I want to explain something most SaaS companies don’t seem to get.
I call it the “3-way SaaS sale.”
Let me explain…
When your prospect arrives at your site, he has 3 choices:
#1: He can sign up for your software
#2: He can sign up for one of your competitors’ products
#3: He can sign up for nothing and continue doing whatever he’s doing right now.
Now… this means, you have one way to win (#1) and two ways to lose (#2 and #3).
And, of those three choices, he is – by far – most likely to pick option #3.
So what would happen if you could take that option off the table? What would happen if you could turn it into a two-way choice between you and your competitors?
Well, your conversion rate would go up significantly, right?
So, how do you do that? How do you eliminate the option of doing nothing?
It’s through a technique called “dimensionalisation.”
So let’s say you charge $20/month for your software.
If you can show your prospect – beyond any reasonable doubt – how signing up can save his business $200/month, it makes no sense for him to do nothing. Doing nothing is like him saying, “I’d rather have $20 than $200.”
So doing nothing is off the table. Now, he might shop around for a better option – better software with more features, or easier to use – but at least you’ve narrowed the fight down to which software he’s going to use.
All the best,
PS Dimensionalisation is just one way to improve one of the 8 stages of the SaaS Multiplier Method. To maximise your profits, you should be using multiple techniques to optimise each stage.
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