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Should You Hunt or Farm?

One of the most frequently asked questions from business owners, I find, is how their sales force should be structured. Usually the question goes something like this: “Troy, what do you think of having ‘hunters’ and ‘farmers’ in your sales force, where the ‘hunter’ sells the account and the ‘farmer’ then manages it?” It’s a common question.

My answer is always the same. I dislike it. A lot. Whenever I see that arrangement in place, I see numerous problems. Low customer retention, high customer complaints, and higher than normal sales turnover always accompany this arrangement, and I’ll tell you why.

Think back to when you were a small child, and your parents left you somewhere for the first time (not with a close relative). Maybe it was a babysitter, maybe it was school, maybe it was a day camp, maybe it was day care. Think hard about how you felt. You probably felt a little abandoned, didn’t you? Sure you did. And it felt pretty bad.

Feelings of abandonment are one of the worst emotions we can undergo, yet that’s how customers feel anytime a salesperson ‘hands them off’ to a customer service person or account manager. “But wait, Troy,” some of you are saying. “Not at my company! My company does a clean handoff and my customers don’t feel that way.” No, you don’t – and yes, they do. Your ‘hunter’ has gone through whatever steps were necessary to build a relationship, trust, and commitment – and having done enough of that to get the deal, he sends the message that the customer really wasn’t all that important, after all; he needs to go sell someone else to keep making a living.

Buyer’s remorse is also a very powerful emotion – and the ‘handoff’ causes it to set in, many times before the first delivery is made. Is that the way you want your customer relationships to start? “That’s OK,” you’re saying, “My account managers can make up for it.” Maybe – but probably not. That’s because your account managers seldom have the quantity and quality of contact that the original ‘hunter’ had. For instance, many of these arrangements have a face-to-face ‘hunter’ and a phone-based ‘account manager.’

The second problem is the customer service issues that always arise during the handoff period. “But, but, but…your salesperson promised….” is a constant refrain from customers after the ‘handoff.’ I’ve seen many, many companies that operate this way and sales and service are seldom on the same page. That’s because sales and service are separate and not accountable to each other. I’ll never forget what a service manager said to me once: “The salesperson’s job is to sell the fantasy. The service person’s job is to sell reality.”

That kind of disconnect wouldn’t be possible if the original salesperson stayed in contact. First of all, if the problem is that salespeople have made inappropriate promises, they wouldn’t do it if they knew that they had to look the customer in the eye afterward. If the problem is that the service experience isn’t living up to the sales approach, that wouldn’t happen if the sales and service operations were under the same umbrella and the same person’s responsibility. Hence, you get high customer complaints and low customer retention.

High sales turnover also seems to be part and parcel of sales forces with this approach. Typically, I like to see annual sales turnover in the 10-20% range. Lower than this, and the company might be holding onto underperforming reps for too long; higher than this, the company is wasting money on churning salespeople.

Companies with the hunter/farmer system typically experience turnover in the 30-50% range or even higher (I know of one national Fortune 500 company that had 82% sales turnover last year with this model). That’s incredibly expensive – worse, it’s a waste of sales talent. The worst part is that both the hunters and farmers turn too much.

The Hunters turn because, eventually, nearly every salesperson burns out on a constant diet of prospecting. Yes, I’m a fan of prospecting – but if that’s all you’re doing, it gets tiresome. Worse, two ways that salespeople find gratification are eliminated if you’re a hunter. First, you never get to see the fruits of your labors; the long term relationship belongs to someone else. Second, referrals and testimonials aren’t part of your business development strategy. By the time the company earns a referral or testimonial, you’re forgotten and the Farmer is in charge.

Ironically, Farmers turn at a high rate as well. You might think that the farmer has the gravy train; being able to sell without prospecting sounds like fun, right? Not so much. The biggest reason for this is that the farmer has much less of an opportunity to grow his/her income; that’s in the Hunter’s bailiwick. Too, the service issues we discussed above fall into the farmer’s lap – and they become disenchanted, seek a better income elsewhere, and leave.

