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Risk Reversal - Do You 'Get' It?

by drmani
30 replies
For the n'th time, I'm listening to Jay Abraham's interview with
Tony Robbins - and once again this story impressed me.

Two men are selling a pony. One says:

"Buy my pony. I'm sure you'll like him. If you don't, bring him
back and I'll pay you back the money you paid for him."

The other man says:

"My pony is tame, friendly and fun. But I would say that. It's
my pony. So here's what I'll do. Take my pony home. Let your
little girl play with him. I'll even send my boy over to feed
him, and clean him up every day. Keep him for a month. At the
end of that time, if you like him, I'll come by to collect my
money. If you don't think he's ideal for your daughter, I'll
take my pony back at that time."

Which of the two will you buy from?

Obvious, right?

But too many people don't quite 'get' it.

Just today, I contacted one Warrior about a service. The service
is affordably priced. Had some good feedback from other buyers.
Yet, by ordering it, I'm taking a small risk.

I asked if he'd do one small sample project, so I could see how
well it worked - and said I'd order at least 5 packs at $19 each
if I was satisfied. I even mentioned this was NOT a "review copy"
but a sample project, which could lead to a bigger order.

He replied that his review copies were gone, and I could order the
smaller pack - for $9.

Now, many would say, "It's just 9 bucks. Why not just order and
see?"

But you'll be missing the bigger point about RISK REVERSAL.

Making a transaction hard to brush aside. Making an offer hard to
resist. Making a deal appear absolutely risk free.

In this case, I decided against doing business. Not delivering a
$9 'sample' cost this vendor a potential $100 sale - and who knows,
maybe many more of the kind.

How many sales are YOU leaving on the table because you don't
understand risk reversal?

What will you do about it after reading this post?

All success
Dr.Mani
#guarantee #reversal #risk #risk reversal
  • Profile picture of the author Linda_C
    Excellent, excellent post. The only thing I could add is that to be able to completely reverse risk (like the pony story) requires a top quality product.

    People with poor quality products (or poor targeting) would not do well with such high level risk reversal and that's probably why they don't offer it.

    People with exellent products that they'd stake their name & reputation on (properly targeted) would do very well with this concept.

    And the guy who wouldn't do a $9 sample? Guess he'd prefer to lose the business.

    Have a good weekend!
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  • Profile picture of the author GoogleWarrior
    Oh... now I gt it.
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  • Profile picture of the author Jody_W
    Great post as always, Dr. Mani.

    The fellow who wouldn't do the sample project also gives a lesson in the difference between wanting a single sales versus building a business for the long term by developing repeat customers and maximizing the lifetime value of each customer. Not to mention the value of possibly getting a testimonial and referrals from a respected Warrior.
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  • Profile picture of the author Zeus66
    Depending on the service, you can blame scamming "buyers" for a lot of the reluctance to do work for nothing on the promise of future business. Way back when I used to do some ghostwriting and more than once did some work like this and ended up working for free. I was hurting at that time so I had to take the risk, but I wouldn't do it again unless I already knew the person and could trust them to be good to their word.

    Your point is well taken, though Dr.Mani. In the right circumstances this is a great way to win loyal customers.
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  • Profile picture of the author incliner
    I sell high priced quality products with total risk reversal and almost every armchair relative or friend of mine says they think I'm stupid for doing this. The occaisional unhappy or dishonest client is offset by a hundred happy honest ones that took me up because they sensed honesty and quality are the only way I could offer the risk reversed offers I make. It's really good business and sets you apart from the scammers.
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  • Profile picture of the author Tinu
    Zeus,

    I agree with you on that on almost every thing you said.

    But in this case the person in question is a well respected person like Dr. Mani. Even if you don't know him personally, a quick Google of his name would tell you that he's a safe bet. For someone like him, the guy would be better off making an exception and giving him a review copy because if he likes it, he'll tell people, and if he doesn't he'd give him free advice on how to get better.

    Plus, no matter who he was, you have to look at what you're losing vs what you're gaining. It's not much of a risk. And it shows your confidence in your product.

    I admit, for the reason you stated, I might not do that for everyone, on the basis of time, and yeah, having been scammed before. But especially when I just started out, it's like you said, it's a great way to win loyal, life-long customers.
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    • Profile picture of the author Rezbi
      Originally Posted by Tinu View Post

      Zeus,

      I agree with you on that on almost every thing you said.

