August 23, 2006

Reverse the Risk - Using Risk Reversal to market your real estate business

Do you guarantee every service you provide? Probably. Do you tell every customer about it? Probably not.

Consumers are hesitant about buying any product or service (especially major purchases like the ones you are offering) — and people don’t want to make the wrong decisions.

 If you overcome that hesitation to buy by offering to guarantee things and put the risk on you, you’ll get tons more business.   

 

That’s a given. Its been proven.

Think of it this way… if a customer comes back to you with a problem, a complaint, or a change of mind, you’d probably let them out of the listing or buyer contract anyway, right? But few companies have the so-called “stones” to make a risk reversal guarantee a big part of their offer. It’s called “risk reversal” because someone has to take the risk, it always used to be the buyer and still is in many purchase situations.

It’s too common for companies make the buyer bear the risk.

That’s a big mistake.

By turning the tables and taking all the risk off the buyer and putting it on you, your offer now is so much more powerful that a lot more prospects will get off the fence and take advantage of your offer instead of someone else’s since there’s no risk on their part to do so.Here’s a sample:

Bullet-Proof Protection… If, 24th hour of the 365th day after you purchase your new home, you decide you don’t like it, FOR WHATEVER REASON, I want you to call me immediately and let me know. I’ll gladly sell it for you and charge absolutely ZERO commission — no questions asked.On the other hand, if everything goes as planned and you absolutely love your new home, I want you to not only write and tell me about it — but tell your friends too!

Joe Realtor ABC Realty

Before you get scared about reversing the risk to your customers, let me tell you this fact…

When a real estate professional does this — double or triple sales increases are often the result. Sure, a few customers will take advantage of your guarantee, there’s always a deadbeat around. But, as a rule, so many more people buy because of reversing the risk, that the deadbeats are unimportant.

 Here’s another example:   100% No-Risk Guarantee 

 

As the homeseller, I want you to be super-pleased — in fact, absolutely delighted — with the job I am doing . So everyone of my listings comes with my ironclad, risk- free guarantee. What does that mean? Simply this: If you aren’t happy with my services, we’ll work until it’s right and your happy. Or you can have your listing back. It’s your choice. Nothing is more important than your complete and total satisfaction. I stand behind every listing that I have 100%. If you ever have any questions or concerns about my services, please call me right away.

Is this bold? Yes. Is this strong? Yes. Is this risky? Not at all.

Think about it this way: 

 

You may only get 2 calls per year that want to get out of their listing agreement for whatever reason. That’s not very many and rarely will anyone ask for you to let them out early on in the listing…BUT do you know how many people who were hesitant about listing will go ahead with you because of it? Tons.

Because you have such a strong guarantee, people think you are completely confident in your work (which you should be) and they develop trust.

I don’t think anyone should be in business if they don’t guarantee their work. If you aren’t confident in what you do, do something you can be confident about.

The numbers work in your favor to offer a guarantee. Its very rare that anyone will take you up on it BUT lots of people will be convinced to use you if you have one.

Once you develop a guarantee, use it. Use it in all your marketing and advertising. Tell all your clients. If you’ve got it, flaunt it!

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