Presale – why is it worth it?

You’ve read the title and wonder if this entry is for you? Well, it doesn’t matter if you’re a seasoned seller or you’ve just started your adventure. Presale can become a perfect element of your business strategy. Don’t believe me? Read till the end and you will find out, what kind of perks can presale bring to your company.

What is a presale and when it is used?

Presale is an option for the customers to order products before the actual launch. This kind of offer is started off during the production process, so when the product is not finished yet.

If you have ever been at a concert, a big festival, or a similar event, you probably know how this works. Tickets are usually sold ahead of time. Ever wondered, why? It is not a coincidence, but a planned business strategy. It provides valuable information about the customers to the distributors, so they can plan the event better and it gives them the idea for the future promotion. Not to mention the money, which goes into an account in advance, providing a financial cushion. If you are in the process of creating a product, cash gives you a sense of comfort and you can avoid the unnecessary stress.

Pros of presale

• Creating a hype around the product. Presale gives a sense of uniqueness and urgency, as it lasts over a limited period of time and only a few can use this kind of offer. If your customers are excited about their purchase, they will definitely mention it to their friends or post about it on social media.

• You can be sure that there is a demand for this product. In the end, there are people who have already paid for it!

• You can clearly establish the target market, as you already have a base of paying customers. It gives you the opportunity to improve the product, adjust it for the needs of your target group, and you can get the idea for the future promotion during the time of actual launch.

• Motivation – elimination of doubt. So you have an idea and you do nothing in the fear of failure? And what if you test it in practice? Presale is a wonderful test of your concept. When you see that people are willing to pay for your work, you gain the confidence that is much needed in this industry. No customers? Improve your idea and come back with a better offer. You lose nothing, but you can get a valuable lesson for the future.

• You get money you can invest back in the product quality. If you have a plan, but lack resources, money paid in advance can really help you. Remember to make a detailed strategy as this is the money of your future customers and you really don’t want to let them down, trust me.

• Solving problems in the real time. In the presale, your product will go to a really small number of people from your target group. If you get any complaints or returns, you can improve it in the later phases of the project.

Does presale work for any kind of business?

Applying this kind of strategy to your sales process can work for a physical and digital product. It can also work for services, events etc. When it comes to e-books, guides, or online courses created by you from the scratch, the risk is much smaller than with starting a mass production of goods. Such project requires a great deal of experience and a planning, however, you can learn those skills with effort and persistence. I will tell you more about the dangers of poorly planned presale in the end of this article.

How to organize a presale?

• Start with a strategy. By the time you start running a marketing campaign, you should already have everything planned. How much time does it take to make the product? How long do you want a presale to last? Is it a good time to begin? Will your product sell this season? Answers to these questions will help you to organize a successful presale.

• Do your research. Look at sites offering similar products. Pay attention to pricing and think about how much is your product going to cost. Remember that in the presale, it’s worth to offer a lower price or other benefits of early purchase (like a free gift). The offer has to be exclusive and limited.

• Time for marketing! If you have a mailing list, it will be the perfect place to promote your presale and making a sales offer. If you want to reach more people, mention it on your social media. Wait for buying ads until the actual launch.

• Think about unconventional solutions. In order to organize and run a presale, you can build a sales funnel on ClickFunnels. They have plenty of wonderful solutions for this kind of strategy. The example would be their Product Launch Funnel.

• Show your audience the benefits of an early purchase. Show them, what they get when they buy during the presale. This will encourage them to participate.

• Be prepared for the increased traffic.If you see a huge interest in your product, and expect a traffic to increase when your product launches, be prepared for it. Make sure the site runs properly so there are no surprises. Also, take care of fulfillment or delegate it to a third party if necessary.

Risks and flaws

• Deadline – when you sell a product that’s not even finished yet, there is a risk that you will not make it on time. You can avoid this by planning the whole action. Additionally, prepare for the stress connected with approaching deadline.

• Unsatisfied customers – when your audience receives their orders, it might turn out that they don’t like the product. If you receive a lot of negative comments and returns, you probably promised more than you could deliver. Before the presale, make sure you’re not creating unrealistic expectations.

• Product quality problems – if you sell physical products, it can turn out that it is not the best quality and it’s too late to improve it. Use trusted manufacturers and make sure the product is good before starting a presale and a mass production.

I hope you found this article helpful. If you learned something new, let me know in the comments. Also, sign up for out newsletter to stay in touch with Ted&Greg.