Guarantees

The best argument against money-back guarantees on the Internet

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I was just listening to an interview with Vic Conant, the president of Nightingale-Conant.

As you might know, Nightingale-Conant is a big info publishing company. For decades, they dominated the self-help and sales audiotape market, with lots of big-name gurus on their roster. Their original guru was Earl Nightingale, who influenced Dan Kennedy and everyone on down.

One question posed to Conant was about the most profitable idea he’s used to market his products online or offline. Here’s what Conant replied:

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It’s been this ‘open accounts’ idea. When we advertise, we typically say, “Try this product for 30 days on ‘open account,’ or at our risk for free, basically. We’ll send it out to you, you try it, and we have the risk on our side.”

My dad came up with that idea back in about 1978. We were asking at that time for people to send in $50 and we’d send them the product. And that just wasn’t working to a great degree. We tried this and it worked very well and because of that our business exploded.

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The interviewer, Michael Senoff, asked a clarifying question:

“When someone orders, do they put a credit card down, but it’s not charged until 30 days later?”

Conant shook his head. “No. Typically it’s nothing. Just strictly bill-me-later.”

I thought this was very interesting. Because I don’t offer money-back guarantees on my expensive courses, like Copy Riddles.

​​I certainly don’t give them away for free for 30 days and then work to collect my money.

So should I start? For that… let’s go on with the interview.

Michael Senoff asked the obvious followup question. “They responded well, but how is it on the side of your collections? What percentage have you found you have to go chase money?”

Vic Conant replied:

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We have a very sophisticated collection effort, but it’s basically using guilt. And we’re very sophisticated in picking lists.

In direct marketing, in mail, you pick a list and you test that list. And if you test a list that returns all the products or doesn’t pay, then you don’t use that list any more.

So we tend to use very strong lists like Business Week subscribers, or people that don’t have time to screw around.

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So there you go. That’s the best argument I’ve heard against money-back guarantees on the Internet, at least the way business is typically done.

On the Internet, you’re not testing in slowly to very strong lists of buyers.

Instead, most businesses, including mine, have an open-door policy. Pretty much anybody can find my website, join my list, have the opportunity to buy. There’s no way to know if that’s a serious business owner with no time to screw around… or an unserious opportunity seeker with all the time in the world for screwing both me and himself around.

But still.

If you’re anything like me, your ears perked up at that original question, “most profitable idea,” and Conant’s reply “open account.”

I thought for a bit. Is there any way to do something like that on the Internet?

I realized I already am doing it.

Really, that’s the point of free daily emails such as these.

​​My courses such as Copy Riddles are very expensive.

​​The point of my free daily emails is to demonstrate — expertise, trustworthiness, valuable or interesting ideas. That’s the open account. And then, once you feel comfortable, you have the opportunity to buy into the next level.

I realize that might take a while, maybe much longer than 30 days. That’s okay. I have time, and I have additional arguments and email ideas. Here’s one I will close with today, from automotive copywriter Kevin Cochrane, who bought into Copy Riddles a while back:

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Copy Riddles was a measuring stick for me as a copywriter. John charted a course through the persuasion pathways that separate the pros from the posers. The structure is clear. The examples tie direct response history to present applications. The exercises offered a practical way to test and implement the lessons.
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I write for the automotive retail space, which is watered down by legal teams, compliance guidelines, and plenty of regulation. The course has helped me plunk the guts of what makes a solid bullet into more and more of my work.​​

If you’re hemming and hawing about whether to join, read a week’s worth of John’s daily newsletter as a trial run. You’ll know what to do after. (Hint: the paid stuff in Copy Riddles is even better somehow.) This is the kind of course you’ll refer back to again and again.

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For when you’re ready:

https://bejakovic.com/cr/

My superior MVE guarantee that trumps Gary Halbert and John Carlton

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In my email from two days ago, I shared John Carlton’s “Notorious ’20 Clicks’ Report’. This report collected, in shorthand format, 20 of Gary Halbert’s “first-choice” marketing tactics.