      But in this case the person in question is a well respected person like Dr. Mani. Even if you don't know him personally, a quick Google of his name would tell you that he's a safe bet. For someone like him, the guy would be better off making an exception and giving him a review copy because if he likes it, he'll tell people, and if he doesn't he'd give him free advice on how to get better.

      Plus, no matter who he was, you have to look at what you're losing vs what you're gaining. It's not much of a risk. And it shows your confidence in your product.

      I admit, for the reason you stated, I might not do that for everyone, on the basis of time, and yeah, having been scammed before. But especially when I just started out, it's like you said, it's a great way to win loyal, life-long customers.
      I'm not saying Dr. Mani is the same, but I've lost a LOT of money to supposedly well respected and well known 'big name' people on the internet.

      And, yes, you can google their names and find good things said about them, too.

      Unfortunately, I've found to my cost that a so-called reputation on the internet is worth zip. Unless that person has literally been around for decades and proven himself/herself over and over.

      My view is both Dr. Mani, Zeus and Justin (above post) have valid points.

      It's a shame, but with all the scammers around, it's difficult to be too trusting.
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      • Profile picture of the author drmani
        Interesting perspectives.

        Thanks for the discussion.

        Depending on the service, you can blame scamming "buyers" for a lot of the reluctance to do work for nothing on the promise of future business.
        John, I agree completely. But then, at least on the WSO forum, there have
        been at least an equal proportion of scamming "sellers" - which is the reason
        such a risk exists on the buyer's end!

        I agree one would limit the level/quantity of service one can provide
        for free, but refusing to provide samples is a potential way to lose
        business, especially if the service you provide is a commodity.

        Plus, no matter who he was, you have to look at what you're losing vs what you're gaining. It's not much of a risk.
        Tinu, that's what Jay Abraham teaches about risk reversal - you, as the
        vendor/seller, absorb whatever risk may lie in the transaction, so that
        they (your buyers) can engage with you risk-free.

        If that transaction goes well, you've won a client for life. If it
        doesn't, you're better off without that business (either because you
        don't deliver on your promise, or the client is a cheat you don't
        want in your life).

        As a freelancer for many years I've seen all kinds of crafty attempts to get out of paying for services.
        premiumplr, for every client attempting to get out of paying for services,
        there's a service provider trying to deliver less than optimum value!

        That's the inherent risk in any such transaction.

        Yes, one option is to throw a small amount of cash at the vendor and see
        how that works out.

        But yes, another option is for the seller to write off that same small
        amount of front-end profit in the hope of future business.

        The risk balancing is a judgment call a vendor makes. A freelancer can't
        be expected to strew around offers of freebies to everyone who asks. But
        a few judicious samples, carefully delivered, and all the while marketing
        to the prospective client the VALUE you are painstakingly giving them,
        can make a BIG difference in your acquiring and retaining long-term high-
        value, high profit clients.

        Personally, I've got $100 to spend on this particular service.

        Just on the WSO forum, there are 6 or 7 similar offers running.

        It's easier for me to pick another option... and in the future, I won't
        remember this person I asked, when similar projects come up in my business.

        In contrast, if he had gone over and above, delivered the work quickly,
        and I was happy with the results, he would have acquired top-of-mind
        recollection in my list of vendors - and probably enjoy a lot of my
        repeat business... as well as referral business.

        That's the pay-off vendors are looking for when they deliver samples.

        But your point is well taken - it has to be a 'case by case' decision,
        and definitely isn't viable for custom work that's time/skill/effort
        intensive.

        All success
        Dr.Mani
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  • Profile picture of the author JRCarson
    Originally Posted by drmani View Post

    For the n'th time, I'm listening to Jay Abraham's interview with
    Tony Robbins - and once again this story impressed me.

    Two men are selling a pony. One says:

    "Buy my pony. I'm sure you'll like him. If you don't, bring him
    back and I'll pay you back the money you paid for him."

    The other man says:

    "My pony is tame, friendly and fun. But I would say that. It's
    my pony. So here's what I'll do. Take my pony home. Let your
    little girl play with him. I'll even send my boy over to feed
    him, and clean him up every day. Keep him for a month. At the
    end of that time, if you like him, I'll come by to collect my
    money. If you don't think he's ideal for your daughter, I'll
    take my pony back at that time."

