The Real Reason Deals Collapse Before Contract Signature. And How to Fix It
The deal closed.
Your rep is celebrating.
You’re updating the forecast.
And the deal is about to fall apart.
Because nobody protected it.
I was working with a professional services firm last year. About $22M in revenue. They were bringing on what would have been their largest client. $180K engagement.
The prospect said yes. Verbally committed. Asked them to send the contract.
Rep sent it over. Felt great about it.
Two weeks later, the prospect went dark.
Another week. Nothing.
Finally got them on the phone. “We’ve decided to stay with our current provider.”
What happened?
The rep never protected the sale.
He got the yes. He sent the contract. He assumed it was done.
But between yes and signed, the current provider found out they were leaving. Came back with promises to fix everything. Reminded them of the 8-year relationship. Offered a discount.
And the prospect folded.
This happens more than you would think. Especially in businesses where you’re asking someone to fire their current vendor.
Insurance. Benefits. Professional services. Tech. Any world where switching has friction.
Your rep can run a perfect sales process. Build a compelling case. Get verbal commitment.
And still lose the deal in the final 10 yards.
Because they didn’t do lock it up.
What The Lock Up Is
The lock up is the conversation you have after they say yes but before they’ve actually done anything.
It’s where you prepare them for what’s about to happen next.
Not logistics. Not paperwork.
The pressure they’re going to feel to stay put.
Here’s what it sounds like.
Prospect says: “Alright, let’s move forward. Send me the paperwork.”
Most reps: “Great, I’ll get that over to you today. Really excited to work together.”
Then they send the contract and wait.
Wrong move.
The right move is this.
“That’s great. Before I send this over, I want to walk through what happens next. When you tell your current agent you’re making a change, what do you think they’re going to do?”
Prospect usually pauses. “I don’t know. Probably try to keep us.”
“Right. So if you were losing a client you’ve worked with for five years, what would you do?”
Now they’re thinking about it.
“I’d probably call them. Make sure they know we care about them. See if we can fix whatever went wrong.”
“Exactly. So when your agent calls you and reminds you of the relationship you’ve had, and promises to fix the issues you’ve been dealing with, and maybe even offers to cut your premium… what are you going to say?”
This is the lock up.
You’re forcing them to think through the moment before it happens.
Because if they don’t think about it now, they’ll fold when it happens.
Why Reps Don’t Do This
Most reps avoid the lock up for one of three reasons.
First, they don’t want to plant doubt.
They think if they bring up the current provider, the prospect might second-guess the decision.
So they just stay quiet and hope the contract comes back signed.
But here’s the thing. The doubt is already there. You’re not creating it. You’re surfacing it so you can deal with it.
Second, they’re afraid of being pushy.
They got the yes. Asking these questions feels like they’re questioning the prospect’s commitment.
But you’re not questioning it. You’re protecting it.
Third, they don’t know it’s a thing.
Nobody taught them. They’ve never seen it done. So they think the sale ends when the prospect says yes.
It doesn’t.
The sale ends when the contract is signed and the first payment clears.
What Actually Happens Without It
I’ll give you another example.
A rep in the risk management space. Been in the business over a decade. Good at what he does.
Runs a great discovery call with a prospect. Builds the case. Shows them where their current coverage has gaps. Prospect is convinced.
“Alright, let’s do this. What do you need from me?”
Rep sends over the application. Prospect fills it out. Everything looks good.
Then the current agent finds out.
Shows up at the prospect’s office unannounced. Brings coffee and donuts for the team. Sits down with the decision maker.
“Hey, I heard you’re looking at other options. I wish you’d called me first. We’ve been working together for six years. If there’s an issue, I want to fix it.”
Prospect feels guilty. They like the current agent. He’s a good guy.
“Yeah, we’re just exploring options. Premiums keep going up.”
“I get it. Let me go back and see what I can do. Give me a week.”
Prospect calls the new rep. “Hey, our current guy is going to see if he can work something out. Let’s hold off for now.”
Deal dead.
Could have been prevented with five minutes of lock up.
“When your current agent finds out you’re switching, he’s going to show up. Probably unannounced. He’s going to remind you of the relationship. He’s going to ask for a chance to fix it. What are you going to tell him?”
If the prospect can’t answer that question, they’re not ready to move forward.
How To Do It
The lock up has three parts.
