Why Getting Paid Before Building Might Save Your Startup (And Your Sanity)

Let's cut through the startup fairytale, shall we? The one where you build something beautiful in your garage, launch it to thunderous applause, and watch the customers queue around the digital block. The real story usually involves months of unpaid work, sleepless nights questioning your life choices, and a product that—if we're being brutally honest—no one actually asked for. I've been there, with a homeware business that taught me more about what not to do than what to do. The most expensive lesson? Building before selling.

The Madness of "Build It and They Will Come"

We've all heard the Field of Dreams mythology: "If you build it, they will come." What they don't mention is the addendum: "...or they absolutely bloody won't, and you'll be left with an expensive digital ghost town." The traditional startup journey often looks like this: spend months building, launch with fanfare, then panic when the only visitors are your mum and that guy from university who still owes you a tenner.

The revenue-first approach flips this tired script. Instead of betting the farm on your intuition (which, let's be honest, is probably just your confirmation bias wearing a fancy hat), you sell the concept first. Get commitments. Get actual money in the bank. Then, and only then, do you start building.

It's not just pragmatic; it's a form of mercy. Because there's nothing more soul-crushing than pouring your heart into something only to discover that the world collectively shrugs at your creation. (And we've all been there, right? That crushing silence after you've announced your "revolutionary" idea to the world?)

The Art of Selling Smoke

The most valuable skill you can develop as a founder isn't coding, design, or even leadership—it's the ability to sell something that doesn't fully exist yet. This isn't about deception (please don't call it vapourware). It's about testing demand before you invest months of your life building something.

The truth is, most of us are terrified of this approach because it removes our safety blanket of postponement. When you're "still building," you can delay the moment of truth—the market's unfiltered judgment. But selling first forces you to confront reality immediately. And reality, while occasionally harsh, is always a better business partner than delusion.

Here's what this looks like in practice: create a compelling landing page, outline the core value proposition, and ask people to pre-order or join a waitlist. The difference between a polite "sounds interesting" and someone reaching for their wallet is the difference between a hobby and a business. As Forbes points out, "boring" products that solve familiar, proven problems are often smarter starting points because users already recognize the pain point, making feedback loops quicker and more concrete.

Getting Those First 10 Paying Customers Without a Finished Product

So how do you convince 10 people to pay you for something that's essentially a promise? Here's where the magic happens:

• Create a high-fidelity mockup or prototype that demonstrates the core value proposition—not the bells and whistles, just the part that solves the hair-on-fire problem.
• Offer early-bird pricing that's compelling enough to make saying "no" feel like a missed opportunity. Scarcity and exclusivity aren't just marketing tactics; they're psychological triggers.
• Provide concierge-level service to early adopters. When you don't have a fully automated product, your personal attention becomes the product.
• Establish clear timelines for delivery, and be transparent about the development process. People will forgive delays if they feel included in the journey.
• Leverage social proof aggressively. Each new customer becomes ammunition for acquiring the next one. "Company X has already signed up" works wonders.

The beauty of this approach is that it creates a feedback loop that improves your product before you've written a single line of code. Those first 10 customers aren't just revenue sources; they're co-designers who will tell you exactly what they need the product to do. And they'll be invested in your success because they've already put skin in the game.

The Psychological Hurdle: Asking for Money Before Delivery

Let's address the elephant in the room: asking for money for something that isn't finished feels uncomfortable. It triggers our imposter syndrome, that nagging voice that whispers, "Who are you to charge for this?" But here's the counterintuitive truth: charging money isn't greedy; it's respectful. It acknowledges that you're creating something of value and that the customer's commitment is a serious one.

Having failed at a business where I built first and sold later, I can tell you that the discomfort of asking for pre-orders is nothing compared to the despair of realising you've built something no one wants. That sinking feeling as you watch your bank balance dwindle while your user count refuses to grow—it's the stuff of founder nightmares.

The revenue-first approach also forces a level of clarity that's often missing in early-stage ventures. When someone asks, "What exactly am I paying for?" you can't hide behind technical jargon or vague promises of future features. You have to articulate your value proposition in terms so clear that someone is willing to open their wallet based on your words alone.

The Implementation Roadmap: From Concept to Cash

If you're convinced (or at least intrigued) by the revenue-first approach, here's how to implement it without feeling like you're running a sophisticated con:

• Identify your minimum viable offering - not a product, but a solution. What's the smallest thing you can deliver that still solves a real problem?
• Create assets that visualise the end result - mockups, wireframes, demos, or even detailed descriptions that help potential customers see what they're buying.
• Design a compelling pre-order package - early access, lifetime discounts, or premium support that makes early adoption attractive.
• Build a simple landing page with a payment option - Stripe, PayPal, or even a basic invoice system. The payment process should be frictionless.
• Reach out personally to potential early adopters - cold emails, LinkedIn messages, or leveraging your existing network. This isn't mass marketing; it's targeted relationship building.

The goal isn't to get thousands of pre-orders (though wouldn't that be nice?). It's to get enough validation that you can confidently invest your time and resources into building something people genuinely want.

When the Revenue-First Approach Might Not Work

I'd be remiss if I didn't acknowledge that this approach isn't universal. There are scenarios where building first makes more sense:

If you're creating something truly revolutionary that people can't visualise without seeing it in action, you might need a working prototype before anyone will commit. Think of the first iPhone—Apple didn't pre-sell it because people couldn't imagine what a touchscreen smartphone would be like.

Similarly, if you're in a highly regulated industry where promises must be backed by functioning products, the revenue-first approach might not be viable. You can't pre-sell medical devices or financial services without regulatory approval, which typically requires a working product.

But for the vast majority of startups—especially software, digital products, and services—getting paid first is not just possible; it's optimal.

The Psychological Benefits of Early Revenue

Beyond the obvious financial advantages, there's something psychologically powerful about getting those first payments. It transforms your venture from an aspiration to a business. It validates not just your idea but your identity as a founder who delivers value.

The truth is, many of us start businesses not just for the potential financial rewards but for the sense of creation and impact. There's something deeply satisfying about knowing that someone valued your idea enough to pay for it—even before it's fully realised.

And let's not underestimate the motivational power of having paying customers waiting for delivery. Nothing focuses the mind quite like knowing that real people have entrusted you with their money and expectations. It's the difference between working on a side project that you can abandon when it gets difficult and building a business with accountability baked in from day one.

From 10 Customers to Sustainable Growth

Once you've secured those first 10 paying customers, you're no longer operating on faith alone. You have data, feedback, and most importantly, a financial runway that isn't entirely dependent on your personal savings or investor goodwill.

This is when you can start building features with confidence, knowing that each development decision is informed by actual user needs rather than assumptions. Your roadmap becomes a collaborative document, shaped by the people who care enough about your solution to pay for it.

The transition from pre-selling to delivering is where many founders stumble. The key is to maintain the same level of transparency and communication that got you those first customers. Regular updates, early access to new features, and a genuine openness to feedback create a community of advocates rather than just users.

And here's where the real magic happens: those first 10 customers, if properly nurtured, become your most powerful marketing channel. Their testimonials, case studies, and word-of-mouth recommendations carry more weight than any advertising you could buy. They're not just customers; they're investors in your vision who want to see you succeed.

The Practical Steps to Implement a Revenue-First Strategy

Let's get tactical. Here's how to execute this approach in the real world:

• Create a compelling narrative around your solution that focuses on outcomes rather than features. People buy results, not specifications.
• Set a realistic pre-order price that acknowledges the early-stage nature of your product while still reflecting its value. Too cheap signals lack of confidence; too expensive creates unrealistic expectations. Research shows that psychological pricing strategies, particularly charm pricing ending in 9, can make prices appear significantly cheaper due to left-digit bias, with 60.7% of advertised prices ending in 9 compared to just 7.5% ending in 0.
• Establish clear terms for refunds and timelines. Transparency builds trust, and trust is your most valuable currency at this stage.
• Document everything your early customers tell you. Their feedback is gold dust that will shape your product for years to come.
• Celebrate each sale not just as revenue but as validation. Each payment is someone voting for your vision with their wallet.

Remember that the goal isn't just to collect money; it's to build relationships with people who believe in what you're creating. The revenue is important, but the insights and advocacy you gain from these early adopters are even more valuable.

Having gone through the painful process of building something that the market didn't embrace enthusiastically, I can attest that there's no substitute for early validation through actual purchases. All the market research, surveys, and enthusiastic nods in the world don't compare to someone transferring actual money to your account.

The Ethical Considerations

There's an important distinction between selling smoke and selling a vision you genuinely intend to deliver. The revenue-first approach requires integrity—you're asking people to trust you with their money based on a promise.

This means being realistic about timelines, transparent about challenges, and ready to refund if you can't deliver. It also means prioritising the needs of those early customers even when it might be tempting to chase new ones or pivot to a different direction.

The founders who successfully implement this strategy aren't the ones with the slickest pitches; they're the ones who view those first 10 customers as partners rather than transactions. They understand that they're not just selling a product; they're entering into a relationship based on mutual benefit and good faith.

And when things go wrong—as they inevitably will in any startup journey—these founders communicate openly, solve problems creatively, and make decisions that honour the trust placed in them.

What I've learned from my own business failures is that customers are remarkably forgiving of technical glitches, delayed features, or pivots in strategy—but they're unforgiving of feeling misled or taken for granted. The revenue-first approach works when it's built on a foundation of genuine value creation rather than clever marketing alone.

In the end, getting those first 10 paying customers before building out your product isn't just a smart business strategy; it's an exercise in accountability and focus. It forces you to articulate value in terms that resonate with real people, to make promises you can keep, and to build with purpose rather than speculation.

And if no one is willing to pre-pay for your idea? Well, that's valuable information too—arguably worth far more than the months or years you might have spent building something destined for indifference. Consider that only 0.065% of VC-funded companies reached unicorn status between 2003-2013, and unicorn creation has dropped dramatically from 629 in 2021 to just 102 in 2024—making early validation through revenue even more critical.

The beauty of the revenue-first approach is that it transforms the traditional startup journey from a leap of faith into a series of calculated steps, each validated by the most honest feedback mechanism in business: people voting with their wallets. In a world obsessed with vanity metrics and growth at all costs, there's something refreshingly straightforward about measuring success in paying customers rather than pitch deck promises. Once you've proven initial demand and established that critical foundation, you can then develop a comprehensive post-validation action plan to scale your validated concept into a sustainable business.

So before you write another line of code or sketch another wireframe, ask yourself: Would someone pay for this today? If the answer is no, you don't have a product yet—you have a hypothesis. And hypotheses should be tested before they're built into businesses.