Fabian Tan

It always seems to be on the minds of home business entrepreneurs - how do I sell more of my product? One well-known way to increase sales is by including a 'risk-free' guarantee with your offer. Why is a guarantee so effective and what are some drawbacks to it?

One of the biggest pluses about guarantees is that they assuage buyers' concerns and puts them at ease. They know they can buy your product and try it, and have nothing to lose. That increases sales.

Your offer will also have more credibility since a guarantee shows that you have absolute confidence that your offer will deliver for your buyers. If your guarantee is stronger than others in the marketplace, you will stand out and more people will start buying your products when they hear about it.

There is of course, a drawback to having a guarantee - there will be the odd few buyers who will be out to make a quick steal. These are the serial refunders who aim to get products for free by buying them and asking for refunds. You will have a few of these if you include a guarantee, but the increased sales from a guarantee will most likely offset this most of the time.

Now that we have discussed the virtues and downside of having a guarantee, what are some risk-free offers you can start putting into action?

The most popular form of guarantee is the money-back guarantee. This is a popular one and it is a fail-safe option.

If you are daring, you could even offer a 'double-your-money-back' guarantee. This means you give your customers double the money they paid if they are not satisfied. This is a risky move and should not be attempted unless you know your product is great!

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