If you’re trying to figure out how to differentiate yourself in the market, increase your sales and attract high-paying clients that will choose you on your value (not because of your prices), this article is for you.
Warning: You’re likely going to squirm and resist what I’m about to tell you. You’ll have a number of great reasons (excuses) you can’t do it because “your business is different”.
Just trust me.
This idea can LITERALLY turn around a stagnant or dying business. It’s about as close to magic as I know when it comes to growing your business.
It’s so powerful because it cuts to the heart of why so many people do NOT end up buying from you.
Quite simply, they haven’t been able to decide that what they will get from buying will outweigh the potential risk that they’re going to somehow be worse off (by wasting money or time, or having some other negative consequence happen).
In other words, there is TOO much risk in making the decision to part with their hard-earned money .. so they don’t do it.
As an entrepreneur, this is the single greatest obstacle you’ll face in growing your business — being able to demonstrate clearly to someone that the value and benefit of what you will give them far outweighs the potential downside.
Think about it .. this is really the BIG reason that more people are not buying from you. They have not been convinced that the upside is bigger than the downside.
So, then .. how can you overcome this fear, and make it easy for them to make a buying decision?
The solution comes in what I call your “Outrageous Guarantee“.
In a nutshell, it’s a guarantee that essentially eliminates the risk to your prospect — it literally “reverses the risk” and puts YOU on the hook, instead of them.
Many years ago, I owned a small company that I was struggling to grow. We had several competitors who were all competing on price, and the market really couldn’t tell the difference between us. I decided to try the idea of a “crazy” guarantee to see what it might do.
I created and offered the “365 Day Money Back Guarantee“. While everyone else in the market was offering a 30 Day Money Back Guarantee, mine suddenly got attention because it was outrageous, compared to everyone else. We provided our service to the customer for an entire YEAR and at any time, they could ask for their money back, and we’d give it to them.
So what happened? My company ended up being named one of the Top 100 Fastest Growing Companies in Canada. I believe the Outrageous Guarantee was a key part of it, because it allowed us to attract a LOT of new clients.
You’re probably thinking .. “yeah, but how many people asked for their money back?”
How many people screwed you and took advantage?
Because that’s the first thing most business owners think about .. the risk that everyone’s going to ask for their money back and bankrupt the business.
But here’s the amazing thing. Of all the hundeds of new clients we attracted, the total number of customers that we gave money back to was … 1.
Here’s another example.
In our training and education businesses, we always offer guarantees that give our prospect a lot of confidence that they’re going to get their money’s worth .. and if they don’t, they’ll get their money back.
One of the guarantees we’ve offered reads like this:
108 Responses
Interesting topic this one. In the past I have taken up this offer. Only to find that the product did not work. BUT so much time had elapsed I did not bother to follow it up.
Result I NOW IGNORE ALL outrageous guarantees and they do not make the slightest difference as to weather I take up an offer. No matter what the product is. In other words the gimmick is just that, not to be trusted.
Thereby exploding the argument.
Kay, this isn't about being a 'gimmick'. It's about getting people who are on the fence to actually try the product or service. People are always looking for a reason NOT to buy something, and the Outrageous Guarantee gives you another tool to help get people to try your product or service. Assuming that you have a valuble offering, most people will NOT exercise the option, and they'll be happy with having made the decision.
Obviously you're harboring some regret and resentment that you didn't properly follow through with the guarantee when you could have. That's not the fault of the guarantee or the company that offered it to you. Most buyers are not like you, and do not ignore the guarantee, because it forms part of the product or service being offered.
I'm sorry that your negative experience causes you to ignore the incredible power that this concept has, and while it may be true for you, your experience doesn't 'explode' the argument that this is one of the most powerful marketing and sales tools that an entrepreneur can utilize.
Yes, Greg, it is the results of an action that demonstrate value. I can see where this could be used in marketing and sales, now, from reading this comment.
Interesting topic this one. In the past I have taken up this offer. Only to find that the product did not work. BUT so much time had elapsed I did not bother to follow it up.
Result I NOW IGNORE ALL outrageous guarantees and they do not make the slightest difference as to weather I take up an offer. No matter what the product is. In other words the gimmick is just that, not to be trusted.
Thereby exploding the argument.
Kay, this isn't about being a 'gimmick'. It's about getting people who are on the fence to actually try the product or service. People are always looking for a reason NOT to buy something, and the Outrageous Guarantee gives you another tool to help get people to try your product or service. Assuming that you have a valuble offering, most people will NOT exercise the option, and they'll be happy with having made the decision.
Obviously you're harboring some regret and resentment that you didn't properly follow through with the guarantee when you could have. That's not the fault of the guarantee or the company that offered it to you. Most buyers are not like you, and do not ignore the guarantee, because it forms part of the product or service being offered.
I'm sorry that your negative experience causes you to ignore the incredible power that this concept has, and while it may be true for you, your experience doesn't 'explode' the argument that this is one of the most powerful marketing and sales tools that an entrepreneur can utilize.
Yes, Greg, it is the results of an action that demonstrate value. I can see where this could be used in marketing and sales, now, from reading this comment.
Hi Greg
I am a newbie and just working on product. I agree with you from past experience. I worked for a small organization manufacturing farm gates and we repaired/re-painted any manufacturing flaws with no time limit. I remember a couple we did were over 4 yrs old and they were done without a second thought. Customer satisfaction was high.
Since I am on the front end without pre-formed concepts, I'd like to hear more. Thanks for your inspiration!
Hi Greg
I am a newbie and just working on product. I agree with you from past experience. I worked for a small organization manufacturing farm gates and we repaired/re-painted any manufacturing flaws with no time limit. I remember a couple we did were over 4 yrs old and they were done without a second thought. Customer satisfaction was high.
Since I am on the front end without pre-formed concepts, I'd like to hear more. Thanks for your inspiration!
I'll try it starting today. Yesterday I sent out over 200 marketing pieces. I'll do the same today with an outrageous guarantee and compare the results! Thanks for the tip.
I'll try it starting today. Yesterday I sent out over 200 marketing pieces. I'll do the same today with an outrageous guarantee and compare the results! Thanks for the tip.
I am in the financial world where we rarely
use the word “guarantee”. However, as a consumer I appreciate guarantees of a specific outcome.
Hi Rebecca:
You bring up a great point – businesses that deal with money and investing typically have to be more creative when it comes to guarantees. As you've said, using that word can be dangerous when it comes to suggesting you're offering a guaranteed return.. so the key is to figure out other elements of your offering that you CAN guarantee.
For example, if you're a fee-based advisor, you can GUARANTEE that you will never sell your clients a product or give them biased advice on a product because you're being paid. If you're a commission based advisor, you can build guarantees around your service levels, quality of information, frequency of contact, etc.
This is a similar challenge for real estate investors who are looking to raise capital from other investors – you can't guarantee a return if it's an equity deal, but you CAN make other guarantees that reduce the fear and anxiety. Again, you need to be careful how you structure it to make sure you're not stepping out of bounds when it comes to regulations, laws., etc. but it can be done to great success.
