Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > Small Business Marketing - Online > General Online Marketing Information
Register Search Today's Posts Mark Forums Read

Reply
 
Thread Tools
Old 8th January 2008, 10:51 AM   #1
cjohnso5
Member
 

Join Date: Jan 2008
Posts: 14
Default Cost/Benefit Strategy of Guarantee

Does anyone know any general statistics or cost/benefit information on the "Don’t Decide Now…Read “Ebook X” FREE For 7 Days" marketing strategy? I want to use it but I am worried people will try it for free and then cancel their order, thus getting my ebook for free.

Is it a much more effective sales technique than my current "7 Day 100% Money Back Guarantee"? because I know when it comes down to it they are basically the same thing.

-Chris

cjohnso5 is offline   Reply With Quote
Register or log in to remove this ad.
Old 8th January 2008, 11:32 AM   #2
PressureProsInc
VIP Contributor
 
PressureProsInc's Avatar
 

Join Date: Feb 2006
Location: Havertown, PA
Posts: 388
Default

Other than semantics, what is the difference between the two? How will you bill the customer after seven days? You have to get a credit card authorization, no? As a consumer, stuff like that makes me skeptical. If you tell me its "FREE" for seven days and then when I check out I have to enter a credit card, I say "buhhh bye, this is a scam"

Chris, I would stay with the guarantee.

__________________
Ken Fenner
Roof Cleaners PA
Roof Cleaning Service for the Philadelphia Suburbs
PressureProsInc is offline   Reply With Quote
Old 8th January 2008, 09:30 PM   #3
cjohnso5
Member
 

Join Date: Jan 2008
Posts: 14
Default

Thanks for your opinion. Yeah, it basically works how you said...here's an example.

Quote:
"This book may have the one exact piece of advice you need, but I want you to be absolutely sure about it, that's why I'M NOT GOING TO ASK YOU TO PAY FOR IT until you've had a chance to read it and see for yourself with your own eyes what it can do for you.

When you click on the button below, you'll be taken to a secure order page where you can download the book for FREE right now (just use a valid credit card for your order… you won't be charged for a full 7 days).

Read the book from cover to cover and you'll find strategies you can use RIGHT AWAY to start meeting women. I promise.

Take 7 days to read the book and start applying the techniques you learn.

If, after you've read the book you decide that it's not for you… or you didn't find any useful information in it for your situation, simply reply to the email confirmation you'll receive when you download your copy of the book, write “cancel” in your message, and we won't charge your credit card at all."


cjohnso5 is offline   Reply With Quote
Old 8th January 2008, 09:49 PM   #4
cjohnso5
Member
 

Join Date: Jan 2008
Posts: 14
Default Lose-Win Guarantee

One more sales guarantee question. The hot new sales guarantee is the Lose-Win Guarantee. In case anyone reading this doesn't know what it is... basically you not only offer a 100% money back guarantee but you also offer something extra to go along with it. An example would be a 110% Guarantee where if the customer isn't happy you will refund them their money PLUS an extra 10%. It's basically the ultimate way of the company putting their money where their mouth is.

I'm wondering if this would make sense for an ebook? Unlike a physical product where the person would have to package the product back up and ship it back, an ebook they would just have to delete and send the company an email. (or be dishonest and NOT delete it, thus getting it plus extra money for free.)

cjohnso5 is offline   Reply With Quote
Old 9th January 2008, 11:20 AM   #5
PressureProsInc
VIP Contributor
 
PressureProsInc's Avatar
 

Join Date: Feb 2006
Location: Havertown, PA
Posts: 388
Default

These strategies are effective, no doubt. I understand exactly where you are coming from as instilling confidence is one of the key ingredients for pulling a conversion. I can only offer my own historical data which is based on physical products. I offer a 100% guarantee on my products. In two years I have had one person say the product was not what it was cracked up to be (I was devastated .. darned perfectionist nature). I do mention in my guarantee that we may ask for unused product to be returned. I would only do that on a large order. I also offer S&H into the refund so that is my added value to the guarantee. In your case, I can see how your 7 day 'no bill' could be effective. Chris, its like anything else in business. You try it, monitor your numbers and decide where to go with it. Best of luck with the e-book!