    Which of the two will you buy from?

    Obvious, right?

    But too many people don't quite 'get' it.

    Just today, I contacted one Warrior about a service. The service
    is affordably priced. Had some good feedback from other buyers.
    Yet, by ordering it, I'm taking a small risk.

    I asked if he'd do one small sample project, so I could see how
    well it worked - and said I'd order at least 5 packs at $19 each
    if I was satisfied. I even mentioned this was NOT a "review copy"
    but a sample project, which could lead to a bigger order.

    He replied that his review copies were gone, and I could order the
    smaller pack - for $9.

    Now, many would say, "It's just 9 bucks. Why not just order and
    see?"

    But you'll be missing the bigger point about RISK REVERSAL.

    Making a transaction hard to brush aside. Making an offer hard to
    resist. Making a deal appear absolutely risk free.

    In this case, I decided against doing business. Not delivering a
    $9 'sample' cost this vendor a potential $100 sale - and who knows,
    maybe many more of the kind.

    How many sales are YOU leaving on the table because you don't
    understand risk reversal?

    What will you do about it after reading this post?

    All success
    Dr.Mani
    If I saw it was you, I would have gone ahead and done the sample.

    But, then again, their's also the saying "buyers are liars".
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  • Profile picture of the author premiumplr
    IMHO it really depends on the project and the type of purchase.

    I understand risk reversal perfectly but I believe the implementation changes based on the situation. If we're talking about a product such as a pony or ebook then I'm with you all the way.

    If we're talking about time intensive custom services, then the possible future business has to outweigh the cost of the time I'm dedicating to the sample project.

    As a freelancer for many years I've seen all kinds of crafty attempts to get out of paying for services. The biggest one is the phantom promise of a bigger order down the line. Just give me a sample ( do some work for free) and I'll order more later. No thank you. Not for custom work.

    In my personal experience those that actually place those bigger orders understand the value of a professional's time and very seldom will ask for free samples. They may ask for a discount but hardly ever free.

    Once again I want to reiterate the difference I'm making between a product and a service. For custom services, IMHO the best risk reversal technique is the guarantee not the free sample.

    "Dear Mr. Plumber I don't know if you're really going to fix the leak so could you please fix this sample leak for free and if I like it I'll order more really soon" I don't see that one happening.

    My two and a half cents.
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  • Profile picture of the author TryBPO
    Try this at a restaurant:

    "Look, I'm sure your food's really good. The thing is my girlfriend and I won't pay for meals that we don't think were worth it. Tell you what...let us go ahead and order some drinks and appetizers. If we like those, we'll go ahead and pay for them and order the main course. If we don't, we'll just leave, ok? If you're food's as good as you're claiming and you truly offer good value and service, there won't be any problem at all...we just don't like taking that risk."

    This is funny coming from me, because I regularly have argued on Dr.Mani's side of this issue. I REALLY like the transparency and honestly that comes with it, but I just wrote a post yesterday about when we choose to turn away customers and deals and why we've found it's a GOOD idea:

    Why We Won't Do Business With You | AdSense Flippers

    I was originally going to write that here and found I had enough to say that I wanted to add it to our blog.

    In Mr.Mani's particular case, if I was the seller, I doubt I would have provided the sample project, either. I don't know the seller's specifics, but I'm guessing this would have been outside of the process he setup to handle this product/service at such a lower dollar amount. Any back and forth emails, delivery, and follow-ups would be additional cost, probably forcing the seller to work for a pretty minimal $$ per hour. And the promise of future/potential business...I've heard that from others so much and USED that to get discounts myself! I never dismiss it as a seller, but I don't put much stock in it either.

    Anyway, I hope my disagreement and my blog post don't take away from the fact that I do appreciate what he's saying...just wanted to share an alternative point of view.
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    • Profile picture of the author drmani
      Originally Posted by TryBPO View Post

      ...but I'm guessing this would have been outside of the process he setup to handle this product/service at such a lower dollar amount. Any back and forth emails, delivery, and follow-ups would be additional cost, probably forcing the seller to work for a pretty minimal $$ per hour.
      I'm guessing here too, Justin, and it could be that what you say is true,
      though the person did offer free 'review samples' to a few people - which
      is what made me even think of asking for a sample project.

