This is an old copywriting tactic that has been around for decades. It's the "too good to be true" policy. It's just a way to make people think "wow, how does he stay in business!". It really makes you think that their product is very good.

I vaguely remember some book author having an interesting typo related policy. His claim was, for each typo reported in his book, he would start out by paying 1 penny, and for the 2nd typo he would pay 2 pennies then 4 pennies then 8 pennies and so on. It was a crazy claim because if you double your pennies 30 times, it's over $5 million dollars. I can't remember who did this, but how's that for an incentive to buy the book haha.

Are you thinking of this?

https://en.wikipedia.org/wiki/Knuth_reward_check

Yep, thanks.

Kind of scary how inaccurate my memory was on the exact strategy, but that's definitely the one I was thinking of.

Man, someone should have created a trading desk around his refund policy. I'm not sure how much his product was (or what it was), and the returns don't compound, but still.

Perhaps you'd write into your terms of business that you could only have one refund per person per year or something like that to limit this sort of edge case behaviour.

I recall it being a sports nutrition business but selling something reasonably unique. I would estimate that it would be an average sale of $50-$100, perhaps a high of $300?

So long as you're making decent sales an occasional hit of $5-$10 and the even rarer hit of $30 is hardly terrible.

I occasionally see offers like that, and all it does is make me think there's a catch that makes it almost impossible to redeem.

After reading the comments here, I could be wrong.

What did he offer this 100% guarantee on? I read this book and thought it was awful.