How To Create An Effective Money-Back Guarantee

If you own an agency or a B2B business, here is how to actually create a money back guarantee so it is effective instead of making you look goofy:

1. The first thing you need to fully understand is that strong guarantees are for your intro offer to get them in the door.

They are not for your main, recurring offer.

2. There are at least five types of "risk" when someone hires you

1. Financial risk (your fee)

2. Financial risk (you fucking it up)

3. Time/effort risk (you fucking it up)

4. Reputation risk (you fucking it up)

5. Ego risk (trying and failing)

3. Most people only ever consider the first type of risk and then wonder why it doesn't usually work, and even if it does work, it only attracts low quality clients.

That is where the "or you don't pay" guarantees come from.

4. The reason guarantees are only for your intro offer is because it is simply not possible to mitigate or eliminate all of these types of risk with a recurring service.

5. You can offer a money back guarantee on your main service, but there is simply no way to mitigate:

• Financial risk (you fucking it up)

• Time/effort risk (you fucking it up)

• Reputation risk (you fucking it up)

• Ego risk (trying and failing)

6. The financial risk that comes from your fee is the least of their concerns.

For example, if you fucked up an Ecom Brand's Facebook Ads for three months (or whatever your guarantee is), they would probably go out of business.

They do not care at all about your little fee.

7. Let me show you a real example of this based on what I used to do (Ecom landing pages + CRO)

I only had a guarantee on the landing pages (my intro offer) and I will show how my intro offer nearly completely eliminated all the major types of risk.

Financial risk (my fee)

"If our landing page doesn't beat your current page by at least 10% in a 30-day A/B test, we will give you a full refund (and we will put this in a legally-binding contract with no BS or funny business)”

Financial Risk Part 1 (me fucking it up)

To avoid a situation where my page performed so much worse than the original that they lost a lot of money (in comparison), I always started the A/B tests at 90% traffic to original and 10% traffic to mine until it was proven to convert

Financial Risk Part 2 (me fucking it up)

If the landing page didn't work, they can simply turn off the ads running to it/change the URL, collect their refund, and be on their merry way.

Life moves on.

Time/effort risk (me fucking it up)

The same thing goes for the time/effort risk. If the landing page didn't work, they can simply turn off the ads running to it/change the URL, collect their refund, and be on their merry way.

It doesn't take any time/effort to fix anything

Reputation risk (me fucking it up)

The landing page has to be approved by them before it goes live. After all, I am not the one running ads. If the page is getting any traffic, it is because they consciously decided to run ads to it.

Because landing pages are an intro offer and much less commitment, they can be framed as "just a test or experiment."

If it doesn't work, no harm no foul, here's your refund.

Better luck next time.

None of these things would be possible with CRO (main recurring service). You cannot fully mitigate the financial risk of you fucking it up. You can't fully mitigate the time/effort risk required to fix your mistakes.

You can't fully mitigate the reputation risk of you doing something that will make them look bad. You can't fully mitigate the ego risk of trying something and failing at it. It is a big undertaking.

This is why refund guarantees don't work for main recurring offers (in case you were wondering). This is why you need an intro offer.

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