No-Risk Deal Structure
Share
The No-Risk Offer method is a powerful way to get initial customers by completely removing downside risk, particularly effective when you're new and lack credibility.
Core Concept
- Remove all financial risk from the customer
- Customer only pays if they get positive results
- Particularly effective for new companies with no track record
- Bypasses trust barriers by eliminating downside
Real World Examples
Coal Land Deal
- Found landowners with "stranded" coal (coal too difficult to mine traditionally)
- Approached with zero-risk proposal:
- Company would test new technology at their cost
- Landowner pays nothing unless it works
- If successful, company gets share of profits
- Result: Secured $5M deal and testing land
Alex Ramosi's Gym Marketing
- Approached gym owners with no upfront cost
- Promised to increase sales by $100k
- Only took 15% of incremental revenue
- No results = no payment
MainStreet (Tax Credits)
- Offered to find R&D tax credits for tech startups
- Kept 20-25% of found tax credits
- Customer risked nothing - only paid from "found money"
Why It Works
- Removes primary objection of "I don't trust you yet"
- Aligns incentives between provider and customer
- Makes the decision "no-brainer" for customer
- Particularly effective when:
- You're new/unknown
- Have no relationships
- Lack track record
- Targeting skeptical customers
Key Elements of No-Risk Offer
- Clear success metrics
- Payment tied directly to results
- Zero upfront cost
- Shared upside structure
- Clear value proposition
22:13 - 24:43
Full video: 52:47SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.