      I've often turned down offers from Warriors to give me a freebie in exchange
      for a review, and even specifically mentioned in this offer that I would not
      be tied to giving a review if the Warrior chose to do the sample project.

      Again, this is NOT a knock on the person's decision to turn down my request.
      It's just to highlight how it may lose you potential business that's worth a
      HUGE multiple of what it cost you to do the sample.

      I've experienced it with article writing, when I sometimes used to do free or
      cheap article writing for folks who then come back and pay me hundreds of
      dollars for more... because they love the quality of the 'free sample'.

      You've got to balance downside against potential benefit - and 9 times out of
      10, the balance is in your favor when you try harder by taking away the risk.

      My 2 cents

      All success
      Dr.Mani
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      • Profile picture of the author Rezbi
        Originally Posted by drmani View Post

        I'm guessing here too, Justin, and it could be that what you say is true,
        though the person did offer free 'review samples' to a few people - which
        is what made me even think of asking for a sample project.
        Review samples are work that's already been done. No extra work required.

        Coming up with other samples is more work.

        Personally I wouldn't create any new work just to show someone.

        What if the work I do is fantastic, but you don't do enough with it to make it work?

        Also, whether or not you do use it, my time has been used up.

        Would you give up your time for nothing on a hope that it might bring in more business?
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      • Profile picture of the author TryBPO
        God, I wish I had more free time...I think it would be really interesting to test and document this for a case study. If anyone's good at putting together a test on this with the SAME product/service and offered differently, as stated by the OP, I'd be really interested in checking out your results? Try the same offer...the first with the risk completely removed for the buyer and absolutely top-notch customer service delivered. The second without any discounts, front loaded work in the process and very little follow-up or customer service and zero discounts, workarounds, etc. Do this in separate offers on the same product/service and document:

        - Total Sales + revenue
        - Cost per acquisition (wouldn't you have a much higher conversion rate on the first option?)
        - Hours spent
        - etc.

        Originally Posted by Rezbi View Post

        I'm not saying Dr. Mani is the same, but I've lost a LOT of money to supposedly well respected and well known 'big name' people on the internet.

        And, yes, you can google their names and find good things said about them, too.
        Rezbi - We've absolutely found the same thing. I know three clients off the top of my head who are well respected in their industry who slow-paid and (for 2 of them) ultimately never paid us what was owed. For one of them, the amount owed was under $600! He makes that in around 3 hours of consulting time!

        Originally Posted by drmani View Post

        I'm guessing here too, Justin, and it could be that what you say is true,
        though the person did offer free 'review samples' to a few people - which
        is what made me even think of asking for a sample project.

        I've often turned down offers from Warriors to give me a freebie in exchange
        for a review, and even specifically mentioned in this offer that I would not
        be tied to giving a review if the Warrior chose to do the sample project.
        That's interesting...when asked, I've decided that if I'll take their free copy and if they've asked for a review, that they have to understand that I'll do an honest review...discussing both what I liked and what I didn't like and that they have to be ok with that. I figure it's worth offering a free review for their hassle...but if their product isn't something I found to be useful they're running a risk!

        Originally Posted by drmani View Post

        Again, this is NOT a knock on the person's decision to turn down my request.
        It's just to highlight how it may lose you potential business that's worth a
        HUGE multiple of what it cost you to do the sample.
        Let me give a scenario as a seller:

        #1 No Risk Scenario
        I go out of my way to deliver lower-cost samples, scenarios, etc. of my product/service and go way out of my way to answer questions, back and forth emails, etc. I'm selling my product/service retail for $20 and it cost me $2, but with discounts, I'm selling quite a few more.

        I sell 400
        Average price: $12
        Average cost: $2
        Hours spent with buyers: 60
        Hours spent with non-buyers: 120
        Gross Revenue: $4,800
        Net Profit: $4,000
        $$ per hour: $22.22

        #2 No Discount Scenario
        I setup the process the same as Scenario #1, but I do not offer discounts, reviews, etc. This turns quite a few people off and I only make 25% of the sales I would/could have made.

        I sell 100
        Average price: $18 (VERY little discounting)
        Average cost: $2
        Hours spent with buyers: 20 (Much less working with them to actually make the sale)
        Hours spent with non-buyers: 12
        Gross Revenue: $1,800
        Net Profit: $1,600
        $$ per hour: $56.25

        I know it's just spinning the numbers, but it's why we're trying to be very careful and only choose projects that require much less of our time.

