Risk Reversals… The Why?
Risk reversal is all about removing any ‘risk’ that the prospect might be feeling and transferring it to your business. For example, I bought an expensive new computer recently, and I wanted to buy an industrial strength surge protector to go with it. The one I choose offered a guarantee that they would pay for up $70,000 worth of new equipment to replace anything damaged by an electrical surge while connected to their surge protector. So instead of me taking on the risk that their product doesn’t do what it should, they have taken this on.
Marketing expert Jay Abraham is generally credited with creating ‘risk reversal’, but in fact the original marketing guru Claude C. Hopkins in his 1923 book Scientific Advertising introduced the concept. He talks about the difference between selling your products and offering a refund for dissatisfied customers and offering a trial for a week and paying at the end if the product is acceptable. The risk is transferred from the buyer to the seller.
He gives the example of a man buying a horse. The first salesman said take it for a week, and if you’re not happy I’ll refund your money. The second salesman said take the horse for a week, and come and pay me then.
The second salesman got the sale.
HEY, did you know i’m running a contest while I am away…
Firstly, here is what is up for grabs…
There are two prize packs to be won. To Enter: 1. Post a ‘review’ of one of these book excert posts, on your blog, with a link back to the relevant post on my blog. Does that make sense ? I’ll see the link or the trackback. 2. Include an email address in your post unless your whois information is correct. 3. Promise to give a review of the entire book on your blog once you have received it and read it. 4. I’ll randonly draw the 2 winners when I get back after April 18 2008. It’s that easy!  |
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