Now let’s talk about guarantees and how important they are to your business.
My position on guarantees is as follows:
- if you cannot unconditionally guarantee what you sell, you ought to look for something better to sell.
- If the people you sell to are too abusive and unethical to offer guarantees to, you ought to find others to sell to.
- As long as you are going to offer guarantees, you ought to offer big, bold, exciting, dramatic ones. Oh, and strategy: multiple guarantees usually out-perform single guarantees.
Gold/VIP Member Ron Caruthers sent me this news: even comedian Pauly Shore has offered a guarantee for his quasi-reality show ‘Minding The Store’ on TBS-cable. If you watched the premiere and didn’t find it funny, you could send a letter explaining why and get $1.00. The offer had a specific end date or when they hit 250,000 requests whichever came first. I saw the show, and I’d bet on the 250,000. Still, this was a very clever idea but then poorly promoted.
Which is the next point: if you are going to offer really different, dramatic guarantees, try not to keep it a secret. I see an awful lot of ads, sales letters, etc. where the guarantee is buried.
Still, the best USP ever is “fresh, hot pizza in 30 minutes or less – guaranteed”. If you’re struggling with the USP question, guarantees might be the answer.
There are, occasionally, situations where you may opt not to offer any guarantees, and then to use that position to sell aggressively with, but these are rare, and require rare courage.
There are a few successful marketers who disagree with me about this entirely, never offer guarantees, even stubbornly refuse refunds to unhappy customers. While I have a philosophical and emotional appreciation for their independence, I still think it’s bad business.
Of the seven I can name, five have gone to jail or been bankrupted and destroyed by regulatory attack, two have prospered without adversity. But I’d still refer both of them to items (a) and (b) above.