        Anyway, great discussion!
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  • Profile picture of the author sbucciarel
    Banned
    This reminds me of when I was freelancing graphic design on Elance for quite a few years. I was not the lowest priced or the highest priced. Somewhere in the middle. I got a lot of people contacting me saying that they couldn't afford my prices but if I would do this one project for dirt cheap, they'd be throwing a lot of business my way. I did maybe one or two before I learned that once the dirt cheap project was delivered, you never heard from these guys again.

    So, I understand the reluctance. I get your point, but I've run across more than my share of people trying to get something for nothing.
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    • Profile picture of the author drmani
      I just thought of another issue at play in the example I shared.

      Most of the time, the low-priced WSO is done in an attempt to recruit
      new clients, who will then pay-off either by way of multiple orders
      at the same price, or by purchasing higher priced services.

      Presumably, someone offering a lead-generator product or service at
      a throw-away price is looking to get people to take a look at what
      they've got - and to that extent, risk-reversal will definitely get
      more people engaged.

      If your low-priced front-end WSO offer is your primary income source
      and only product, then I definitely appreciate the reluctance to give
      it away for free... but then, there's a bigger problem facing your
      "business"

      All success
      Dr.Mani
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  • Profile picture of the author BIG Mike
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    [DELETED]
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    • Profile picture of the author TryBPO
      Originally Posted by BIG Mike View Post

      For example, to the drinks and appetizer comment - how often to you see things like "Wednesday is Ladies Night" or "Free buffet on Thursdays"?
      Yes, but this was pre-planned as well and, I would argue, part of the "process" that was set up initially by the bar/restaurant. As a buyer, going to a place and asking them to do something that is outside of their offer and outside of their process at a restaurant would be odd and most likely declined...similar to asking for me to get my gf a ladies night discount on Tuesday or getting a free buffet on Wednesday, instead of their "planned" days.
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    • Profile picture of the author premiumplr
      Originally Posted by BIG Mike View Post

      For example, to the drinks and appetizer comment - how often to you see things like "Wednesday is Ladies Night" or "Free buffet on Thursdays"?

      For the plumber comment, back in the day when I was a student running my own locksmith business I used to give free security inspections, which included minor repairs, adjustments and keys.

      It got my foot in the door, got folks to meet and know me, and usually generated some form of paid work for 7 out of 10 calls within the next 30 days...

      Yeah, you need to control it, and of course you're not going to win every time, but do it right and you'll win more often than not.
      I completely understand what you're saying and I agree, but there is a difference between offering freebies that you control and allowing a customer to request free work. Offering samples is one thing because you've already calculated what you want to offer and how you can provide it.

      Customers requesting free work screams "cheap" and very seldom really pans out. Dan Kennedy is really big on risk reversal but he also teaches that you want customers who are in a paying frame of mind.

      It's hard to balance this when providing services on the internet.

      I find it easier to increase the value of the offer rather than offering it for free. If someone really wants my service they won't mind paying a small amount to try it out. Furthermore if my only USP is that I'm offering a "freebie" then I've failed miserably and won't last long anyway.
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      • Profile picture of the author drmani
        Originally Posted by premiumplr View Post

        If someone really wants my service they won't mind paying a small amount to try it out.
        True... but only AFTER I know I *really* want it - based on what it really is!

        You're saying, "Pay me just a little, your risk is low"

        I'm asking, "Give it to me, show me your stuff, my risk will be zero"

        One will usually (if not always) work better than the other.

        Which choice is right for your business is a different question - one that can
        be settled by testing.

        All success
        Dr.Mani
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        • Profile picture of the author premiumplr
          Originally Posted by drmani View Post

          True... but only AFTER I know I *really* want it - based on what it really is!
          Oh I completely agree. So it's my job to convince you that you really want it. There are several ways to this such as increasing the value of the offer. Making it too good to pass up. When done correctly this does not require that I work for free. You're happy and so am I.

          If the only thing I offer you over my competitors is the freebie then I've failed in my sales delivery.
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      • Profile picture of the author drmani
        Originally Posted by premiumplr View Post

        Customers requesting free work screams "cheap" and very seldom really pans out.
        Au contraire!

