Comments on: How to get your first customers to pay for your product http://www.junloayza.com/sales/how-to-get-your-first-customers-to-pay-for-your-product/ How to build, launch, and sell an internet company before you're 30 Mon, 21 May 2012 17:11:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: tom http://www.junloayza.com/sales/how-to-get-your-first-customers-to-pay-for-your-product/#comment-111026 tom Tue, 10 Jan 2012 03:27:27 +0000 http://www.junloayza.com/?p=1477#comment-111026 I also read Pitch Anything and watched his interview. @Theresa and @Nancy Before stating your price, you want to anchor the value to a current expense they might have, then tell the prospect how much more return they get on your product. Example: Your inventory tracking software product is $99/monthly. Your prospect currently has two employees keeping tracking of inventory on clipboard. Cost of two employees per month $5,000. Your software speeds up inventory tracking so only one employee can handle it or two employees do it in half the time. Thus cutting their expense to $2,500. Essentially your $99 software save the company $2,500 each month. I also read Pitch Anything and watched his interview.

@Theresa and @Nancy Before stating your price, you want to anchor the value to a current expense they might have, then tell the prospect how much more return they get on your product.

Example: Your inventory tracking software product is $99/monthly. Your prospect currently has two employees keeping tracking of inventory on clipboard. Cost of two employees per month $5,000. Your software speeds up inventory tracking so only one employee can handle it or two employees do it in half the time. Thus cutting their expense to $2,500. Essentially your $99 software save the company $2,500 each month.

]]> By: Nancy http://www.junloayza.com/sales/how-to-get-your-first-customers-to-pay-for-your-product/#comment-93470 Nancy Mon, 14 Nov 2011 17:04:08 +0000 http://www.junloayza.com/?p=1477#comment-93470 I'm having a really hard time making that first sale. The product we offer is something that's going to require an investment by the customer. Second, we're targeting customers who depend on public funding so every penny has to be accounted for. How do I bridge the gap and get people past the sticker shock? I've pitched to many, many customers and not once have I made a sale. I don't think it's my pitch because I get people VERY excited about the product. However, the moment I hand them the price sheet, they go pale and say, "That's pretty expensive and I just don't think we can do it." There's not even an attempt at negotiation. I’m having a really hard time making that first sale. The product we offer is something that’s going to require an investment by the customer. Second, we’re targeting customers who depend on public funding so every penny has to be accounted for. How do I bridge the gap and get people past the sticker shock?

I’ve pitched to many, many customers and not once have I made a sale. I don’t think it’s my pitch because I get people VERY excited about the product. However, the moment I hand them the price sheet, they go pale and say, “That’s pretty expensive and I just don’t think we can do it.”

There’s not even an attempt at negotiation.

]]> By: Getting Your First Paying Customers | Inside-Startups.com http://www.junloayza.com/sales/how-to-get-your-first-customers-to-pay-for-your-product/#comment-83859 Getting Your First Paying Customers | Inside-Startups.com Sun, 02 Oct 2011 17:40:30 +0000 http://www.junloayza.com/?p=1477#comment-83859 [...] the Full Story. Posted in STARTUP Advice by Rich Brueckner 0 [...] [...] the Full Story. Posted in STARTUP Advice by Rich Brueckner 0 [...]

]]> By: Jun Loayza http://www.junloayza.com/sales/how-to-get-your-first-customers-to-pay-for-your-product/#comment-81156 Jun Loayza Tue, 13 Sep 2011 22:35:18 +0000 http://www.junloayza.com/?p=1477#comment-81156 Perhaps. Send me an email at me [at] junloayza.com and we can talk further. Perhaps. Send me an email at me [at] junloayza.com and we can talk further.

]]> By: Jun Loayza http://www.junloayza.com/sales/how-to-get-your-first-customers-to-pay-for-your-product/#comment-81155 Jun Loayza Tue, 13 Sep 2011 22:34:57 +0000 http://www.junloayza.com/?p=1477#comment-81155 Good sales people don't come cheap. They're going to ask for a lot of commission, or equity in your company. We currently have some sales people on our team that work for commission-equity. Every time they close a deal, they receive a certain percentage of equity. They of course have a cliff they must hit. The cliff is a benchmark that the sales person must hit in order to get any equity at all. Where are you currently located? I'm sure there are a lot of startup events to go to with sales people looking for cool technology to sell Good sales people don’t come cheap. They’re going to ask for a lot of commission, or equity in your company.