What I like to see is salespeople who are all-around players. The salesperson who can bring on new business, take care of it, and build relationships is a valuable salesperson indeed. My experience has shown me that there’s little difference, trait-wise, between the “hunter” and “farmer.” The difference is in the training and company culture. If your culture and training aren’t aligned with this reality of selling, maybe it’s time to take a new look at what you’re doing.

The Dark Side of Social Networking

I honestly don’t enjoy writing about social networking. That’s not because there aren’t lessons to be taught and learned (hence this article), but because social networking is one of those things that’s written about so much these days, any article can get lost in the white noise (much like the white noise of social networking itself). But, as you’ve probably learned, my life and experiences pretty much tell me what to write and when, and so it is with today’s article.

You see, in the last month, I’ve seen numerous instances of how not to use professional social networking, or how social networking can unintentionally shine a negative light on you and on your career.

We all know that social networking can create your ‘image.’ That’s a good thing, right? Maybe. One thing that social networking does, that other methods of image creation do not, is give immediate transparency. Social networking is like ringing a bell; once it’s rung, it can’t be un-rung. From time to time, when I read posts, I’m certain that some people wish that they could un-ring bells. So, here are some issues that I see in social networking:

Don’t post items that make you look crazy. You’re laughing right now – and so am I – but I’m serious. A few weeks ago, I granted an interview to a website that focuses on marketing and sales issues for car dealers. I’ll be the first to say that I’m pretty critical of car dealers and their sales practices. I earned the right to do so; I sold cars. I didn’t like their practices even when I sold cars, and unfortunately, experience has told me that my criticisms are still right on target.

In the interview, I referred to one practice as ‘idiotic and customer-unfriendly.’ Harsh, maybe, but it’s a remark that I stand by. Well, one used car dealer in Kentucky went NUTS. I began getting alerts from Twitter saying, “You have been mentioned in….” and I took a look. At first, there were several mentions of the interview – mostly positive. This, however, was not (You can follow me at @salesnuggets).

This guy went off the rails. He said that I must have failed at car sales, because no one ever leaves the car business unless they failed, that I myself must be an idiot (every time he mentioned that comment, he capitalized IDIOT), that I should be retrained, etc. Seriously, I was starting to wonder if he was going to be outside my front door some morning; we’re talking Fatal Attraction stuff. I actually ended up with some new followers because of what he posted.

So, what was my response? Nothing. When people are going nuts on social networking, the best response is no response, which brings up another tip. Don’t get in arguments and defend yourself. If someone posts a blatant lie about you (for instance, a customer says that you didn’t fulfill a promise when you did), it’s okay to post factual information – but don’t get dragged into a contest of opinions. I offended one car dealer. No big deal. Others were helped by what I said.

LinkedIn, in particular, offers a window into your professional soul. I just got one of those “Congratulations, your contact so-and-so has a new job!” Well, great…except. I’ve known this person since 2005. This is the eighth new job that this person has had since I’ve known him, and they’ve all been lateral moves. This is one final dark side to social networking: Social networking reflects the reality of your career over the long term, so your career had better be good. Of course, I know this person would have a story about every move. Everyone has a story. Instead of a story, seek stability.

I could, of course, post numerous other examples (such as the ‘professional writer’ who posted a LinkedIn article that was so full of spelling and grammatical errors to be nearly unreadable), but if I were going to give one piece of advice, it would be this: Think before you post. That won’t help my friend in the third example – but it would have greatly helped the one in the first. To be honest, it helped me to stay above the fray when he started posting, because my instinct was to respond.

The immediacy and the transparency of Twitter, Facebook, and LinkedIn allow us to do and post things that are unbecoming and sometimes damaging to us; don’t be that person.

How to Avoid Trashing Your Career

It’s always sad, but I see it frequently. I’ll get a resume’ from a job candidate (or one of my clients will) that has an all-too-familiar career pattern. A veteran sales professional is applying for a position, and taking a look at his resume’, I see that his career was once tied to the proverbial rocket. He had a list of progressively higher positions (usually with some promotions involved), and great accomplishments. But then….something happened.

