How Do You Get Clients to Sign Contracts?
When it comes to sustaining your business, long-term contracts are one of the most effective ways to ensure a steady source of revenue in an unpredictable market. However, for many new businesses, convincing potential customers to sign one of these contracts can pose a real challenge. With so many competitors, how do you convince someone to take such a big risk? In this episode, Gene Marks and Elizabeth Larkin share several strategies that will entice customers to sign a contract with your business.
2:10 —Today's Topic: How Do I Entice Customers to Sign a Contract With My Small Business?
3:12 —Before you even approach your potential clients, research your competitors so that you understand how your business compares.
3:49 —If you would like to propose a long-term contract with a particular client, try to do so as soon as possible, because it will be more difficult to adjust the terms of your services later on.
4:43 —With regard to incentives, small businesses should consider offering either a free product or service for a limited time. Not only does this trial period give the customer a chance to get to know you better, but it also gives you a clearer sense of how they behave as a client.
6:01 —Another option to consider would be to provide increased discounts for customers who commit to a longer contract.
7:29 —You also can attempt the "puppy dog close," where you offer them a free trial for a limited time and then give them the option of terminating your services if they aren't satisfied.
10:14 —Gene discusses how lack of competition can lead to stagnation for small businesses.
Submit Your Question
Elizabeth: Welcome back to the Small Biz Ahead podcast. I'm Elizabeth Larkin from The Hartford and I'm here with Gene Marks from The Marks Group.
Gene: Hi, Elizabeth.
Elizabeth: Hi. How are you?
Gene: I'm doing good. How are you?
Elizabeth: I'm good.
Gene: Good. Glad to hear that. Are we going to talk about TV shows after this episode?
Elizabeth: Yes, after we answer this important question about enticing new clients, we are going to talk about your TV show recommendations.
Gene: We'll have a word of the day, and then the TV shows, because last time we talked about El Camino, but I've got plenty more.
Elizabeth: Okay. You're going to have to wait for the end.
Gene: I'm going to have to wait. You know what? Forget about these small business questions. Let's go right to the TV shows.
Elizabeth: Great. Okay, so after a word from our sponsor, we're going to come back and talk about enticing new clients to the very niche business.