How iBwave Tackled Risk Head-On to Land its First Customers

iBwave logo

When entrepreneur and angel investor Mike Cegelski became CEO of iBwave Solutions in 2003, the company had already started working on its core product iBwave Design.

At the time, there were no clients. Cegelski knew that the company had to build a history of trust and client relationships to sign key customers.

The need had already been validated with prospects (see case study), and their demo was successful, it really helped prospects visualize the pain. There were many positives; all they needed were a few prospects to sign up for a pilot project.

To build trust and convince prospects, they agreed to put iBwave Design’s source code in escrow for security. Prospects could recuperate their investment if the solution didn’t deliver on the promise. It was the ultimate form of conditional purchase.

It was a risky move, but the team knew they were able to ship quality software and that this, in turn, would convince clients to sign on.

Cegelski’s team made every release a success and soon they were able to demonstrate the ROI of their solution. On average, it only took 55 days for clients to recuperate their investment.

They proved the value of their solution and removed the risk from the pilot by building trust and an history with their early customers.

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