I just spoke with a colleague about creating a 'guarantee' for a client. Interesting call I must say!

Seems the issue is this: if a client wants a 'guarantee' from an advisor or coach . . . what should that guarantee be?

Personally, I don't like being held accountable for what someone (other than myself) must do -- but might not -- in order to produce the result on which some 'guarantee' is being made.

On the other hand, offering a 'guarantee' of some kind -- is an excellent strategy to differentiate yourself and your service. So, what do you do?

My solution: Understand the INPUT / OUTPUT concept. Also understand the QUANTITY / QUALITY concept. Apply both to create a guarantee that YOU can offer safely and your MARKET will find attractive.

INPUT / OUTPUT:
The idea is that output -- results, if you will -- is dependent on input. Usually defined as 'initiating behavior'.

QUANTITY / QUALITY:
The idea here is that a result is a FUNCTION of both the quantity of initiating behavior and the quality of the skill used in performing it.

In the 'old' days, we referred to this as the 'How Much (quantity) and What Kind (quality)' program. If you do 'X' behaviors --say, "Talk with 10 people" with 'Y' level of ability or skill -- say, "You make an appointment with every 5 people you talk with" THEN . . . "You can expect "2 appointments". That's a predictable result and THAT . . . is the basis of a good guarantee: an attractive result for your client and a manageable one for you!

So where's the guarantee?

The guarantee could be this: "You WILL make 5 appointments, IF . . . you talk with 25 people". You can add a timeframe to that . . . 'over the course of a week' or 'per day' or . . . etc.

The RISK . . . of fulfilling the guarantee rests on both the client and the advisor.

The client's risk is that he or she won't do the behavior or INPUT.

The advisor's risk is that he or she won't be able to develop the client's skill level (a quality issue) to the point where the quantity of behavior will produce the results expected and 'guaranteed'.

In that case, you can either offer to: 1) return the client's money if the expectations are missed, or 2) continue to work with the client (to develop their skill level) until the results -- guaranteed by you and expected by your client -- are achieved.

The notion of using a 'guarantee' is a powerful strategy that allays prospects' concern about hiring you. It also differentiates you in the marketplace of consultants and advisors who like to quote their 'hourly fee' but loathe giving the client even a semblance of the guarantee they're seeking.

If you'll apply this insight into crafting a guarantee that will help you manage the risk of offering a decent guarantee to your prospects . . . it will help you STAND OUT in your marketplace as the competitive advisor I know you can be.

Best wishes until next time!

I'm behind a truck in traffic this morning and I see these words in HUGE letters on the back of the truck:

"If there's ANY delay, it's YOU that we'll pay!"

The company is Ben Franklin Plumbing. Their tagline is: The Punctual Plumber™.

In communicating with their marketplace, there's a great lesson here:
1. They offer to manage a customer's risk with an on-time guarantee
2. In doing that, they also differentiate themselves from competitors
3. They distill their 'hook' into a tagline that's equally memorable: "The Punctual Plumber™" that also reinforces their position and USP

In your business, choosing a strategy for differentiating yourself from the 'others' in your field is key.

Once you do though, you'll find that all kinds of opportunities seem to arise to leverage your position and give you a distinct competitive advantage in your marketplace.

So Ben Franklin Plumbing . . . I salute you for an obvious and successful effort to 'think it through' and come up with a 'winning' position for your business. Good Show!

I recently had the joy (I'm not kidding!) of spending time with a young mom and her 3 year old daughter. Mom was a prospective client. The daughter was not.

During our meeting, the little girl was as inquisitive as little kinds are want to be. She was constantly asking, "Why?".

"Why did you wear THAT dress today, Momma?"
"Why are we in THIS restaurant, Momma?"
"why are we meeting THIS man, Momma?"

You get the idea. Non-stop questions. All to find MEANING. All to help her MAKE SENSE of the choices her mother had made.

Prospects are a lot like that, too. They want to understand 'WHY' they should do things -- including doing business with you!

