by vectorportal [public domain (http://openclipart.org/share)], via openclipart

SPI #55 – Guarantees

Pat’s 55th blog post addresses guarantees. Guarantees like “if you are not satisfied, you get your money back” seem to give your customers a sense of security … and it seems they do not use that offer all to much …

An even more extreme kind of guaranty is the loose-win guaranty introduced by Tim Ferris, where you not only return the money paid but in addition pay an extra fee. That way the customer gets something an incentive from your product even if he returns it …

e.g.:

  • You sell a product for 25 USD. If the customer returns it, you pay back 50 USD instead of the original 25 USD.
  • You sell a product and provide an additional gift for free. If the customer returns the product she/he can keep the gift.
  • You sell a weekly newsletter. Should you fail to deliver one week your subscribers get paid 25 USD.

Does this pay off? Are there more nice customers than “bad” ones?

More about Pat and SPI …

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