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A new way to build a B2B company?
Last week, I met a founder who built a B2B company in a way that I had never seen before, so today I wanted to share their strategy with you as I’m certain that it would be a winning strategy for many of you.
In short, this company used “covert marketing” to get their initial customers. After building their MVP, they made a list of 100+ potential clients and the key decision makers at each of those companies. Instead of reaching out with a sales pitch, however, they asked these people to join their team as advisors. They offered $1200/year for 6 hours of consulting with these individuals for 2 years. That is just a $2400 commitment to someone who has the ability to enter into contracts for $5k+/month with their company.
They were able to secure about 50 of these “advisors,” which cost them $60,000. Of those 50, 84% ended up buying more in products from the startup than the company paid them in advisory fees. In short, they reached out to clients, turned them into advisors, made them evangelists for the product, and then sold the product to them. It’s a genius strategy.
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The key to making this work is to genuinely value the advice that the advisor can give. If you are doing this solely to make sales then you will come across an pushy and inauthentic and the plan will fail, you’ll end up $60k out of pocket.
The reason you should genuinely value their advice is that they are your target customer. You are building for them. They actually understand what you need to do to get a company like theirs to dump money into your products and services.
This is truly a genius strategy that should work for many B2B companies, allowing them to grow brand and name recognition in a unique way while turning the key players in their market into evangelists for the company.
Would you try this strategy? |
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