How to Sell Anything - Guaranteed
I have a slight addiction to personal development books - especially business development. This year I picked up The 4-Hour Work Week, written by successful writer and Entrepreneur Tim Ferris. In the book, he shares a concept called "the lose-win guarantee" and it takes the “30 day money back guarantee” [that we all know so well] to new & improved heights. Check this out:
Scenario 1. Your online jewelry shop sells an item for $50. If the customer isn’t satisfied, they return the item in exchange for a refund of $100. Double the sticker price the customer initially paid for. BALLSY.
Scenario 2. A business coach offers an online career accelerator program and includes bonus DVD with the lose-win guarantee of “40% more efficient in two weeks or 100% refund. Keep the bonus DVD as our gift to you.”
Scenario 3. An online sports supplement company guarantees their product “works within 60 minutes of the first dose.” They offered a refund to customers for the price of the product + 10%.
The point of the lose-win guarantee is to make the purchase profitable for the customer even if the product is a lemon. These guarantees remove the risk from a purchase decision and places all risk on the company itself.
I can imagine the thought of such a ballsy money-back guarantee is frightening. I agree that this can seem like a risky strategy... especially when you start to think of the people who could potentially abuse the offer. However, the quality of your product will speak for itself. If your product delivers, you will merrily flow down sh*t creek smelling like a garden rose. As they say. The key is to push out a product that you can stand behind with confidence.
Scenario 3 was a real example that Tim Ferris (mentioned above) applied to a real sports supplement business that proved to be a huge financial success- generating $30k-40k per month in passive income. Let’s look at Tim’s numbers:
-Returns for his supplement, with a 60-day return period, were approximately 3% in an industry where the average return ranges from 12-15%. Tim’s sales increased 300% within a month of introducing the 110% lose-win guarantee.
Scenario 1 turned out to be a success as well. The online jeweler pushed a sale for her most popular necklace using a 200% lose-win guarantee. Instead of selling 50 necklaces at $50 and having 2 returned [($50x50x=$2,500) - $100=$2,400 revenue] the jeweler was able to sell 100 necklaces at $50 and had 4 returns [($50x100) - $400=$4,600 revenue]. I’d take the extra $2,100 wouldn't you?
When you put your money where your mouth is, the positive effects will outweigh the negatives. Stand out from typical sales offers and be BOLD. Doing so shows your customers how much you believe in your product because you are willing to “put yourself at financial risk” in order to get it in customers hands.
Need help coming up with creative lose-win guarantees? I'd love to help!
-Michaela