Profiting in tough times with Risk Reversal

I first learned of the concept of risk reversal a number of years ago listening to an audio program called Your Secret Wealth by marketing guru Jay Abraham (http://www.abraham.com/). Brilliant fellow. He champions the concept of risk reversal and how to increase your sales, secure your job and even parley this concept into your personal life.

The question he begs us to ask is, how do you make it so compelling for someone to buy from you (figuratively or literally), with absolutely no downside on the buyer’s part that they can't help but say "yes" to your request. I'm often mindful of this powerful concept in my own career and personal life, yet the practicality and opportunity is not always obvious to me.

With the start of a new year, market uncertainty continuing in 2009, bailout's, handout's and more, companies are working hard to make buying irresistible to their targeted customer.

Three fantastic risk reversals jumped out at me this week that I thought you might ponder their simplicity and application in your own life:

1. I listen to CNBC's business news most mornings. A fellow by the name of "The Video Professor" advertises daily (http://www.videoprofessor.com/). His offer is so compelling that I'm sure his ad's are a huge success. His sales pitch goes something like this: order any of my products on computing lessons for FREE! How can I do this? I know that you'll be so absolutely satisfied that whenever you're ready to learn anything about computers, you'll come back to video professor for all your computer learning needs. It might not be verbatim, but I've heard it so many times I think it's pretty close. Recently, he's tailored his advertising to keeping and getting a job (that those with computer skills are more valuable in today's economy). In this ad, he's so confident that you'll love your purchase, if you do decide to return it, he'll also send you $10! A free CD to try (your choice of over 60) or $10 back if you don't absolutely love your order. Classic risk reversal.
2. Unless you've spent the winter hibernating, you know the automotive sector is suffering here in Canada and even more so in the US. Not only are North Americans fearful of the state of the industry overall, but they're scared about their job security. Hyundai USA started advertising recently the most unique selling advantage I've ever heard. Buy our vehicles and if you lose your job in the next year, simply return your car. http://www.hyundaiusa.com/financing/HyundaiAssurance/HyundaiAssurance.aspx Unlike the advertisements of the other car dealerships offering steep discounts, assurances that they'll still be in business, Hyundai has figured out that the average American is fearful that they themselves will have a job or be in business this year. They took that fear right off the table and set the tone for a risk free purchase - lose your job, we'll buy the car back.
3. My last recent witness of a well-marketed risk reversal promotion came from the most unlikely of situations. It's sort of a "when hell freezes over" scenario (pardon the upcoming pun). I was in church over the weekend, and as a Christian, that faith encourages its members to tithe (give 10% of all your income to the church or God). However, most church members don't tithe their full 10% if at all. My church is very causal and doesn't even hand out a collection plate at service. They don't want their congregation to feel uncomfortable or forced "to give", so they simply have a modest drop box at the back of the church with the thought that it will ease "giving peer pressure". This last weekend, my pastor's sermon was focused on tithing (I'll spare you the specifics) and added a risk reversal proposition that shocked even me. He and the church were actually guaranteeing to return money. Yes, hard to believe that a church would actually offer to potentially return money - doesn't happen often so I was all ears. His pitch was that if the congregation would try tithing their full 10% for 3 months and didn't fully receive an abundance in return from God (you would have had to be there to hear the presentation), he'd fully refund what you gave at the end of a 3 month time period. I must admit that while sitting in a church pew, I couldn't imagine how the concept of risk reversal could be used even there. How then, might the average person also use this technique in their own business or life?
   

How can the concept of taking every possible risk off the table work in your life? What if you extended this notion to your customers if you're in business for yourself? If you're employed, has your company thought of this marketing strategy? Perhaps you could be the first one into work this morning to present this idea to your boss? And what if you're currently looking for work? Might you call up your dream company and offer to work for free for say two weeks and if they don't absolutely love the job you've done, you'll leave with no questions asked or risk on their part?

Try it out and I'd love to hear your personal examples, thoughts or successes with this concept. Feel free to leave a comment on this post.