Marketing & Advertising Articles

"How To Use Risk Reversal To Lower 'Buyer Barriers' And Skyrocket Sales"

In fact this 'super charged' marketing technique allows you to eliminate the 'barriers' that often prevent people from buying from you. The result? Massive and quick increases in sales and new clients.

Let's first get an understanding of Risk Reversal…

What is Risk Reversal?

In every business transaction there's a risk involved. 99% of the time it's the person or business who buys your service who takes on this risk. This risk is what prevents many people from buying.

Therefore, if you lower or eliminate the risk, your sales will multiply - literally overnight. Implement extended guarantees, free trial periods, and special introductory packages.

The concept is simple. As long as you provide a good service (it doesn't have to be brilliant) to your clients then Risk Reversal will draw prospects to you like a magnet! It's one of my 'must use' marketing techniques.

Here's a simple example of how Risk Reversal works:

A man wants to buy a puppy for his daughter. He responds to two ads in the local newsagent window. He examines the first puppy and it seems ideal in temperament, and looks.

The man says to him, "If the dog isn't right for your daughter, bring it back in one week and I'll give you your money back." Clearly he appreciated the value of Risk Reversal but he didn't fully understand it!

The man then goes to look at the second puppy. Again it seems ideal in temperament, and looks. Only this time the owner says, "Your daughter is obviously looking forward to her new puppy and it's important that she's totally happy with it. Please take the puppy, let your daughter play with it, look after it, and get to know it.

If after three weeks the puppy is perfect for her, pay me for it. If not just bring it back and owe me nothing!"

Now this man really understands Risk Reversal. First he extended the "trial" period. He knows that his puppy is a good dog. He also knows after three weeks the puppy and girl will be inseparable. He totally reverses the risk.

Second he let the girl have the dog on 'free trial.' There was absolutely no financial risk involved making the 'sale' a no-brainer!

The company that reverses the risk, automatically gains competitive advantage and wins more business - in fact much more! As you already know, this competitive advantage is very significant when attracting new clients to your business.

What about people taking advantage of the Risk Reversal?

One of the first thoughts to run through peoples minds (and the same is probably happening to you) is this, "Won't more people take me up on my guarantee and others try to abuse it?"

The key of course to successful Risk Reversal is this - if you offer a quality service then you have nothing to worry about. It's a compulsory marketing technique for all good service businesses!

Unfortunately I cannot say no one will ask for a refund etc. What I can say is that for every one of these, you will attract many many more clients by simply offering risk reversal in the first place.

Don't worry about this.

Your Risk Reversal Strategy is usually the one thing that tips the scales in your favour. Because you offer Risk Reversal as part of your overall offer, your prospect thinks the following things about you…

1. If you're offering this guarantee, you must be very good at what you do

2. You must be stupid to offer such a guarantee if you were poor at delivering your promises and services

In the prospects mind you have automatically "proven" to her that you can give her exactly what she needs. More importantly when most people choose to buy a service (or product), they choose it for perfectly good reasons and intentions.

They wouldn't choose you in the first place if they wanted to capitalise on your Risk Reversal.

The great thing about constructing your own Risk Reversal is that it doesn't cost you a penny (apart from a few hours thinking time). Put this amazing marketing technique in place and watch your sales and profits soar!

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