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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.
