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Pitching A Guarantee...Why Is It Bad?

by James English
15 replies
So I am about 120 calls in today. I have tried scripts before, and I know why some of them work.

This week I am really desperate for cash as my father has some serious medical bills that he isn't able to pay. I figured this approach would have a much better response than its actually having

"Hey ______ is this a bad time?"

"Ok great, well let me take a minute to tell you why I am calling, and you can decide if we should keep talking or not. Sound fair?"

"We have a guaranteed method of bringing more customers into your business. Meaning if we don’t show you a return of at least double what you’re spending with us....you don’t pay. Is that something you would be open to discussing further?"
I am 120 calls in with that script, I have actually spoken to about 80 or so owners (shocking I know).

The guarantee is fairly simple as I have used it with clients before. Essentially, we figure out an average client/customer value, and any sales that are brought in with my advertising/marketing count toward that guarantee. Like I said, its not something I have ever had an issue with before, but I have never pitched it in this way.

I have talked to hundreds of owners prior to this that have told me "I would trade $1 for $2 all day long if it were an option". So that said, why is it that people are so unreceptive to this?
#bad #guaranteewhy #pitching
  • Profile picture of the author ej155
    I'm not sure how you're delivering the message. But many times when someone can sense that you're desperate, then you've lost the sale immediately. I've done that in the past too where people CALLED ME to BUY, and then because I was very desperate to "close the deal" they end up going "oh let me think about it and call you back". So now I've learned to play it cool and take the approach that if they want it sure, if not no worries. But I know this is hard to translate to cold calling. Perhaps my suggestion is to change your tone on the cold calling saying that you're only looking for ONE or a maximum of TWO companies to work with because you've gotten results to X sites that you have in your arsenal. Then leverage those.

    Lastly, if you're offering SEO, offering a guarantee is really a bad idea because you never know what updates Google will throw at you.

    Just my two cents, hope your Father is doing better and all the best to you my friend!
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    • Profile picture of the author James English
      Originally Posted by ej155 View Post

      I'm not sure how you're delivering the message. But many times when someone can sense that you're desperate, then you've lost the sale immediately. I've done that in the past too where people CALLED ME to BUY, and then because I was very desperate to "close the deal" they end up going "oh let me think about it and call you back". So now I've learned to play it cool and take the approach that if they want it sure, if not no worries. But I know this is hard to translate to cold calling. Perhaps my suggestion is to change your tone on the cold calling saying that you're only looking for ONE or a maximum of TWO companies to work with because you've gotten results to X sites that you have in your arsenal. Then leverage those.

      Lastly, if you're offering SEO, offering a guarantee is really a bad idea because you never know what updates Google will throw at you.

      Just my two cents, hope your Father is doing better and all the best to you my friend!
      This is a great point, I probably do need to chill out a bit. I have noticed I am speaking a bit faster than usual today on the phone!
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  • Profile picture of the author DABK
    How do you present the guarantee?

    I know of one mortgage broker that says, I'll get you a better interest rate than any bank can. Guaranteed!

    But there's no or else. And, without or else there's no guarantee.

    Compare the above to: I'll get you a lower interest rate than any bank can or I'll give you $15,000 in cash.


    Originally Posted by Trent English View Post

    So I am about 120 calls in today, and I will be the first to admit that I suck on the phone. I have tried scripts before, and I know why some of them work.

    This week I am really desperate for cash as my father has some serious medical bills that he isn't able to pay. I figured this approach would have a much better response than its actually having



    I am 120 calls in with that script, I have actually spoken to about 80 or so owners (shocking I know).

    The guarantee is fairly simple as I have used it with clients before. Essentially, we figure out an average client/customer value, and any sales that are brought in with my advertising/marketing count toward that guarantee. Like I said, its not something I have ever had an issue with before, but I have never pitched it in this way.

    I have talked to hundreds of owners prior to this that have told me "I would trade $1 for $2 all day long if it were an option". So that said, why is it that people are so unreceptive to this?
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    • Profile picture of the author James English
      Originally Posted by DABK View Post

      How do you present the guarantee?

