Land Your First Customers 3x Faster

Summary

In this video, Ash Moria, an entrepreneur and creator of the Lean Canvas, explains a faster, more effective approach to product development called 'Demo, Sell, Build.' Unlike the traditional 'Build, Demo, Sell' method, where founders spend months building a product before testing it in the market, Moria advocates for creating a demo first that showcases the product's value proposition. This approach helps validate demand, saves time, and allows founders to focus on building only what customers truly want. Moria shares real-world examples and principles for applying this strategy across various industries.

Takeaways

• 😀 The traditional 'build, demo, sell, build' approach often takes too long and risks building the wrong product without customer validation.
• 😀 The 'demo, sell, build' approach is faster, more effective, and ensures you only build what customers truly want.
• 😀 Instead of building a working product first, you can start with a demo that showcases the product's promise, even if the product isn't fully built yet.
• 😀 The demo serves as a story of what the product will deliver, rather than a fully functional prototype.
• 😀 A demo can be as simple as mock-ups, screenshots, or a verbal description—anything to communicate the product's value.
• 😀 Founders often fall into the trap of waiting for a working prototype before engaging with customers, which delays feedback and sales.
• 😀 Using a demo-first approach can help identify the customer's needs early on and ensure you build the right features.
• 😀 A key principle is that customers buy the promise of a better outcome, not the working product itself.
• 😀 A demo should be focused on the smallest, most valuable feature to get a sale. You don’t need to show everything in the demo.
• 😀 Even in complex tech or machine learning solutions, focusing on the value proposition rather than a working prototype can lead to early sales and pilot agreements.
• 😀 'Demo, sell, build' works across various industries, including software, hardware, and services—adapting the process to your product type is key.

Q & A

What is the traditional approach that most founders follow when launching a product?

Most founders follow the 'build, demo, sell, build' approach, where they first build their product or MVP, then line up demos with potential customers, and finally spend additional time driving sales.

Why is the traditional 'build, demo, sell, build' approach not ideal?

The traditional approach often leads to delays and overbuilding because founders focus too much on technical risks. It also increases the chances of building the wrong product due to lack of proper customer validation.

What is the 'demo, sell, build' approach, and why is it better?

The 'demo, sell, build' approach flips the traditional process. Instead of first building a product, founders create a demo to sell to potential customers. If the demo can sell, there's no need to build the product at all, making it faster and more effective.

Do founders need a working product to create a demo in the 'demo, sell, build' approach?

No, a working product is not necessary for a demo. The demo is about showcasing the product's promise, not demonstrating how it works. Founders can use mock-ups, screenshots, or verbal descriptions to show the product's potential.

What role does customer validation play in the 'demo, sell, build' approach?

Customer validation is crucial. By using a demo to test the demand for the product, founders can ensure they are building something customers actually want, rather than guessing or overbuilding a product based on assumptions.

How did one founder successfully use the 'demo, sell, build' approach?

One founder was able to close their first paid pilot by presenting a sample report rather than a working prototype. Instead of waiting two months for a demo, they showed potential customers a 'before and after' story, which led to immediate buy-in.

What is the importance of the Unique Value Proposition (UVP) in the demo process?

The UVP is critical because it communicates the promise of the product. It should highlight the problem the product solves and the better outcome it offers, which helps attract attention and trust from customers.

What is the recommended approach for creating a demo?

The best approach is to start with the simplest, lowest fidelity demo that tells a compelling story. If the demo sparks interest, you can progressively move to higher fidelity demos if needed. The goal is to show just enough to make a sale.

What are the potential dangers of overpromising in a demo?

Overpromising in a demo can result in scope creep and unrealistic expectations. It also increases the risk of scaring away customers if the demo shows too much or promises features that are hard to deliver.

What should founders do if customers are interested in purchasing before the product is built?

If customers express interest in buying, founders should proceed with confidence, knowing that the demand is there. However, they should manage expectations by explaining the timeline and potential delays, especially with larger, more complex deals.