__________________
Ken Fenner
Roof Cleaners PA
Roof Cleaning Service for the Philadelphia Suburbs
PressureProsInc is offline   Reply With Quote
Old 9th January 2008, 01:18 PM   #6
veikoh
Member
 
veikoh's Avatar
 

Join Date: Aug 2007
Location: Belfast
Posts: 30
Default

I think you should sell your eBook like music. 30 seconds (30 pages) are free if you like it then please pay.

veikoh is offline   Reply With Quote
Old 9th January 2008, 01:31 PM   #7
torka
Moderator
 
torka's Avatar
 

Join Date: Mar 2006
Location: Triangle area, NC, USA, North America, Earth (usually)
Posts: 4,101

Search Engine Guide Blogger

Default

We can speculate all day long about which approach will work better, which is kinda fun, but in the end is just jaw-wagging.

Or you can use a tool like Google Website Optimizer to test all these alternatives. Offer one third of your visitors the "7 days free, then charge" option, one third the "100% refund in 7 days if not satisfied" option and one third the "read a sample free, then pay to see the rest" option.

See which group converts over time at the highest rate, taking into account any returns that might be requested under the "refund after 7 days" option. That's about the only way you're going to know for sure which alternative will work better for your specific audience.

--Torka

__________________
Diane Aull - NineYards.com: Helping Businesses Do Business Online
Whether you think you can, or that you can't, you are usually right.
torka is offline   Reply With Quote
Old 10th January 2008, 12:12 AM   #8
Karri
Moderator
 
Karri's Avatar
 

Join Date: Jan 2006
Location: Alberta, Canada
Posts: 473

Search Engine Guide Blogger

Default

Very few people actually come back to the seller and ask for a refund. And the potential increase in sales generated by a money-back guarantee should more than make up for the odd refund.

I would probably offer either an excerpt on the landing page or a sample for download (and make sure the free chapter or whatever really does offer something of value). Then within that free download remind them to revisit xyz.com to purchase the eBook, at which point I would then offer a money back guarantee, no strings attached.

And yes, if you really want to be certain - or the above does not bring in good returns - then indeed test the possibilities

Karri

Karri is offline   Reply With Quote
Old 10th January 2008, 09:31 AM   #9
Logan
Administrator
 

Join Date: Jun 2004
Location: Colorado
Posts: 8,047
Default

I agree with Karri, of course Torka's route of test ... test... test is best no matter what - but in general you are going to be better off providing the guarantee based on my experiences. I did do a spilt test many moons ago - but havent in ages. I've also seen some encounter troubles though - and that can be a real problem to address. One scenario was a customer who provided a guarantee. The supplier who was shipping directly to the customers started having all sorts of problems including damaged goods, out of stock, etc. It can get real ugly regarding the 'cost' of a guarantee - if you can't/don't directly control what you are offering. That is the only time, of many, that I can think where it wasn't a plus. In that case, it still worked well in generating sales - but issues definitely can arise if you are not clear and careful. That whole scenario literally put them out of business. evolution i guess.

__________________
Search Engine Guide - Small Business Guide to Search Marketing
Small Business Brief - Small Business Ideas Forum, Articles & News
Logan is offline   Reply With Quote
Old 10th January 2008, 10:13 PM   #10
cjohnso5
Member
 

Join Date: Jan 2008
Posts: 14
Default

Thanks guys. Although nobody commented on the Lose/Win Guarantee method, where you offer more than just the 100% guarantee, like 110% guarantee. Yes...This means if I sold the ebook for $50 and they asked for a refund I would refund them $55. It's super risky with an ebook, but when was the last time you saw someone offer a 110% money back guarantee? Wouldn't that increase your confidence in the quality of the product if the owner is willing to put their own money where their mouth is?

cjohnso5 is offline   Reply With Quote
Reply   

Bookmarks




Thread Tools

Get Updates
RSS Feeds:
RSS Feed for General Online Marketing Information RSS for this Category Only: General Online Marketing Information

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


Small Business Ideas Forum


 
At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
 
Search Engine Guide
Small business guide to search marketing

 
Small Business Brief
Fetching the Best Small Business Info


Used Values - Free Links
Blue Book





All times are GMT -5. The time now is 12:21 PM.


Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy