How a Bootstrapped SaaS Founder Used a No-Refund Policy to Fix Churn

In this episode, Lucas and Luna explore how a bootstrapped SaaS founder—running a $2 million ARR project management tool for small construction firms—eliminated their money-back guarantee and saw churn drop from 8 percent to 3 percent over six months. The guest, Callie Nguyen, realized that the refund policy attracted the wrong users: price-sensitive trialers who never activated key features. By replacing the guarantee with a 14-day free trial that requires a credit card upfront, she filtered out non-serious signups and improved customer lifetime value by 40 percent. Lucas breaks down the psychology of sunk cost versus commitment bias, and Luna questions whether this approach works for enterprise sales. They also discuss how Callie tested the policy change with a small cohort before rolling it out to all new customers, and the one metric she watched to avoid disaster (trial-to-paid conversion rate). The episode ends with a reflection on whether bootstrapped founders should ever offer unconditional refunds, and what signals to look for before making the leap. #BootstrappedSaaS #NoRefundPolicy #ChurnReduction #CustomerAcquisition #SaaSFounder #CallieNguyen #ConstructionTech #SaaSGrowth #CustomerLifetimeValue #TrialOptimization #SunkCostFallacy #CommitmentBias #SaaSMarketing #ProductLedGrowth #FexingoBusiness #BusinessPodcast #TechFounder #SmallBusinessSaaS Keep every episode free: buymeacoffee.com/fexingo