growth

Founder-led sales, part 3 + getting 20 repeat customers

A few weeks ago, we shared part 2 of our “founder-led sales deep dive.” Part 2 covered step 2: Onboard customers + ensure they get value from your product

You can read part 2 here. If you missed part 1, read it here

Today, we dive into steps 3 and 4. 

Let’s go.

Step 3: Prove that customers will pay you for the value exchange

You’ve already onboarded customers and ensured your product delivers value. Now, use it for pricing rationale. Here’s how: 

Imagine you sell an email marketing platform. You have proof that customers with an email list of X people and an AOV (average order value) of $Y increase their revenue by $80K per year using your product.   

Show this ROI to customers and charge, say, $10K a year. They might disagree with the pricing. But you now have a starting price point you can iterate to suit both of you.

Two things to note here: 

a) Charging money for your product tells you if your customers get enough value from it to give you money. 

Don't avoid charging. 

If you do, your customers might only be using the product because it’s free – giving you a false signal of PMF. 

b) After the customer pays you, continue investing in your product to deliver the promised value. If you don't, they won’t return because the transaction is only one way (you got money, but they didn’t get any value). 

Step 4: Improve your sales motion to boost your sales

Once early customers (from the leads list) pay you for the value exchange, refine your sales motion to grow the customer base. 

Here’s how: 

Until now, you, the founder, have sold the product. 

You’ve identified the customer profile, their pain points, contacts, and the right marketing channel. Plus, you know the messaging (email outreach material, sales presentation, sales script, and more) that resonates with them. And you’ve figured out pricing, how to address buyers’ objections, and how to close and onboard them. 

Package this entire process as a playbook that others can replicate. Hire a sales rep to generate leads while you continue selling and doing customer support. 

Or switch the roles. You generate leads, sell the product, and ask the sales rep to help the customers succeed.

Either way, the goal here should be to engage 30-50 (depending on your transaction value) non-beta prospects and run them through the sales process. Ensure at least 10-20 of them buy your product, are onboarded, provided value, and converted into repeat customers. 

This is how you onboard dozens of repeat buyers. You’re now a viable business. Congrats!

Coming soon: Fourth (and final) part of Founder-led sales, where we talk about the last few steps to help you get to $100m in sales.

Stairmaster,

Sameer 

This article was written by Sameer Ansari. Sameer has 4+ years of experience writing for technology startups, VC funds, and founders. You can find him on Twitter here.