**Dear SaaStr: What Incentives Are Given to Design Partners and Other Super Early Customers?**
Design partners are essential—they offer feedback, validate your product, and often become your first case studies. At least, if they are genuine customers, not just pretend ones.
Here are some incentives:
1. **Discounted Pricing with a Time Limit**
– Provide a significant discount (e.g., 30–50%) on standard pricing for a limited time, like 12–24 months. This rewards early adopters but ensures they eventually pay full market rates.
– Example: “As a design partner, you’ll get a 50% discount for the first 12 months after launch. After that, you’ll switch to standard pricing.”
2. **Lock in Pricing for a Longer Term**
– Offer to lock in a discounted rate for a longer term (e.g., 3 years) in exchange for their feedback, participation in case studies, or acting as a reference customer.
– Example: “We’ll lock in a 40% discount for 3 years if you provide quarterly feedback and participate in a case study.”
3. **Free or Reduced Cost During the Design Phase**
– Offer free or heavily reduced rates during the design phase (e.g., 6 months) to lower entry barriers. After the product goes live, transition them to a discounted paid plan.
– Example: “You’ll have free access during the design phase, and post-launch, you’ll receive a 30% discount for the first year.”
4. **Usage-Based Incentives**
– If your B2B product uses 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 get 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, consider offering a small equity stake or revenue-sharing agreement linked 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 others.”
7. **Co-Marketing Opportunities**
– Incentivize with co-marketing opportunities, like being featured in launch materials, press releases, or case studies. This is especially valuable for firms in capital markets wanting 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 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.