“What” exactly happened isn’t always apparent. What is apparent is that something happened to knock the pins out from under the person, because after the progression mentioned previously is a regression, from job to job to job, usually with less income, shorter tenure, and less achievement at every stop. You can even envision the people hiring him for that job thinking, “Wow, I can’t believe I was able to hire someone this accomplished!” and then thinking six months later, “Okay, I get it now.” Usually, my writings are geared at helping the hiring managers to avoid hiring this person. Today, I’m going to take a different tack and help YOU avoid BEING that person.

You might think that my first piece of advice would be, “Don’t get fired.” That’s obvious, and many times, the event that knocked the pins out from under the person was a firing. Sorry to disappoint you, but I can’t give that advice. Getting fired can happen for any number of reasons; some of those reasons might be your fault and some of those reasons might be completely beyond your control. Ask me how I know.

Long term career success isn’t necessarily about avoiding mistakes and unfortunate events; it’s about how you recover from those events. Or, as they say, “It isn’t about avoiding the fall; it’s about getting up and keeping going.” Too many of the people that I referenced in the opening paragraph kept going in name only. In reality, they never recovered. Here’s how to recover.

Assess the situation honestly. Why did something bad really happen? If you got fired, did you deserve it? I know, I know, none of us have ever deserved it, right? Sometimes you didn’t – but sometimes you did. Again, ask me how I know. It’s easy to blame ‘corporate politics’ or ‘downsizing’ when things go bad – but were there certain behaviors you exhibited that caused you to be shown the exit? Now is the time for an honest self-assessment to see if there are behaviors that you must change to succeed. Now is the time to make those changes.

Rediscover your love of the game. Do you enjoy what you do? I mean, do you really enjoy it, or is it something that you just ended up doing? To succeed in sales, you must enjoy the activities involved – the sales calls, the conversations, etc. – or you will not succeed. Virtually every other management and professional level discipline is the same.One great way to trash your career is to keep doing something that you don’t like and that you’ve failed at because it’s “the appropriate level of your career.” For instance, if you’ve been fired as a sales manager, maybe now is the time to rethink whether you should be a manager or perhaps it’s time to be a salesperson again.

Market your abilities, not your experience. You’re going to go job-hunting again. That’s perfectly natural. When you do, there’s a crucial change in mindset that can make all the difference in the world in your success going forward – and that is to market your abilities and skills, not your experience. Marketing your experience is about resting on your laurels and your contact base, and it’s the cause of more failed hires than anything I’ve seen. “I can bring this size of Rolodex and these contacts” means that you’re living in the past. “I succeeded before because of these abilities, skills, actions, and activities” means that you’re ready to repeat your successes of the past – if not surpass them. The way you market yourself as a job candidate sets the tone for the expectations of your new company, as well as your own expectations of yourself.

Adapt your methods, but do what made you successful in the first place. In the movie Glengarry Glen Ross, there’s a scene that’s both poignant and pathetic. It’s the scene where Shelly (played by Jack Lemmon) is yelling at the unsympathetic sales manager (played by Kevin Spacey) that, although he’s failing now, he’ll succeed again because he’s been the top guy in the past. “And do you know how I did it?” he asks Spacey’s character. “COLD CALLING!” Then he begs for the “good leads.” I can never watch that movie without thinking, “If that’s the way you succeeded then, why not do it again now?” We all have to adapt and change with the times, but never forget the grit, determination, drive, and utter love for the chase that made you successful. Don’t just refer to past successes – relive them.

Finally, Make up your mind to succeed. This, quite frankly, is a step that applies to any career stage. Sometimes things get tough on jobs – and too many people these days cut and run when they do. Whether you’re a veteran who’s suddenly having to fight and claw as hard as you did when you were just starting out, or whether you’re just starting out, the key difference between success and failure is that successful people make up their mind that they are going to succeed – unsuccessful people don’t.

Even the best long term careers can have hiccups, and it’s how you react to hiccups that make the difference between having the kind of career you can be proud of, or working at the big box store just to pay the bills and reminiscing about the six figure success you had years ago.

Three Places Good Sales Go to Die

Three places good sales dieDo your sales die an early death?  Here’s how to avoid it.

