#25 · How Guarantees Work (Deep Dive)

youtube ↗Offers

How do people create performance-based guarantees (e.g., X leads or you don’t pay, X months guaranteed, or X money if you don’t pay), especially when outcomes are hard to predict for beginners?

It's a great question. Think of two universes: one with no guarantee, one with a guarantee. With no guarantee, conversion is lower. With a guarantee—e.g., 100% guarantee of 2X ROI, money back plus a $100 gift card—conversion is much higher. Beyond conversion, guarantees increase the probability of success because they align incentives: if you don’t deliver the promised result, you don’t get paid and must refund, so you work harder to fulfill it. Psychologically, you’re more likely to achieve what you’ve guaranteed. Examples like Alex Rosi’s crazy guarantees (pay double if you don’t make X money) show how compelling they are. Even at the start of any business, lead generation is the bottleneck; improving conversion via guarantees gives you a higher chance of success and provides free experience (you still deliver value even if you refund). Logically, morally, ethically, guarantees are the way to go. They let you hedge bets without being reckless—offering a guarantee implicitly acknowledges a chance of failure and promises restitution. I used to avoid guarantees, but after adopting them my income jumped from $2K to $20K a month. My advice: make offering guarantees a habit.

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Related answers

youtube ↗Offers

How should I decide what to guarantee for my performance system—behavior, output, money—and how would you present it as an offer?

Nick says it’s difficult to guarantee outcomes you don’t directly control. In Maker School he guarantees a first client or a refund, which is downstream of his control but still offered. He notes that in practice, money is the strongest guarantee because it’s simple and quantifiable; you can offer a money‑back guarantee even without direct control, as the program’s overall value is evident—participants often find it valuable and may have a pipeline of leads even if they don’t land a client. He shares that his refund rate is very low because participants interact with him daily for 90 days. He appreciates the question, noting that most sellers focus on agents rather than outcomes, and thanks for the AI comment reframe. Regarding school growth boost, he says he would enable the feature, estimating it brings about 20‑30 % of net new people, so letting the platform take a cut is fine because you still grow your top line; he doesn’t know the exact percentage but sees it as acceptable.

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youtube ↗Mindset

How can I overcome a lack of confidence in my work and feel secure when pitching automation projects?

Learn to pitch your work as a deliverable rather than as time, and back it with a guarantee. If the deliverable doesn’t meet expectations, the client pays nothing, and you’re both happy. It may sound odd to offer free work, but you can say, ‘I’ll deliver X as we agreed, and if you don’t love it you owe me nothing.’ This removes risk for the client and eliminates the mental block of ‘what if it doesn’t work?’ If the project fails, the client gets their money back and you haven’t lost more than the time you invested, which is still valuable experience. You can then charge more on future projects because you’ve proven the system works. Even if you have rent and other expenses, you can treat the guarantee as a side‑hustle risk that pays off long term. I learned the hard way in a door‑to‑door marketing agency that never offering guarantees cost me millions; once I started guaranteeing offers, my top line tripled with only a small refund rate, making the guarantee a logical decision.

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youtube ↗Sales

I don't have any client case studies yet, even though I know how to build the automations. How do I keep a risk-reversal offer in my cold emails without guaranteeing a dollar-sign revenue outcome I'm not sure I can deliver?

You don't have to guarantee dollar-sign outcomes — I've worked with these kinds of businesses for about a decade so I have a reasonable sense of what value I can drive, but if you're new to this it's completely understandable that you're not comfortable promising a dollar figure. Offer something else instead. A few variants: tell them you won't charge a cent unless they absolutely love it and ask you to keep going. Or say you'll deliver X, Y and Z, or you'll keep working for free until you do (weaker, but I've used it myself — we did this at Pacific Creative Group with my old business partner). You could also put real risk on the table, like offering to buy them an Amazon gift card or refund them if you don't deliver. Instead of ROI, you could frame it around hours saved per week (hard to track in practice, but usable). Or just offer a 100% satisfaction guarantee — tell them your sole goal is their satisfaction, and if they don't see the value, you won't charge them. A guarantee does two things: it makes people much more likely to want to work with you, and it makes you much more likely to actually follow through on what you promised.

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youtube ↗Sales

How do I build trust and guarantee results for a cold lead to make them ready to buy?

You said you almost guarantee results; I guarantee results—I tell you you'll get X, Y, Z or risk mitigation. There's a difference between an emotional sales decision, where people feel they need to buy now, and an intellectual sales decision, which focuses on positive ROI. A guarantee addresses both: intellectually, it removes doubt about returns; emotionally, it feels like a no‑brainer. If you’re willing to guarantee your service—and refund if you don’t—there’s no reason not to move forward unless there’s another unresolved issue, you’re untrustworthy, or you haven’t built enough value. So, just offer a guarantee. Don’t pitch it as a demo; that makes you perform like a dancing monkey. Instead, frame it as one business owner to another: show them something cool you’ve built, like a lead extraction and enrichment system that worked for a seven‑figure business, and let them see it. That puts you on equal footing and feels like sharing something valuable rather than performing for approval.

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