The truth is, most people in money and investing businesses are too lazy to be creative and create a powerful guarantee, so the ones that do REALLY stand out.
Unfortunately a single blog post isn't enough space to really expand on the subject, but I plan to as I develop and release more information. Thanks for your comment!
Thanks Greg
That's great advice – we are in the financial arena selling services – we represent the purchaser when they buy investment properties. We can't guarantee the performance of the property and we can't allow them to return them after the purchase, but your post gave me thoughts about how to guarantee elements of our service
I am in the financial world where we rarely
use the word “guarantee”. However, as a consumer I appreciate guarantees of a specific outcome.
Hi Rebecca:
You bring up a great point – businesses that deal with money and investing typically have to be more creative when it comes to guarantees. As you've said, using that word can be dangerous when it comes to suggesting you're offering a guaranteed return.. so the key is to figure out other elements of your offering that you CAN guarantee.
For example, if you're a fee-based advisor, you can GUARANTEE that you will never sell your clients a product or give them biased advice on a product because you're being paid. If you're a commission based advisor, you can build guarantees around your service levels, quality of information, frequency of contact, etc.
This is a similar challenge for real estate investors who are looking to raise capital from other investors – you can't guarantee a return if it's an equity deal, but you CAN make other guarantees that reduce the fear and anxiety. Again, you need to be careful how you structure it to make sure you're not stepping out of bounds when it comes to regulations, laws., etc. but it can be done to great success.
The truth is, most people in money and investing businesses are too lazy to be creative and create a powerful guarantee, so the ones that do REALLY stand out.
Unfortunately a single blog post isn't enough space to really expand on the subject, but I plan to as I develop and release more information. Thanks for your comment!
Thanks Greg
That's great advice – we are in the financial arena selling services – we represent the purchaser when they buy investment properties. We can't guarantee the performance of the property and we can't allow them to return them after the purchase, but your post gave me thoughts about how to guarantee elements of our service
I actually do not recall seeing a guarantee that really attracted my attention – except for the ones that were rip-offs. The solar hot water business in California thrived as long as the federal government gave direct tax credit for each dollar spent and at that time the top company offered an outrageous guarantee. It was I think a 30 year guarantee – the company ceased operation when the government tax credit ended – 5 years after the first sale.
We do not offer an outrageous guarantee – the risk is mitigated for the prospective customer by communicating and demonstrating our excellent reputation.
I would have to carefully consider how this could be implemented; perhaps for a defined duration promotional campaign.
I actually do not recall seeing a guarantee that really attracted my attention – except for the ones that were rip-offs. The solar hot water business in California thrived as long as the federal government gave direct tax credit for each dollar spent and at that time the top company offered an outrageous guarantee. It was I think a 30 year guarantee – the company ceased operation when the government tax credit ended – 5 years after the first sale.
We do not offer an outrageous guarantee – the risk is mitigated for the prospective customer by communicating and demonstrating our excellent reputation.
I would have to carefully consider how this could be implemented; perhaps for a defined duration promotional campaign.
Let me clarify something to make sure everyone's clear on what the concept is about.
When I say "Outrageous Guarantee", I don't mean a totally gimmicky one that makes people roll their eyes. I'm talking about a guarantee that makes people say, "wow.. they must really believe in their product".
A great example is Zappos.com, one of the world's fastest growing online retailers. Their claim to fame is selling shoes online. You can order as many pairs as you want, and they'll ship them to you (and pay the shipping). Then once you get them, you can try them all on and keep the ones you like (or none at all). And then, ship them back (and they pay for THAT too). And, any that you keep, if you end up not liking them or changing your mind, you can get your money back for a year after purchase.
THAT is an outrageous guarantee. It makes people say WOW and it removes the risk from the purchase.
This is a really important distinction. So the goal isn't to be over the top corny or gimmicky, but instead to really understand what the buyer's resistance is and find a guarantee that OVERCOMES it.
Let me clarify something to make sure everyone's clear on what the concept is about.
When I say “Outrageous Guarantee”, I don't mean a totally gimmicky one that makes people roll their eyes. I'm talking about a guarantee that makes people say, “wow.. they must really believe in their product”.
A great example is Zappos.com, one of the world's fastest growing online retailers. Their claim to fame is selling shoes online. You can order as many pairs as you want, and they'll ship them to you (and pay the shipping). Then once you get them, you can try them all on and keep the ones you like (or none at all). And then, ship them back (and they pay for THAT too). And, any that you keep, if you end up not liking them or changing your mind, you can get your money back for a year after purchase.
THAT is an outrageous guarantee. It makes people say WOW and it removes the risk from the purchase.
This is a really important distinction. So the goal isn't to be over the top corny or gimmicky, but instead to really understand what the buyer's resistance is and find a guarantee that OVERCOMES it.
I think the most outrageous guarantee I've ever seen was from one of those identity theft prevention companies. LifeLock, was it? Didn't the president guarantee a million dollars if your identity got stolen?
I recently started offering 100% money back guarantee on my packages. I'm a holistic healer and the work that I do is often very new to people, so they're apprehensive about putting money into it. We establish a 90-day healing plan with a specific, written goal, and I tell them that if we follow the plan but we don't meet the goal, I'll refund everything they paid me. I haven't had to refund anything yet, and in the meantime I've gotten people to book prepay for $1000 worth of sessions (which isn't considered easy in my business).
'Though now I realize is that I don't promote the guarantee on my website; that is something I should change.
I think the most outrageous guarantee I've ever seen was from one of those identity theft prevention companies. LifeLock, was it? Didn't the president guarantee a million dollars if your identity got stolen?
I recently started offering 100% money back guarantee on my packages. I'm a holistic healer and the work that I do is often very new to people, so they're apprehensive about putting money into it. We establish a 90-day healing plan with a specific, written goal, and I tell them that if we follow the plan but we don't meet the goal, I'll refund everything they paid me. I haven't had to refund anything yet, and in the meantime I've gotten people to book prepay for $1000 worth of sessions (which isn't considered easy in my business).
'Though now I realize is that I don't promote the guarantee on my website; that is something I should change.
I use this approach for my Pet Containment business. Corporately our product has over a 99.5% success rate, locally I have a 100% success rate. I went from a 90 day guarantee to what I call my "440 Guarantee".
I give my customer 400 days to ensure they like the product. If they do not, I offer a full refund and will also donate $40 to a local animal charity. I do expect at some point to have a customer ask for a refund. But the benefit of clearly showing my faith in my product and service outweighs the fact that I may be called on the Guarantee. Truth be told, if they are not happy, I do not want them to have the product.
Hey Ken:
Great case study! Interested in hearing if you're seeing customers raise their eyebrows or respond to such a powerful guarantee.
I use this approach for my Pet Containment business. Corporately our product has over a 99.5% success rate, locally I have a 100% success rate. I went from a 90 day guarantee to what I call my “440 Guarantee”.