​​In that email, I said this report is potentially the most valuable thing I will ever share in this newsletter.

Most valuable, yes. But not necessarily new.

For example, “Click 20” in the report is pretty standard marketing advice you’ve probably heard a thousand and one times:

“Reverse the risk — you shoulder all the risk, so buyer is ‘covered'”

Gary H. advised his clients to offer longer guarantee periods… 30-day holds on checks… even double-your-money-back guarantees.

Bah, I say. That’s kids’ stuff. It pales in comparison to how much risk I am willing to shoulder with my Most Valuable Email offer. It goes like this:

1. If you like my emails, find them insightful, and want to write something similar…

2. If you already have or are willing to start an email list about marketing or copywriting…

3. If you have read or at least skimmed my sales page, or what there is of it, so you have a clear understanding of what my offer is, what the price is, and what my promises to you are at that price…

… if and only if all three of these are true… then I guarantee the Most Valuable Email is for you. You will find it both fun and valuable.

On the other hand:

If you don’t fulfil any of the above three conditions… or you don’t know me too well… or you don’t trust me too much… or you have general vague doubts or uneasy feelings about taking me up on my MVE offer… or you want to “test drive” the content to see if it’s right for you… or, best of all, if you have been studying copy for years and have seen it all and are determined that unless I show you something new within the first 2 minutes then you will demand a refund…

Then I 100% guarantee the Most Valuable Email training is NOT for you. Don’t buy it, and save yourself, and even more importantly, save me, a bit of headache and frustration.

How’s that for shouldering risk?

After all, Gary H. and John C. were willing to take on all the risk — up to but not including risking the actual sale.

On the other hand, I am willing to risk you will not buy at all from me if this offer is not right for you.

Maybe that seems silly, or counter to the basic principles of greed-gland marketing. That’s okay. I feel it will serve me well in the long run.

Anyways, now you know what I guarantee when it comes to the Most Valuable Email.

And if you meet criteria 1 and 2 above, and you are interested in this training, then all that’s left for you is to read or at least skim my sales page so you can meet criterion 3.

If you want to do that now, here’s the link:

https://bejakovic.com/mve/

Unusual guarantees, vol. 3

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To start, here’s a bit of futuristic auto news:

A few weeks ago, Mercedes introduced its Drive Pilot technology. It’s much like Tesla’s AutoPilot. It drives the car for you at low speeds. But Mercedes announced an important twist.

If you put your Mercedes on Drive Pilot and the car decides to run over somebody, crushing their foot… or severing their spine… or perhaps even killing them… then you will not be legally responsible.

​​Instead, the Mercedes corporation will be responsible.

So what’s new here?

Well I thought about that for a sec.

After all, what Mercedes is offering sounds just like a guarantee. But I realized it’s a special kind of guarantee, not often seen.

After all, the typical guarantee is something like this:

“Buy this Mercedes. If you’re not happy with it, or if it kills someone while you’re behind the steering wheel, you can return the car and get all your money back.”

A more extreme version is the double or triple money-back guarantee:

“Buy this Mercedes. If it kills someone while you’re behind the steering wheel, and you end up in jail for it, and you no longer want your Mercedes, just return it to us, or have your friends who are on the outside return it on your behalf. And we will refund your full buying price, plus we’ll give you an extra ‘We’re so sorry you’re in jail’ compensation, totaling 200% of what you originally paid.”

Maybe when I put it like that the point becomes clear.

The money you get back for a product that fails is often inadequate. Even when it’s all the money you put in, or even when it’s more. Your total cost is still greater, and sometimes it can’t be quantified in terms of money.

Of course, you’re not selling self-driving cars. But this idea can be used even for some modest direct response offers.

Perhaps you’re wondering how.

That’s something I will tell you about, or rather demonstrate, in an email soon. For today, I will just tease you with this:

I think the key is not to promise money in return. The key is to argue that your offer will make your buyer better off, in every way — whether your product works as intended or not.

In case you want more detail than that, the sign up to my email newsletter, and watch out for my upcoming emails.