        And the corollary isn't always true either!

        All success
        Dr.Mani
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    • Profile picture of the author TryBPO
      Originally Posted by BIG Mike View Post

      A lot of folks subscribe to, "A bird in the hand is worth two in the bush" method of doing business.
      I'm trying to let my subscription expire, but it's still tempting! I think we're finally getting better at picking out the instances where the bird in the hand is NOT best for our business, but it can be quite challenging. From what I can see, many people never learn that lesson and it holds them back. For others, they've learned it by being burned so many times that they're cynical and would NEVER try Dr.Mani's suggestion above...even when it could significantly improve their sales.

      I guess my argument is that No Risk scenarios are fine and can be great...but they have to be built into the offer, otherwise you end up spending so much time "chasing" down people that have no commitment, because they have no risk.
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      • Profile picture of the author drmani
        Originally Posted by TryBPO View Post

        I guess my argument is that No Risk scenarios are fine and can be great...but they have to be built into the offer, otherwise you end up spending so much time "chasing" down people that have no commitment, because they have no risk.
        True... and it should be built into the process with ANY WSO, don't you agree?

        I mean, while a WSO/Warrior Services ad can be a business builder, it usually
        isn't the entire business!

        All success
        Dr.Mani
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        • Profile picture of the author TryBPO
          Originally Posted by drmani View Post

          True... and it should be built into the process with ANY WSO, don't you agree?

          I mean, while a WSO/Warrior Services ad can be a business builder, it usually
          isn't the entire business!

          All success
          Dr.Mani
          There are plenty of WSO's SELLING you on how WSO's can be your main business, but that's a different topic, I think...I agree with you here.

          Building it into the WSO can be done through:
          • Examples of previous work
          • Samples of your eBook, chapters, etc.
          • Examples of copies you gave out as reviews, if possible (something like content writing or linkbuilding would work here, right)

          But, I think, going outside of the process you setup can be quite costly and, often, not worth it in the long run. It would be a good idea to learn from your previous WSO's and take those requests and do the best you can to build them into your next offer, I think?
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    • Profile picture of the author Bryan Zimmerman
      Originally Posted by BIG Mike View Post


      For example, to the drinks and appetizer comment - how often to you see things like "Wednesday is Ladies Night" or "Free buffet on Thursdays"?
      I worked in the food/bar industry for over 6 years and both of those examples are advertisements to bring in more business. Let the ladies drink for free and the guys know where they are. So now you got yourself a full bar with guys buying them drinks even though they are free Smart marketing move.

      The buffet is a little different, but still a marketing decision that was part of an over all strategy set out by the owners. You definitely won't see someone walk into a Chinese buffet and tell them "If you let me eat free today, I'll bring back my family of 30 next week" and get away with it.

      Originally Posted by BIG Mike View Post

      For the plumber comment, back in the day when I was a student running my own locksmith business I used to give free security inspections, which included minor repairs, adjustments and keys.

      It got my foot in the door, got folks to meet and know me, and usually generated some form of paid work for 7 out of 10 calls within the next 30 days.

      When you're in a service type of business, free demonstrations of your service clearly gives you a leg up on the competition.
      I owned a screen repair business here in Orlando for a good while and yes, in the service industry, doing free estimates, demo's and small repairs while your doing a free estimate is also part of a marketing strategy. But I there have been tons of times when I heard "take care of me on this job and I'll get you 10 more". I can count on one hand the number of times that actually happened and it was said on a weekly basis.

      There's a big difference between a marketing strategy, which all those are and someone just asking you to do something for them that is outside of what you offer.

      I run a few services myself and the amount of people who ask "can you, would you, if you do this" is pretty crazy. Sounds like this guy offered reviews to begin with, and sounds like he had some good ones too. If that's not enough, kind of hard to disagree with them standing their ground. Especially in this business. If he had refund policy (which I don't know if they did or not), then the risk of paying them for their service is really none since you can get a refund if it sucked.

