#032: The Easiest Way To Close Prospects On a Paid POC

#32: The Easiest Way To Close Prospects On a Paid POC

Read Time: 3.5 Min

In the startup game, speed can make or break a company. Scaling too quickly can lead to a host of problems, including burning through a ton of cash and high customer churn due to an inadequate product. On the other hand, scaling too slowly can cause a lot of opportunities to go to waste and make it difficult to close your next funding round.

Your goal should be to scale quickly, but responsibly..

What does “scaling responsibly” mean? Scaling responsibly means growing the business in a way that enables you to extract impactful feedback from paying users, while also learning and iterating on your product from qualified opportunities that do not move forward. It’s a win win regardless of whether you close or don’t.

In this issue I’m going to teach you what I’ve seen work, how to implement it, and the correct way to scale responsibly, by crafting a killer offer.

I’m going to make you an offer that is impossible to refuse.

~Vito Corleone

How do we scale responsibly?

The way to scale responsibly is by charging for the POC. I’m amazed at how many founders struggle with this idea. Regardless of whether you charge or don’t, customers churn for three primary reasons.

1. You didn’t deliver on expectations

2. Cheaper competitor with comparable value

3. Customer support / experience sucks

The fastest and most effective way to get someone using your product is through an offer. You create an offer that is impossible to refuse.

If a prospect is willing to give you a vote of confidence and move forward on a pilot, they will likely want some assurances. Consider this: as an early stage startup with no track record, social proof, or validated technology, it is a big decision for them to make.

This is exactly where the offer comes in.

Here’s how it works:

You present an offer (price) with 2 different guarantees to be delivered over a specified period of time. And if you can’t deliver on the two guarantees, you refund the money and allow them to use the platform for free for the next 30 days.

You present the offer in a way that makes them feel special, like you’re only extending this offer because you feel like you can crush it for them. And once you’re able to deliver, you want two favors in return.

Here’s an example of how what this looks like.

One very important note. Prior to going live on the POC, you would have a scoping call to understand what they’re looking to validate, or solve for with your technology. If you feel like you can’t deliver on their expectations based on what's conveyed during the sope, you don’t move forward on the POC. 

Here are 6 reasons why this offer is so effective.

• You completely mitigate their downside risk. 

• In many cases, your sales cycle will be cut in half.

• You have 3 chances to validate and close opposed to one.

• If the POC is a success, the customer is very likely to move forward.

• You’re getting paid to build, rather than building to hopefully get paid

• Following the scoping call you can almost guarantee a successful POC.

If used correctly the strategy discussed will cut your sales cycle in half, increase conversions and validate your assumptions about market demand, customer use cases, and product-market fit. This is scaling responsibly.

That’s all for today folks.

See you next week!

Darren

P.S. If you’re ready to level up you can book a call with me here.