      I know of one mortgage broker that says, I'll get you a better interest rate than any bank can. Guaranteed!

      But there's no or else. And, without or else there's no guarantee.

      Compare the above to: I'll get you a lower interest rate than any bank can or I'll give you $15,000 in cash.
      So in this case, my or else would be: I'll double the amount you are spending with me on advertising OR I'll refund 100% of your investment

      Is that what you are referring to?
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      • Profile picture of the author DABK
        Yes, it is.

        And, if it comes after you've figured out what they want, it's okay.
        If you start off with it, it's not so good.

        It's okay if it comes after you've figured out that what you sell is something that will help them, it's okay not good because they have to invest the money, then wait... Their money is tied up for a while. They could have done something else, something that produced results, while waiting for you to fail.

        Maybe that's why they're not jumping on it. Maybe they're thinking they have other, faster, options...

        Originally Posted by Trent English View Post

        So in this case, my or else would be: I'll double the amount you are spending with me on advertising OR I'll refund 100% of your investment

        Is that what you are referring to?
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        • Profile picture of the author daniyal100
          Yes these are one of the few things which looks very cool in theory but does'nt work in practical..

          I also had the same experience using this word, don't know why exactly but I think it sounds unprofessional to start the conversation this way
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  • Profile picture of the author Jason Kanigan
    You are jumping right into the "hey want to go to bed" part when you just met the girl.

    Find out first if they can handle more business. Then, if they say they don't want to discuss methods for getting new business after establishing that, they'll sound pretty silly, won't they.
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  • Profile picture of the author Aaron Doud
    Originally Posted by Trent English View Post

    I have talked to hundreds of owners prior to this that have told me "I would trade $1 for $2 all day long if it were an option". So that said, why is it that people are so unreceptive to this?
    Trading $1 for $2 sounds great. But if it takes me an hour to do it that clearly doesn't leave me ahead. There is more to it than just the money. Never break it down to just money. No matter how much people say that people buy on "price" and money matters the truth is it normally does not.
    Originally Posted by Trent English View Post

    "Hey ______ is this a bad time?"
    Bad is a negative word. "Do you have 5 mins?" or "Do you have time to speak now or would you like to arrange a time that would be better?"

    By using negative terms you put them in a negative mindset.
    Originally Posted by Trent English View Post

    "Ok great, well let me take a minute to tell you why I am calling, and you can decide if we should keep talking or not. Sound fair?"
    This part isn't too bad. Little tweaks to make it natural might help. Sounds a bit too like a sales person which will put up walls.
    Originally Posted by Trent English View Post

    "We have a guaranteed method of bringing more customers into your business. Meaning if we don't show you a return of at least double what you're spending with us....you don't pay. Is that something you would be open to discussing further?"
    Like Jason said you are jumping the gun here. Also the guarantee IMO should not be the lead benefit. That just doesn't say strongest benefit to me. You can tweak the wording on the guarantee a bit but the problem isn't that really. It's that you are leading with it and selling a benefit that may have no meaning to them.

    What do they need?
    How can your service provide that?
    Can you show how your benefit will fit their need?

    People didn't want an MP3 player. They wanted 1,000 songs in their pocket (at least once they learned they could have that).
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  • Profile picture of the author TheBigBee
    Originally Posted by Trent English View Post

    So I am about 120 calls in today, and I will be the first to admit that I suck on the phone. I have tried scripts before, and I know why some of them work.

    This week I am really desperate for cash as my father has some serious medical bills that he isn't able to pay. I figured this approach would have a much better response than its actually having



    I am 120 calls in with that script, I have actually spoken to about 80 or so owners (shocking I know).

    The guarantee is fairly simple as I have used it with clients before. Essentially, we figure out an average client/customer value, and any sales that are brought in with my advertising/marketing count toward that guarantee. Like I said, its not something I have ever had an issue with before, but I have never pitched it in this way.

    I have talked to hundreds of owners prior to this that have told me "I would trade $1 for $2 all day long if it were an option". So that said, why is it that people are so unreceptive to this?