With Memorial Day Weekend upon us, it’s time not only to grill burgers, go to sporting events, and open up the swimming pools, it’s time to honor the veterans who have given the ultimate sacrifice for our country.  Those brave men and women have made many things possible – including giving me the ability to sit here blogging on my laptop instead of digging a ditch somewhere.  I give a hearty “thank you” to each and every one of them.

I decided, in that spirit (and yes, it’s a huge stretch, but bear with me) to memorialize the places where good sales go to die.  In my career, I’ve seen many great salespeople open sales dialogues, have great conversations, and never get the business.  That’s when a good sale dies – and here are the three most common places and ways that good sales die.

  1. Never knowing the result.  The most common place a good sale dies is here, with a salesperson who never asks the right questions to understand the result that the buyer has in mind.  People don’t buy products.  They buy the result of using or owning that product. Unfortunately, too many salespeople never know the buyer’s desired result because they don’t ask what it is.  In fact, too many salespeople don’t really ask any substantive questions – they just ‘show up and throw up,’ giving the buyer a laundry list of specifications and features.  When you do that, you force the buyer to interpret those features and benefits into his/her own result – and many times, the buyer instead simply finds another salesperson or product.  Even a highly motivated buyer can have his purchasing momentum killed by a sales call that isn’t focused on his desired results and needs. Solution:  Ask plenty of results focused questions before presenting.

  2. The Chase Cycle.  We all know what this one looks like.  You have a buyer who appears to be motivated.  You’ve had a great sales call.  Maybe you’ve asked the right questions, made the right presentations, and gotten commitment to evaluate a proposal.  Then……the buyer goes silent.  And never comes back.  What in the heck just happened?  You call, you leave messages, and those messages are never returned.  That’s not good.  You just found yourself in the “Chase Cycle.”  The “Chase Cycle” happens when a sales communication ends on an open-ended promise to “get back with each other,” and one party doesn’t fulfill.  Think of your communications as a chain.  One link leads to the next link, and the easiest time to forge the next link is while you’re on the current link.  Solution:  End each sales conversation with a firm commitment, including time and place, for the next contact – and put it on each other’s calendars.

  3. No close.  I’ve maintained for most of my career that, done correctly, the close is the natural conclusion to the selling process.  I’ve maintained that because it’s true.   If you go through my “Sell Like You Mean It” sales training program, the unit on closing takes about 20 minutes – of a 16 hour program!  That doesn’t mean that the close itself is unimportant; it just means that the closing technique is unimportant.  Make no mistake, even in today’s world with today’s educated and informed buyers, the question that confirms the sale still needs to be asked.  The reason that salespeople don’t ask it is FEAR.  They’re afraid that they’ll offend the customer, that the customer will cut off the relationship, etc.  Nothing could be further from the truth.  After you offer a proposal, you owe it to yourself and to your customer to ask the closing question.  The proposal signifies that you and your customer have exchanged enough information for the customer to make a buying decision – so ask then.  Solution:  Never offer a proposal without asking for the business.

These, of course, aren’t the only places that good sales go to die – but they’re the most common, and if you can avoid them, you’ll increase your likelihood of winning business.  And you won’t have to “memorialize” as many lost sales.

Five Signals That You Have a Maximized Customer Relationship

I like CRM. If you’re a regular reader of this space, you know this; however, what you might not know is that I have another version of CRM. Instead of Customer Relationship Management, I prefer to think of Customer Relationship Maximization.

You see, too few salespeople really understand what a customer relationship really is. They think, “Hey, they buy from me – we have a relationship.” Not necessarily. They might just be an Occasional Buyer (they shop you every time) or a Habitual Buyer (they buy from you out of habit without really understanding why). A Maximized Relationship is what we should be shooting for, and below, here are the Five Signals That You Have a Maximized Customer Relationship.

