This to me seems slightly risky and complicated. Say I go through a niche in four different cities, get a total of 16 clients.
Of those clients, only five rank on the first page.
That is 11 clients who I have to refund the money to.
Not only do I lose money spent on trying to rank clients sites that do not make it, but I also have to have the $ to be able to refund them. What I mean is that I cannot do anything with the profits until after 60 days, so I cannot re-invest anything for at least two months.
I do love the method and it seems very easy, but as I have pointed out, could also turn out badly, no?
There are two parts in your post. Here's my take on them:
1. About Losing Money
There's no escaping the fact that there's no guarantee when it comes to ranking websites. That is why you have to factor in cases where you'll do the SEO work (spend time/money) and it'll come to nothing.
Depending on how much time/money you spend on one website and on your success rate, you'll have to price your service to factor in the cases where you'll have to refund the money (and lose the time/money you spent for those prospects).
For example, if your success rate is 20% i.e, you can successfully rank 1 site out of 10, then your pricing needs to be on the lines of
(5 * cost/job) + Profit Margin.
2. Money Being Blocked for 60 Days
I don't give a guarantee that the site will be on the first page after 60 days.
I give a guarantee that the site will be on the first page some day within the first 60 days.
The day the site reaches the first page, I get in touch with the concerned client, show him the results and get his sign on a 'Service Delivered' form. This could be anytime within the first 60 days.
Once this is done, the transaction is complete and I have delivered what I promised. After this point, I'm not obligated to return the money to the client at all.
I hope I have addressed your questions adequately
