The Power Of Stronger, Longer Guarantees

As human beings we are naturally averse to risk.  We are more apt to try something new so long as the reward outweighs the risk.   That’s why “risk-free trials” kill-it in nearly every vertical.

Another great way to lower risk is through strong money-back guarantees.  Let’s face it, with all of the scams out there buyers naturally feel vulnerable.  In exchange for their hard-earned cash, they take a huge leap of faith every time they buy.  They are always wondering whether their purchase is worth more than the current value of their money.  During the entire sales process they experience physiological changes.  Their heart rate increases as muscles tension kicks in.

As direct response marketers, our job is to sell them RIGHT HERE, RIGHT NOW!  Lower their heart rate and ease the muscle tension by offering the best guarantee in your industry.  Strong, long guarantees convey confidence in your brand.  This gives prospects confidence to buy.

It also throws into question why your competitor’s don’t offer a similar guarantee.  As logic follows, if they had an equivalent or superior product, surely they would back it up with a competitive guarantee.  Their product must be inferior therefore prospects will feel that it is less risky to try your product.

I suggest you use a 1+ year guarantee.  Studies show that short-term guarantees (15, 30, 60 days) keep customers in return mode.  They are more conscious of the return deadline and more apt to act on it.  Drew Whitman calls this the “beat the clock” mindset.

Are you afraid that you’ll get inundated with returns?  Fear not!  Studies show that less than 5% of consumers actually cash in on guarantee policies.  Additionally strong and long money-back guarantees have been shown to increase conversion rates by an average of 42%.

As direct response marketers, having strong guarantees also helps hedge us from lawsuits.  The key is that you have to have systems in place that allows consumers to easily receive their money back when requested.   Guarantees also reduce chargback rates.


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NOTE: Direct Response takes on campaigns on a case by case basis.  Please reach out to us and we’ll either provide you with resources or, if the fit is right, Direct Response will develop your campaign with you.


Rich Gorman is an internet entrepreneur. His primary focuses are on direct response offers and SaaS models. When not working Rich enjoys spending time with his family.