Huge. This is a real mindset shift for me. Old belief: I need to have something fleshed out before I can make an offer. New belief: if I have product/market fit, people will get on board early.
This has been my single biggest flaw in creating my start up. Constantly building only to find out it's not what the customer wants. Such a simple technique to validate ideas. Definitely looking forward to putting this into practice in the coming weeks. Wish I saw this years ago...
#3 is my biggest downfall. It keeps me stuck in "analysis paralysis." One of my mentors finally said, "Susanne! Just go with the 'for now' product. You can always iterate it further once this version has gained some traction." Wise words.
Dan, I'm from Japan running a startup and thank you so much for this straight forward video. You really woke me up. You have ignited my heart and clarified what I have to do now. I guess I was terribly constrained with a business-101-like textbook mindset that I have to have a product before I sell. Also, I love the way you rephase MVP. I could sell the future benefit NOW by explaining in one page what they will get. Along the way, even if they don't pay, I get the list too. Liking what our team and I are trying to accomplish does explain potential customers to investors too.
I worked in Hi-Tech companies in US and Canada and have been involved in complex projects designing and building new products to customers, some times it ends with success and other times the customer changes his mind to buy the product even though the product was completed with success and after taking years of development (hardware, software, mechanical design, validation and on and on) - this is really pain in the neck.
Thanks Martel for this. I already started product development without a narrowed down list of early birds, but I have a ton of leads and also know a few companies delivering similar services (SaaS) as well. I'd like to know your opinion on my current situation considering that there are already companies delivering same service having validated product viability, thanks.
Having one customer on line may, or may not, make the sale --- however having more than one customer will reduce the possibility that you lose the sale after developing the new product - this may translate into huge losses at times.
Dan is there an application to make that screenshot youre refering to before building the product that you can show some kind of rendering to your clients?
Awesome video Dan! I was working on A/B testing infrastructure only to later realize that big companies like Optimizely is already doing it. Is it still possible to build a succesful SAAS business with existing industry giant? How mature should my product be before people even want to try?
You can always compete in an existing market if you can figure out a unique product hook that the market is interested in... that being said, as I mentioned in the video - don't build it first ... pre-sell it. You don't need any working code to pre-sell / demo to a customer... just build a clickable prototype and reach out to companies you think have the problem. If you aren't able to do that, then you'll have the same issue once you build something either way. The hard part isn't building it, it's ensuring someone actually will pay for it. DM
Hey Dan, got my first presale using your method. However, it was only for what my monthly price was - not a preorder for a year access etc... I must have cold emailed over 60 people but this customer was the first in it's industry that I contacted. So should I focus more on this specific industry or should i keep cold emailing the general target market? What would be the best way to start a snowball effect or is it too early in the process?
BTW, really excited that I was able to get a customer using your process but it took time and a lot of cold emailing. Hopefully this wasn't a fluke lol
At what point do I challenge and guide the customer, as an expert... that it will do x y z because of those features. Vs being wishy-washy in constantly asking for their opinion? (When they may not know themselves.. Henry Ford faster horses) When selling software there's a need for authority from the vendor and a buyer must feel trust, safe and secure from the salesperson that the product will take their pain away. Finally, what level of commitment do I go to when pre-selling. It takes a lot of follow-ups from that first 'yes we'll buy' to get a contract signed - how far do I push before knowing I have a product worth developing? Actual signatures?
Get 10 clients to pay you a deposit but based one product spec. Look for early adopters. It's not easy... but neither is spening your life savings into a product no one buys after the fact. DM
Huge. This is a real mindset shift for me. Old belief: I need to have something fleshed out before I can make an offer. New belief: if I have product/market fit, people will get on board early.
Stop wasting time and $$ on a “minimum viable product”. Here’s the right way to validate and pre-sell your software BEFORE you write a line of code.
This has been my single biggest flaw in creating my start up. Constantly building only to find out it's not what the customer wants. Such a simple technique to validate ideas. Definitely looking forward to putting this into practice in the coming weeks. Wish I saw this years ago...
Erik Gussey all good / try this next time. It’s the only way I build companies.
#3 is my biggest downfall. It keeps me stuck in "analysis paralysis." One of my mentors finally said, "Susanne! Just go with the 'for now' product. You can always iterate it further once this version has gained some traction." Wise words.
