Pre-sell the product to your email list before you build it
Email your list a mock prototype and a paid pre-order before you build. Encharge got 50 pre-orders in two weeks from a list of about 500, against a goal of 5.
- Effort
- 20hours
- Scale ends at 160 hours
- Time to signal
- 14days
- Scale ends at 90 days
- Channel
- Validation
- Cases cited
- 1
Pre-selling means asking people on your email list to pay for a product that does not exist yet, using a mock prototype and a pre-order page. Encharge emailed a list of about 500 people an $89 lifetime pre-order for marketing automation software it had not built. It got 50 pre-orders in two weeks, against a goal of 5.
How it works
A signup costs nothing, but a payment costs the buyer something real. That makes a paid pre-order a stronger test of demand than a waitlist. Here are the steps, using the Encharge case as the example.
- Build a small, relevant list first. Kalo Yankulov wrote an article about his experience with an earlier product, HeadReach. As he explains in a founder interview, it drew about 3,000 page views and 500 to 600 email leads. If you need a way to build that audience, see the founder-led content playbook.
- Write the hypothesis in one line. Encharge's hypothesis was marketing automation software built for SaaS companies.
- Make a mock, not a product. The team built a landing page with a few prototype screens for software that did not exist yet. The landing page teardowns show how to structure one.
- Price the offer. Encharge offered lifetime access as a pre-order at $89.
- Set a goal before you send. The team's target was 5 pre-orders.
- Send it only to the list. Apart from emailing those roughly 500 people, Encharge did little promotion for the deal.
- Count orders, buyers and money separately. Encharge's own validation write-up calls the test a success, with 50 orders made against that goal of 5. The founder interview puts pre-order revenue at about $4,000, collected before building started.
The build came after the money. Encharge started building in October, took six months to ship the most vital features, and had just opened a closed beta at the time of the interview.
What it takes
Our estimate: about 20 hours of work, and about 14 days before you can read a signal. Most of the hours go into the mock screens, the pre-order page with checkout, and two or three emails to the list. You also need to write a clear refund policy before you take any money. Fourteen days gives room for a full send, a reminder and the people who open late, and it matches the two-week window in the Encharge case. If you have no list yet, building one adds weeks or months on top of this.
What to measure
- Paid pre-orders against your written goal. The goal is the whole test. If you hit it, the idea passed. If you land short, follow the decision rule below. Do not move the goal after you see the results.
- Unique buyers versus total orders. Some people may buy more than once or buy for a team. Report both numbers so one eager buyer does not look like several.
- Email clicks versus completed purchases. Low clicks mean the email or the pitch is weak. Many clicks with few purchases mean the page or the price is the problem.
- Refunds before launch. A rising refund count during the build means interest is fading. Regular build updates help prevent it.
- Activation of pre-order buyers in beta. This tells you whether the people who paid actually use the product. Compare them with other beta users, and see activation and retention for how to define it.
When it backfires
- A lifetime deal tests the wrong price. A one-time $89 offer shows people will pay for a bargain. It does not show they will pay every month. Be careful using it as proof of subscription demand.
- A warm list flatters the idea. Encharge's list came from readers of a founder's story about another product. Those people may trust the founder more than they want the product. Cold traffic can convert very differently.
- The build takes longer than buyers expect. Encharge took six months to reach its core features. Buyers who paid that early need regular updates, or they will ask for refunds.
- A low goal makes success easy. A target of 5 is easy to beat. Set your bar at the number that would actually justify the build.
- The mock promises too much. Screens for software that does not exist yet can promise features you never ship. Put only what you are committed to building on the page.
Run it as an experiment
Hypothesis: at least a set number of people on our list will pay for this offer within 14 days.
Comparison: we recommend a before-and-after test with a fixed 14-day window, measured against a goal you write down in advance. If your list is large enough, split it at random and test two prices. Check the sample size calculator first, because small lists rarely support a price split.
What to log: sends, opens, clicks, page visits, orders, unique buyers, revenue, refunds, and every reply that asks a question. Replies often tell you which features people expect.
Decision rule: we suggest you build if you reach the goal and refunds stay low through the window. Rewrite the offer and resend once if you land between half the goal and the full goal. Drop the idea if you land below half. Track the test in the growth experiment backlog template, and follow the write-up format in how to run a growth experiment.
How strong the evidence is
The grade is "case with numbers". That means one company ran the tactic and published the result as figures. Encharge carries it alone, through its own write-up and a named founder interview.
The numbers are self-reported, and the two sources round the revenue figure differently. There is no baseline and no control group. Nothing shows how many pre-order buyers stayed, asked for refunds or became paying subscribers. At interview time the founder was still consulting two days a week. Treat the case as proof that the method can work with a small warm list, not as a forecast for yours.
Cases
Kalo Yankulov built a list of 500 to 600 leads from one article about his earlier product, HeadReach. Before building, the team emailed that list a mock prototype and an $89 lifetime pre-order for marketing automation software for SaaS companies. They got 50 pre-orders in two weeks. That made about $4,000 in pre-orders, against a goal of 5 pre-orders.
Source: Encharge: $3,950 in Pre-Orders - How to validate a SaaS idea, failory.com
Questions
How big does my list need to be?
There is no proven minimum. Encharge worked with roughly 500 people, and that list came from a single article. Set your goal relative to the size of your list.
Should I offer a lifetime deal like Encharge?
It can drive early orders, as the $89 lifetime offer did for Encharge. It tells you little about recurring willingness to pay, though. Test a monthly or annual price if a subscription is your real model.
Is a waitlist enough instead of a paid pre-order?
A waitlist measures interest, but a payment measures commitment. If you only want to collect interest, the waitlist launch playbook covers that path.
What goal should I set?
Pick the number of paid orders that would justify the build, and write it down before you send. Encharge's goal was 5, which was easy to beat.
What if people want refunds during the build?
Publish a clear refund policy on the pre-order page and honor it quickly. Send regular build updates, since Encharge's build took six months.
Sources
- Encharge: $3,950 in Pre-Orders - How to validate a SaaS idea, failory.com, 2019-06-20.
- How We Made $3,950 In Pre-order Revenue, Encharge, 2019-02-16.