We currently have some sales people on our team that work for commission-equity. Every time they close a deal, they receive a certain percentage of equity.

They of course have a cliff they must hit. The cliff is a benchmark that the sales person must hit in order to get any equity at all.

Where are you currently located? I’m sure there are a lot of startup events to go to with sales people looking for cool technology to sell

]]> By: Jun Loayza http://www.junloayza.com/sales/how-to-get-your-first-customers-to-pay-for-your-product/#comment-81152 Jun Loayza Tue, 13 Sep 2011 21:52:24 +0000 http://www.junloayza.com/?p=1477#comment-81152 There's are a few reasons we got out of the local merchant space: 1. They don't understand technology 2. They don't have any money 3. They want more foot traffic We have quickly pivoted our target market and now focus on 20 - 100 location franchises. The model for on-foot sales in the local merchant word is to throw money at a large sales team and call all day. It's what Groupon and Yelp are doing now. The only way to get out of it is to go after a different target client There’s are a few reasons we got out of the local merchant space:

1. They don’t understand technology
2. They don’t have any money
3. They want more foot traffic

We have quickly pivoted our target market and now focus on 20 – 100 location franchises.

The model for on-foot sales in the local merchant word is to throw money at a large sales team and call all day. It’s what Groupon and Yelp are doing now.

The only way to get out of it is to go after a different target client

]]> By: Jun Loayza http://www.junloayza.com/sales/how-to-get-your-first-customers-to-pay-for-your-product/#comment-81151 Jun Loayza Tue, 13 Sep 2011 21:50:10 +0000 http://www.junloayza.com/?p=1477#comment-81151 What does your competition currently charge for their product? What do you want to be seen as: - A high end product (more expensive than the competition) - A low end product (cheaper than the competition) Most corporations will negotiate pricing with you. Start honest but high, and then let them negotiate down. Since this is your first client, be firm, but know that you'll eventually have to give in to their price in order to get the client. Key thing is to make sure you don't let them have the upper hand. You're experienced, your product works, and you should be paid what you're worth. Keep that mentality and you should be fine with pricing. What does your competition currently charge for their product?

What do you want to be seen as:
- A high end product (more expensive than the competition)
- A low end product (cheaper than the competition)

Most corporations will negotiate pricing with you. Start honest but high, and then let them negotiate down.

Since this is your first client, be firm, but know that you’ll eventually have to give in to their price in order to get the client.

Key thing is to make sure you don’t let them have the upper hand. You’re experienced, your product works, and you should be paid what you’re worth. Keep that mentality and you should be fine with pricing.

]]> By: Matt http://www.junloayza.com/sales/how-to-get-your-first-customers-to-pay-for-your-product/#comment-81149 Matt Tue, 13 Sep 2011 21:26:27 +0000 http://www.junloayza.com/?p=1477#comment-81149 Would it be possible to get some sample pitches from you or for me to see your pitch PDF that you give to clients? I'm having trouble crafting my own. Would it be possible to get some sample pitches from you or for me to see your pitch PDF that you give to clients?

I’m having trouble crafting my own.

]]> By: skout123 http://www.junloayza.com/sales/how-to-get-your-first-customers-to-pay-for-your-product/#comment-81147 skout123 Tue, 13 Sep 2011 21:18:15 +0000 http://www.junloayza.com/?p=1477#comment-81147 I'm trying to raise funding, recruit developers, and close client deals. It's too much to handle at once. How can I get some good sales people on the team for cheap? I’m trying to raise funding, recruit developers, and close client deals. It’s too much to handle at once.

How can I get some good sales people on the team for cheap?

]]> By: mboudin http://www.junloayza.com/sales/how-to-get-your-first-customers-to-pay-for-your-product/#comment-81120 mboudin Tue, 13 Sep 2011 17:17:42 +0000 http://www.junloayza.com/?p=1477#comment-81120 I work in sales at a new startup in New York. I'm not paid a lot, but since I'm one of the first employees, I do get equity based on commission. We're currently targeting local merchants. The model right now seems to slow; it takes me more than 2 weeks to close a small client - which is not scalable. How can I increase my close rate? I work in sales at a new startup in New York.

I’m not paid a lot, but since I’m one of the first employees, I do get equity based on commission.

We’re currently targeting local merchants. The model right now seems to slow; it takes me more than 2 weeks to close a small client – which is not scalable.

How can I increase my close rate?

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