No-Risk Deal Structure

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: 52:47
SP

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.

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