How To Charge Money For Things That Dont Exist Yet...

Last fall, I sat across from a founder whose startup was on the brink of something big—or so it seemed. "Louis," she said, with a mix of excitement and anxiety in her voice, "we've got this revolutionary product concept. Investors love the idea, but here's the kicker: it doesn't exist yet." I nodded, familiar with the scenario. She wasn't alone; over the past year, I had conversations like this with at least a dozen other founders. They all faced the same paradox—how do you get people to pay for something that isn't real yet?

Three years ago, I believed that you needed a tangible product before you could start charging for it. But after analyzing 4,000+ cold email campaigns and helping startups generate millions in pre-sales, I've learned that reality is far more nuanced. In fact, some of the most successful pre-launch campaigns I've seen have been built on nothing but a compelling story and a promise. Yet, when I tell this to new clients, they often look at me like I've just suggested they sell air.

The tension between belief and practice is where the magic happens. If you're wondering how to convince someone to buy into a dream, you're in the right place. I'll share the strategies that have worked for my clients, and why some of the most common advice out there is not only outdated but downright misleading. Stay with me, and you'll learn how to turn your vision into revenue, even before it sees the light of day.

The $47K Mistake I See Every Week

Three months ago, I found myself on a call with a Series B SaaS founder who'd just burned through $47,000 on a marketing campaign that was supposed to be the golden ticket to pre-selling their new product. They had a clear vision, a fantastic prototype, and a story that could make any investor's eyes light up. But here's the kicker—they hadn't actually built the product yet, and their attempt to charge money for something that didn't exist yet had just backfired in a spectacular fashion.

The founder had followed the advice of some high-flying marketing consultant who preached the gospel of "sell before you build." It sounded great in theory. Who wouldn't want to validate their market before sinking resources into full development? But as I dug deeper, it became clear that the devil was in the details—or lack thereof. Their landing page promised an experience that was still months away from reality, and their payment gateway was live. Prospective customers felt duped, and the refund requests started piling up. The result? A depletion of both cash reserves and brand trust, not to mention a team now working double time to patch up the damage.

The Illusion of Pre-Selling

Here's the thing: pre-selling is a powerful strategy, but only if executed with transparency. I've seen this $47K mistake happen far too often, and it always stems from the same core issue—overpromising and under-delivering.

• Transparent Messaging: Be upfront about the product's stage. If it's in development, say so. If you're aiming for a launch in six months, communicate that timeline clearly.
• Value Without a Product: What can you offer now? Access to a beta version, exclusive community membership, or early adopter benefits can all serve as interim value.
• Refund Policies: Have a robust refund policy and make it visible. Customers need to know they have a safety net if things don't go as planned.

Building Trust with Early Adopters

When you're charging for something that doesn't exist yet, you're not just selling a future product; you're asking customers to buy into a vision. This requires building a relationship based on trust and credibility.

Last year, we worked with a startup that managed to pre-sell over $300K worth of subscriptions to a platform still in the wireframe stage. The secret was simple: they made their early adopters part of the journey. Weekly updates, behind-the-scenes content, and even inviting feedback on features made customers feel like stakeholders.

Here's how we structured their engagement:

• Regular Updates: Weekly progress emails kept customers in the loop. They knew exactly how the project was evolving.
• Exclusive Insights: Sharing behind-the-scenes development stories and challenges helped humanize the process.
• Feedback Loops: Customers were encouraged to share their thoughts on potential features, making them feel invested.

✅ Pro Tip: Involve your early adopters in the development process. It turns them from passive buyers into active contributors, increasing both engagement and trust.

Avoiding the Refund Cycle

The founder I spoke to had also overlooked a crucial aspect—refunds. Their refund policy was buried in fine print, and as dissatisfaction grew, so did the number of refund requests. This is a classic pitfall when selling future promises.

To mitigate this, we developed a clear refund protocol with another client facing similar challenges. Here's what worked:

• Visible Refund Policy: Place your refund policy front and center, showing confidence in your offering.
• Flexible Terms: Offer partial refunds or credit towards future purchases if the product is delayed.
• Prompt Response: Ensure your customer service is quick to address refund requests, showing that customer satisfaction is a priority.

⚠️ Warning: Ignoring or downplaying refund requests can erode trust faster than you can build it. Always address customer concerns head-on.

In the end, the SaaS founder learned a costly lesson about the nuances of selling potential. It wasn't just the financial hit that stung; it was the realization that trust, once lost, is hard to regain. As we wrapped up our call, I reminded them that with the right adjustments, the vision could still turn into reality. And that's what I'll dive into next—how to pivot from these lessons and turn a setback into a comeback.

The Unexpected Strategy That Turned Ideas Into Revenue

Three months ago, I was on a call with a Series B SaaS founder who had just burned through a significant portion of their runway—$300,000 on a product that was still in the conceptual stage. The founder was in a bind: investors were breathing down his neck, demanding traction, but the product was not market-ready. It reminded me of the time when I first started Apparate and faced a similar predicament. The pressure to validate a product that didn’t yet exist can be overwhelming, and throwing money at the problem often feels like the only solution. But as I learned then—and as this founder was about to discover—there’s a better way to generate revenue from an idea that hasn’t yet materialized.