Are you giving them a clear, coherent and compelling message as an answer?

Is that 'answer' reflected in EVERY touch-point a prospective client might have with you and your business -- and remember, often times what you DO (behavior) speaks so loudly a prospect isn't listening what you SAY (rhetoric) in your pretty marketing materials.

If not, it's time to think about how you can. And then, DO something about it.

Just a thought . . . to help you stand-out from the crowd so no one has to ask, "Why you?". They'll know. And you'll both be better for it.

In an article in RainToday, author Michael McLaughlin discusses the value of offering an assessment service as a means to differentiating you in the marketplace of 'Me-too' consultants.

I couldn't agree more! In fact, I love this guy!

McLaughlin is 'real' . . . at least, he's living in the real world based on his article. Here are three 'truths' I see in the article I am compelled to share with you . . .

Point 1: Unpaid Consulting
McLaughlin says "Never do anything for free" as it devalues your service. I would add that a prospective client who agrees to do anything for 'free' isn't really invested in the project or outcome. A nominal fee is a key 'qualifier' of which prospects are really interested in the outcomes you can offer.

Point 2: "Clients pay for insight, not (just) methodology"
Spot on! If a computer can do the work you do, you SHOULD be out of work. Actually, this is an opportunity for you to reveal how you make sense of discrepancies . . . that the client either missed or doesn't appreciate the significance of addressing!

Point 3: "Start small, stay long"
An assessment service is like going on a date with a prospective client. If the first one goes well, then both sides have a solid basis for taking more involved and involving steps together over time.

Overall, Mr. McLaughlin offers some cogent and coherent advice that is going to make anyone who acts upon it . . . better for it.

Nice article! Check it out:

http://www.raintoday.com/pages/3825_the_one_service_every_consultant_should_offer.cfm?broadcastID=1169&linkID=21052&ID=32914

I just read about a new trend in legal billings.

Some attorneys are moving away from their traditional model of charging for their time and moving toward a negotiated fee that reflects what the attorney will accept and the client will pay.

In legal circles, this is radical.

In business, this is normal.

Years ago, while studying for my CLU / ChFC, I learned that a 'fair' price is "what a willing buyer and a willing selling can agree upon".

Today, that equitable understanding has come home to roost in the legal profession. (reference this article: http://www.columbusdispatch.com/live/content/business/stories/2008/07/05/billable_hours.ART_ART_07-05-08_C8_K4AL9BH.html?sid=101)

Think about the value YOU offer your clients . . . if you help a client seize an opportunity or avoid a disaster . . . should they pay you a fee based on some arcane hourly rate or an 'equitable' fee that reflects the honest value the client receives?

I can tell you . . . the 'honest value' fee is the answer.

I have a friend who once took 10 minutes to give her client advice that, literally, saved them over a million dollars! I said, "Don't tell me you charged an hourly rate". She said, "Oh my G _ _ , I did. But I won't do that again in the future!".

Apparently, more lawyers are finding this to be true, too.

POINT:
Charge a FAIR price for the value you provide . . . your clients will be happy to pay it and you'll be far more profitable, too!

My wife and I just returned from a nice day on the CT shoreline.

We have a casino nearby . . . Mohegan Sun.

Joyce, normally one of the most practical and frugal people going, always indulges herself by going into the Coach™ store at Mohegan Sun.

Why she finds a Coach™ bag so attractive and desirable is both amusing and amazing. She LOVES these bags! Sure, they're nice, but the price of a Coach™ handbag is, relatively speaking, pretty high.

But these things are flying, literally, out of the store.

If the materials and workmanship, nice as they are, aren't intrinsically enough to explain the price they sell for . . . what is?

The brand.

The Coach™ brand is the 'difference' that makes the world go round and the cash flow freely in these stores.

So what is the value of YOUR brand? Is the price your market perceives you're worth reflecting the intrinsic value you offer or the 'total' value you offer because of . . . the brand called YOU?

Think about it. Preferably on your way to the bank! '-)