  1. You can make mistakes and still keep the business. There’s really no larger indicator that you have a real customer relationship than this one. Mistakes happen. That’s because people are imperfect – yes, even your humble author. In fact, I had such a meeting today. I was meeting with a client to discuss a particular service offering that hadn’t gone as well as it could have. IN the midst of the meeting, my client gave me the highest compliment that they could: “Troy, regardless, we want you to continue to be involved here. You’ve been good for us and to us.” Mistakes happen. If one mistake costs you the business, you didn’t have a real relationship.
  2. They buy most of what they need from you. This is actually a bit of a revision from my contention of the past. I used to say that you have a maximized customer relationship if they bought everything from you that they could buy. I’ve backed off that to a certain extent. Today, I like to see at least a 75% market share as a maximized relationship, simply because customers like to diversify – few buyers these days are willing to put all their eggs in one basket, no matter how good you are. That doesn’t mean that you shouldn’t always be shooting for 100% market share – you should – but it does recognize that sometimes it just isn’t possible.
  3. You have multiple contacts. This is more important now than ever. Good customer relationships require multiple contacts. The reason is simple – employees are more and more mobile, and stints at jobs get shorter and shorter. If you put all your relationship eggs in one basket by having a single contact, that means that when your contact changes jobs, you’re back to square one and selling on an even keel with your non-incumbent competitors. In building your relationships, go High, Wide, and Deep. “High” means as high on the company organization chart as you can get. “Wide” means many contacts. And “Deep” means that your contacts have more than a superficial relationship with you.
  4. They give you referrals. Referrals are one of the greatest indicators of a maximized customer relationship. A referral is an expression of trust. When your customer refers you, they are saying that they trust you so much that they are willing to place their other relationships in your hands. It’s also an expression that your customer cares about you, your business, and your continued prosperity. I’ve said it before and I’ll say it again – your best customers want you to prosper. You earn that level of trust and confidence; it’s not given to you. But when it’s earned, it’s a wonderful thing.
  5. They evangelize for you. What I mean by “evangelize” is that they are willing to give testimonials, and serve as a reference when necessary. One of the toughest parts of selling a new customer is offering proof that your promises aren’t just empty words. Testimonials do this – they allow new customers to see you through the eyes of happy current customers, and in so doing, they are the most valuable sales tool that you have.

When you evaluate your customer relationships, think of the above five touchpoints. Chances are that most of your relationships won’t measure up. That’s okay; it gives you something to work toward. Get strategic. With each of your key customers, pick one of the above signals (where you are deficient) and work toward improving or achieving the signal on each call. When one signal is achieved, work on the next. It’s likely that you’ll find that one signal achieves another (for instance, the customer that will give you a testimonial will also likely give a referral or tolerate a mistake). Make no mistake – a Maximized customer relationship is money.

Social Media – I’m Taking My Stand

First, a warning – this particular article is long enough that it will be split into three installments. So, if you have a short attention span, this is notice that you’ll need to make sure to read the HotSheet the next two weeks to get the full story. These articles will be a little wordy; I’m laying out a complete case here. And with that, let’s dive in.

I have commented on Online Social Networking numerous times within this space, as well as in live events. However, until now, I’ve never really laid out where and how I feel Social Networking should fall within a comprehensive sales strategy, and more importantly – where it should NOT fall. That’s what I’m going to do here. I feel almost forced into making this declaration, but it’s time that someone combats the increasing level of hysteria and even silliness surrounding social media and online social networking.

That silliness has reached its height with recent writings by the man that I consider to be the top sales trainer in the USA, Jeffrey Gitomer. Now, don’t waste your time e-mailing me about how much more famous he is, how much more he makes, etc. than I do. I’m painfully aware. That said, I think Jeffrey (and many other trainers, he’s just the top of the heap) have gone off the reservation. His latest stance (summarized) is that, “Social networking is today’s cold call; stop cold calling and start Tweeting.”

Nonsense. In fact, let me go further: If you are a professional Business to Business Salesperson, and you take that advice as written, you are committing professional suicide. Period.

First of all, let’s define Online Social Networking. Online Social networking is the communication with others, through sites such as LinkedIn, Twitter, Facebook, YouTube, and other such sites, with the objective of generating business interest. Online Social Networking – which I will hereafter refer to as OSN – can be a good piece of a selling strategy, depending on what you are selling. For most business to business salespeople, it is not a strategy in and of itself.

