Logically, the biggest known secret to success in business or career is maintaining an advantage in everything you do. Many fail to understand, let alone practice this principle.
Nowadays, businesses slowly shift from making money upfront, to acquiring customers at breakeven, to losing money at getting new clients (think Uber and Paypal when they started out by giving cash to join them).
The simplest “competitive-edge” advantage you’ll ever gain is to always make it easier for the client to say “yes” rather than “no” to your offer. All you need to do is to eliminate the mental, emotional, or financial risk factors that are always associated with every decision-making proposal that is presented to your client.
Next, you need to eliminate all possible risk for anyone deciding to do business with you. This can be done through risk reversal, so that everyone would be dying to buy from you!
Using the concept of risk reversal
For all business transaction, there would always be one side that is asking the other to undertake more or all of the risk. Hence, you need to eliminate that risk for your client, lower this barrier and you would open the flood gates for client acquisition.
The onus is on you to take on all the risk for every business transaction. This can be doing the job again for no extra cost, providing a 100% money-back guarantee. This concept, combined with search engine optimisation (SEO), can be very powerful in generating enquiries and leads.
Use any tool to prove your undying commitment to their contentment would suffice. But chances are you don’t use it in your selling efforts. The crucial thing is to put it at the heart of your selling message, instead of sweeping it under the rug. Have a strong and powerful risk reversal to the client.
What is the purpose of a “guarantee”? It eliminates the risk for the client. Imagine doing a lead generation campaign and offering such services, to take up your services at a guarantee.
A performance guarantee, free of risk, would compel prospects to buy from you instead of your competitor and to buy now. Brainstorm on what results from your clients desires most from purchasing your proposal. Guarantee them that result – or they get their money back.
What to do when risk reversal is insufficient?
However, when the competition is heated, you would need a stronger proposal to sway the client to choose you beyond just a simple risk reversal. The key is to use a “better-than-risk-free” guarantee (BTRF).
What is a BTRF guarantee?
It goes beyond what a normal, simple guarantee or risk-reversal approach can do. When you use it, it shows your clients that you pappreciate and even reward them for spending his/her time, faith and effort expended in favouring you with his/her purchasing decision.
For example, if a customer is dissatisfied, you would not only give them a full and immediate refund of their purchase price. On top of that, you would promise them a bonus – a reimbursement incentive for taking the time and effort to purchase in the first place. Hence, the client would definitely be impressed. Any would be hard-pressed to say “no” to such a proposal.
Here is a practical example of how a BTFR guarantee works:
Firstly, he gives people a preview of his methods both in written and audio format, before asking them to sign up. He gives them a tangible and profit-rendering idea upfront they can immediately apply and generate money. This is before they even sign up.
Even if they don’t attend his seminar, they can keep the materials. When they do decide to sign up, he sends them nearly $3,000 worth of materials a full four weeks before they attend. They are encouraged to review and watch everything he sent them and apply what they have learnt prior to attending.
They can even cancel if they don’t make a decent profit prior to attending, allowing them to keep nearly a third of the materials given in advance for their efforts.
But it does not don’t stop there. If they do apply their learnings from th resources given to them in advance and made a sizable profit up front, their attendance binding is still not considered binding.
They’ve needed to have sat through a full one half of the entire program to be considered. If by 12 noon on day two of his five-day program they felt that the value received up to that juncture was not over $3,000 in value, they are welcome to leave and receive a full refund. No hard feelings. No questions asked. Plus, they get to keep their material for all their efforts.
The concept behind a better-than-risk-free guarantee is compensating your clients for their dissatisfaction and for the effort expended in choosing you. BTRF guarantees are hardly used, but they can be extremely potent and effective once executed!
How can you use Better-Than-Risk-Free guarantees for your business?
If you sell products or services, you could offer your client an added bonus when they agree to buy. Offer them an amazing money-back guarantee. But allow the client to keep the bonus even if he or she asks for a refund.
Another way would be giving them a financial bonus if they ask for a refund. Though this is rarely used, it can be a powerful way to send a signal that you are standing behind your promise to deliver whatever results you have announced. Some companies even use “double your money back” guarantees and achieved success.
Certain publications would buy you a subscription to their rival’s publication if you were dissatisfied. Another type of successfully-executed guarantee would be to express numerically the very specific result or minimum result or personal performance level the client should expect, but within a designated amount of time.
For example, a gym or a fitness center tested four different risk-free guarantees – 30, 60 and 90 days variations. The fourth test added a written agreement which guaranteed the particular results the client desired (e.g., lose 20kg of fat and turn it into rock hard, toned muscles in 120 days).
In the end. the try-it-free-for-60-days outperformed the other three tests by a large margin. The results were that nearly 50% converted to paying members by the end of the period. Unsurprisingly, the specific result guarantee was efficacious too, and performed far better than the others without it.