Learn The Three Maddening Ways Your Digital Product Business Profits Are Bleeding Out...
If you’re selling digital products, then there’s a really good chance you’re being ripped off. Profits are bleeding out of your business. And you may not even know it’s happening.
These bleeding profits could cost you hundreds or even thousands of dollars every year. And worse yet, someone else might be pocketing those profits. That’s right, they’re making money off your hard work. They’re laughing all the way to the bank while you’re struggling to get your sales up.
The good news is that you can put stop to this madness. But first you need to understand how, exactly, your business bleeds profits. Once you do that, then you can stop the bleeding cash and redirect it back into your own bank account.
Let’s get started by examining the three most popular ways your digital product business may be losing money…
Serial Refunders Are Ripping You Off
The "serial refunder" thinks he’s a crafty fellow. He buys your digital product, he waits a day or two, and then he asks for a refund.
You get the telltale email that says, “This product isn’t for me. I’d like a refund.”
You cheerfully refund the money. After all, it’s just business. Your product may not be the right fit for everyone. That’s why you have a guarantee policy in place.
Except here’s the thing…
This dude is doing the same thing all over the internet. He’s a serial refunder. And he does it because he wants all the benefits of a product without having to pay for it. That makes him a thief.
Oh sure, he probably rationalizes it by saying he’s legally using your unconditional guarantee that offers a refund for any reason.
Except this guy probably actually likes your product. He’s getting a lot of benefit from it. And he’s hoping… crossing his fingers… praying to the gods that he’ll get continued access to your product even after he asks for a refund.
The first time you get a refund request from one particular person, you’re not going to think anything of it. But when the same person’s name keeps popping up at your help desk because he’s requesting refunds, then you know you have a problem.
Obviously, it’s just wrong that someone is stealing your work by pretending to be a customer. But it also wastes your time and resources to be constantly fielding these sorts of fraudulent requests. That’s why you need to protect yourself from the serial refunder.
Here are two steps you can take right away:
- When you identify a serial refunder, block them from future purchases. You may block their IP so they can’t even get to your site. Obviously, people can work around these sorts of blocks, but it at least stops the casual refunder.
- Revoke access to your product once someone requests a refund. If they’re not paying, they shouldn’t get to keep enjoying the benefits of your product.
You’ll learn more about the second solution in just a few moments.
Note: We mention using a ticket system above - even the simplest of digital-product businesses is going to be dealing with the problems of managing a lot of different products and should have a good system in place with ticket system/help desk, payment processor, etc. to really be successful; to help you deal with serial refunders and regular customers alike. Here is a good post that covers some some practical advice and tips in that area https://promotelabs.com/blog/product-management-system-circus/
Now, let’s look at the next activity that’s bleeding profits out of your business…
People Are Sharing Your Product or Download Pages
Sometimes a serial refunder not only keeps enjoying access to your product, they also share the product with their friends.
Sometimes you have people who just have the mindset that everything on the internet should be free. So, they buy products and share the products or the download pages on black hat sites or file-sharing sites. They like being the “hero” who gets a hold of all the latest digital products and shares them.
And sometimes you have legit customers who get so excited about your product that they share it with their friends. They don’t even think about the fact that what they’re doing is illegal. They think of it as a “lending” a book to a friend without realizing that digital content comes with a different set of laws and rules.
Intent doesn’t matter here. It doesn’t matter if you’ve got someone maliciously sharing your products as widely as possible, or if it’s someone who’s not aware of the law and is sharing your product with a few friends. The end result is still the same: you’re losing potential sales.
Here are a few ways to protect yourself:
In just a moment you’ll find out a super-simple way to implement these protections. But first, let’s look at the third way others may be ripping you off…
Pirates Are Selling Your Products
This may be the worst of these three activities. That’s because not only are these pirates sharing your content with bunches of other people, they’re profiting from it. That’s right, they’re selling access to YOUR hard work.
Here’s how it works…
These pirates purchase your product to get access to it. They may or may not request a refund. (Many do not, because they don’t want to get flagged and blocked as a serial refunder.) Once they have your product, they upload it to their own site, swipe your sales page, and start taking orders.
Seems like this should be easy enough to fix, right? You sue ‘em, you report them to their webhost, you report them to their payment processor.
Problem is, these steps don’t always work. These pirates are hiding out in countries where your laws can’t touch them. They’re probably using their own shady servers and payment processors, so your reports fall on deaf ears.
In other words, you can’t touch these guys. You don’t have any recourse. If you shut them down, they’ll just pop up somewhere else. You can easily waste many hours every day just chasing down these thieves and trying to stop them – but it’s usually pretty fruitless.
So, here’s what you need to do: be sure that only people who paid for the product through you get access to the product. In other words, your product shouldn’t shareable.
Which brings us to this final point…
Okay… What’s The Solution?
At this point, you now know how to protect your business:
- Block serial refunders.
- Revoke access when someone requests a refund.
- Be sure that only customers can access your products.
- Protect your download pages so they can’t be shared.
The first step (blocking refunders) is something you’ll need to handle on your own. Just keep track of who’s asking for refunds, and block as soon as you detect a pattern.
For the other three steps, you need ProductDyno...
This is a sales platform that makes it easy for you to securely deliver your digital products. This app protects your download pages, locks down your products so they can’t be shared, and revokes product access when someone requests a refund.
Plus ProductDyno also does a lot of other neat tricks to help you grow your business. For example, it cross-promotes your other products and integrates with other sales and marketing apps that you’re already using.
If you’re serious about protecting your digital business, then you’re going to want to get ProductDyno today.