I don’t talk about it here often, but I run another business focused on marketing.
One of our services is writing sales pages for entrepreneurs launching digital products. And when we’re selling to cold traffic through ads, there’s a rule we never break: the page must have a crystal-clear 30-day money-back guarantee.
No questions asked. Send an email, get your refund. Period.
Without that guarantee, people perceive the product and/or the seller as too risky. They won’t buy.
Here’s an example from a recent sales page we built for a client:
The psychology at work here is simple: people crave certainty, especially when dealing with strangers on the internet.
But here’s what’s been on my mind lately: this same psychology that makes these marketing strategies so effective can quietly sabotage your wealth-building efforts.
Why Investing Feels Different
Unlike buying a $47 course with a money-back guarantee, there’s no refund policy when you invest in a syndication.
And that can be terrifying.
Our brains are hardwired for predictability. There’s something genuinely addicting about certainty – we want to know that everything is going to be okay.
This creates a psychological barrier that’s especially challenging for high-earning W-2 employees who’ve built their success (and their wealth) on predictable paychecks and structured career paths.
This psychological barrier affects everyone differently, but the patterns are predictable.
Where This Shows Up
In investing, this craving for certainty manifests in predictable ways:
Over-concentrating in “familiar” assets like the S&P 500 because “it always goes up”
Avoiding new investment types like private placements
Expecting guarantees where none are possible
The result? A serious drag on investment performance because you’re chasing “safe” or “certain” returns that simply aren’t available.
I see this especially with people who’ve never invested in a private placement (syndication) before. The unfamiliarity creates a perceived lack of predictability.
The Preferred Return Confusion
Here’s a perfect example of this psychology in action: how investors interpret preferred returns.
Many see “8% preferred return” and think “guaranteed 8% return.” The legal documents make clear it's not guaranteed, yet investors read the disclaimers and still expect those exact returns.
This disconnect shows how powerful our certainty bias really is.
The Uncomfortable Truth
Here’s what nobody wants to acknowledge: every single investment carries risk.
Doesn’t matter if it’s the S&P 500, a ground-up real estate development, or a Treasury bond. Even that “risk-free” FDIC-insured savings account? It’s guaranteed to lose purchasing power to inflation.
Even stuffing cash under your mattress carries the risk that your house burns down.
Trying to eliminate all risk is a fool’s errand. It can’t be done.
A Better Approach
The breakthrough comes when you stop asking “Will this work?” and start asking “What’s my downside if this doesn’t work?”
This shift changes everything. Instead of seeking impossible guarantees, you focus on smart risk management:
Understanding specific risks in each investment
Limiting exposure through proper portfolio allocation
Working with experienced sponsors who’ve navigated challenges
It's about risk mitigation, not elimination.
The Bottom Line
The question isn’t whether to take risks – you’re already taking them.
The question is whether you’re taking smart risks that compound your money or letting your need for certainty trap you in investments that feel safe but actually work against your financial goals.
Once you accept that certainty doesn’t exist, it’s actually liberating. You can stop chasing the impossible and start building real wealth through calculated risk-taking.
Your financial future depends on recognizing when you’re craving certainty, then taking smart steps to move forward anyway.