Do You Give Guarantees For Your Offline Services!

42 replies
I am ready to launch a major campaign in the city that I live in and I wondering should I guarantee my offline services and to what extent.
I want to give a guarantee but when doing offline services you spend time setting up your client's campaign even if you outsource there is time involved.
How do you put a price on your time?
What are your thoughts?
#give #guarantees #offline #services
  • Profile picture of the author Kelly Verge
    Pricing should be based on the client and their value per customer.

    If you're working with an orthodontist whose clients average $5k in value (pulling numbers out of the air - probably higher), and you feel certain that you could pull in an extra two clients per month, there is no issue charging $1000-$1500 per month or more.

    Position yourself so that your services are "free" to your client, and the pricing will just work out.

    That's why I don't target pizza joints. Even though I could help them, they don't see the immediate value the same way a higher-ticket prospect would.

    As far as guarantees, I don't lock clients in to any term. If they don't see results (and everything from our end is measurable), they stop paying.
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  • Profile picture of the author cadoutsource
    I guess this might come into play if you offer onetime services or bundled services.
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  • Profile picture of the author GoGetta
    Im with Kelly here,

    Since I started with Offline Consulting I have never once made any Guarantees!

    In reality, for things like SEO, we cannot guarantee a certain position on Google for example. What I do is similar to Kelly,

    I do not have a fixed term contract, my clients pay me per month and if they are ever unsatisified with the return I am giving them, they can cancel. I have yet to lose a client! ; )

    Make sure you track your work.

    If your doing SEO, make sure you track the linkbuilding your doing, keep records, this shows your client what they are paying for. I outsource just about all of my linkbuilding now and always request reports from my outsourcers so I can pass these onto my clients.

    The same with tracking stats, Google Analytics allows you to show your clients exactly what you are doing for them!

    This is enough and to date have never been asked if I offer any guarantees!

    If someone asks if there is a Guarantee I would be willing to bet they are not 100% sold on your offer!

    GoGetta
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  • Profile picture of the author Teresa Coppes
    I was just reading about offline ventures last night & it seems that most who offer a guarantee do so vaguely. Such as "Money back guarantee if you're not satisfied with my services". Not specific like first page of google or top spot.

    As Kelly mentioned in his previous post, if you bring in only 1 new client a week at $5K per person then the value is there whether you get top spot in google or not. As long as the work you are doing (whatever that might be) brings in a new customer I'm sure the client would be happy.

    Good luck to you!
    Teresa
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  • Profile picture of the author Loren Woirhaye
    The problem with guarantees for services rendered is your
    ability to deliver results is sometimes (usually) dependant
    on the client's participation.

    Clients screw things up. They don't do what you tell them
    to do. It's their business. Don't put yourself in a scapegoat
    position.
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    • Profile picture of the author cadoutsource
      Originally Posted by Loren Woirhaye View Post

      The problem with guarantees for services rendered is your
      ability to deliver results is sometimes (usually) dependant
      on the client's participation.

      Clients screw things up. They don't do what you tell them
      to do. It's their business. Don't put yourself in a scapegoat
      position.
      I agree with you but by offering a bundled services I am establishing myself as the expert & more of the reliability is falling on my shoulders.
      I also know I won't be able to control outside circumstances that my client might have on their own such as doing illegal things within their business.
      It seems I am a lot more safe with just offering rec curing services
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      • Profile picture of the author Loren Woirhaye
        Originally Posted by cadoutsource View Post

        I agree with you but by offering a bundled services I am establishing myself as the expert & more of the reliability is falling on my shoulders.
        I also know I won't be able to control outside circumstances that my client might have on their own such as doing illegal things within their business.
        It seems I am a lot more safe with just offering rec curing services
        Just be smart about your agreements. You learn from experience
        how clients can sabotage your efforts and put the blame on you.
        Then you shift your offers and write your contracts accordingly
        so you don't deal with so much nonsense.
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  • Profile picture of the author Steve Peters Benn
    Loren is right - some clients will try and use you as an excuse for all sorts of things. I once got a real telling off for halving the number of clicks and adwords advert got. Even though I doubled the turnover they were getting with the original level of clicks.