      I'd be willing to put a good amount of money on a bet, that those of us who run services, have seen the promise of "more to come" be empty for the most part.
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      • Profile picture of the author BIG Mike
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        • Profile picture of the author Bryan Zimmerman
          Originally Posted by BIG Mike View Post

          The point being that as a marketing strategy, you're taking on the risk instead of the [potential] buyer, but controlling it.
          Agree IF you have that built into your marketing plan like restaurants, service industry such as pool enclosures or plumbers. It's a strategy to set it up that way knowing you will gain more customers because of it (that's the plan anyway). Just like you said, it's one that works very very well in the offline world. But someone coming and asking you to do something that you did not set up, is not a strategy that you created. It's a choice you have to make on hope and experience.



          Originally Posted by BIG Mike View Post

          But consider how to mitigate that risk to within an acceptable limit. You begin by evaluating whom you're providing the service to and the odds of them following through with a purchase.

          Personally, I think the OP made a black and white decision without thinking about it. The person asking wasn't Joe Newbie with 3 posts that no one ever heard of [High Risk].
          Agree 100% with you, but the person providing the service probably had no idea who Dr. Mani is. Had they known, It's a good bet it wouldn't have been an issue with them. I'll be honest and say that I had no idea who he was until a few months ago and I've been around for a bit now.

          Maybe if they had looked up some info on him it might not have been a problem, but then again, if you've never heard of someone before, what's the difference between them and the 5 guys that asked you for the same thing last week? Sounds to me like he just got unlucky when it actually was someone you would want to give a trial to.
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          • Profile picture of the author drmani
            Originally Posted by Bryan Zimmerman View Post

            Agree 100% with you, but the person providing the service probably had no idea who Dr. Mani is. Had they known, It's a good bet it wouldn't have been an issue with them. I'll be honest and say that I had no idea who he was until a few months ago and I've been around for a bit now.

            Maybe if they had looked up some info on him it might not have been a problem, but then again, if you've never heard of someone before, what's the difference between them and the 5 guys that asked you for the same thing last week? Sounds to me like he just got unlucky when it actually was someone you would want to give a trial to.
            Well, I'd suggest it's independent of who the individual is, because just
            as in the big world outside the forum as inside here, some of the BIGGEST
            beneficiaries of your business are silent and unknown - so you'd do well
            to treat EVERYONE as a potential referrer and evangelist for your business
            and brand (especially in today's socially networked online world).

            Like Big Mike says, it's all about CONTROLLING your own risk as a vendor.

            Don't give samples willy nilly, for free, not knowing how well it will work as
            a strategy. But test conservatively, know your numbers, and you'll soon
            realize how narrow minded and tunnel-visioned a philosophy of not giving
            free samples (yes, even if it involves some time and even money) can be
            over the LONG TERM future of your business... be it online or off.

            Risk reversal as a strategy is simply so powerful, done the right way, that
            it merits all kinds of testing. Alone, it has tripled conversion rates on my
            sales copy, brought all sorts of new clients into my business and made me
            a lot of friends who have gone on to reach high levels of success - and then
            remembered me, told folks about me, and benefited my brand in ways
            barely imaginable when they were 'Joe Nobody'

            All success
            Dr.Mani
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  • Profile picture of the author TryBPO
    Speaking of "building it in"...

    I was somewhere hear on the forums a couple of weeks ago and I came across a guy asking for people to review his sales copy. Something I found really interesting on his site was that he was selling his eBook for whatever you were willing to pay. He had the usual...a free chapter or something, reviews, etc...but YOU get to choose what you'd like to pay for it (I think it was somewhere like $5 - $50 or something) in the form of a drop-down or something.

    You could take this a step further even...you can leave it the same (or even make it free to download) and include your asking for the $$ at the end in a drop-down. Let them pay by what they THINK the value is.

    I loved the idea, though...even though he was charging me up front, he was allowing ME to decide what i thought it was worth...or what I could afford. For those looking to build a list or offering a product under $10 it might be something worth trying out!
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  • Profile picture of the author TryBPO
    Dr. Mani

    Several people mentioned "looking you up" but I didn't bother at first because I didn't see it as critical to the discussion. I still think it's an interesting discussion, but I'm not convinced giving free samples away is a good idea UNLESS you build it into your offer in an easy way to deliver.

    Nevertheless, I did get a chance to look you up and was thoroughly impressed. One of the first pictures of the kids I clicked on through one of the sites was this adorable little girl who, unfortunately, ended up dying from complications later.

    You really are a purple cow...best of luck to you and I wish you the best...I mean that.
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