The Ultimate Guide to Pre-Selling
The Art of Successfully Selling Something That Does Not Exist
“You aren’t being deceptive when you run a presale.”
Laura McPherson
Sometimes I find presales defined as the set of activities carried out before a customer is acquired, involving functions like Sales Engineers, Solution Consultants, or Solution Architects.
The pre-selling I am referring to in this article may involve those individuals as well. Though, it is the entire process of successfully closing a sale …of a product that does not yet exist!
Like the infamous vaporware, for example, a software or hardware product that has been advertised but is not yet available, either because it is only a concept or because it is still being written, designed or produced.
There is obviously a risk for a presale client because the product may be late or, even worse, never actually made available.
At one point in my career, I brokered a deal buying and paying for all current and future services a vendor would offer in the next five years. For the vendor, it represented cash flow, a quasi-investment without giving up an ownership share. For me, pre-paying current and future services came with a huge discount; and it required a large amount of trust that the partner would actually be around and still meaningful in five years.
Why do companies look to sell a product that does not yet exist?
· Market validation: It is the ultimate validation if customers are opening their checkbooks, way stronger than any hypothetical validation as in “Would you buy this product?”
· Financials: Through presales, you actually get customers to pay for your product development. The more specialized or customized the product is, the more urgent the customer’s need, the more likely it is that they will foot the bill.
· Retaining or upselling existing clients: If the renewal of a contract depends on a new release, an add-on, or a complementary product, committing to a future delivery date might just get the renewal across the finish line.
· Soft Launch: Minimize a stressful cold opening. Presales, especially to known and selected clients, provides the opportunity for a soft sales launch.
· Anticipation: It can also be a great way to build excitement around a new product or service you’re releasing among an already loyal base. Who does not want to be the first to know and share it with friends and colleagues?
· Early adopters: Cater to those who want to be on the bleeding edge. The right presale message will engage and sell to this particular audience.
And for the client? In addition to taking a risk, presales are often accompanied by a lower price, the bonus for being an early adopter. The client also gets to use what is typically an innovative product as one of the first in the marketplace and ideally benefits from it commercially. And there is the opportunity to give early feedback and influence product development.
In order for all of this to work, be clear in your messaging. As Laura McPherson puts it, “ preselling isn’t tricking people into thinking they’re going to get a product immediately upon placing an order. You aren’t being deceptive when you run a presale. In fact, your sales page should make it very clear that your product is in development, and you’re offering a special deal to those who want to support its development and get a better price and first access in return.”
I am with Matt D’Angelo: “ Setting up a presale can be a great thing for a small business if it’s done correctly. You can gather initial feedback, test the market to see if your product will do well, and get set as a new business owner. While there are many benefits to running a good presale, stay aware of the challenges. If you do things properly, you can create a great product that does well with your audience.”
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Matt Ackerson — Pre-Selling Simplified
Matt D’Angelo — Presale Strategy: How to Set Up a Successful Presale
Laura McPherson — Sell It Before You Build It
Photo by Anne Gosewehr
Originally published at https://www.vendux.org on June 29, 2021.
