Texting for Success

1,931 views, 14 likes, 6 comments; Original Post

A staggering 48% of our potential clients responded to our text messages. The responses we received (or didn’t) were strong indicators of our sales performance. Our startup functioned as a marketplace designed to connect consumers with legal professionals who offered free consultations. However, the process often led to prolonged deliberation on the part of the clients:

• Do I really need a lawyer?
• Am I comfortable hiring this specific lawyer?
• Is this the right time for me to take action?

Given the significant financial commitment (over $5,000), many opted to delay their decisions. As a result, our sales cycles were lengthy. But as a startup, we couldn’t afford to wait idly. We needed to anticipate outcomes.

Attempts to contact leads via phone were largely unsuccessful, and our email outreach yielded disappointing response rates. However, we found that text messaging was the key to unlocking engagement. We initiated contact immediately after their free consultation.

The first text we sent was:

How did your call with [lawyer name] go?

1=Great, 2=OK, 3=Not good, 4=Didn't speak with them

If we received a "Great" response, we followed up with:

How likely are you to hire [lawyer name]?

1=Very, 2=Somewhat, 3=Unlikely, 4=Not sure

This approach revealed four distinct customer segments:

1. "Ready to Buy Today" Audience (3.13X baseline sales rate)

   → Responded positively to both questions.

2. "Still Shopping" Audience (1.63X baseline sales rate)

   → Responded favorably to the first question but hesitated on the second.

3. "Ghost" Audience (0.89X baseline sales rate)

   → Did not respond to the follow-up text.

4. "Tire Kicker" Audience (0.41X baseline sales)

   → Showed enthusiasm in the first response but ignored the follow-up, indicating a desire for free insights without the intention to hire.

By implementing this text follow-up strategy, we achieved three key outcomes:

1. We could forecast the results of lengthy sales cycles.
2. We identified the top-performing lawyers.
3. We assisted clients who were still contemplating their decisions.

If your marketplace isn’t engaging customers via text after initial interactions, you could be overlooking a treasure trove of data.

The first video discusses the journey of building an AI SaaS startup in just 18 days, showcasing the hustle and lessons learned along the way.

How We Addressed "No-Shows"

2,795 views, 27 likes, 9 comments; Original Post

The legal professionals in our marketplace were becoming increasingly dissatisfied. We had convinced them to join our platform, yet we weren’t fulfilling our promises. The intended process was straightforward:

• Customers book a 30-minute appointment with a lawyer.
• They engage in a productive conversation.
• Customers hire the lawyer.

Unfortunately, the reality often diverged:

• Customers would book appointments.
• Lawyers would show up.
• Customers would not.

Frustrated lawyers would text me, annoyed about wasting their time. We had to rectify this situation; losing lawyers due to no-shows was not an option. We experimented with various solutions to no avail until we discovered a crucial change: the pre-appointment survey.

This strategy proved effective. After leads booked an appointment, we sent them a text (and email) containing a link to a brief survey with five questions about their legal situation. We presented it as a requirement to confirm the appointment and highlighted that it would enhance the consultation quality.

Most leads completed the survey promptly. If an hour passed without a response, we recognized lower intent. If we didn’t receive a reply three hours before the appointment, we canceled it, notifying both the lawyer and the lead.

This led to two categories of leads:

1. Those who quickly completed the survey (high intent).
2. Everyone else (low intent).

While adding friction to a process typically yields negative results, in this case, it allowed us to effectively gauge customer intent and increased the perceived value of our service.

On Pre-Launch Research

3,980 views, 24 likes, 16 comments; Original Post

Before launching my startup last year, I received some valuable advice:

• Investigate previous failures in the industry.
• Analyze them thoroughly.

This recommendation proved to be insightful. It was highly probable that our business model had been attempted before — akin to ZocDoc for lawyers or Avvo, but with enhancements. There was no way we were the first to conceive this idea; it was likely that others had tried and faltered due to fundamental flaws in the concept.

I conducted preliminary research but didn’t dig deeply enough. I failed to reach out to former founders or investors in the sector and didn’t study early-stage companies that had gained traction. Had I delved deeper earlier, I could have discovered crucial insights:

1. Our distribution strategy was prohibitively expensive.
   • SEO was more likely to succeed than SEM in this niche, and competitors were successfully leveraging SEO.
2. Our product design needed improvement.
   • We focused on "Book A Free Consultation," while successful competitors centered their experiences around "Get A Free Proposal."
3. Our monetization model had shortcomings.
   • Without delving into specifics, we chose a model that faced significant industry adoption hurdles.

If you're on the verge of starting a business, investing time to analyze the landscape thoroughly before launching could save you from considerable heartache.

The Unexpected Conclusion

3,718 views, 37 likes, 15 comments; Original Post

Throughout the last two weeks, I’ve shared insights from my startup experience. Now, it’s time to discuss how it all came to an end. While it may seem anticlimactic, those following along may be curious.

We didn’t run out of resources. We didn’t exhaust our time. We didn’t lose our marketplace supply. There was no dramatic event to signal the conclusion. Here’s the context:

• Both our customers and lawyers were satisfied.
• We were incurring losses monthly due to our paid media efforts (SEM).
• Our site conversions stagnated despite numerous product iterations.
• A change in our monetization strategy was imperative for long-term viability.

We were at a crossroads, needing to pivot. Our options included:

1. Transitioning our distribution strategy to social media.
2. Modifying our monetization model.
3. Completely revamping the consumer product.

Or a combination of all three.

The business required a significant overhaul. However, we were not aligned as a founding team regarding the next steps. Prior to our launch, we had ample time to discuss and reach consensus. Now, the outlook seemed bleak, and every day of indecision translated to wasted resources.

After weeks of deliberation, we collectively chose to wind down the business. Thankfully, the conclusion was amicable and respectful (or at least that’s how I perceive it). I often ponder what might have happened if we had found common ground sooner or identified key risks during our diligence process.

It felt as though we were on the brink of unlocking a significant opportunity, yet it never fully materialized. Ultimately, I’m grateful for the lessons learned, proud of what we achieved, and appreciative of the dedication my co-founders brought to the venture. I’m also thankful I took the leap.

I emerged from this experience somewhat battered but ready to tackle future challenges with newfound strength and wisdom. Thank you for your engagement and support throughout this series. I hope you found it as enjoyable to read as I did to write.

Closing Reflections

This LinkedIn post series sparked considerable interest in my previous endeavors as a tech company founder. Remarkably, I was introduced to three current and former founders in the legal tech space due to these posts. Moreover, I inspired someone in my network to document his transition from a non-profit employee to an entrepreneur through a similar post series.

It’s safe to say that the series garnered positive attention. The next time you have a wealth of insights to share on LinkedIn, consider breaking it down into a series rather than a single lengthy post or article. When you do, I hope you’ll share it with me so I can follow along!