The whole money back thing makes absolutely no sense. If you are going to sell something for $500, then say you will give $100 back after purchase, why not just make the product $400? Is it some sort of sleezy marketing scheme? ELI5. Please! Make this make sense.
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I’ll compare it to a credit card with 1/3/5% cash back on purchases. A smart person would pay off their debt every month and take the free money. But what ultimately happens is people are tempted to spend more, can’t pay it off, and the extra interest outweighs the cash back money. That’s why every credit card out there has some kind of “reward”.
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