Now, let’s talk about why my stance – which will surely get me criticized as a technophobe or some other nonsense – is the correct one. For most of us, one of the big pieces of appeal to a selling career is the fact that you can control your income; i.e. through your own efforts, you can increase your income by increasing effort and achievement. There’s a basic equation that expresses this, which I teach in my sales training courses:

(Quantity of sales activity) x (Quality of sales activity) = RESULTS.

In other words, the more you do it, and the better you are at it, the more results you get. For most sales environments, we express that in terms of ratios – i.e. X amount of calls leads to X amount of appointments, which leads to X amount of proposals, to X amount of sales. Even Jeffrey still recognizes this principle; his common putdown to those who believe in cold prospecting is, “Go ahead and make 100 cold calls. You’ll sell one of them.” What doesn’t follow here is the crucial element in my argument against OSN as a primary selling strategy.

There are no ratios with OSN. No one can tell me (or you) how many Tweets lead to an appointment, how many “likes” on Facebook leads to a Proposal, or how many videos on YouTube lead to a sale.  The basic principle and appeal of professional selling – controllability of achievement and income – is gone if you rely on OSN as a primary selling strategy.

So why are people preaching it so hard? Simple – it’s marketable as all get out to salespeople. The reason is simple: Ever since cold prospecting has existed as a method of new business generation, there have been (a lot of) salespeople who disliked it, and looked for a way around it – a “magic button” to new prospects, if you will. And there have been trainers who have capitalized on this tendency by claiming that they had the “magic button.” They’ve been wrong in most cases, and continue to be. There’s no rejection when you Tweet; there’s no hang-up when you put up a Facebook page. Hence, there’s a ton of appeal to salespeople about OSN.

Now, I’m not totally against OSN. This Blog is a form of OSN, and it’s been great for reputation-building for the past six years. In fact, that’s where OSN should fall for most salespeople – as a reputation builder. And before this sequence of articles is over, we’ll talk about doing just that.

And with that said, we’ve used up this space for this week. With everything that I said, you should remember that I do believe that OSN plays a part in the business-building activities of most salespeople. We’ll talk about that in upcoming weeks. Next week, we’ll move into live face-to-face networking, which should be your second priority. After that, we’ll get into OSN and how to use it.

Face to Face Networking as a Sales Strategy

Face to Face networking is, or should be, a salesperson’s second priority after real prospecting efforts.  But there’s a lot that salespeople don’t know…

After last week’s article, hopefully you recognize where I stand in terms of business building activities. When building your business and/or territory by adding new customers, your first priority should be active data-driven prospecting activities (i.e. telephone cold calling). Your second priority should be live, in-person networking efforts. Your third should be Online Social Networking, or OSN. Today, we’ll talk about live, in person networking efforts.

First of all, let’s define “Networking.” Networking is the process of meeting people and forming relationships with a defined result in mind. What separates “networking” from “socializing” is the goal; i.e. the defined result. In our case, the defined result is that we want to find potential customers. But what kind? For that, we need to understand that there are a few levels of contacts we can make (through any of our efforts), and that those levels of contact have different levels of desirability. We’ll rate that desirability by Buying Power (i.e. the cash availability to make purchases) and Buying Authority (i.e. the level of ability to make a purchasing decision independently). Not all contacts rank the same, and it’s important to understand which is better. So, here are the basic levels:

Level One: Implementers: These are the foot soldiers of the business world. Look in the mirror, Champ – if you’re a salesperson, this is probably you. It’s also office clerks, maintenance technicians, etc.   Implementers are the “doers” of the business world. They are also, not coincidentally, the most commonly available contacts in a networking environment. The problem is, at least in a B2B environment, Implementers typically have low Buying Power and even lower Buying Authority. So if your main contacts are Implementers, your hope of making a sale is wrapped up in your Implementers’ ability and willingness to introduce you up a level.

Level Two: Influencers: Influencers are mainly middle managers, department heads, and other people who may have high Buying Power (departmental budgets) but low Buying Authority (they need to get the approval of others before making a purchase). If you’re hearing “I have to ask my boss”or “It’s not in the budget” a lot, you’re selling primarily to Level Two contacts. Single-employee entrepreneurs can also fall in as a Level Two contact, since they have high Buying Authority (nobody else to ask), but lower Buying Power (low cash reserves).