I give my customer 400 days to ensure they like the product. If they do not, I offer a full refund and will also donate $40 to a local animal charity. I do expect at some point to have a customer ask for a refund. But the benefit of clearly showing my faith in my product and service outweighs the fact that I may be called on the Guarantee. Truth be told, if they are not happy, I do not want them to have the product.
Hey Ken:
Great case study! Interested in hearing if you're seeing customers raise their eyebrows or respond to such a powerful guarantee.
Thanks Greg, I like the concept of removing some of the fear from making a decision. I remember, well sort of remember, but can't give the credit to when I heard/read that most of us will do so much more for what is mine, or what would be taken from me? Compared to what will I gain? Fear is a limmiting belief that I choose to release, and through an Outrageous Guarantee I believe it can be accomplished. Take Care
Hi Peter:
It's a proven psychological fact that as human beings, we'll do more to avoid pain than gain pleasure. So if your prospect sees potential pain making a decision to buy, they won't do it. Therefore, you have to overcome that fear of loss or pain by showing them there's no way they can lose.
Thanks Greg, I like the concept of removing some of the fear from making a decision. I remember, well sort of remember, but can't give the credit to when I heard/read that most of us will do so much more for what is mine, or what would be taken from me? Compared to what will I gain? Fear is a limmiting belief that I choose to release, and through an Outrageous Guarantee I believe it can be accomplished. Take Care
Hi Peter:
It's a proven psychological fact that as human beings, we'll do more to avoid pain than gain pleasure. So if your prospect sees potential pain making a decision to buy, they won't do it. Therefore, you have to overcome that fear of loss or pain by showing them there's no way they can lose.
It's true… I was given a money back guarantee on a $3500 conference. I was on the fence until I read that. I attended the conference and I was more than happy with what I learned so I am not going to ask for money my money back. It was an outrageous guarantee that helped me decide to attend the conference.
PERFECT example of how an Outrageous Guarantee increases sales by getting those prospects 'on the fence' to give it a try. And the big point here is that you have to have a GOOD product or service so that people don't feel disappointed or misled. Thanks for the comment Maryalice!
It's true… I was given a money back guarantee on a $3500 conference. I was on the fence until I read that. I attended the conference and I was more than happy with what I learned so I am not going to ask for money my money back. It was an outrageous guarantee that helped me decide to attend the conference.
PERFECT example of how an Outrageous Guarantee increases sales by getting those prospects 'on the fence' to give it a try. And the big point here is that you have to have a GOOD product or service so that people don't feel disappointed or misled. Thanks for the comment Maryalice!
I am an alternative Health consultant ,utilizing sophisticated technologies to track and assess health or detect stress in the body .
I am very exquisitely well decorated education wise that can make me stand out . I have not been willing to lower my consulting fee for the logics you present .
How can i give guarantees ,for lifestyle changes that will bring results for clients?If they do not implement my suggestions ,there will be no results.
Please explain?
Thanks
Farideh
You build your guarantee around what you can control for the most part. Beyond that, you guarantee that if they do what you tell them, they'll get a certain result. It's implied that if you don't do anything you won't get the results. Here's a very powerful question to ask: what would have to happen for me to be able to guarantee they get the result they want? If you can figure that answer out, you'll explode your business .. because don't want to buy what you're selling .. they want to experience or gain the benefit from what it is you sell.
Thanks Greg for your article, it’s helped me see my business from another angle. I’m an Alexander Technique teacher and it does feel that what I’m doing is ‘Selling the Invisible’, similar to Farideh above.
Initially when I read you’re article I thought I’d offer a money back guarantee for something intangible, like ‘if you are not satisfied with your lessons then get your money back’. But reading your reply above and speaking with my brother Steve, who was initially sceptical, we started to explore it.
What we found was that the pupil would be losing their time as well as money if they didn’t like the lessons. So it could be good to focus on the other benefits that would come from learning the Alexander Technique. The money back guarantee would work as the mechanism for demonstrating my confidence at helping them reach those goals.
A couple of questions: How long would I leave the refund option open for? And after how many lessons would the offer be open for? Or is that something to be worried about? Or should I offer something else other than money to reassure?
I think the better I articulate what it is I want my pupils to gain from their classes the better I can reassure the pupil that they are not wasting their time and money.
It’s interesting that when you say you are thinking of starting a course to explore these ideas you triggered my fear reflex at getting caught up in a costly and time consuming activity. I’d like to dip my toes in the course you’re offering, but if I don’t connect with it, or find benefits from it then I could take advantage of a money back guarantee, however sometimes it’s important to commit to things…. what a quandary 😉
So my next stage is to encapsulate what different pupils would want to gain from learning the AT, decide on a guarantee and work out how to present it to the world, in an elegant yet direct way….
Hi Jeremy:
The longer the guarantee period, the better as a general rule. What's fascinating is that studies have shown (and my experience has been) that the longer your guarantee period, the less refunds/returns you get. If you think about it, this makes sense. When you only have a short # of days to make a decision (for example, a 7 day trial, or a 30 day money back guarantee), your mind is constantly on that deadline and making a decision. But if you make it a long period of time, the buyer thinks "I've got lots of time to decide" and they don't focus on it. Taking the pressure away from making a quick decision reduces the likelihood they'll ask for a refund. It all depends on your market and offering of course, but that's why the longer guarantee works better in most cases.
The big question is, how confident are you that your program will REALLY work? Because if you're truly confident, then the longer (and more lessons) I would guarantee. As long as your program works, then what that allows you to do is build a relationship and loyalty with your clients, and that you are truly committed to helping them learn and improve.
In terms of whether money or something else would be reassuring, this is where it's important to understand what your customer's fears and pains really are. The goal of the guarantee is to address those fears – what will they lose if they take your program and it doesn't work? That's the obstacle for them, and thinking that way will help you overcome it.
In terms of a program being costly and time consuming, this is a great example of why I would create an Outrageous Guarantee around the program I develop. Like most entrepreneurs, your biggest challenges are that you don't have time to waste, and that it bothers you to waste money on resources that don't work. So you can bet that any programs I develop will address those 2 major areas.
I agree with you that it's necessary to commit to some things in order to grow, and Outrageous Guarantees are a great way to give your clients another reason to give you an opportunity over every other choice they have in the market. Hope that helps.
I am an alternative Health consultant ,utilizing sophisticated technologies to track and assess health or detect stress in the body .
I am very exquisitely well decorated education wise that can make me stand out . I have not been willing to lower my consulting fee for the logics you present .
How can i give guarantees ,for lifestyle changes that will bring results for clients?If they do not implement my suggestions ,there will be no results.
Please explain?
Thanks
Farideh
You build your guarantee around what you can control for the most part. Beyond that, you guarantee that if they do what you tell them, they'll get a certain result. It's implied that if you don't do anything you won't get the results. Here's a very powerful question to ask: what would have to happen for me to be able to guarantee they get the result they want? If you can figure that answer out, you'll explode your business .. because don't want to buy what you're selling .. they want to experience or gain the benefit from what it is you sell.
