Guarantee Design and Selection

When to Use

You are designing or improving an offer and need a guarantee that reverses buyer risk, increases conversion, and protects the business from catastrophic refund exposure. Typical triggers:

• You have an offer but prospects keep hesitating at the risk of not getting results
• You are building a new high-ticket service and need a risk-reversal mechanism
• You want to test whether a stronger guarantee could lift your conversion rate
• You are switching from retainer pricing to a performance or revshare model
• You want to stack multiple guarantees to build an exceptionally compelling offer
• Your current guarantee is weak ("satisfaction guaranteed") and you want to sharpen it

Preconditions to verify:

• Is the product or service capable of delivering what it promises? A guarantee on a poor product will backfire into mass refunds.
• Does the user know their approximate current close rate and refund rate? (Needed for ROI math in Step 4)
• Does the user know their fulfillment cost per customer? (Needed for type selection in Step 3)