    Guaranteeing is a great framing tactic. I guaranteed a client 1x leads but delivered 4x. I looked like a God. Why? I KNEW I'd get 2x in my sleep - so 4x immediately was pause for a month to month consulting fee price adjustment.
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    • Profile picture of the author James English
      Originally Posted by TheBigBee View Post

      Guaranteeing is a great framing tactic. I guaranteed a client 1x leads but delivered 4x. I looked like a God. Why? I KNEW I'd get 2x in my sleep - so 4x immediately was pause for a month to month consulting fee price adjustment.
      I am not 100% sure what you are saying here, what do you mean when you say you guaranteed him 1x leads?
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      • Profile picture of the author James English
        Originally Posted by Aaron Doud View Post

        Like Jason said you are jumping the gun here. Also the guarantee IMO should not be the lead benefit. That just doesn't say strongest benefit to me. You can tweak the wording on the guarantee a bit but the problem isn't that really. It's that you are leading with it and selling a benefit that may have no meaning to them.

        What do they need?
        How can your service provide that?
        Can you show how your benefit will fit their need?

        People didn't want an MP3 player. They wanted 1,000 songs in their pocket (at least once they learned they could have that).
        Originally Posted by Jason Kanigan View Post

        You are jumping right into the "hey want to go to bed" part when you just met the girl.

        Find out first if they can handle more business. Then, if they say they don't want to discuss methods for getting new business after establishing that, they'll sound pretty silly, won't they.
        So if I were to adjust things a bit, ask them if they could handle any additional business, and if the answer is yes....head back into my initial offering, would that be heading in the right direction?

        Most of the people I am calling are in the same industry. I have all of the numbers and previous client results to back up my claims, I am just never sure when to say them during the conversation.
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        • Profile picture of the author Jason Kanigan
          Originally Posted by Trent English View Post

          So if I were to adjust things a bit, ask them if they could handle any additional business, and if the answer is yes....head back into my initial offering, would that be heading in the right direction?

          Most of the people I am calling are in the same industry. I have all of the numbers and previous client results to back up my claims, I am just never sure when to say them during the conversation.
          Find out about their world first.

          If they say Yes, they can handle more business...

          ...what are they doing to attract new customers?

          ...how long have they been using that/those method(s)?

          ...how have they been working out? Are they happy with the results?

          ...if things haven't worked out the way they expected, are they open to new ideas?

          Your solution comes at the end, not the beginning.
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      • Profile picture of the author TheBigBee
        Originally Posted by Trent English View Post

        I am not 100% sure what you are saying here, what do you mean when you say you guaranteed him 1x leads?
        Sorry - meant to say I promised 1,000 leads in a month via a specific channel. We generated 3700, I was expecting no less than 2,000.

        My guarantee to him was reasonable - it didn't sound "lowball." It wasn't like going to a football game and guaranteeing that someone will get at least 2 points...
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  • Profile picture of the author misterme
    I'd think you need to customize it a bit, no? If you're calling businesses the owner you're calling is bound to think this is the same generic line you feed everyone. You need to match the business you're calling.
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  • Profile picture of the author AndrewCavanagh
    Originally Posted by Trent English View Post

    I have talked to hundreds of owners prior to this that have told me "I would trade $1 for $2 all day long if it were an option". So that said, why is it that people are so unreceptive to this?
    It has nothing to do with the offer or the guarantee.

    It's the process you're getting resistance on.

    In other words they're not thrilled about having a sales
    person call them when they're trying to run their business.

    That's the first obstacle you have to get over.

    Ideally you use some form of direct response marketing to
    get them to indicate they're interested (email, mail etc) and then follow up
    by phone.

    If you do it that way you'll find they're highly receptive.


    There is a practical problem with guarantees like this...not
    getting paid.

    Generally speaking business owners will lie about how many
    sales they're getting from you and if they're not paying you
    a substantial fee upfront they also won't be seriously committed
    to making any strategy you use really work.

    Ideally you charge them a substantial upfront fee to set
    the strategy up and go from there.

    Kindest regards,
    Andrew Cavanagh
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