Most web hosting providers compliment their service with a money back guarantee. This is actually a very wise and effective strategy as it helps attract customers who believe that they are purchasing something that has little to no risk. While the money back guarantee appears to work to the customer’s advantage, it is what lies beneath the surface that could possibly leave you at a disadvantage.
Types of Money Back Guarantees
In the web hosting arena, there are essentially two types of money back guarantees. The first is the “no questions asked” guarantee, which usually means that you can receive a refund for whatever reason without having to explain why to the hosting company. Although you may not be able to receive a full refund, you typically get a percentage that qualifies as minimal risk. The second is the type of guarantee that comes attached with special stipulations. For example, you may only be able to receive a refund if the service provider failed to meet something agreed upon in the contract. This guarantee is often enforced to help the host minimize their risks and losses. By allowing every customer to receive a refund with the no questions asked policy, they stand to lose a lot of business and money for reasons that may be unjustified.
However, the guarantee that comes with stipulations presents the customer with a completely new set of risks, which all depend on the underlying conditions. This guarantee works more to the advantage of the hosting company for the simple fact that they can argue and make the customer jump through hoops in attempt to prove that their reason for wanting a refund is warranted. This could put you in a situation where you are forced to choose between losing money, or keeping a service you are not completely sure of.
Should You or Shouldn’t You?
Regardless of the type, signing up with a web hosting company that offers a money back guarantee is highly advisable. Doing so gives you the opportunity to try out the service and at least receive some of your money back should you decide that it does not live up to expectations. What you must understand is that the overall quality of a money back guarantee all depends on the company that it is making the offer. The firm with a questionable track record in the industry and claims to give you all of your money back with no questions may not be the company you want to instill your faith in. Likewise, the firm that offers a guarantee that seems complex and unfavorable could be the company with the reliable service you need to make a name for yourself.
Summary
There is nothing etched in stone when it comes to a money back guarantee. Every web hosting company is different and different companies have different policies. To make sure you are not greeted with surprises later down the road, it would be a good idea to find out more about any advertised guarantees before investing in a hosting plan.