Thanks Greg for your article, it’s helped me see my business from another angle. I’m an Alexander Technique teacher and it does feel that what I’m doing is ‘Selling the Invisible’, similar to Farideh above.
Initially when I read you’re article I thought I’d offer a money back guarantee for something intangible, like ‘if you are not satisfied with your lessons then get your money back’. But reading your reply above and speaking with my brother Steve, who was initially sceptical, we started to explore it.
What we found was that the pupil would be losing their time as well as money if they didn’t like the lessons. So it could be good to focus on the other benefits that would come from learning the Alexander Technique. The money back guarantee would work as the mechanism for demonstrating my confidence at helping them reach those goals.
A couple of questions: How long would I leave the refund option open for? And after how many lessons would the offer be open for? Or is that something to be worried about? Or should I offer something else other than money to reassure?
I think the better I articulate what it is I want my pupils to gain from their classes the better I can reassure the pupil that they are not wasting their time and money.
It’s interesting that when you say you are thinking of starting a course to explore these ideas you triggered my fear reflex at getting caught up in a costly and time consuming activity. I’d like to dip my toes in the course you’re offering, but if I don’t connect with it, or find benefits from it then I could take advantage of a money back guarantee, however sometimes it’s important to commit to things…. what a quandary 😉
So my next stage is to encapsulate what different pupils would want to gain from learning the AT, decide on a guarantee and work out how to present it to the world, in an elegant yet direct way….
Hi Jeremy:
The longer the guarantee period, the better as a general rule. What's fascinating is that studies have shown (and my experience has been) that the longer your guarantee period, the less refunds/returns you get. If you think about it, this makes sense. When you only have a short # of days to make a decision (for example, a 7 day trial, or a 30 day money back guarantee), your mind is constantly on that deadline and making a decision. But if you make it a long period of time, the buyer thinks “I've got lots of time to decide” and they don't focus on it. Taking the pressure away from making a quick decision reduces the likelihood they'll ask for a refund. It all depends on your market and offering of course, but that's why the longer guarantee works better in most cases.
The big question is, how confident are you that your program will REALLY work? Because if you're truly confident, then the longer (and more lessons) I would guarantee. As long as your program works, then what that allows you to do is build a relationship and loyalty with your clients, and that you are truly committed to helping them learn and improve.
In terms of whether money or something else would be reassuring, this is where it's important to understand what your customer's fears and pains really are. The goal of the guarantee is to address those fears – what will they lose if they take your program and it doesn't work? That's the obstacle for them, and thinking that way will help you overcome it.
In terms of a program being costly and time consuming, this is a great example of why I would create an Outrageous Guarantee around the program I develop. Like most entrepreneurs, your biggest challenges are that you don't have time to waste, and that it bothers you to waste money on resources that don't work. So you can bet that any programs I develop will address those 2 major areas.
I agree with you that it's necessary to commit to some things in order to grow, and Outrageous Guarantees are a great way to give your clients another reason to give you an opportunity over every other choice they have in the market. Hope that helps.
What if it's a ONE day workshop? What could be an outrageous offer… offering a full refund at the end of the workshop? Or maybe even trying another one of my workshops?? Thanks
You tell me Dara.. what's an outrageous guarantee?
Attending the full day is good because it shows you have nothing to hide, and people will really have a chance to evaluate whether it was worth the time.
What is the OUTCOME you can guarantee? That is truly what people want. They don't want to attend seminars.. they want to GET the benefit that comes from what they learn.
For example, if your seminar is weight loss, the guarantee could be around the fact that "I guarantee by the end of the day, you will have a crystal clear plan on how to lose 20 pounds in the next 90 days, and you'll have a specific list of the exact steps to take and the foods to eat. And if you're not 100% confident you can lose the weight at the end of the day, I will personally work with you until you have 100% clarity. You will NOT leave until you know EXACTLY what to do and how to guarantee your success."
That's just a random thought but you can see how you're trying to focus the guarantee on the OUTCOME, not really on the seminar.
What if it's a ONE day workshop? What could be an outrageous offer… offering a full refund at the end of the workshop? Or maybe even trying another one of my workshops?? Thanks
You tell me Dara.. what's an outrageous guarantee?
Attending the full day is good because it shows you have nothing to hide, and people will really have a chance to evaluate whether it was worth the time.
What is the OUTCOME you can guarantee? That is truly what people want. They don't want to attend seminars.. they want to GET the benefit that comes from what they learn.
For example, if your seminar is weight loss, the guarantee could be around the fact that “I guarantee by the end of the day, you will have a crystal clear plan on how to lose 20 pounds in the next 90 days, and you'll have a specific list of the exact steps to take and the foods to eat. And if you're not 100% confident you can lose the weight at the end of the day, I will personally work with you until you have 100% clarity. You will NOT leave until you know EXACTLY what to do and how to guarantee your success.”
That's just a random thought but you can see how you're trying to focus the guarantee on the OUTCOME, not really on the seminar.
The best guarantee I´ve seen is from the Teaching Company, they have life time satisfaction guarantee for all the educational videos they published.
The best guarantee I
Very nice, I appreciate all the simple yet profound concepts you are always sharing with everyone!
Very nice, I appreciate all the simple yet profound concepts you are always sharing with everyone!
Dear Greg, "Talk About Wow"! Your commentary on the importance of having an "Outrageous Guarantee" is so right on and I applaud you for putting it out there! Actually as I was reading your post I was sitting there thinking of ZAPPOS and Tony Heish as such a remarkable example of this!
This is such an interesting and fascinating topic and it really should 'Wake-Up' tons of entrepreneurs who stay with the 30 Day Guarantee. With a truly "Outrageous Guarantee" an entrepreneur is able to set themselves apart almost immediately. So why is that?
The answer is "Because I Can." AND DON'T YOU JUST LOVE IT?
Thank you Greg for just another great commentary as I truly appreciate your remarkable posts!
With Gratitude and Joy, Catherine Ross
Dear Greg, “Talk About Wow”! Your commentary on the importance of having an “Outrageous Guarantee” is so right on and I applaud you for putting it out there! Actually as I was reading your post I was sitting there thinking of ZAPPOS and Tony Heish as such a remarkable example of this!
This is such an interesting and fascinating topic and it really should 'Wake-Up' tons of entrepreneurs who stay with the 30 Day Guarantee. With a truly “Outrageous Guarantee” an entrepreneur is able to set themselves apart almost immediately. So why is that?
The answer is “Because I Can.” AND DON'T YOU JUST LOVE IT?
Thank you Greg for just another great commentary as I truly appreciate your remarkable posts!
