Risk-Return Tradeoff: How the Investment Principle Works

How a guarantee turned $100K into $350K Performance guarantees are a form of risk reversal. Examples include “if you’re not happy with my services, you can fire me and not pay anything” or “if your home doesn’t sell, I’ll buy it for 100% of market value.” The first guarantee I offered in 1991 was “your home sold in 60 days or I’ll pay you $1,000 cash.” That direct mail offer to expired listings grew income from $100,000 to $350,000 in a year. #PerformanceGuarantee #RiskReversal #RealEstateBusine

Figure-Ground Perception | Definition, Principles & Types