Sell before you build. Prior to investing a significant amount of money into developing your proposition, it is worthwhile to first test if people are interested in your initiative and are willing to spend money on it.
One way to do this is to ask for commitment from your customers by doing pre-sales. If a customer pays up front – in full or partially – you know they are interested in your proposition. In that case, you can finish the development of your proposition, using the income from the pre-sales if needed.
There are two great ways to launch a pre-sales initiative.
The first is by using a “pre-order” button on your landing page. The second is to write a letter of intent. A pre-order is more suitable for B2C, customers can place an order for an item that hasn’t been released yet, or is not currently in stock. They’re shipped to the customer once available. The amount of registered pre-orders validates the interest in your product or service. Companies that successfully use pre-sales campaigns are Oculus VR and Lightyear.
A “letter of intent” is more suitable for B2B. It means that you ask your prospects to sign a non-binding letter of intent to pay for your solution as soon as it is launched. A template can be found in the tools below.