Risk Reversal

This is a preview of a concept contained in The Personal MBA by Josh Kaufman, a book that will help you master the fundamentals of business, hone your business instincts, and save a fortune in tuition. The Personal MBA distills the most powerful principles of business and delivers them quickly and concisely. Order your copy now…

What is “Risk Reversal”?

“If you want a guarantee, buy a toaster.” — Clint Eastwood, Academy Award–winning actor

Key Points:

• Risk Reversal is a strategy that transfers some (or all) of the risk of a transaction from the buyer to the seller. The seller agrees to make things right in advance if the purchaser doesn’t end up satisfied.
• Risk Reversal is a great way to eliminate some Barriers to Purchase.
• This strategy may be feel uncomfortable to the seller as well, because no one wants to lose. The difference is that a seller can spread that risk among many customers. The customer can’t do the same.
• By eliminating the risk of purchase, you’ll close more sales and eventually make more money than what you’ll lose if some customers take advantage of your generosity.

Questions for Consideration:

• How can you convince your prospects that this is a zero-risk transaction?
• What risks can you transfer from the prospect to yourself?

Share this concept: http://book.personalmba.com/risk-reversal/

True leaders aren’t made by business schools – they make themselves, seeking out the knowledge, skills, and experiences they need to succeed. Read this book and you will learn in one week the principles it takes most business professionals a lifetime to master. Buy The Personal MBA by Josh Kaufman now.