"Doesn't make sound business sense to me! "
What you say is of course true but with a good guarantee you will sell more - you will convert more visitors to buyers.
That is why people are happy to buy from clickbank because of their easy refund policy. If it was better business all those merchants would be off to another affiliate network.
Also you have to remember that online you are buying, "a pig in a poke" - in a bookstore I can sit down with the book and have a good read - online I can't and so there must be an easy refund policy or sales will dry up.
Notice that amazon has a "look inside" facility on may of it's books now - a brilliant move on their part and we are going to have to match them.
For our expert list building product we give away the first chapter of the book for the same reason.
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