I have been reading Getting Everything You Can Out of Everything You’ve Got.
It’s been great so far. It’s not a high level book. It’s a very detail oriented book that explains specifically what you should do to grow a business. I haven’t implemented all of the suggestions in the book yet, but I did go all in on one suggestion.
In the book, Jay Abraham talks about risk aversion.
He says in any transaction, someone is assuming the risk.
- will this car be worth the money? Or will it break down?
- are these shorts going to fit me right?
- is my flight going to be on time?
This are all risks that a consumer assumes when making a purchase.
One of Abraham’s suggestions to is flip the script and assume all the risk. This way, the customer has absolutely nothing to lose. There’s only an upside.
Examples of Assuming All The Risk
A great example that Abraham gave was FedEx.
“When it absolutely, positively has to be there overnight.”
They built a 2 billion dollar empire on the backbone of service and allowing free returns with free shipping no matter what with no time limit and no questions asked.
The concept of assuming all the risk is actually the most risk averse thing you can do, because it will help you accomplish the hardest task in building a business… new sales!
In the book Delivering Happiness, Tony Hseih writes about his journey growing Zappos. He famously tells a story of woman working in the financial district in Lower East Side Manhattan. This woman bought a new pair of high end high heels every week and then returned them.
She was wearing a new pair of $300 high heels every day for free. The board of directors at Zappos told Tony Hseih to kill the program.
“No more, you can’t allow this.”
So he showed them the sales of high end shoes in Lower East Side Manhattan. They were through the roof. They figured out that people kept asking this woman where she got all of her beautiful shoes from… she told them Zappos.
This woman was generating tens of thousands of dollars in revenue for Zappos, and all it cost them was a few hundred dollars in return labels.
Assume the risk. It will pay off.
How Have I Applied It?
I thought to myself, what is it that holds people back from signing deals with my company? Everyone knows we are the best. We have a great reputation. New “prospects” call frequently and show interest and ask questions, but my closing percentage is still less than 50%.
Why? What are they fearful of? What’s the risk?
It’s the fear of not knowing exactly what to expect. They want to know that their money is being put to good use. How could I remedy this?
I implemented a risk free, 100% free, in depth SEO and web audit on my website. I mean it too. It’s no bullshit. I will give out free marketing plans to any business who wants one. No questions asked. No sales pitch. No expectations.
Just free, high level, extremely valuable web audits and marketing plans.
What Has Happened?
It’s blowing up. It’s only been a few days since we launched the new website and I’ve already generated 3 leads and 1 new deal through this strategy.
The best part is, I am illuminating risk in 2 ways.
For one, the web audit is free so there is no risk. Second, the audit is done with such detail, that the I have also removed the risk of “what exactly am I paying you for?” from the prospect. They have received a detailed marketing plan before we even did business together.
They know what they are getting. They got all they really wanted up front. The rest is just good business.
I’m so pumped about this. I think I’m really onto something with this strategy. I love it because it’s honest, straight forward, provides value and is good for everyone.
How Can You Take Risk Out of the Equation?
I’m not really sure. I don’t know your business.
But there’s gotta be a way. Is there a free sample? Is it a free class? Is it money back guarantee? You tell me.
Be sure to hit reply or leave a comment and let me know what you think!