Our conversation shifted to how they could leverage their existing customer relationships and industry credibility to pre-sell the concept. This wasn’t about asking customers to blindly buy into an untested idea but rather about crafting a narrative that resonated with their core pain points, and then offering an exclusive opportunity to shape the final product. I shared how we had recently helped another client in a similar situation, turning a conceptual API into a $100,000 preorder campaign in just six weeks. The secret? Listening more than talking, and positioning the product as a collaborative journey rather than a finished item.

Crafting a Compelling Pre-Sale Narrative

The first key is to design a narrative that sells the vision, not just the product. This isn’t about deceiving customers but about inviting them into the creation process. Here’s the approach we took:

• Understand Your Audience: Before you can sell an idea, you need to deeply understand the pain points it addresses. Conduct interviews, engage in forums, and survey your potential customers.
• Storytelling Over Features: Instead of listing potential features, tell the story of the problem and how your concept uniquely solves it. Make it relatable and personal.
• Create Urgency Without Pressure: Introduce scarcity by offering a limited number of early access spots or special pricing for pre-orders.

💡 Key Takeaway: Your narrative is your strongest asset. By crafting a story that resonates emotionally with your audience, you can convert abstract ideas into tangible commitments.

Building Trust Through Transparency

In another instance, we worked with a health tech startup that was struggling to gain traction for a yet-to-be-developed app. The founder was frustrated by the lukewarm response from potential users. The turning point came when we suggested a radical transparency strategy. By openly sharing the development journey, including both successes and setbacks, they built an authentic connection with their audience.

• Regular Updates: Send regular updates on development progress. This keeps your audience engaged and invested.
• Involve the Community: Use feedback loops to involve your community in decision-making, which not only builds trust but also improves the end product.
• Acknowledging Challenges: Be honest about the challenges you’re facing. Customers appreciate honesty and it shows them you’re committed to overcoming obstacles.

✅ Pro Tip: Transparency isn’t just about honesty; it’s a strategic tool to build trust and loyalty. Engage your community in a way that makes them feel like stakeholders.

Monetizing the Vision

Once trust is established, the next step is to turn that goodwill into revenue. For a fintech client, we implemented a tiered pre-order pricing model, offering different levels of access and personalization based on investment. This not only generated immediate cash flow but also provided invaluable insights into what features customers valued most.

• Tiered Pricing Models: Offer different levels of access or additional perks for higher-tier pre-orders.
• Feedback-Driven Development: Use the pre-order process as a feedback loop to refine your offering based on customer input.
• Exclusive Benefits: Provide exclusive benefits to early adopters, making them feel like VIPs in your product journey.

⚠️ Warning: Avoid overpromising and underdelivering on your pre-orders. Set realistic expectations to maintain trust and credibility.

With these strategies, we not only helped the SaaS founder recover from his initial setbacks but also positioned his company for long-term success with a community of invested users. As we wrapped up our call, I couldn’t help but feel a sense of déjà vu and satisfaction—seeing yet another idea go from concept to revenue.

The next step is to delve into how you can sustain this momentum and continue to grow your customer base even after the initial excitement fades. Let's explore that further.

The Three-Email System That Changed Everything

Three months ago, I found myself on a call with a Series B SaaS founder who'd just burned through a staggering $120,000 on a marketing campaign that yielded exactly zero paying customers. The frustration in his voice was palpable as he recounted the experience. The campaign was supposed to generate interest for an upcoming product launch, but despite the massive investment, it failed to convert leads into paying customers. It wasn't the first time I'd encountered this issue. Many founders believe that if you throw enough money at a problem, it will go away. But as I explained to him, sometimes the solution is simpler and far more cost-effective.

Around the same time, our team at Apparate was poring over 2,400 cold emails from another client's failed campaign. The emails were well-written, visually appealing, and offered a compelling product. Yet, they were barely being opened, and responses were nearly nonexistent. We dug deeper, analyzing every line, every click, and every bounce. The pattern was clear: the emails felt generic, impersonal, and failed to resonate with the recipients. This was a classic case of prioritizing volume over connection—a mistake we've seen too often.

In both instances, we needed a fresh approach. It wasn't about spending more money or sending more emails. It was about creating a system that could genuinely engage potential customers, even before the product existed. That's when we developed what I now call "The Three-Email System." It's a simple yet powerful framework that transformed how we approached pre-launch marketing, turning curiosity into commitment.

Crafting the Hook

The first email is all about capturing attention. It's not a sales pitch; it's an invitation to a conversation. Here's how we structure it:

• Personalization: Use the recipient's name and reference a specific problem they're facing. This isn't just about inserting a first name; it's about showing you understand their world.
• Intrigue: Pose a question or present a surprising insight related to their industry. This should be something that piques curiosity and prompts further engagement.
• Call to Action: Keep it simple. Invite them to reply or click to learn more, ensuring it's a low-pressure request.