    Half advertising costs and doubled turnover = 4 times ROI. Yet I got screamed at for thirty odd minutes because the client liked clicks more than sales...
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    • Profile picture of the author cadoutsource
      Originally Posted by Steve Peters Benn View Post

      Loren is right - some clients will try and use you as an excuse for all sorts of things. I once got a real telling off for halving the number of clicks and adwords advert got. Even though I doubled the turnover they were getting with the original level of clicks.

      Half advertising costs and doubled turnover = 4 times ROI. Yet I got screamed at for thirty odd minutes because the client liked clicks more than sales...

      Wow What an eye opener!
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  • Profile picture of the author RentItNow
    I once worked for a company that wanted guaranteed results right off the bat (none IM related tho). I told them I could not guarantee this as we were testing new things, finding out what worked, refining and then doing ONLY what worked. The company did not want me to do the work so I went to their competitor and offered same deal. It DID NOT make money right away but broke even quickly. Then it got better and better until it suddenly exploded in revenue. To this day it makes money for that company and I use it for other companies all over the world.

    Looking back, if I would have offered that original guarantee on something I did not know if it would positively work, I would have destroyed my income before I could even start it.

    The second firm took a risk just like I did and it paid off. The first firm was not willing to share that risk with me and lost out.
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    I have no agenda but to help those in the same situation. This I feel will pay the bills.
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  • Profile picture of the author cadoutsource
    Great information RentitNow!
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  • Profile picture of the author sodette1
    I make sure that my proposals are very clear and specific... they include both my accountabilities and the clients accountabilities as well.

    When the question of guarantees comes up... I always start my reply in the same way:

    "Susie, I absolutely guarantee that I will stick to our proposal and that you will be very happy with the work we do together to move your business forward...

    ...however, as I'm sure you understand, I can't guarantee that you will get "X" sales a day or "X" visitors to your website or even that you will be on the 1st page of Google - because there are just too many things that affect those things...blah, blah, blah"

    I've never had one person argue with that personally.

    During our consulting and working on the original proposal I "Garden"... in other words, I plant seeds about traffic, target markets, media buying, PPC, CPA, off-line traffic methods, etc. and with a little watering, sunshine, and... uhm... "fertilizer" I'm usually able to upsell additional, valuable, services to roll into once our original proposal is completed...

    Gardening is my favorite hobby... LOL

    Steve
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    • Profile picture of the author Kelly Verge
      Originally Posted by sodette1 View Post

      During our consulting and working on the original proposal I "Garden"... in other words, I plant seeds about traffic, target markets, media buying, PPC, CPA, off-line traffic methods, etc. and with a little watering, sunshine, and... uhm... "fertilizer" I'm usually able to upsell additional, valuable, services to roll into once our original proposal is completed...

      Gardening is my favorite hobby... LOL

      Steve
      That's a great example of selling results. You can do this very easily without guaranteeing these results.

      What I often do is ask the prospect if they have a calculator. After they pull one out, I have them add up the monthly impact of all of the "what if's" we talk about.

      If you do this right, they get excited enough about the results that you just have to be the guy who can make it happen. You're really not selling your services at all.

      That's also when it's super simple to quote a monthly recurring charge to manage the marketing plan.
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  • Profile picture of the author cadoutsource
    I really appreciate everyone's help, all the answers have been quit useful.
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  • Profile picture of the author NikkiG
    All good stuff here, I offer guarantees but not on the results or ROI.

    I explain to my clients the ins and outs and then I give them a template which has certain milestones / deliverables. Basically stating that I do X, Y and Z.

    Then I gurantee that I will do X, Y and Z.

    So I can offer them at least a little security in terms of me delivering the service but just like newspaper ads or radio or any other advertising the end result could be good, great or garbage.

    My clients seem to like to have a slip of paper with my signature on it.

    As far as billing goes, I start out with recurring (initial consult is free) and they can cancel any time. I explain that without careful monitoring and maintenance the "one and done" method just won't be good enough.

    And on a final note be careful not to price yourself too low...good quality clients don't bicker about the price.
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  • Profile picture of the author Kezz
    Borrowing from project management methodology, your guarantee should be based on your scope.

