Larry Chiang’s 5th book, WTDTYASBS, launched at a Harvard Law School keynote, so he knows about grand openings (He even attends and promotes the ones he isn’t invited to also). As CEO of Duck9, he leads an army to help college student consumers get a FICO over 770. Post H.L.S. keynote, Harvard Business wrote: “What They Don’t Teach You at Stanford Business School” (his latest Harbus post: “Setting an intention for SXSWi”.
In the business world, closing deals can often be a daunting task. Uncertainty, perceived risk, and lack of trust can deter potential clients from taking the plunge. However, Larry Chiang, a seasoned entrepreneur, has found an innovative way to de-risk deals and gain clients’ trust using the “Internal Escrow” method. This revolutionary approach has transformed the way deals are made and it can potentially revolutionize your business as well.
Larry Chiang’s “Internal Escrow” Method:
The “Internal Escrow” is essentially a one-way letter of intent that assures the client of their Return on Investment (ROI), so much so that they don’t need to part with their money until after the desired results are achieved. The idea is to assure the client that their investment is secure and the promised results are guaranteed.
An Exemplary Deal Using “Internal Escrow”:
Larry implemented the “Internal Escrow” method in a deal with a crypto mining services company. He offered to keep $29K in internal escrow, assuring the company that he would only claim the money once the event was completed, and they had received the results they were looking for.
Chiang intentionally left the specific details of the event vague, yet gave an overall commitment that the desired ROI would be realized. This approach built immense confidence in the buyer. Larry’s sandbagging of the event details meant the buyer was more focused on the end result – a guaranteed ROI – rather than the specifics of the process.
Harnessing “Internal Escrow” for Your Business:
Now, you might be wondering how this innovative method can help you close more deals in your business. The key is to build trust with your clients by guaranteeing their ROI. Assure them that their investment is safe and will be put to work only after they see the desired results. This approach takes away the fear of loss, thus motivating them to take action.
Start by identifying the key metrics or results your client seeks. Then, draft a letter of intent stating that you’ll keep their payment ‘in escrow’ until those metrics are achieved. This essentially makes the deal risk-free from the client’s perspective, making it an irresistible offer.
If you want to try applying “Internal Escrow” in a real-world situation, go to bit.ly/chocken614 and start selling Duck9 using this method. As with Larry’s example, assure your potential clients that they will get their desired credit score improvement, and only then will you claim the payment.
In conclusion, Larry Chiang’s “Internal Escrow” method serves as a brilliant example of how innovatively thinking about risk and trust can help close deals more easily. By offering a guarantee of results before taking payment, you can boost your clients’ confidence, reduce their perceived risk, and ultimately win more business. So why not give “Internal Escrow” a try in your next deal?
Duck9 is a credit score prep program that is like a Kaplan or Princeton Review test preparation service. We don't teach beating the SAT, but we do get you to a higher credit FICO score using secret methods that have gotten us on TV, Congress and newspaper articles. Say hi or check out some of our free resources before you pay for a thing. You can also text the CEO:
