Zoom did this aggressively

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Growth Hack: Win Over the Competition's Customers with Contract Buyouts

Want to escalate user acquisition beyond the usual tactics? Here’s an aggressive yet effective strategy: buy out your competitors' long-term contracts. This method isn’t just for big players like Zoom or telecom giants; it can work for you, too. Zoom did it aggressively in the early days.

How it works:

  1. Identify locked-in users: Target users who are tied down by your competitors' long-term contracts but are seeking better solutions.

  2. Make them an offer: Offer discount proportional to the cost of their remaining contract when they switch to your service. It’s a win-win: they get to upgrade to your better-fitting product, and you gain a new customer.

  3. Simplify the process: Initially, set up a simple application process via email and provide a promo code to apply the contract buyout discount.

  4. Commitment matters: Ensure the new plan they subscribe to with your service extends beyond their current contract. This guarantees you their business for a longer period.

  5. Get the word out: Promote this offer on your marketing channels - from landing pages to social media. Consider reaching out directly to those who have left negative reviews for your competitors on G2 or Capterra etc.

Why it's effective:

  • Eliminates barriers: It removes the financial penalty for users wanting to switch to your service.

  • Boosts sales: Attract customers who are already using similar services and are likely to value what you offer.

  • Builds loyalty: Customers who switch will likely appreciate your upfront investment in their satisfaction.

This hack is ideal when you have the financial runway and if the lifetime value of a new customer justifies the initial cost of buying out their contract. Implement it, and watch as customers leap over the fence to your side.

I was trying to remember some examples. I think - Calendly alternative used this growth strategy in early days.


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Fazier Launches

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  • Interested in buying expired domains? Past Hunt is your friend that scraps Product Hunt and features 10 domain names on daily basis (mostly .com).

  • You can be the next here. All you need is to launch on Fazier. 100% free. No queue etc.

I am thinking of separating Fazier launches newsletter and start sending it separately. Should I do so or run them as one? Reply please.

Signing off,
Falak Sher