Level Three: Decision Makers: Decision Makers are Presidents, CEO’s, VP’s, Owners, and other C-level people. They are the people in the building who have high Buying Power (i.e. money to spend) as well as high Buying Authority (they don’t need to ask anyone before cutting the check). These are the most beneficial contacts for you to be dealing with. They are also the least common contacts for you to deal with. Why? Lots of reasons, but fear of approaching people at this level is right up there near the top. There are also levels above Level Three, but they are characterized by size of checkbook rather than authority.

Ideally, you’d all rather be dealing with Level Three and above, right? So why don’t you? Simple answers – your own fear and the fact that the deck is stacked against you.

Fear comes into play in your own cold calling approaches. Many salespeople (you?) get scared to call the person in the corner office, thinking they will be “too busy” or are “too important” to talk to you. Most of the time, they’re not; most of the time, other salespeople are just as scared as you, and the field is clear.

The other reason is that, in networking, the deck tends to be stacked against you. Remember the old saying, “Birds of a feather flock together?” Well, it’s true – more importantly, they network together. Go to any Chamber event. What percentage are Level Ones? Probably 70% or more. Level Two is another 20%, and if you’re LUCKY, maybe 10% will be Level Threes. That’s because middle managers and owners have their own networking venues, and many of those venues don’t allow salespeople to join. So how do you get to network with Level Threes? Here are a few ways:

  1. Cultivate a strong relationship with a Level One who has the ability and the willingness to introduce you to his/her own Level Three contacts.

  2. Analyze your own contacts and customers. Do you have any Level Threes? If so, start by cultivating relationships with them, and work for introductions.

  3.  If you don’t have any Level Threes, get some! Start by cold calling on Level Threes, sell them, impress them, and then network through them.

Well, that’s about all the space we have for this article. Next week, we’ll be back to talking about OSN, and this week’s column will probably get more meaningful to you.

Social Media – The How To

Now that I’ve established where Online Social Networking should fit in the sales priority list (below real prospecting and real face-to-face networking), let’s get into the “how” of OSN.

The first thing you need to do is set some meaningful time constraints on your OSN program. I know from experience that even the most well-meaning salesperson can quickly segue from “business networking” to “surfing the Web.” Without some discipline (either self enforced or externally enforced), the Web can become a huge barrier to productivity. Don’t let that be you!

Once you’ve established your time constraints, now you need to prioritize OSN sites. Remember the levels of contact that we discussed last week? If you missed that one, here they are:

Level One: Implementers: These are the foot soldiers of the business world. Look in the mirror, Champ – if you’re a salesperson, this is probably you. It’s also office clerks, maintenance technicians, etc. Implementers are the “doers” of the business world.

Level Two: Influencers: Influencers are mainly middle managers, department heads, and other people who may have high Buying Power (departmental budgets) but low Buying Authority (they need to get the approval of others before making a purchase).

Level Three: Decision Makers: Decision Makers are Presidents, CEO’s, VP’s, Owners, and other C-level people. They are the people in the building who have high Buying Power (i.e. money to spend) as well as high Buying Authority (they don’t need to ask anyone before cutting the check).

First, figure out what level your desired contacts are. Then, to evaluate each OSN platform, you should ask yourself these questions:

What is the likelihood that my targeted contacts will be using this site? (and, therefore, receiving your messages)

What is the likelihood that my targeted contacts will be motivated into a buying process by something that I do on this site? Remember, Motivation is the first step of the buying process; if you can’t generate Motivation, you can’t generate sales.

The four main sites/platforms that should frame these questions are: LinkedIn, Facebook (business pages), Twitter, and YouTube. Now, imagine your targeted contacts investing time in those sites. What’s your likelihood of gaining a win? I’m not going to play out every possible scenario on these sites and contact levels, but I’m sure you can do this for yourself. However, whichever site/platform you choose, there is one rule:

Contribute value. By that, I mean post meaningful content. Tell people how to do things, apprise of new developments, give tips, help people do their jobs better. If you don’t, you will lose your viewers. For that matter, make sure that EVERY post contributes some sort of content. Nobody cares whether you have meatloaf for dinner – but the first time you post that you did, serious people will tune out of your feeds. Meaningful content builds your sales credibility.