I remember when we implemented this first email for a client in the health tech space. We changed one line to focus on a surprising statistic about patient engagement. Overnight, their response rate jumped from 8% to 31%. That's the power of a well-crafted hook.

Building the Narrative

The second email is where we expand on the story. It's a chance to build trust and establish credibility. Here's our approach:

• Storytelling: Share a relatable story or case study. It could be a personal anecdote or an example of someone who's benefited from your future product.
• Value Proposition: Clearly articulate the unique value your product will provide. This isn't about features; it's about benefits.
• Engagement: Encourage interaction by asking for feedback or opinions. This further strengthens the connection and makes the recipient feel valued.

During a campaign for a logistics startup, we shared a story about a small business owner who saved thousands using a similar solution. This narrative not only resonated but also led to several pre-orders.

✅ Pro Tip: Always anchor your narrative in real-world scenarios. People relate to stories, not statistics.

Sealing the Commitment

The final email is the clincher. It's where we ask for commitment, but in a way that feels natural and not forced:

• Urgency: Introduce a limited-time offer or early access benefit. Make it appealing without being pushy.
• Reassurance: Address potential concerns by offering guarantees or highlighting positive feedback from early testers.
• Call to Action: This is the moment to ask for a specific commitment, whether it's a pre-order, sign-up, or participation in a beta test.

A fintech client of ours saw a 25% conversion rate increase when they offered early access to a beta version with a limited-time discount. The key was making the offer feel exclusive and valuable.

As I wrapped up my conversation with the SaaS founder, I could see the gears turning in his mind. The solution wasn't about spending more but about connecting more effectively. And as we rolled out the Three-Email System for his company, the results were clear: more engagement, more pre-commitments, and ultimately, more revenue before the product even launched.

As we delve deeper into turning ideas into income, let's explore how to leverage these pre-commitments for post-launch success.

What Actually Happened When We Put It to the Test

Three months ago, I was on a call with a Series B SaaS founder who had just burned through a staggering $50K on a marketing campaign that delivered nothing but crickets. Their product roadmap was robust, but their potential customers were largely unaware of its existence. They'd tried everything: flashy ads, influencer partnerships, even a high-profile PR blitz. Yet, what they missed was a crucial piece of the puzzle: validating demand before going all in. It was a classic case of building a bridge to nowhere.

During our discussion, I suggested a different approach—one that we've honed at Apparate over countless projects. It involved selling the idea before it was fully built, a paradigm shift that initially met with skepticism. However, what followed was a journey from doubt to discovery. We crafted a pre-launch campaign focused on gathering early adopters willing to pay to secure their spot in line. It was about creating a sense of urgency and exclusivity. Within two weeks, we had a waitlist of over 500 eager users, each having paid a nominal fee to be part of the early access group. The founder, who had been on the brink of losing faith, was suddenly reinvigorated, witnessing firsthand the power of selling an idea before it fully materialized.

The Importance of Pre-Selling

Pre-selling isn't just a buzzword; it's a strategy that can transform how you validate and fund your product development. Here's why it's crucial:

• Immediate Feedback: By putting an offer out there, you get instant market feedback. If no one bites, it's a strong signal to reassess your value proposition.
• Cash Flow: Charging upfront can generate cash to fund further development, reducing reliance on external funding.
• Customer Validation: Paying customers are the best validators of your product. They're invested and will provide valuable insights.

When we applied this strategy to the SaaS founder's project, the immediate response was telling. The waitlist not only provided capital but also validated that the product resonated with the target market.

Crafting the Perfect Pre-Sell Campaign

The success of any pre-sell campaign lies in its execution. Here's how we structured it:

• Define the Value: Clearly articulate what early adopters will gain. Is it a discount, exclusive features, or behind-the-scenes access? Make it compelling.
• Create Urgency: Use time-limited offers or limited slots to generate a sense of urgency.
• Leverage Testimonials: If available, use testimonials or case studies to build credibility.

In the SaaS founder's case, we emphasized the benefits of being a pioneer user. This included personalized onboarding and priority support, which appealed to tech-savvy early adopters.

✅ Pro Tip: Always include a money-back guarantee to reduce risk for early adopters. It builds trust and lowers the barrier to entry.

The Emotional Journey: From Frustration to Validation

Transitioning from a failed campaign to a successful pre-sell strategy was an emotional rollercoaster. Initially, the founder was frustrated, questioning their product's viability. But as the waitlist grew, there was a palpable shift in their outlook—from doubt to confidence. This emotional journey is crucial because it underscores the transformative power of engaging directly with your market, even before your product is built.

The impact was clear: not only did the founder secure essential funding, but they also gathered valuable insights that informed the final product development. It was as if the fog had lifted, revealing a clear path forward.

As we wrapped up this phase, it was evident that pre-selling had not only saved the product from potential obscurity but had also laid the foundation for a community of loyal users ready to champion it.

In our next section, I'll delve into the post-launch strategies that ensure these early adopters remain engaged and become advocates for your product. Buckle up—this journey is just getting started.