With Gratitude and Joy, Catherine Ross
As an entrepreneur, who just shut down one business due to trying to "convert" people to going organic, I never realized the potential in what risk plays in getting the customer to call. This is a great concept one that I will definitely exploit in full potential. I do have another business that will benefit greatly from this advice. After this I may just have to revisit my other company and give it new life with the outrageous guarantee, who knows might be just what it needs to breath life again. I also would love to hear more on the subject of marketing especially services, as that it the business I am in. I now have a mobile mechanic and detailing service that covers auto, marine, and rv.The other company which will be revisited is a 100% green 100% organic pest control company. Let me know if you have anyhting that would help me in the marketing of such services.
Thank You,
-Alan-
Hi Alan:
I'm in the process of creating a new program that will delve into a lot of key (but often ignored) marketing concepts, like the Outrageous Guarantee. Stay tuned as you'll hear about it soon. I'm very excited about it, and I think it will fill the gap for a lot of entrepreneurs trying to figure out how to differentiate themselves and attract new clients.
As an entrepreneur, who just shut down one business due to trying to “convert” people to going organic, I never realized the potential in what risk plays in getting the customer to call. This is a great concept one that I will definitely exploit in full potential. I do have another business that will benefit greatly from this advice. After this I may just have to revisit my other company and give it new life with the outrageous guarantee, who knows might be just what it needs to breath life again. I also would love to hear more on the subject of marketing especially services, as that it the business I am in. I now have a mobile mechanic and detailing service that covers auto, marine, and rv.The other company which will be revisited is a 100% green 100% organic pest control company. Let me know if you have anyhting that would help me in the marketing of such services.
Thank You,
-Alan-
Hi Alan:
I'm in the process of creating a new program that will delve into a lot of key (but often ignored) marketing concepts, like the Outrageous Guarantee. Stay tuned as you'll hear about it soon. I'm very excited about it, and I think it will fill the gap for a lot of entrepreneurs trying to figure out how to differentiate themselves and attract new clients.
Hi Greg,
Not sure if this is a guarantee, per se, but I always liked Gateway computer's offer. At any time in the future, they would give you an updated quality computer whose retail price was the same as the one you bought from them in the past. So if you bought a $1000 PC in 1980 for a 500 MB hard drive, in the year 2010 they'll let you trade it in for a computer worth $1000 with a 1 terabyte (1,000 gigabytes) hard drive. To me that was like guaranteeing a computer I'd always be happy with. Though I confess, I never bought from them. Their prices were out of my affordability range. But I DID drool!
Now how would that work for an event or service… In my new business BaranyVideoMarketing.com, I suppose I could offer a similar thing where if they buy my $500 package for a video, they can get the future upgraded $500 package deals – a better video, more involved social media traffic service, better leveraged client base – for free.
For an event it's easy. And I think you did this before, Greg. Buy the seminar, get to go to the alumni events for free.
There are a couple of wealth-teaching speakers who are my clients, Jeff and Kane, and they let anyone who has signed up for a course of theirs take the same course for free when it's offered again. Usually, their courses are offered every few months, and a lot of previous guests frequently return to the events. It usually ends up with the students getting better results. The frequency of the events helps with changing their poverty mindset, like a good and proper brainwashing!
No cows were harmed in the making of this comment
Hey Ezra:
Good to hear from you. I think what you're talking about is less of a guarantee, and more about the offer itself – though there's some level of risk reversal involved. The computer example overcomes your anxiety that this computer is going to be garbage in 2 years, and helps avoid that resistance you have, because you're not thinking 'maybe I should wait and let prices come down a bit more' .. it gives you a reason to buy now, because you're not at risk of having an obsolete computer in the future.
In terms of allowing students to attend future programs for free, I don't think about that as a guarantee as much as the product you're offering. It's a great strategy, especially in a market that changes alot. Learning how to use video marketing is a HIGHLY changing market and what you learn this year will be obsolete by next year. So offering "free upgrades" is a great idea, and gives someone that comfort that they're going to be able to keep up with the changes.
However, there is one critical thing you must do with this kind of business model — you need to ensure you're building revenue models that offset that obligation to service future customers for free. For example, if you can let them participate in next year's program for free, but you're also selling to new customer and making money, the new customers help offset your time and cost. But if you're only serving your past customers and there's no revenue, that gets you into trouble.
Or, instead of new customers, if you had another program or offer to make to your existing customers, then that would offset it. For example, you have one course about video marketing, and then you develop a new one based on a strategy of using AdWords with video. If you could sell the new program to your existing customers (who are happy because you're providing so much value and free upgrades in the original course), you then are able to create new revenue and make it worthwhile.
You always have to be careful about making future commitments on products and services, because it's a liability and if you don't follow through it can really hurt your business.
So there are pros and cons, but absolutely, I think your concept is a smart one and one that we've used quite a few times with success.
Hi Greg,
Not sure if this is a guarantee, per se, but I always liked Gateway computer's offer. At any time in the future, they would give you an updated quality computer whose retail price was the same as the one you bought from them in the past. So if you bought a $1000 PC in 1980 for a 500 MB hard drive, in the year 2010 they'll let you trade it in for a computer worth $1000 with a 1 terabyte (1,000 gigabytes) hard drive. To me that was like guaranteeing a computer I'd always be happy with. Though I confess, I never bought from them. Their prices were out of my affordability range. But I DID drool!
Now how would that work for an event or service… In my new business BaranyVideoMarketing.com, I suppose I could offer a similar thing where if they buy my $500 package for a video, they can get the future upgraded $500 package deals – a better video, more involved social media traffic service, better leveraged client base – for free.
For an event it's easy. And I think you did this before, Greg. Buy the seminar, get to go to the alumni events for free.
There are a couple of wealth-teaching speakers who are my clients, Jeff and Kane, and they let anyone who has signed up for a course of theirs take the same course for free when it's offered again. Usually, their courses are offered every few months, and a lot of previous guests frequently return to the events. It usually ends up with the students getting better results. The frequency of the events helps with changing their poverty mindset, like a good and proper brainwashing!
No cows were harmed in the making of this comment
Hey Ezra:
Good to hear from you. I think what you're talking about is less of a guarantee, and more about the offer itself – though there's some level of risk reversal involved. The computer example overcomes your anxiety that this computer is going to be garbage in 2 years, and helps avoid that resistance you have, because you're not thinking 'maybe I should wait and let prices come down a bit more' .. it gives you a reason to buy now, because you're not at risk of having an obsolete computer in the future.
In terms of allowing students to attend future programs for free, I don't think about that as a guarantee as much as the product you're offering. It's a great strategy, especially in a market that changes alot. Learning how to use video marketing is a HIGHLY changing market and what you learn this year will be obsolete by next year. So offering “free upgrades” is a great idea, and gives someone that comfort that they're going to be able to keep up with the changes.
However, there is one critical thing you must do with this kind of business model — you need to ensure you're building revenue models that offset that obligation to service future customers for free. For example, if you can let them participate in next year's program for free, but you're also selling to new customer and making money, the new customers help offset your time and cost. But if you're only serving your past customers and there's no revenue, that gets you into trouble.
