Conditional guarantees

[marciayudkin]

Hi there,

Everything I've read from people I respect says that conditional guarantees depress response and that unconditional guarantees are the way to go.

Yet I see that Perry Marshall is using conditional guarantees now, and he is a very, very smart guy. For example, "Use any 8 of the 16 techniques and if ... doesn't happen, then I'll give you your money back plus $500." (Not a direct quote, but close.)

Anyone have any insight into this kind of approach?

Marcia Yudkin

[Rezbi]

I think you have to use conditional guarantees if you're offering back more than they paid.

From what I understand, if people ask for their money back, you should pay them the original amount.

However, for the extra they need to prove they at least tried what you asked them to do.

[marciayudkin]

I think you have to use conditional guarantees if you're offering back more than they paid.

I'm not so sure about that. There are quite a number of people who say, come to the seminar, and if it doesn't meet your expectations by the first break, simply tell me and we'll refund everything you paid for the seminar plus give you $XX for your travel expenses. There is no implementation or reason needed to ask for the refund.

Besides, whether or not your point is valid, it doesn't address whether a conditional guarantee can be stronger than a rock-solid, no-questions-asked 365-day guarantee where you don't even have to return the product. I'm wondering about that.

Marcia Yudkin

[Rezbi]

Originally Posted by marciayudkin

I'm not so sure about that. There are quite a number of people who say, come to the seminar, and if it doesn't meet your expectations by the first break, simply tell me and we'll refund everything you paid for the seminar plus give you for your travel expenses. There is no implementation or reason needed to ask for the refund.

It's different for seminars because you're telling them they'll find something useful there and then.

When it comes to products you need to give them conditions. Otherwise every Tom, Dick and Harry could take you to the cleaners.

Besides, whether or not your point is valid, it doesn't address whether a conditional guarantee can be stronger than a rock-solid, no-questions-asked 365-day guarantee where you don't even have to return the product. I'm wondering about that.

I've seen both being used successfully.

Gary Halbert used to talk about the conditional guarantee in the way I mentioned.

Although, there is a guy - Tim Larkin - who offers unconditional guarantee where he offers the original amount plus $25.

That's a lot less riskier, and less tempting, than $500.

I think you'd have to test with your own product.

If I was offering back extra without condition I would keep it low like Tim Larkin.

If it was a large amount I'd make it conditional.

The problem with an unconditional guarantee where the amount is large, is that even after a year people might be tempted to ask for their money back. Even if they never intended to.

That last part is just my opinion so I'd test.