Picture this…
When we started Early Stage Founders, we offered the same product to two groups of people.
Both groups got the same access, the same support, and the same value.
But we charged one group full price, and the other got it for free.
At the end of the month, one group had used our product for 20 days, reached their ideal outcome, and written an amazing review.
The other group used the product for 5 days, did not reach their ideal outcome, and many of them ghosted us.
It may come as a surprise to know that it was the group that paid full price that actually used the product to the fullest, got the most value out of it, and wrote those glowing reviews.
Same Product, Different Outcome.
So what happened? Why did the paid users have such a better outcome?
It’s simple: perceived value.
To the free users, our platform was nothing more than all of the other free stuff out there. It was cheap, disposable, and ordinary.
But to the paid users, it was an opportunity - and one they were invested in. Because these users paid their hard-earned money for our platform, the perceived value was much higher and they had a vested interest in getting their money’s worth out of it.
The Lesson
This story isn't to say you shouldn’t beta test for free - you should.
But understand that free users and paid users are not the same, and know that you should take the feedback and observations from this group with a grain of salt.
The way you sign them up will be entirely different.
The way the product is used will be entirely different.
The feedback you get will be entirely different.
The lesson to be learned here is this: you have not fully validated your idea until you make a sale.
Beta test your product to make sure it works, and then start selling it.
That’s the only way you’ll know for sure if you’re on the right track.
Until next time my friends,
Avery
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