Dear SaaStr: What Incentives Are Given To Design Partners and Other Super Early Customers?
Design partners are critical—they provide feedback, validate your product, and often become your first case studies. At least … if they are real customers, and not pretend customers.
Here are some incentives:
1. Discounted Pricing with a Time Limit
– Offer a **significant discount** (e.g., 30–50%) on your standard pricing for a fixed period, such as 12–24 months. This rewards them for taking a chance on you early but ensures they eventually transition to market rates.
– Example: “As a design partner, you’ll receive a 50% discount for the first 12 months after launch. After that, you’ll transition to standard pricing.”
2. Lock in Pricing for a Longer Term
– Offer to lock in discounted pricing for a longer term (e.g., 3 years) in exchange for their commitment to provide feedback, participate in case studies, or act as a reference customer.
– Example: “We’ll lock in a 40% discount for 3 years if you agree to provide quarterly feedback and participate in a case study.”
3. Free or Reduced Cost During the Design Phase
– Provide free access or a heavily reduced rate during the design phase (e.g., 6 months) to lower the barrier to entry. Once the product is live, transition them to a discounted paid plan.
– Example: “You’ll have free access during the design phase, and once we launch, you’ll receive a 30% discount for the first year.”
4. Usage-Based Incentives
– If your B2B product has a **consumption-based pricing model**, offer a usage credit or cap their spend during the design phase.
– Example: “We’ll provide $10,000 in usage credits during the design phase, and after launch, you’ll receive a 20% discount on all usage for the first year.”
5. Revenue Sharing or Sometimes, Equity (Risky, Be Wary)
– For high-value design partners, especially in capital markets where relationships are key, consider offering a small equity stake or revenue-sharing agreement tied to their involvement.
– Example: “In exchange for being a design partner, we’ll offer a 0.5% equity stake or a revenue-sharing agreement for the first 2 years.”
6. Exclusive Features or Early Access
– Offer exclusive access to premium features or early access to new capabilities as part of the design partner agreement.
– Example: “As a design partner, you’ll get exclusive access to advanced analytics features for 12 months before they’re available to other customers.”
7. Co-Marketing Opportunities
– Incentivize them with co-marketing opportunities, such as being featured in your launch materials, press releases, or case studies. This is especially valuable for firms in capital markets that want to showcase innovation.
– Example: “We’ll feature your firm as a key partner in our launch announcement and case studies, highlighting your leadership in adopting cutting-edge technology.”
8. Flexible Payment Terms
– Offer flexible payment terms, such as deferred payments or milestone-based billing, to reduce their upfront risk.
– Example: “You can defer payments until the product is live, or we can structure payments based on key milestones.”
**Key Considerations**
1. **Set Clear Expectations**: Be explicit about what you expect from the design partner—feedback, participation in case studies, references, etc.
2. **Avoid Over-Discounting**: While discounts are important, don’t undervalue your product. Design partners should see the value in what you’re building.
3. **Limit the Number of Design Partners**: Keep the group small (3–5 max) to ensure you can manage their feedback effectively and maintain exclusivity.
4. **Document the Agreement**: Formalize the terms in a simple agreement to avoid misunderstandings later.