    I would recommend spending a little time reading up on how project managers prepare scope statements for major undertakings.

    This is basically the same thing as Steve was talking about with sticking to proposals. Looking at project management methods can give you some ideas on what information to include.

    Here's a nice high level rundown of project scoping: http://en.wikipedia.org/wiki/Scope_(project_management)

    You may not need to go to quite the same level of complexity (overdoing it can put clients off), but it will give you some things to think about.

    If you really want to cover your bases, you'll see the article above includes things like risk definition, requirements and deliverables.

    If you lay out your deliverables realistically, you should have no problem guaranteeing that you will keep to the agreed scope.

    Just don't include any deliverables you may not be able to come through on and a solid scope document will let the client feel protected from non-delivery, but will also protect you from unrealistic expectations.
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  • Profile picture of the author thetrafficaddict
    If it's a product that doesn't cost you anything, then go give a guarantee... OR if you have sold this product before, and you know your refund rate, then go ahead as well.

    If you are selling a service, then I'd be a little bit careful with the guarantee. You might end up spending more than you make.
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  • Profile picture of the author TimCastleman
    I don't promise anything except that I will do the work we outline in the contract.

    Why?

    Because I can't guarantee anything that the client does.

    Want an example?

    Ok.

    I worked with a great chiropractor - last name McIlroy. There are two doctor McIlroy's in my town, both chiros.

    McIlroy #1 (not my guy) gets busted for doing bad things with children.

    The local news does a live remote with "team coverage" an all.

    Just one problem ... they show McIlroy #2 (my guy's) place of business.

    Wanna bet the phone stops ringing? Dead stop.

    NEVER promise anything outside of your control

    You can't control google

    You can't control the client

    You can only control you

    Tim
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    • Profile picture of the author TonyDavis
      Originally Posted by TimCastleman View Post

      I don't promise anything except that I will do the work we outline in the contract.

      Why?

      Because I can't guarantee anything that the client does.

      Want an example?

      Ok.

      I worked with a great chiropractor - last name McIlroy. There are two doctor McIlroy's in my town, both chiros.

      McIlroy #1 (not my guy) gets busted for doing bad things with children.

      The local news does a live remote with "team coverage" an all.

      Just one problem ... they show McIlroy #2 (my guy's) place of business.

      Wanna bet the phone stops ringing? Dead stop.

      NEVER promise anything outside of your control

      You can't control google

      You can't control the client

      You can only control you

      Tim
      Obviously, an exceptional circumstance as this is less likely to happen. But things DO happen. You can guarantee the work you propose to do. You just can't guarantee the outcome.

      I could charge you a penny to tell 100 people that your product is the best. I can put your name out there. I can promise that your product beats all others. The bottom line, if they don't like you, or your product, then you're still out a dollar!!

      I did what I guaranteed I would do, but they didn't bite...

      Tony
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  • Profile picture of the author Nic Lynn
    It depends on what you are going to guarantee!

    I would never guarantee a #1 position in Google or thousands of new customers per month.

    I would guarantee a certain level of service however. Service Level Agreements are rarely used in offline marketing... and shame on offline marketers! You can charge a premium for SLAs linked to all kinds of offline services. I would certainly guarantee those. If you do that, I guarantee you will be banking extra bucks!
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    • Profile picture of the author Western Grizzlin'
      Speaking of guarantees on offline services and other offline considerations, does anyone know of a kind of definitive guide to going the offline consultantcy route?
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    • Profile picture of the author Chris Lagarde
      Originally Posted by Nic Lynn View Post

      I would guarantee a certain level of service however. Service Level Agreements are rarely used in offline marketing.
      Nic - I'm unclear on what you are stating here. Can you give me a couple of examples? Thanks
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      • Profile picture of the author Nic Lynn
        Originally Posted by Chris Lagarde View Post

        Nic - I'm unclear on what you are stating here. Can you give me a couple of examples? Thanks
        Sure. A common SLA that most of us are familiar with is in our hosting terms. Most hosting accounts are guaranteed for 99.9x% up-time.

