Optimizing Sales/Conversions:
Tripling Sales by Holding the Check
Let's discuss a marketing and sales conversion method that falls into the "value first" and risk reversal strategy. By providing value upfront and assuming the risk for the sale, you make it much easier for your prospect to buy from you.
Today, well discuss the "30-Day Hold" method. It's a way to disarm your prospects objection as whether not your product or service will do what you say it does.
In a “30-day hold” offer, you tell the customer to try the product free for 30 days. And you also promise not to cash the customer’s check—or charge their credit card— during that 30-day trial period.
If the customer is not 100% satisfied, simply return the product. You, in turn, return the check uncashed (or withhold from charging the credit card)... which means the customer has used your product for 30 days for free.
According to marketing legend Gary Halbert, a “30 day hold” offer can triple your orders ... but will also double your refunds. Is this a good thing?
Well, let's consider that normally your promotion generates $1,000 in orders, and with a 10% refund rate, you net $900.
If you triple the orders and double the refund rate—from 10% to 20%—you will gross $3,000 and net $2,400; you add an additional $1,500 to your net.
Wouldn’t you be willing to put up with more refund requests if you would multiply your net revenues 2.6 times, as in this example?
Calculate the numbers on your own orders and refund rate, and see if it makes sense to test this method. If it does, test it on a limited basis until you prove (or disprove) this technique to yourself.
Always look for ways you can provide your prospects with a test or trial offer of your product or service. Or, at the very least, look for a ways you can show that you are willing to assume the risk (or most of it) for them to try your product or service.
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