Most firms will offer some kind of guarantee with regards to their product. Whatever the guarantee is, make crystal clear what the conditions are – the length of the guarantee, the conditions for a refund, how much refunds are etc.
Next, you need to verify that the guarantee has teeth. This takes a little bit more research, but if you Google the firms name +refund or +guarantee and see what it comes up with. Contact them and ask about their return rate and conditions whereby refunds haven’t been issued.
Guarantees can seal the deal for most products – but if deep in the terms and conditions (and how many of us read those in detail?) there is a clause which could cost you money, you need to find these in detail first.
Pricing is perhaps the biggest “red-flag alert” for scams. Whether it is drastically too low or high for what it is.
Typically if you could get say a “$100 dollar iPhone” it is a scam, unless there is significant and legitimate income coming from somewhere else. It could be that you get a $100 dollar phone that it is a cheap, counterfeit copy.
Equally if someone is trying to push a $1500 dollar iPhone then you know to back away – although this is rare, some people will still push products at absurdly high prices. Not necessarily iconic brands such as the Apple iPhone but perhaps something new and innovative you haven’t heard of before.
Whenever you see something that does seem too low, ask yourself how they are making money out of it – are they sending bricks in the post? Are they engaging in illegal activity?
Research some basics of how much it would cost them to produce the product.
Another thing to watch out for is what would be termed “back-end profit”. For example, you may sign-up to a dropshipper for a £39.95 fee – but perhaps they are also going to bill you £9.95 per month to stay a member – the total cost over the first year being £159.35. Typically it will be small sums every month which make the firm profitable – the sign-up fee is simply to lure people in.
When evaluating a firm, research how much it will really cost you in the first year. Consider that you are going to be learning a lot very quickly and will perhaps not begin to rake in any real money very quickly – so plan in advance and allow room for error. Thinking about it this way, perhaps you can’t afford it.
Other forms of back-end profit could include OTO’s or One-Time-Oppurtunities. These are sales pitches which feature a product that is so outstanding (whilst related to the original product) that it commands a high price. The idea is to pressurize the buyer into parting with even more cash – and not necessarily help out the buyer meet their own needs. Other back-end selling techniques include upsells (like in a fast food restaurant – “do you want fries with that?”), downsells (reduced versions of an OTO) and last-chance offers (the OTO, but at a higher price as a last ditch attempt to get money off you).
Usually, these won’t help your business and 99% of the time they’ll appear later on in the product. By then you’ll be able to make a clearer judgement on whether or not you’ll benefit from using them.
The thing about price is the value to YOU. A seller may make all the claims they like, but it depends on how it can change your life, your business and your fortunes. Keep that in mind whenever you read a sales pitch.
Check my author bio for the next installment!