        You can LITERALLY take that example and apply it to your offline clients and tell them that you guarantee "5 9s" up-time with your hosting of their business website or their customer database (you are just "passing on" the guarantee of your own host or provider).

        Outside of the rather generic hosting example, here's a more interesting one: you could offer a client a guaranteed turn-around time on certain classes of content creation (or changes). Say a band that was supposed to play at a bar that you provide services for canceled the day before their gig and were replaced by another band... you could ensure that a website update was made and that an email blast went out to subscribers notifying them of the change within 24 hours of the client's request.

        You could literally apply an SLA to ANY service that you offered. In my experience, most offliners just "throw their services out there" without much regard to their terms and any opportunities to offer premium SLAs.
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  • Profile picture of the author cadoutsource
    Western Grizzlin,
    Please do a search in the forum there is all kinds of offline information. With all that being said you will pick up a good strategy to improve your offline game plan.
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  • Profile picture of the author nebraska
    I saw on an episode of Holmes on Homes via the HGTV Network. Holmes was ranting about these "characters" on the internet who do nothing but capture contact information and sell that info to contractors they know little or nothing about. The contractors end up doing a shoddy job and his point was that the "offline marketer" should be just as liable for shoddy, and in some cases, criminal performance on the job.

    I think a lot of you offline guys better be aware that this situation is being seriously looked at and you may be held responsible if someone you sell leads to ends up doing someone wrong.
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    • Profile picture of the author AndrewCavanagh
      Here are some basic guidelines that might answer your question:

      # 1: Establish the approximate dollar value of your service for your client by going through a process of getting him to estimate the extra sales and profits a strategy might make him.

      # 2: Be genuinely committed to helping your clients make more in real profits than you charge them for your services. If a service you provide hasn't done that and the client has done everything you asked seriously consider doing some more for them without charge until they get some real results.

      # 3: Charge at least 50% upfront for any service you offer (if someone wants to pay you for the results you get ADD that onto the deal...they still have to pay you upfront).

      # 4: Make sure that if all you ever get paid is your 50% upfront you're happy.

      # 5: Don't guarantee anything except that you'll deliver the service you say you'll deliver on time.

      When you establish the estimated dollar value of your service don't leave that in writing anywhere with your client.

      The reason for this is that the variation can be huge.

      You can make a business a lot of profits very quickly or it might take months for them to see a profit over what they pay you.

      Also some clients are better to work with than others and in many cases new clients make it painfully slow for you to help them get results.

      Guarantees are unnecessary.

      Establishing value and being genuinely committed to helping a business make real profits over what they pay you are the real keys.

      Kindest regards,
      Andrew Cavanagh
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  • Profile picture of the author Steve Peters Benn
    Andrew is spot on about charging 50% upfront - I once didn't as it was a recommend client and lost out on almost $5000 dollars.

    Most of my packages are recurring, so I ask for the first month upfront now.
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  • Profile picture of the author Kezz
    The other thing you can do is break a project into milestones and charge up front for each individual milestone.

    So, if you want to charge 50% up front, complete the first half of the project. Then when the client sees that you deliver quality they can pay you the other 50% and you can complete the second half.

    I've found that to be the best of both worlds. Both parties are then protected.
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  • Most of my clients now are on yearly contracts.

    I do not give guarantees.

    Only clause in the contract that says ... If at any time I am not serving them well, they can end the contract giving a months notice.

    Regards
    Para
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  • Profile picture of the author Mr. Enthusiastic
    GoGetta and para, it looks like your approach means the client does take a risk, one month at a time. If they ever get unhappy, they lose the last month's payment but they don't have any further obligation. Para, does the client get a prorated refund if they prepaid for a year?

    Steve, if the client is unhappy would you give a total refund? Or would you say a portion has to be paid in any event?

    Kelly, I like the focus on big-ticket sellers.

    Kezz, thanks for the project management tips. Does this mean that the client pays for step 1a, then you do step 1a to the client's satisfaction or else they get their money back. If they are satisfied with 1a then they pay for 1b and you do 1b. Is that right?
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    • Profile picture of the author MRomeo09
      I'm going to take a completely different side to it.