Or, instead of new customers, if you had another program or offer to make to your existing customers, then that would offset it. For example, you have one course about video marketing, and then you develop a new one based on a strategy of using AdWords with video. If you could sell the new program to your existing customers (who are happy because you're providing so much value and free upgrades in the original course), you then are able to create new revenue and make it worthwhile.
You always have to be careful about making future commitments on products and services, because it's a liability and if you don't follow through it can really hurt your business.
So there are pros and cons, but absolutely, I think your concept is a smart one and one that we've used quite a few times with success.
How can i overcome my prospect's reluctance to not phoning new customers
How can i overcome my prospect's reluctance to not phoning new customers
I do partrige, Stucco and repairs cracks on houses fondations. I guarantee that my stucco and my crack repairs will not break. And I guarantie that for as long as I am in business.
I am 51 and will be in this business for a few years more… I applied this technick since a couple of years. I work mainly on residential houses. I never really had any problems in selling my product because over 80 per cent of my work is referals.
I sell 99 per cent of the calls I receive.
I todly beleive in full integrity. I work to people places exacly the same way as I work on my own house. And when I have a recall, it did happened a few times, I make it a priority to serve this customer with integrity and respect to honor my waranty, to honor myself.
I do partrige, Stucco and repairs cracks on houses fondations. I guarantee that my stucco and my crack repairs will not break. And I guarantie that for as long as I am in business.
I am 51 and will be in this business for a few years more… I applied this technick since a couple of years. I work mainly on residential houses. I never really had any problems in selling my product because over 80 per cent of my work is referals.
I sell 99 per cent of the calls I receive.
I todly beleive in full integrity. I work to people places exacly the same way as I work on my own house. And when I have a recall, it did happened a few times, I make it a priority to serve this customer with integrity and respect to honor my waranty, to honor myself.
"Wow" this sounds like a great idea.I am in the proccess of starting up a bussiness as a facilator in the healing profession so am inspired by your sugestions.What else is Possible?????????
“Wow” this sounds like a great idea.I am in the proccess of starting up a bussiness as a facilator in the healing profession so am inspired by your sugestions.What else is Possible?????????
I am very interested in this topic, and would love to learn more strategies on how to create an outrageous guarantee for my business. Being in the retail business selling dog and cat food and related accessories, when people come in looking for a new food for their dog or cat, we already tell that there is no risk. If their pet does not like the food, just bring it back to get refunded, and we'll find something that will work. I have thought about saying that if your pet does not like the food, not only will you be refunded, but we'll give you a free bag of treats ($5 value) and find another food for you that will work. Not sure if I'm on the right track here, and yes, we do get food returned occasionally. We also have a no hassle return policy on other products. Just noticed that my website says nothing about trying a food with a risk free guarantee. Hmmm. Must change that, and many other things on it. Looking forward to learning more.
I am very interested in this topic, and would love to learn more strategies on how to create an outrageous guarantee for my business. Being in the retail business selling dog and cat food and related accessories, when people come in looking for a new food for their dog or cat, we already tell that there is no risk. If their pet does not like the food, just bring it back to get refunded, and we'll find something that will work. I have thought about saying that if your pet does not like the food, not only will you be refunded, but we'll give you a free bag of treats ($5 value) and find another food for you that will work. Not sure if I'm on the right track here, and yes, we do get food returned occasionally. We also have a no hassle return policy on other products. Just noticed that my website says nothing about trying a food with a risk free guarantee. Hmmm. Must change that, and many other things on it. Looking forward to learning more.
Wow Greg! Great Idea and comments!
I have always backed my products or services with great guarantees but never went that extra step that you suggest here…I think I will implement that right away with my Healthy Coffee Challenge. Thanks for the idea!
Having said this, I feel it neccessary for me to share a heartfelt all around thank you for all that you do. I subscribe to your email and get a lot of great tips and advice. To date, I don't feel that I have reciprocated the value of this but just want you to know that I feel that what you put out to all of us will come back to you in spades. I feel that you give on a daily basis more than most people I have seen in your industry and I applaud you for it.
I look forward to meeting you sometime.
Wow Greg! Great Idea and comments!
I have always backed my products or services with great guarantees but never went that extra step that you suggest here…I think I will implement that right away with my Healthy Coffee Challenge. Thanks for the idea!
Having said this, I feel it neccessary for me to share a heartfelt all around thank you for all that you do. I subscribe to your email and get a lot of great tips and advice. To date, I don't feel that I have reciprocated the value of this but just want you to know that I feel that what you put out to all of us will come back to you in spades. I feel that you give on a daily basis more than most people I have seen in your industry and I applaud you for it.
I look forward to meeting you sometime.
I'd be interested in learning more on this topic. I'm a Realtor and wonder what kind of Outrageous offer I can put out in the market that doesn't put me at risk. I also want to keep it classy.
I'd be interested in learning more on this topic. I'm a Realtor and wonder what kind of Outrageous offer I can put out in the market that doesn't put me at risk. I also want to keep it classy.
Interesting!
Interesting!
I think one of the best is Mountain Equipment Coop's Rock Solid Guarantee. I think you can bring anything back anytime if you are not happy with a product that they sell.
Just like Zappos, some people will abuse this, but that will be the minority to be sure.
I love it. I just need to figure out how to implement it, and then do it. Today I am a bit constrained – a lot of this is outside of my control, but who knows what the future holds?
Thanks for the reminder Greg!
I think one of the best is Mountain Equipment Coop's Rock Solid Guarantee. I think you can bring anything back anytime if you are not happy with a product that they sell.
Just like Zappos, some people will abuse this, but that will be the minority to be sure.
I love it. I just need to figure out how to implement it, and then do it. Today I am a bit constrained – a lot of this is outside of my control, but who knows what the future holds?
Thanks for the reminder Greg!
Hey Greg,
When you have good product, people are willing to pay for it,because they need and want your product, more than they money it’s cost.In this situation almost no one is going to ask forhismoney back and bankrupt the business.
Hey Greg,
When you have good product, people are willing to pay for it,because they need and want your product, more than they money it’s cost.In this situation almost no one is going to ask forhismoney back and bankrupt the business.
I work as a local business consultant for marketing. My business is Integrated Marketing Management. I provide a service that is focused on results. Can you suggest an appropriate guarantee? I’m not comfortable with providing services for free which is what would happen if someone asked for a refund. It would be services and hours lost, as well as opportunity costs in hours not spent developing other customers or providing services for other clients. I don’t yet have an in-house team, and I do everything. I don’t have a product that has a COGS (cost of goods sold) with a margin of profit for each one sold.
Hi Robin:
Not enough information to really get deep into what a guarantee might be, but one major point – you said "I'm not comfortable providing services for free". That's not at ALL what I said. In fact, positioning that you're working for free is not the way to go. The point of the guarantee is that they pay you and become a client, but they have the back up assurance that if it doesn't work out, then they can ask for their money back.
The resistance you're feeling is what MOST entrepreneurs feel. In fact my wife is the same way in her business. I've been trying to get her to offer an Outrageous Guarantee for months, and she's concerned that people will take advantage of it. I was afraid of that when I first started using these kinds of guarantees.
