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How to Offer a Money-Back Guarantee That Will Increase Sales |
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It's very rare in the smaller, homebased business market to find
someone offering an unconditional money-back guarantee. However, the
larger, more established businesses offer it all the time. Why is that
so?
If you're like me, I used to believe that I couldn't afford to offer a
money-back guarantee because I was only making ends meet as it was. But
what I didn't realize is that by not offering one, I was inhibiting my
growth and adding to my financial problem.
Experienced marketeers who easily make $1 million or more are usually
not different from you. Most of them write books and tell exactly how
they achieved this success in hopes that someone can duplicate their
strategy. The information is all around you. All you have to do is read
it and listen to someone smarter than yourself.
While I don't claim to be smarter than anyone, I do seek and find
people who are smarter than me and learn from them. Several writers
suggested offering a money-back guarantee and not until I put it into
practice did I realize the benefits.
You see . . . most people don't return merchandise, even if they are
not satisfied with it. It's the same philosophy as people not using
money-saving coupons. It's much easier to go to the store, get what you
want and come home. But what if you went to the grocery store one day
and accidently bought a piece of cheese that was molded. In order to
return the cheese you would need to find your receipt and take it back
to the store. Most people simply don't do it.
People who are in a mail order business, who revolve their life around
going to the post office every day normally will return merchandise
they order through the mail simply because it's not too much of a
hassle to perform the return process. However, most of them just put
the faulty item on a shelf and forget about it.
Why am I telling you this? Because I want to erase the fear of offering
a money-back guarantee. When you fully understand that most people
won't return the product they purchase from you, you will be more
receptive to providing them.
One millionaire I studied through books was a man by the name of Melvin
Powers. He suggested offering Lifetime or 25+ Year guarantees on his
products. Melvin believes that a 30-day guarantee is too short. He
claims that if people know they can return an item they purchase
through the mail at any time in the future they are more likely to
purchase it and never return it (even if they are not satisfied.)
A money-back guarantee also builds confidence in your company. If a
customer knows that you are offering a guarantee of some sort, they
will automatically assume that your company is solid and that you stand
behind the quality. This also tells them that you have an exceptional,
high-quality product since no one would offer a guarantee on a cheap
and worthless piece of junk.
I started using the words "100% No-Questions-Asked Guarantee" on my
products and I sold approximately 35% more than I used to. Even with
the increase in sales, I have not received a return and no one has
taken advantage of my guarantee. Think about applying this method to
your business and test the theory out for yourself. What have you got
to lose? It's a free way to help your business make more money. |
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