      I don't take straight SEO clients any more, but when I did I ALWAYS guaranteed top 3 placement for any keyword they decided.

      I mean we are talking offline local businesses here, it's not like it's that hard to get someone to the first page. Most of them only have a few dozen "real competitors". If you believe in what you can do, there shouldn't be a problem making a guarantee. You just price it accordingly.

      I think it comes from experience though, plus if you have a decent team and a decent infrastructure, it's not that hard to get them to rank pretty well. I never failed to get them ranked. Not once. I charged anywhere from $3k to $30k.

      This stuff just isn't that hard. If I didn't believe I could do it, then why bother.

      Just my experience.

      Marcos
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    • Profile picture of the author Kezz
      Originally Posted by Mr. Enthusiastic View Post

      Kezz, thanks for the project management tips. Does this mean that the client pays for step 1a, then you do step 1a to the client's satisfaction or else they get their money back. If they are satisfied with 1a then they pay for 1b and you do 1b. Is that right?
      Yes exactly, although I usually include provision within each milestone to act upon feedback from the client. That way a money back scenario is a rare event, as if the client is not satisfied there is a plan in place to bring the work to their satisfaction.

      I've found the only time money back is required is when for some reason there is a strong communication barrier with the client. Sometimes communication styles just don't work well together, and on the very few occasions that I've seen a project is not going to get anywhere for that reason, it's been the only time it seemed like the best course to offer a client a refund. Other than that, planning a revision/addition process for each milestone has made everything run very smoothly in my experience.

      Ideally, allowance for revision/addition to the work for each milestone should also be something that is scoped and agreed upon, i.e. the amount you are willing to do without extra payment, so that your good intentions don't get taken advantage of.

      The other big advantage I have found from breaking projects into individually paid milestones is it creates flexibility. Often once the first milestone is complete, the client might decide they actually want to expand the project. If this happens, you can revise the quotation for the subsequent milestones to accommodate new requests.
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      • Profile picture of the author AndrewCavanagh
        I know some people who charge 100% upfront before they start work.

        And good pick up on the ongoing services.

        The principle is simple...

        Charge enough upfront so that you're always happy doing the work you've committed to do even if you never get paid another cent.

        If you're charging for a monthly service you might charge for the first 1-6 months upfront (in other words make sure you're paid in advance for the work you're going to do).

        Just put yourself in a situation where:

        # Your client has a financial committment in making the project work.

        # You can't lose out financially.

        Kindest regards,
        Andrew Cavanagh
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  • Profile picture of the author Loren Woirhaye
    Getting paid upfront is the model I prefer - because clients
    may have a change of heart and their own ability/willingness
    to pay what they owe can turn on a dime.

    It doesn't make them bad people - it's just a fact of psychology
    that AFTER the needed service is performed the recipient is
    much less interested in paying for it.

    Furthermore, your client's $ priorities will always be on the paying
    the suppliers whose services they need right now, not those
    whose services they've already received.
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  • Profile picture of the author digidoodles
    Like others, I make one guarantee: "I will do the work."

    And, I spell it out for them.. "I can't guarantee anything except that I will do the work and you have the reports to verify the work has been done. I can't control Google.. if I could, I'd be a billionaire."

    They kind of get a chuckle out of that and get the big picture.

    Then they give me at least 50% down or pre-pay a month in advance.

    No pay. No worky. It's hard to un-ring an SEO bell. (I do make a few exceptions to the "no pay, no worky" clause.

    But, I'm about to start removing someone's links if he doesn't get with the program...

    Warmly,

    Brandi
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  • Profile picture of the author Andyhenry
    I base the price of my time on what it's worth to me and them. I also know what the industry contract working rates are in the UK, so I just price my time at the current market rates unless there's reason to do otherwise. My time is the most valuable thing I have and so is usually the most expensive thing for anyone else to buy.

    As for guarantees - the only guarantee I offer is not to BS them.

    Andy
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    nothing to see here.

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  • Profile picture of the author cadoutsource
    The question really came up when interviewing a client. Just like most of you suggested I can only guarantee I do the work based off my package deals. After all I can't control the search engines and I can't control if the business I am working with will do his part in collecting existing customer info.
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