wisdom Of Seneca

Bee Pollen For Health

#1 Recommended Online Business University And Platform

Solo Build It!

More than 95% of my online businesses and publishing works use the Solo Build It platform, for good reason. Find out here.

GetResponse Email Marketing

Building a relationship with your audience, customers and readers are highly important for any offline and online business, and I recommend GetResponse for their services, great price, ease-of-use.

Try GetResponse today (1st month free)

Bonus: learn how to use an email autoresponder

The Hoth

TheHoth can help to outsource your guest posting, article writing and backlinking marketing activities. Visit them here.

Google Suite

Google Suite (GSuite) is THE recommended Google tools for email, calendar, documents, sheets - for productivity  and communication.

GSuite/GMail one month free trial available here.


Shopify has made it very easy to start an ecommerce business, solving most of the tech and logistical barriers and even has product suppliers with Oberlo!

Try Shopify today

Books I'm Reading

Holy Bible

Tribe Of Mentors

Seneca Letters From A Stoic

Seneca On The Shortness Of Life

See my full book/read list here.

Blogs I'm Following

Tim Ferriss

Pat Flynn

Tony Robbins

Ramit Sethi

Personal Goals

SGD 2,000,000 invested in dividend stocks with average 5% returns per annum by 45

SGD 2,000,000 in cryptocurrency

Owning, affording and living in a landed property in Singapore (or relocated to another country without worry of money) by 40

Publish at least one book by 40 years old

Online businesses serve readers and clients well (ie readers make more money, have happier/freer life etc), and website makes SGD 10,000 per month

Ongoing: spend more quality time with children, wife, family, bible, God.