Risk Reversal For Business Relationships

Risk Reversal For Business Relationships
Risk Reversal For Business Relationships Reversing risk involves consciously obliterating any obstacles a customer faces when purchasing your product. The obstacle is ‘RISK’ and risk to the customer can take on many forms. It may be not receiving what was promised, realising they never actually needed your offering or having their partner criticise the purchase.

Some of the tools we can use to obliterate risk for prospects are testimonials and guarantees. However, this concept should be used for more than just converting prospects into sales. I would like to suggest that you use risk reversal every time you need a favour from someone.

We’ll spend the rest of this article focusing on risk reversal for business relationships.

I often have clients enquire “how do I ask another business for access to their customer base?” One of the first things you need to do is anticipate all of your potential partner’s concerns. What ‘RISKS’ does this potential partner face when confronted by your proposal. Remember they want to not only protect their reputation by avoiding dodgy partners but also protect their customers. You need to list all the possible concerns this partner will have on the matter.

For example: Are you trustworthy? Are you credible? Do you have a good track record? Has anyone actually experienced your products / services before? Will you deliver everything you have promised? How will you compensate them if something goes wrong? How is their reputation protected? These are just some examples of RISK your potential partners could face.

Now, think up a response to all of these that would restore their peace of mind and confidence. Your responses can be articulated verbally or in a letter with your proposal. Where in your business or personal dealings are you expecting someone else to assume all the risk!

Risk reversal is an incredibly powerful concept! It can be used to convert more prospects into clients and secure seemingly impossible business opportunities.

Remember, if you want something from someone else be sure to carry the risk!

Author: Daniel Rechnitzer, founder of ChildsPlay Marketing – Simple Ways To Succeed in Business. See www.ChildsPlayMarketing.com.