» Overselling is a Sin #

Paul R. Brown @ 2008-08-05

When negotiating with a potential customer, it's tempting to offer things that you think will make them take the deal. This is wrong for two reasons.

First, what you think will make them take the deal and what they actually want may be different, so you're making a concession that doesn't help your cause. Worse than that, you run the risk of confusing a less savvy customer who will then try to understand the enlarged deal terms or showing a more savvy customer that you're desperate.

Second, you always want the simplest, most uniform deals possible. Repeatability is scalability for the organization, and a one-off deal proves nothing about a product or business model. (Bending — but not breaking — the rules for a big deal is acceptable.) Moreover, having a limited number of form agreements greatly simplifies due diligence for financing or acquisition.


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