Article

Product Experiment: Letter of Intent, What it is, How it Works, Examples

Learning Loop Free Intermediate

For B2B founders, a signed letter of intent is the cheapest way to turn "this sounds useful" into a costly commitment before you write any code. This piece lays out the LOI as one rung on a commitment ladder (say, LOI, contract, payment) and is honest that an LOI is a signal, not a guarantee. It gives you concrete language and structure rather than just theory.

• An LOI asks a prospect to put their name and intent on paper, which costs them more than polite enthusiasm and filters out empty interest.
• Treat it as one step on a ladder toward an actual paid contract, not proof on its own.
• In B2B you need fewer but deeper signals: ten companies willing to sign beats a hundred landing-page clicks.