Part 1: Surface the pressure
Ask them what’s going to happen when they tell their current provider.
Don’t tell them. Ask them.
Let them walk through it.
“When you call them and say you’re making a change, what do you think they’ll do?”
“When they offer to cut price or fix the service issues, what are you going to say?”
“When they remind you how long you’ve been working together, how are you going to handle that?”
You’re not being negative. You’re being realistic.
Part 2: Let them commit again
Once they’ve thought through the pressure, they need to recommit.
“So knowing that’s going to happen, are you still good moving forward?”
If they hesitate, you’ve got a problem. And it’s better to find out now than after you’ve sent the contract.
If they say yes, they’ve now committed twice. Once before thinking about the pressure. Once after.
That makes it harder for them to fold later.
Part 3: Give them the language
Tell them exactly what to say when the moment comes.
“Here’s what I’d recommend. When your current agent calls, just be direct. ‘We’ve made a decision. We’re moving forward with someone else. I appreciate everything you’ve done, but this is what’s best for us right now.'”
You’re not writing a script for them. You’re giving them a framework so they don’t freeze up when it happens.
Most people fold because they don’t know what to say. So they default to “let me think about it” or “let’s see what you can do.”
Give them the language and they’re far more likely to use it.
The Objection You’ll Hear
“But won’t this make them think I don’t trust them?”
No.
It makes them think you’ve done this before and you know what’s about to happen.
Which you have. And you do.
I’ve never had a prospect get upset when I walk them through the lock up. Most of them appreciate it.
Because deep down, they know the current provider is going to fight to keep them. And they’re not sure how to handle it.
You’re helping them think it through.
That’s not distrust. That’s partnership.
When To Do It
The lock up happens immediately after they say yes.
Not later that day. Not in a follow-up email. Right then.
Because that’s when they’re most committed. That’s when the case you built is freshest in their mind.
If you wait, doubt creeps in. They start second-guessing. They talk to someone who tells them to slow down.
Do it in the moment.
What This Does For You
The lock up does three things.
First, it surfaces weak commitments early.
If they can’t answer your questions, they’re not actually committed. And you need to know that now.
Better to find out in the meeting than after you’ve sent the contract and burned two weeks waiting.
Second, it prepares them for the fight.
They know what’s coming. They’ve thought through how to handle it. They’re not going to be blindsided.
Third, it increases your close rate.
Deals that make it through the lock up close at a much higher rate than deals that don’t.
Because you’ve eliminated the biggest threat to the deal before it becomes a problem.
The Transformation Story
I was working with a consultant in the employee benefits space. He’d been in the business nearly a decade. Good producer. But he kept losing deals at the end.
Prospect would commit. He’d send the proposal. Then they’d go back to their current broker.
Happened multiple times in six months.
We started doing lock up on every deal.
“When you tell your current broker you’re making a change, what’s going to happen?”
Prospect: “I don’t know. Probably not much.”
“Really? You’ve been with them for five years and you’re a $400K account. You don’t think they’re going to fight for you?”
Prospect pauses. “Yeah, I guess they will.”
“So when they do, what are you going to say?”
This one question changed everything.
Some prospects couldn’t answer. They’d say “I don’t know” or “I’ll have to think about it.”
Those were the deals he would have lost anyway. But now he knew it upfront instead of wasting two weeks.
The ones who could answer… “I’ll tell them we’ve already made a decision”… those deals closed.
His close rate went from 35% to 58% in four months.
Not because he got better at discovery or presenting. Because he stopped losing deals in the final stretch.
The Mistake Most People Make
The biggest mistake is thinking the lock up is about overcoming objections.
It’s not.
You’re not trying to talk them into anything. You already did that.
You’re preparing them for what’s about to happen so they don’t get talked out of it.
Big difference.
Here’s What This Means For You
If your team is losing deals late in the process, this is probably why.
They’re not protecting what they’ve won.
They get the yes. They celebrate. They move on.
And the deal falls apart because someone else came in and reminded the prospect why they should stay.
Start doing lock ups this week.
After every verbal commitment, walk them through what happens next.
What’s their current provider going to do when they find out?
What are they going to say when that happens?
Are they still committed knowing that pressure is coming?
Five minutes. That’s all it takes.
And it will save you from losing deals you should have won.
Questions our sales training programs? Email me at adam@thenorthwoodgrp.com.
