<aside> <img src="/icons/new-badge_purple.svg" alt="/icons/new-badge_purple.svg" width="40px" /> Welcome To Risk Reversal

In this video, we’ll be covering guarantees—and how to craft a compelling guarantee that gets you more customers in the door and grows your business exponentially, with much less effort than you’ve been applying to date. Let’s get into it.

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Guarantee 💯

The next major component of your offer is the guarantee.

A guarantee is there to reverse perceived risk. One of the major reasons that your prospects will not buy from you is because they are concerned that they might not get results.

****The prospect is thinking:

<aside> <img src="/icons/thought_orange.svg" alt="/icons/thought_orange.svg" width="40px" /> “Okay, I want to invest in this, but what happens if this doesn't work out? If this doesn't work out, I will have spent $5,000 and I won't have gotten the results I want and need. My wife will think that I'm stupid and have wasted a lot of money.”

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This is a big reason that people won't sign up for your product or program; a huge reason.

If someone was 100% sure that you would get them results, they would buy every single time—but there will sometimes be a lingering doubt in their mind, which creates fear & resistance to buying your product.

So in order to combat that, what you're going to do is reverse the risk. You're going to take the perceived risk off the prospect's shoulders and put it onto you.

This makes it significantly easier for the prospect to sign up—they won’t look stupid if it doesn’t work out and they won’t have wasted a lot of money if they don’t get a result.

Structuring The Guarantee 🏗

Your guarantee should have 3 main components which I’ve listed out below.

Result → What they will accomplish when they work with you.

Timeframe → The timeframe they will accomplish it in.

Risk Reversal → What you will do for them if they don’t accomplish it.

****For example, this is how our guarantee is structured for Client Control (currently).

Result → Get at least 30 high-ticket clients from YouTube ads

Timeframe → In the next 6 months

Risk Reversal → Or we’ll give you a full refund

****There’s 3 types of risk reversal that I’ve seen work. Each is more effective than the last and will generate a higher conversion rate—however I’ve seen all 3 of them work.

Strongest → We’ll give you a full refund + pay you for wasting your time.

Strong → We’ll give you a full refund.

Weaker → We’ll work with you for free until you get that result.

I would strongly, strongly recommend going with a full refund.

Once you have taken on 100+ clients and have proven that your product works and you have a low refund rate (<1%) then you can consider adding a cash incentive if they don’t get the result you’re promising.

The Guarantee ✅

The idea is to have a big, bold guarantee that makes you nervous. Yes—if the guarantee makes you nervous, that’s a sign that your guarantee is compelling.

****I know that you will likely have a number of concerns about the guarantee—that’s totally normal.

I want to address the common concerns now so that you can move forward.

<aside> <img src="/icons/key_blue.svg" alt="/icons/key_blue.svg" width="40px" /> This seems risky / this makes me nervous

The risk is completely in your head and I’ll tell you why:

Reason #1 – Action-Based Guarantee

1. We will have iron-clad conditions that the prospect has to meet to qualify
2. Most people who ask for a refund will almost never qualify you can refuse them
3. The people who ask for a refund would have asked for a refund anyway

So the refund will have literally ZERO negative impact on your business. The only thing that will happen is you will get more leads, calls and clients. That’s it.

The guarantee will also drive you to create a great product and experience for your customer. It will keep you emotionally motivated to deliver. Feeling nervous about the guarantee is a sign you have a good guarantee.

Reason #2 – Business Model

Also, you should have a scalable delivery model (group calls/community/course/etc.) so the additional time commitment & cost of taking on a new client should be virtually zero. If you have to issue a refund it doesn’t even matter. There’s very little risk.

Reason #3 – Math

This is ultimately a math equation. You will get double the clients but maybe issue 10% more refunds than you normally would have to. It’s a no-brainer.

Realistic example:

• No guarantee → You close 100 clients at $10,000 each ($1M)
• Guarantee → You close 200 clients at $10,000 each ($2M)
• Instead of a 0% refund request rate you have a 5% refund request rate
• Only 2% of those people actually qualify for the refund & get it
• You refund $40,000 and made $1.96 million instead of $1M

Reason #4 – Last Resort

Also, in 80-90% of the cases, we won’t actually emphasize the guarantee on the sales call. It will be used as a last resort. A lot of people will sign up who don’t care about the guarantee, they just want help solving the problem. It just helps get them on the call.

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<aside> <img src="/icons/key_blue.svg" alt="/icons/key_blue.svg" width="40px" /> I don’t want to be salesy, that’s not me

I have had clients tell me that the guarantee feels “salesy” to them and that this isn’t them. I’ve also had clients tell me that they feel like the conditions are a “gotcha” and they don’t feel good about this.

If this is you—this is in your head. It’s a projection.

I have a completely opposite view of the guarantee. In my opinion, it’s actually serving the customer. There’s 2 reasons for this:

1. You will get more clients—meaning you will help more people
2. The conditions will drive people to take action on the program

If the people meet the conditions, they’re going to get results. That’s how we structure the action-based guarantee in the first place.

So guess what? You’re actually helping them by getting them into your program with a guarantee. You’re doing the person a favor.

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<aside> <img src="/icons/key_blue.svg" alt="/icons/key_blue.svg" width="40px" /> Am I attracting the right clients with a guarantee?

A lot of people ask us if positioning their offer as big, fast and easy and having a bold guarantee will attract the wrong type of clients.

****This is not a concern that you should have.

Everyone wants a guarantee, and you will absolutely get the right kind of clients by having a guarantee. It’s very likely that the reason you’re here is because of ****a guarantee that we used somewhere in our funnel.

We only take on great fit clients which means you must be a great fit client yourself—and you’re largely here because we brought you in with the guarantee & promise.

Also, in a lot of cases this concern is a smokescreen and the real concern deep down is that you won’t be able to deliver on the promise. You need to just back yourself and take the plunge—business is about taking calculated risks.

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Guarantee Conditions 📑

Since we’re going to have a strong guarantee we also need to include terms that the customer must meet in order to qualify for the guarantee.

Our goal here is to select a set of action items that, if they follow it, they are guaranteed to get the result that they want. You want to make these actions a big stretch, so that even if the person does half of what you include in the terms they would get the result.

There’s multiple vectors you can do this on:

• Frequency of action: how often they have to do the task.
• Volume of action: how much of the task they have to do.
• Quality of action: doing the action in a specific way (according to course).