TW Sales

View Original

Example of an Upfront Contract

Thomas Waites

How to Set an Upfront Contract

Step #1: Prospect Request

When your prospect makes a request (e.g. a discount), it's an opportunity to set an Upfront Contract.

Step #2: Determine Your Reciprocal Ask

You and your prospect need to have a reciprocal relationship.

Your prospect has asked you for something. Think about what you want in return for fulfilling their request. What is your Reciprocal Ask going to be?

Example: your prospect wants a discount. You want the deal to close this month. Your Reciprocal Ask should be “can you sign this month?”.

Step #3: State Your Reciprocal Ask

Clarify the prospect’s ability to fulfill your Reciprocal Ask. You need to check for competency.

  • Note: A common mistake is not establishing the prospect’s ability to fulfill the Reciprocal Ask first. Many salespeople immediately offer concessions like discounts and specify terms without ensuring alignment on the prospect’s commitments.

Example:

Step #4: Receive a “Yes” on Reciprocal Ask

  • For the example above, you want them to state “Yes, we can sign in July”.

Step #5: Say “Yes” to Prospect Request

  • Note: the discount should only be offered upon receiving a clear “Yes” from the customer.

Common Mistake with Upfront Contracts

One of the most common mistakes salespeople make with Upfront Contracts is skipping Step #3 outlined above. Instead of clarifying the customer's ability to fulfill their side of the agreement first, they immediately offer concessions like discounts and specify terms without ensuring alignment on the customer's commitments.

When salespeople offer concessions prematurely, such as stating a discount amount, they lose valuable leverage in the negotiation process. By not confirming the customer's readiness to commit to the terms (e.g. signing by a specified date), they give up control over the negotiation dynamics.

Additional Resources