Every commercial transaction comes down to a proposed exchange.
I’ll do this for you…
And you’ll give me this amount of money.
The interesting part is where the risk sits.
At one end of the spectrum is:
All sales final.
All cash.
No refunds.
No exchanges.
Everything is protected in favor of the seller.
Buyer beware.
At the other end is:
No payment required.
Let me get you the result I promised…
And then you can pay me.
Jay Abraham used to tell a story about two men selling a horse.
The first man says:
“This is a good horse. Your daughter will love it. It’s $600.”
The second man says:
“I think this would be a wonderful horse for your daughter…but I would say that, because it’s my horse.
So let’s do this…
Take the horse home for 30 days.
Let your daughter ride it and bond with it.
I’ll send enough oats and hay to feed it for the month.
And if, at the end of 30 days, it isn’t the perfect horse for her, I’ll come and pick it up.”
Which horse do you think is more likely to be sold?
That’s the difference between risk reduction and risk reversal.
Risk reduction says:
“Pay me now, and if this doesn’t work out, I promise I’ll give your money back.”
That’s better than “all sales final.”
But your prospect still has to trust you.
They have to part with the money, take the risk, and potentially go through the hassle of asking for it back.
Risk reversal says:
“I’m willing to take the risk because I’m confident I can deliver the outcome.”
That’s a very different proposition.
And it’s one of the most valuable ways to think about Profit Activator 4:
Presenting your unique service offer.
If you know you can deliver a dream-come-true experience in Profit Activator 5…
How could you use that confidence to remove more of the risk from Profit Activator 4?
People are very interested in getting outcomes.
They’re just not as interested in taking risks.