Every New Business Has a Huge Problem - Here's How to Solve It!

I hope what I'm about to share with you will make some sense and help you to quickly become more profitable in your Internet business - whether it's a brand new venture or you've been at it for years.

Put yourself in the driver's seat and imagine you've been 12 hours on the road and are dead tired. Your eyes hurt and your back can't take any more abuse - long stretches of sitting in the same awful position.

You're approaching the next town of decent size and decide it's time to check into a motel and relax a little then enjoy a good night's sleep and a shower in the morning. But where to stay? You're too tired to fret over the decision and too sore to spend a lot of time driving around town to see what motel choices there might be.

Look . . . there on the right . . . the place looks OK . . . the sign says "The Gross Family Inn." You laugh a little but who knows? No, wait . . . there on the left . . . it's a Holiday Inn. So you have two choices and you don't feel like mulling over this decision. Which do you choose?

Here's another question: when you're in the convenience store and you're thirsty which one do you buy? The 32-ounce Coke or the generic "cola" brand? The generic's cheaper you know.

Will you buy your next electronic gadget from a small retailer you've never heard of who advertises the lowest price online? Or will you just order from Amazon and be done with your shopping?

I hope you recognize the pattern I'm trying to paint that describes most people's buying habits. And if you think the lowest price usually wins the battle . . . think again. Even though the generic cola is almost always cheaper, Coke will often outsell it by 25 to 1. And there are often sales at little no-name retailers that are actually cheaper than the Amazon price - but do you really want to take a chance on ordering from them?

Are you beginning to understand the problem that new and unknown businesses face? It has to do with "risk" for the buyer.

Many people think that price alone is the most important buying consideration. Well it can be for a few . . . but more often than not, the risk factor is of greater concern to a majority of consumers.

Buyers don't want risk. They have an aversion to risk. Online, consumers will pay more for an item that they know will deliver what they want and expect. They will shop at stores and businesses they have had positive experiences with over others they know nothing about.

"Risk" is a huge problem for new and untested businesses because regardless of how trustworthy and honest and upfront you may be as the owner of a no-name business, you have to earn the trust, respect and confidence of your prospects so they will try your business over the more established brands and competition.

There are several things you can do as a new business owner to overcome the inherent risk that being a new business carries.

• Offer an iron-clad guarantee that is easily understood and without "weasel words" and make it good for a decent length of time
• Offer to personally answer questions or talk about your product or service, person-to-person, over the phone or by email before any purchase is made
• Offer a comprehensive FAQs section on your web site where you anticipate and fully answer possible objections or questions in advance
• Make a video of your product/service in use and explain how easy/simple/intuitive it is for anyone to get the claimed benefits
• Include testimonials of happy customers as social proof that others have gained the benefit(s) of your product/service
• Stress your willingness to provide unmatched customer service should the buyer need assistance with anything - before, during, or after the sale

All these strategies will help to ease the risk that a new buyer usually has about making a purchase from a new vendor. But there is one more strategy that really turns the risk tables of unsure prospects more than anything else that I know . . .

The very best approach I've tried that reduces and can even remove the risk inherent to new buyers is this: offer a free product or service trial to anyone that wants it, no-questions asked, already set up and functional, try-it-before-you-buy-it opportunity so the purchaser can experience the benefit of his/her purchase before laying down any cash.

Not only does the prospect get to test the product, he/she can experience your product delivery system, customer service and care, follow-up and willingness to stand behind your product.

If, by chance, you fear the customer may not be able to enjoy the benefits you claim in your sales letter or that you can't afford to give free trials . . . I would think that's a red flag for you and your business . . . maybe your product isn't really as good as you think it is!

Certainly there is a business cost to doing what I'm suggesting and the idea will work better for some products than others. For that reason, many will not even consider this approach. But at the very least, do the math and see if there is a way to let your customers enjoy and experience the benefits of your product before buying it.

If you do that (give before you take), you are largely taking the prospect's risk out of the buying decision and giving yourself a chance to enter a marketplace largely controlled by the established brands and your toughest competitors. Get creative, there are lots of ways to give benefits before you get the money!

The very best to all of you,

Steve