Can the right guarantee boost your sales by up to 50%?
Yet many entrepreneurs and small business owners resist guarantees again and again …
Ironically, they’re afraid they’ll lose money if they stand behind their products.
They invest hard work and cash to create our products.
And rightly want to be paid for their work.
You may have even caught yourself with these common objections. Let me take a moment to answer them for you now:
Objection: “If I deliver an electronic or information product, people will take it, call in the guarantee, and cheat me out of my product intentionally.”
Answer: True – even if you have a brick and mortar shop, some people will steal.
Objection: “Even if the customer has good intentions, they may not like the product … or they may not use it properly to get the best results. Then they get a refund and have had access to everything for free.”
Answer: True again. However, when you offer a product, it really won’t always give perfect results or be used properly by everyone who buys it (and there’s often an important connection there). Inevitably, a few people will feel like they wasted their money. Some of them will demand a guarantee.
And if you don’t give it to them? You could end up with angry customers that tell all their friends and anyone else who’s listening NOT to buy from you.
The solution: It’s often worth offering a 100% guarantee to stay on friendly terms.
And because guarantees reduce risk and inspire trust, additional sales often far offset any refunds made.
Now take a moment to put yourself in your reader’s shoes …
Which would you choose?
Example 1:
Frank and Gary each sell transmissions. You’ve always leased in the past, the shops look similar, they each have mostly good recommendations on Yelp, and …
- Frank gives a 100% lifetime guarantee
- Gary gives a lower price and a one-year guarantee
Where do you take your car? Which company shows greater confidence in their product?
It’s often worth offering a 100% guarantee to stay on friendly terms Click To Tweet
Example 2:
You have 3 rambunctious bullmastiff puppies drooling all over your best oriental rug … they’ll reach 120 lbs. at full maturity and they’re growing fast. You’re at the tipping point of a decision to plunk down $197 for a new step-by-step DIY dog training course. You’ve googled courses online and found two listed at the same price …
- Peter’s Perfect Pups advertises a double-your-money-back-for-any-reason guarantee because they trust you and are supremely confident in their ability to deliver the right results
- Carl’s Canine Coaching gives you NO guarantee because … hey, dogs are unpredictable… and let’s face it, some customers are dishonest
Doesn’t a guarantee make you feel safer making that initial purchase?
If you’re like me, you’re thinking, “Yes.”
But what about the risk to you, the seller? Here are 5 tips to keep your reader feeling secure while minimizing financial fall-out … so you get to keep both your profits and the trust of your tribe.
5 ways to reduce risk and get more sales with a guarantee:
1 – Attract the Right Prospects for Your Offer
Early in my career, I made a classic newbie mistake – not prequalifying the buyer. In the end, I gave a complete refund after writing an entire email sequence for a product I was never given access to (a big qualification!).
I soon learned to prequalify every client before beginning a working relationship. As a result, some clients have thanked me for the free discovery call and marketing insight even when we don’t work together.
And they know I’m there to help – not to make profits at their expense.
2 – Qualify Your Guarantee
For example, … if the buyer
- Used all the books, worksheets, and resources
- followed the plan systematically
- and still did not see an increase in your sales … or lose 10 lbs. … or experienced increased vitality
You’ll fully refund their money and they are free to keep your generous bundle of 17 free gifts.
3 – Create an Extended Deadline
Offer a 60-day guarantee and people will schedule it on their calendars with a note of your customer service number. Make it a full year, and chances are they’ll either forget about the guarantee or feel exceptionally guilty for having not used your product.
4 – Charge a Kill Fee for Select Services
I now charge a 50% kill fee to cover some of the hours I spend on research and writing – and because I’ve given the client access to original copy. If you’re investing heavily in time to provide a service, consider this option as part of your initial agreement.
5 – Guarantee What You Control
Selling weight loss supplements? Guarantee your customers will love the flavor of your protein powder. Writing an ad? Guarantee satisfaction with the copy but not the results – especially if anyone else is creating the design, picking the audiences, and doing the scheduling. Even then, Facebook advertising is a kind of alchemy … Let your case studies serve as evidence of your expertise.
6 – Provide Top-notch Goods and Services
No one can make up for selling a bad product. Sell your best work to ensure that any refunds go to mismatches and not because your products weren’t worth the cost.
x x Judy
P.S. IMPORTANT TO NOTE – In some cases, it makes sense to say no to a guarantee …
with low-priced items, for example …
or when results depend on hourly services or contracted work.
However, you may be able to dramatically increase conversions and sales simply by adding the right guarantee to your offer …