The reality is, most of your clients have better things to do than to be hiring you simply to get free work out of you and then moving on. 1 out of 50 or 1 out of 100 might end up being a deadbeat client that triggers the guarantee, but the fear of this simply isn't backed up by the studies and the experience. Easier said than done, as I know it's scary to open yourself up like this .. but that's part of the process.
By doing this kind of guarantee you're getting authentic with your clients, and creating a real relationship based on trust and fairness. This places a lot more reciprocity on the client to hold up their end. If you offer an Outrageous Guarantee and a lot of people take you up on it, either you're attracting the wrong type of client (deadbeats, price shoppers, etc.) or you have a poor quality product or service.
So .. I hear what you're saying, but my response is: what would you have to do in order to be confident that almost no one would trigger the guarantee?
The great thing about this process is that it forces us to 'get real' about our businesses, and to focus on how to create exceptional value so that no one would ever want their money back.
I work as a local business consultant for marketing. My business is Integrated Marketing Management. I provide a service that is focused on results. Can you suggest an appropriate guarantee? I’m not comfortable with providing services for free which is what would happen if someone asked for a refund. It would be services and hours lost, as well as opportunity costs in hours not spent developing other customers or providing services for other clients. I don’t yet have an in-house team, and I do everything. I don’t have a product that has a COGS (cost of goods sold) with a margin of profit for each one sold.
Hi Robin:
Not enough information to really get deep into what a guarantee might be, but one major point – you said “I'm not comfortable providing services for free”. That's not at ALL what I said. In fact, positioning that you're working for free is not the way to go. The point of the guarantee is that they pay you and become a client, but they have the back up assurance that if it doesn't work out, then they can ask for their money back.
The resistance you're feeling is what MOST entrepreneurs feel. In fact my wife is the same way in her business. I've been trying to get her to offer an Outrageous Guarantee for months, and she's concerned that people will take advantage of it. I was afraid of that when I first started using these kinds of guarantees.
The reality is, most of your clients have better things to do than to be hiring you simply to get free work out of you and then moving on. 1 out of 50 or 1 out of 100 might end up being a deadbeat client that triggers the guarantee, but the fear of this simply isn't backed up by the studies and the experience. Easier said than done, as I know it's scary to open yourself up like this .. but that's part of the process.
By doing this kind of guarantee you're getting authentic with your clients, and creating a real relationship based on trust and fairness. This places a lot more reciprocity on the client to hold up their end. If you offer an Outrageous Guarantee and a lot of people take you up on it, either you're attracting the wrong type of client (deadbeats, price shoppers, etc.) or you have a poor quality product or service.
So .. I hear what you're saying, but my response is: what would you have to do in order to be confident that almost no one would trigger the guarantee?
The great thing about this process is that it forces us to 'get real' about our businesses, and to focus on how to create exceptional value so that no one would ever want their money back.
Hi Greg,
I just wanted to say THANK YOU. I had been at Harv Ekers MIllionaire Mindset seminar 2 weeks ago and he went over it big-time and so I had begun to review what I felt was a big promise that I was absolutely confident I could deliver on. I have created a 90 day weight loss program using a blend of natural therapies, which I will launch November 1st, and I was really pleased when I realised I could confidently promise that they would loose 20 kilos if they followed the program ( and if they had that much to loose) orI would give there money back. HOWEVER, I completely forgot about a 365 day money back guarantee and when you mentioned that I realised that would be perfect because that is exactly what the program is about achieving …. a healthy slim body that is easy to maintain. I'm doing the video introductions to the program next week, so the timing was perfect. Thanks again Greg!
You're right.. people losing weight are looking for short term, but they're ALSO looking for long term results… very powerful. So if you have a program or system that provides both, and you can guarantee it, you're going to have a powerful offer. Harv's a friend of mine, and one of the smartest marketers on the planet so it doesn't surprise me to hear he talks about offering great guarantees as well. Thanks for the kind words!
Hi Greg,
I just wanted to say THANK YOU. I had been at Harv Ekers MIllionaire Mindset seminar 2 weeks ago and he went over it big-time and so I had begun to review what I felt was a big promise that I was absolutely confident I could deliver on. I have created a 90 day weight loss program using a blend of natural therapies, which I will launch November 1st, and I was really pleased when I realised I could confidently promise that they would loose 20 kilos if they followed the program ( and if they had that much to loose) orI would give there money back. HOWEVER, I completely forgot about a 365 day money back guarantee and when you mentioned that I realised that would be perfect because that is exactly what the program is about achieving …. a healthy slim body that is easy to maintain. I'm doing the video introductions to the program next week, so the timing was perfect. Thanks again Greg!
You're right.. people losing weight are looking for short term, but they're ALSO looking for long term results… very powerful. So if you have a program or system that provides both, and you can guarantee it, you're going to have a powerful offer. Harv's a friend of mine, and one of the smartest marketers on the planet so it doesn't surprise me to hear he talks about offering great guarantees as well. Thanks for the kind words!
I have been following Greg's post for about a year, now. This is the most applicable one I can use in my business immediately and anticipate positive results. I am inspired by this post and will look for creative ways to implement it in my business starting tomorrow morning.
I don't remember hearing of a better, and more outrageous, guarantee than the Zappos.com guarantee mentioned in the above post. In addition to fully believing in the product you're offering I think you need to have a high percentage of customers with high integrity.
It's kind of strange replying to my own post. But, I forgot to mention Craftman's guarantee on their tools…lifetime.
Hi Jackie:
Part of the idea of attracting clients with high integrity is that when you go this approach with the guarantee, you end up attracting those kinds of clients.
Sadly, most businesses have attracted clients that shop on price, have no loyalty, and couldn't care less about the business they're buying from.
Another way to look at it – when was the last time you heard about a business going under because too many clients triggered a money back guarantee?
Can't say I've ever heard of that happening!
When people are deathly afraid they're going to have all their clients ask for their money back, that's usually more about the business owner than their clients.
I have been following Greg's post for about a year, now. This is the most applicable one I can use in my business immediately and anticipate positive results. I am inspired by this post and will look for creative ways to implement it in my business starting tomorrow morning.
I don't remember hearing of a better, and more outrageous, guarantee than the Zappos.com guarantee mentioned in the above post. In addition to fully believing in the product you're offering I think you need to have a high percentage of customers with high integrity.
It's kind of strange replying to my own post. But, I forgot to mention Craftman's guarantee on their tools…lifetime.
Hi Jackie:
Part of the idea of attracting clients with high integrity is that when you go this approach with the guarantee, you end up attracting those kinds of clients.
Sadly, most businesses have attracted clients that shop on price, have no loyalty, and couldn't care less about the business they're buying from.
Another way to look at it – when was the last time you heard about a business going under because too many clients triggered a money back guarantee?
Can't say I've ever heard of that happening!
When people are deathly afraid they're going to have all their clients ask for their money back, that's usually more about the business owner than their clients.
