Offering Money-Back Guarantees

In this episode of The Fearless Business Podcast, podcast host Robin Waite talks about money-back guarantees and shares his advice on gaining the confidence to offer one to your prospective clients.

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Offering Money-Back Guarantees

In this episode of The Fearless Business Podcast, podcast host Robin Waite talks about money-back guarantees and shares his advice on gaining the confidence to offer one to your prospective clients.

In business, many entrepreneurs fear adding a money-back guarantee to their pricing plans as they worry customers may exploit them or that what they offer simply isn’t good enough. However, if your core product’s results provide consistency, you have nothing to lose. Here are some factors as to why entrepreneurs should be offering money-back guarantees.

Nailing Your Prospective Client

One of the many reasons entrepreneurs shy away from offering money-back guarantees is that they fail to show consistent results. According to Robin, reasons for inconsistent results within business stem back to the types of clients entrepreneurs are attracting.

Although it’s tempting to shoot far and wide when advertising to clients, the goal to gain as many clients as possible might prove as a hindrance for your business. If you aren’t niching, then you aren’t attracting the correct type of client. Entrepreneurs who go into business solely intending to make as much money as possible with as many clients as possible won’t have consistent results as each experience is different. Furthermore, many will be faced with a moral dilemma as to why they are in business in the first place.

Even niching can bring forward clients who aren’t the right fit for your business. To ensure your prospective client is, Robin provides three tips:

1. Offer a free diagnostic call - 15 - 30 mins long, enough time to get to know the prospective client.
2. Ask qualifying questions - list out 5 - 10 qualifying questions and base your judgement on how they respond to them and whether their answers resonate with the service you provide. If they don’t, they aren’t the best fit for your business.
3. Be sure to turn the prospective client away if they aren’t a good fit - in times of business hardship; it can be tempting to take on clients who don’t quite fit the bill. However, this will come back to haunt you in the long run and quite possibly damage your reputation. Bite the bullet and say no. This will save you both time and money.

Why Entrepreneurs Don’t Offer Money-Back Guarantees

Robin believes that one of the biggest red flags in business is when an entrepreneur doesn’t offer a money-back guarantee. Doing so can provide many negative connotations for a business, such as poor service.

If you, yourself, are an entrepreneur who is hesitant about offering a money-back guarantee, figure out why. Most of the time, it’s either a mindset flaw such as a lack of confidence or a fundamental flaw within the business. This is why Robin recommends that you nail one core service of your business before you offer money-back guarantees so that you can confidently confirm that you will provide the results promised.

Setting Up YourMoney-Back Guarantee

Okay, so we’ve convinced you. You are confident enough in your services and want to offer clients a money-back guarantee; what next?

When outlining your money-back guarantee, Robin advises not to go too specific. For example:

• Do not promise to do x amount by x amount of days. Every client’s experience is subjective and entirely down to them; there’ll be many factors that will prevent you from keeping your initial promise.

Instead, outline your guarantee in such a way that the value is to be perceived. For example:

• Try by the end of x amount of weeks if you feel you haven’t gained ANY value out of this service by any means have your money back.

This way, your target is vague enough to have all bases covered and instils a sense of faith between both business owner and client.

The Benefits of a Money-Back Guarantee

To finalise, providing a money-back guarantee with your services includes a multitude of benefits such as:

• Customer Confidence
• Solidifies Sales
• Increased Sales
• Boost in Business Confidence

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