“You don't have to be great to start, but you have to start to be great”. ― Zig Ziglar
Dan, I'm from Japan running a startup and thank you so much for this straight forward video. You really woke me up. You have ignited my heart and clarified what I have to do now. I guess I was terribly constrained with a business-101-like textbook mindset that I have to have a product before I sell. Also, I love the way you rephase MVP. I could sell the future benefit NOW by explaining in one page what they will get. Along the way, even if they don't pay, I get the list too. Liking what our team and I are trying to accomplish does explain potential customers to investors too.
I worked in Hi-Tech companies in US and Canada and have been involved in complex projects designing and building new products to customers, some times it ends with success and other times the customer changes his mind to buy the product even though the product was completed with success and after taking years of development (hardware, software, mechanical design, validation and on and on) - this is really pain in the neck.
Such a great and helpful video, thank you very much, mr. Martell.
I'm so glad that this has been helpful 🙏
it took me like 3 years to realise that I don't have to waste my time again on an MVP and instead teamup with a UI/UX guy to make screens
thanks dan your all videos help me to build my saas base company.keep guiding us. your strategies are awesome.
Thanks Atul, means a lot!
DM
This is awesome! Wish I would have seen this about 6 months ago. Absolutely love the singing at the end haha
:P
Thanks Martel for this. I already started product development without a narrowed down list of early birds, but I have a ton of leads and also know a few companies delivering similar services (SaaS) as well. I'd like to know your opinion on my current situation considering that there are already companies delivering same service having validated product viability, thanks.
My pleasure!
DM
hi i use wordpress setting up a business website i would like to sell series keys only for software? how do i send serial key after purchase?
Having one customer on line may, or may not, make the sale --- however having more than one customer will reduce the possibility that you lose the sale after developing the new product - this may translate into huge losses at times.
Dan is there an application to make that screenshot youre refering to before building the product that you can show some kind of rendering to your clients?
Hey Brendan, this video on Prototyping might be helpful for you: ua-cam.com/video/-Og3PA8rAns/v-deo.html
Awesome video Dan!
I was working on A/B testing infrastructure only to later realize that big companies like Optimizely is already doing it. Is it still possible to build a succesful SAAS business with existing industry giant? How mature should my product be before people even want to try?
You can always compete in an existing market if you can figure out a unique product hook that the market is interested in... that being said, as I mentioned in the video - don't build it first ... pre-sell it.
You don't need any working code to pre-sell / demo to a customer... just build a clickable prototype and reach out to companies you think have the problem.
If you aren't able to do that, then you'll have the same issue once you build something either way.
The hard part isn't building it, it's ensuring someone actually will pay for it.
DM
How did you keep them from stealing your idea?
Hey Dan, got my first presale using your method. However, it was only for what my monthly price was - not a preorder for a year access etc... I must have cold emailed over 60 people but this customer was the first in it's industry that I contacted. So should I focus more on this specific industry or should i keep cold emailing the general target market? What would be the best way to start a snowball effect or is it too early in the process?
BTW, really excited that I was able to get a customer using your process but it took time and a lot of cold emailing. Hopefully this wasn't a fluke lol
Focus on a target market.
DM
Well I'm at Mevo right now with my new SaaS product, let's see how it goes.
Ohhhh exciting! Can't wait to hear more.
Go get some pre-sales!
DM
How’s your project?
At what point do I challenge and guide the customer, as an expert... that it will do x y z because of those features.
Vs being wishy-washy in constantly asking for their opinion? (When they may not know themselves.. Henry Ford faster horses)
When selling software there's a need for authority from the vendor and a buyer must feel trust, safe and secure from the salesperson that the product will take their pain away.
Finally, what level of commitment do I go to when pre-selling. It takes a lot of follow-ups from that first 'yes we'll buy' to get a contract signed - how far do I push before knowing I have a product worth developing? Actual signatures?
Get 10 clients to pay you a deposit but based one product spec. Look for early adopters. It's not easy... but neither is spening your life savings into a product no one buys after the fact.
DM
Nice video can i apply this to selling a physical product
Yep, just look at KickStarter or Indiegogo - all pre-selling.