Boost Sales & Downloads with a Killer Guarantee – Benefits & Risks

June 2, 2009 - Written by Gyutae Park  

guarantee signDo you believe in your product or service enough to guarantee satisfaction? Believe it or not, people respond to your perception of your own offer. If you’re confident enough to give some sort of guarantee where you take on the risk, potential customers are more likely to trust you and buy. How can you best accomplish this? I’ll go over the advantages of a guarantee and show you how you can effectively implement one for your own business.

Get $50 for Reading The Winning Way – My Guarantee

With the launch of my new Internet marketing e-book, The Winning Way, I made a deal with all of my readers here. If you download the free resource and don’t learn at least 3 new things, I’ll pay YOU $50 for your time. That’s right – it’s completely free to download, but I’ll pay you if it doesn’t provide you with any value after reading it through.

A crazy deal? Some might say so… but for me, it makes sense because I believe 100% that The Winning Way is of high quality. The people who take me up on my offer will either be dishonest scammers or Internet marketing super gurus. I like my chances, so why not take advantage of the benefits of a guarantee?

The Benefits of a Guarantee

Guarantees are extremely effective online because they transfer the risk from customers to yourself – which of course is a good thing if you have a solid offer you believe in. People will be more inclined to try and buy since they can always get their money back if they’re not satisfied. Furthermore, if you stamp your offer with a guarantee, the claims that you make about your product or service will hold a lot more weight.

In the past 5 days, 328 people have downloaded The Winning Way so far. I’m sure that number would be a lot smaller if I didn’t have my guarantee in place.

Here are a few examples of guarantees you can make in your online business.

  • X-day money back guarantee (usually 30, 60, or 90 days) – refund for a purchase
  • Time guarantee (e.g. deliver in 3 days or your money back)
  • Value guarantee (e.g. The Winning Way offer – find 3 things you don’t know or I’ll pay you $50)
  • Performance guarantee (e.g. advertising will result in at least 1,000 new visitors – or you get it free)

If you make a guarantee of any kind, you have to stand to lose something – otherwise your guarantee will be nothing but fluff. In other words, you can’t just say “I guarantee it” without putting yourself in a position of vulnerability.

But isn’t it risky?

Guarantees do come with a lot of risk – especially if you stand to lose money or time like with my Winning Way guarantee. You could be wrong in assuming that what you have is amazing – and you have to be prepared to eat the cost if that happens. In fact, never make any promises unless you’re prepared to pay up. There will always be a percentage of people who take you up on your guarantee for a variety of reasons.

For example, if you have a refund policy, some people will want their money back because the product didn’t have what they were looking for or because it didn’t help them. People have different needs and tastes so this is to be expected.

In some cases, dishonest people will take advantage of your guarantee. In fact, I experienced this earlier today when I received the following email…

“It took me almost 2 hours to read through all what you have wrote in your book, but all i found is things what are just rehashed mostly and I already know 😉 Maybe there were ~1 new thing/way I didn’t know but yeah… So if it would be possible I would like my $50 , my paypal is…”

Little did this guy know that I have access to logs that show the exact time he signed up for the book – which happened to be 8 minutes before he sent this email. Spent 2 hours reading? Psh, right…

The Conclusion on Guarantees

Overall, guarantees are effective in increasing customer confidence and raising conversion rates, even with all of the risks involved. They’re used everywhere, both online and off – and for good reason. Conjure a guarantee for your own business and see how it affects your bottom line.

Do you have a guarantee yet? How has it benefited your sales and conversions?

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Comments

14 Responses to “Boost Sales & Downloads with a Killer Guarantee – Benefits & Risks”

Abdulrahman Abdulkawi on June 3rd, 2009

Great article! Theres alot of people who miss out on using guarantees when they launch a product, but I’ll be sure not to 🙂 You can use guarantees and reduce the risks by using a terms of conditions statement for your guarantee, this way you can be safe from scammers and those who find loop holes 🙂

 
Tom - StandOutBlogger.com on June 3rd, 2009 Subscribed to comments via email

Wow! That is a big call for you to make, but definately gives you a whole lot more credibility. Great work creating such a fantastic free product!

 
BestWebForms on June 3rd, 2009 Subscribed to comments via email

Nice blog, very useful and well-done. I can give you my web forms for free if you could review them or link back to my site. Let me know if this idea might work and thanks again for the great resource, I am going to be visiting it repeatedly for sure.

Shavkat

 
Agent 001 on June 3rd, 2009

Guarantee attract people. It also shows the confidence of the seller. Less confident people follow more confident people. To me it works like this.

And nice article. I would use you method in future.

make money blogging on June 8th, 2009

Totally agree man.. Its like a bet..

 
 
Ash Waechter on June 3rd, 2009 Subscribed to comments via email

It’s not hard to guarantee 3 out of 500 things would be new things to learn. However, I still like your post and strategy.

 
Mike Huang on June 3rd, 2009

Even if that “person” downloaded the eBook 8 minutes before he contacted you, you can’t assume that your blog tracking his IP is correct either.

I know for a fact you will get little to no problems with the guarantee because it is the matter of someone even bothering to give 15 minutes of their time 🙂

Win/Win for you!

 
make money blogging on June 8th, 2009

Actually gyutae, why didn’t you make it a sale copy?

 
Personal Travel Agent on June 8th, 2009 Subscribed to comments via email

Good stuff, and nice to see someone putting their money where theyr mouth is!

 
Melvin on June 8th, 2009

Hahaha, dude you’re so wise.. I think idiot refunders should be extinguished! LOLs,

 
Kahoong Lee on June 8th, 2009

Giving guarantee is a good way to make people feel confident about your product, I’m sure you’re confident with your ebook too right? I’ve downloaded the ebook just now and show you that I’m supporting you. I will check out at least 3 new traffic tips from the ebook okay? 😀

Regards,
Lee

 
Karl Foxley on June 9th, 2009 Subscribed to comments via email

Great post and I totally agree…

I read somewhere that the longer the guarantee period is the fewer people ask for refunds (haven’t tested this personally though).

Regards,

Karl

 
Kahoong Lee on June 10th, 2009

I’ve downloaded the ebook, I have no time to read now but I’ve gone through the content list, I believe that I should learn more than 3 new things from the ebook! 😀

Thanks again for giving out the ebook for free!

Regards,
Lee

 

If the buyer see that this product have guarantee than his/her confidence grow for that (obviously company should be reliable to tackle any fault issue).

But some time this can be negative as well … like Problogger’s Darren do not need to give any guarantee … if he will give guarantee on his products than this will certainly raise eye brows.

Because now he is in such stage where his name is enough as for guarantee.

 
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