Hi Greg
Great topic and very powerful from my perspective
Have been using it recently with very positive results. It initially challenged me to review just how much I believed in the value we were delivering. The outcome of that internal discussion was TOTALLY and I have found that this approach enables us to convey that level of confidence directly to our prospects
More insights will be greatly appreciated
Keep up the great work
Hi Johnny:
You point out a VERY powerful part of having an Outrageous Guarantee .. it forces you to be a BETTER company, because it challenges you to stand behind your offering. 90% of the time, when someone's afraid of offering a guarantee, it's because they don't have true confidence in what they're selling. This concept brings that concern to the surface and forces you to deal with it. Not an easy thing to do, but a great way to transform your business. Thanks for the comment!
Hi Greg
Great topic and very powerful from my perspective
Have been using it recently with very positive results. It initially challenged me to review just how much I believed in the value we were delivering. The outcome of that internal discussion was TOTALLY and I have found that this approach enables us to convey that level of confidence directly to our prospects
More insights will be greatly appreciated
Keep up the great work
Hi Johnny:
You point out a VERY powerful part of having an Outrageous Guarantee .. it forces you to be a BETTER company, because it challenges you to stand behind your offering. 90% of the time, when someone's afraid of offering a guarantee, it's because they don't have true confidence in what they're selling. This concept brings that concern to the surface and forces you to deal with it. Not an easy thing to do, but a great way to transform your business. Thanks for the comment!
I added all the typical IM ploys like guarantees, scarcity, bonuses, long sales letters, belcher button, etc and it did nothing for sales. I honestly think the main factors are actually having a product people want and getting enough relevant people to this offer.
I added all the typical IM ploys like guarantees, scarcity, bonuses, long sales letters, belcher button, etc and it did nothing for sales. I honestly think the main factors are actually having a product people want and getting enough relevant people to this offer.
Hi Greg,I have a daycare, now with this guarantee concept how do I implement such a guarantee to boost my business in a set up like this.
Hi Rose:
I can't answer this question without a lot more information. Part of that is knowing what your customer's greatest fears and frustrations are. You need to understand those deeply, because the purpose of the guarantee is to overcome those as objections. So for example, if the concern is that they're afraid of leaving their child in the hands of strangers and not knowing what they are doing during the day, perhaps your guarantee includes that you have cameras that guarantee your clients can tune in through the internet and see their child any time they want – for free. It's not expensive to put internet-accessible cameras in place these days. That's just a random example, but the point here is that your guarantee should incorporate elements that overcome objections. What are the top 5 things that your clients REALLY want or are deathly afraid of, that if you could guarantee them (or guarantee them NOT happening) they would pay any price?
Hi Greg,I have a daycare, now with this guarantee concept how do I implement such a guarantee to boost my business in a set up like this.
Hi Rose:
I can't answer this question without a lot more information. Part of that is knowing what your customer's greatest fears and frustrations are. You need to understand those deeply, because the purpose of the guarantee is to overcome those as objections. So for example, if the concern is that they're afraid of leaving their child in the hands of strangers and not knowing what they are doing during the day, perhaps your guarantee includes that you have cameras that guarantee your clients can tune in through the internet and see their child any time they want – for free. It's not expensive to put internet-accessible cameras in place these days. That's just a random example, but the point here is that your guarantee should incorporate elements that overcome objections. What are the top 5 things that your clients REALLY want or are deathly afraid of, that if you could guarantee them (or guarantee them NOT happening) they would pay any price?
Hi Greg,
I can vouch for the effectiveness of the Outrageous Guarantee. I used it to grow my business exponentially many years ago. My guarantee on our services and products was simple. It said “100 percent Satisfaction Guaranteed” Then, underneath that, in a tiny type that was still clearly readable, it said “For those of you that read the fine print, there is no fine print… we will do whatever it takes to make you happy.”
The guarantee on all of our repairs and services was even simpler… “All repairs are guaranteed for life for both parts and labor, as long as you are a customer of ours.”
In all of the 20 plus years I had this business, I issued one refund, and that person was so surprised that they tried to give the money back twice.
Because of this guarantee, and the fact that we made it clear that we stood behind it, I was able to charge three times as much for my products as my competitors, and still had to turn away business.
I also experimented with trying to sell the same product without the same benefits and guarantees, but for one third the price, and only managed to sell one.
A key marketing concept I learned thirty years ago was that the better and longer your guarantee was, the less likely it was that it would ever be needed.
I have discovered that there are several reasons I believe that this is true. A key one for me was the guarantee motivated me constantly to over-deliver on everything I did. It never let me start to slack off and get lazy, or even think about cutting corners. The second reason is that the customer was comfortable, and this meant that they were not looking for reasons to ask for their money back. They were always ready to let us take care of any problems that came up.
I got to the point that I looked forward to problems, which are inevitable in any business, because they gave us the chance to show the customers how good we were at fixing them. It was always the customers who had originally had the biggest problems that became our best and most profitable customers, and who referred the greatest number of people to us.
Thanks for this post,
Robert Wright
Wow, great testament to the power of Outrageous Guarantees. And my experience has been the very same as yours. Much appreciated, thanks for sharing!
Hi Greg,
I can vouch for the effectiveness of the Outrageous Guarantee. I used it to grow my business exponentially many years ago. My guarantee on our services and products was simple. It said “100 percent Satisfaction Guaranteed” Then, underneath that, in a tiny type that was still clearly readable, it said “For those of you that read the fine print, there is no fine print… we will do whatever it takes to make you happy.”
The guarantee on all of our repairs and services was even simpler… “All repairs are guaranteed for life for both parts and labor, as long as you are a customer of ours.”
In all of the 20 plus years I had this business, I issued one refund, and that person was so surprised that they tried to give the money back twice.
Because of this guarantee, and the fact that we made it clear that we stood behind it, I was able to charge three times as much for my products as my competitors, and still had to turn away business.
I also experimented with trying to sell the same product without the same benefits and guarantees, but for one third the price, and only managed to sell one.
A key marketing concept I learned thirty years ago was that the better and longer your guarantee was, the less likely it was that it would ever be needed.
I have discovered that there are several reasons I believe that this is true. A key one for me was the guarantee motivated me constantly to over-deliver on everything I did. It never let me start to slack off and get lazy, or even think about cutting corners. The second reason is that the customer was comfortable, and this meant that they were not looking for reasons to ask for their money back. They were always ready to let us take care of any problems that came up.
I got to the point that I looked forward to problems, which are inevitable in any business, because they gave us the chance to show the customers how good we were at fixing them. It was always the customers who had originally had the biggest problems that became our best and most profitable customers, and who referred the greatest number of people to us.
Thanks for this post,
Robert Wright
Wow, great testament to the power of Outrageous Guarantees. And my experience has been the very same as yours. Much appreciated, thanks for sharing!
Greg…This is something else! I am glad I decided to spend sometime today with you. Please, I am interested in more on this.