Guarantees – Jesse Grillo

The single greatest objection for any product or service being sold is risk. Risk that it doesn't do what it's supposed to do for them.


Reversing risk is a way to make any offer more attractive. You will want to spend a disproportionate amount of time figuring out how you want to reverse it.


Always hit your guarantee hard. Say it boldly and give the reason why.


There is often concern about customers taking advantage of guarantees. While there will be an increase of those that do it will be offset by the amount of new sales. Leaving a profitable margin. Do the math.


For the most part, the better the guarantee, the higher the net increase in total purchases, even if the refund rate increases alongside it.


If given the option of getting a refund or getting the outcome they were promised the vast majority of potential customers will take the outcome.


What makes a guarantee have power is a conditional statement: If you do not get X result in Y time period, we will Z.


To give a guarantee teeth you have to decide what you'll do if they don't get the result. Without the "or what" portion of the guarantee, it sounds weak and diluted.


Types of Guarantees…


Unconditional Guarantees

Unconditional are the strongest guarantees. They're basically a trial where they pay first then see if they like it.


This gets a LOT more potential customers to buy, but you will have some potential customers refund.


Conditional Guarantees

Include "terms and conditions" to the guarantee.


In general, you want these to be "better than money back" guarantees.


Because if they are going to make an investment, you want to match their investment with an equal or higher perceived commitment.



Anti-guarantees are when you explicitly state "all sales are final." You will want to own this position. You must come up with a creative "reason why" the sales are final.


Typically, you'll want to show a massive exposure or vulnerability on your part that a consumer could immediately understand and think "Yes, that makes sense."


Implied Guarantees

Implied guarantees are any offer that is a performance-based offer. This comes in many different forms. Affiliates, Revshare, profitshare.


The end all concept is the same, if I don't perform, I don't get paid.


Unique to this particular structure, it also confers the upside of "If I do a great job, I will be very well compensated."


These only work in situations where you have transparency for measuring the outcome and control that you will get compensated when you do perform.


If you have a tremendous amount of cost associated with your product or service, you will likely want to employ a conditional guarantee or an ANTI guarantee, as you will have to eat the cost of the refund AND the cost of fulfilling.


Warning: A potential customer who only buys because of a guarantee is a may not be willing to put in the work necessary to see success with product or service.


In a world where you want to reverse risk and get customers the best possible, tying your guarantee to the things they need to do to be successful can help all parties.

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