Of course, there are other forms of OSN that get a lot less press than the above sites, but might be more effective at communicating a business message. They are:

Blogs: We all know what blogs are; do you have one? Blogs allow long-form content that can get in depth on how to do things, and contribute value in all the other ways I noted above. This, to my way of thinking, is the major weakness of Twitter; the 140 character format doesn’t allow anything but lowest-common-denominator communication. Blogs can be what you want them to be, and they can archive your content. I strongly recommend them. But you must follow the rules of good written sales communication.

Message Boards and Forums: Every business discipline has online message boards. These can be excellent if you get the right forum; this is where businesspeople go for advice on solving problems. If you can provide that advice, you become expert in your field. The danger here is “Spamming” the forum; I’ve seen many message boards die because its members exclusively used them to broadcast sales messages. Don’t be that person; be a person of interest and advice.

E-newsletters: As you can probably guess, I’m a fan of E-newsletters. I’ve been doing mine for six years, and it continues to be my best form of social networking. This little HotSheet started with four readers six years ago. Now I’m approaching 20,000 readers worldwide, and it continues to be a great tool for building my business. Can you establish one? Platforms like Constant Contact (this one) are cheap and easy to use. I’ve been offered a lot of different platforms over the years. I stick with Constant Contact because it works for me.

Above all, here is the key to remember. Online Social Networking builds reputations; it is not a direct path to building your customer base. If you use OSN effectively, over time, you will get inquiries and customers from your efforts. These inquiries and customers will likely not be regular and predictable; but they will be a nice supplement to your ongoing prospecting efforts. The bottom line?

Good salespeople do it all. OSN isn’t magic; it is just another tool in the toolbox.

How to Screw Up a Cold Call

Well, let’s get back to good, old-fashioned yet still surprisingly effective prospecting, shall we?  This week, we’re going to talk specifically about the teleprospecting phone call (which I refer to as a cold call; in my opinion the walk-in cold call may not be dead, but it’s wheezing and sick).  I’ve had quite a run of BEING cold called in the last week, and from that comes this little compendium of ways to completely screw up a cold call.  If I’m not being clear enough, don’t do this stuff!  I present it as a cautionary tale.

  1. The “Person Who” call:  “Hi, Mr. Harrison, I’m calling to talk to the person who handles your telephone service.”  Well, now, I’m not a very big company, and I handle my own telephone service.  Of course, when the person asks for the “person who,” my response is always, “he’s not here right now.”  When youcall and ask for the “person who” buys whatever you’re selling, three things are always true:  First, you haven’t done any homework to learn who the key managers are in the company.  Second, you’re willing to settle for someone low on the totem pole, and aren’t trying to get to the people who can actually say “yes.”  Third, the receptionist is going to send you to the lowest possible person they can, ensuring you hear “I have to talk to my boss” as much as possible.  Do a little research and ask for a specific person, and your success rates go up significantly.
  2. “How are YOU today?”  If there’s anything I hate with a passion, whether it’s someone calling me or listening to a salesperson call, it’s this:  asking someone, whom you don’t know, “How are you today?”  It’s a lazy calling habit that announces you as a pesky salesperson who can’t think of anything better to say.  It immediately puts prospects on the defensive and makes them wish that they were anywhere else.  When a salesperson I don’t know calls me and asks how I am today, I tell them I have explosive diarrhea.  The calls usually don’t last long after that.
  3. “I’m not trying to sell you anything.”  This is another fear-driven chestnut that is supposed to make prospects more comfortable.  In truth, it does the opposite – because you’re lying to them.  Heck yes, you’re trying to sell something!  Why else would you call?  Salespeople say this because they believe their time is valueless to both themselves and the customer; if you feel this way, either convince yourself of your value or change jobs.
  4. Inappropriate Prospects Called. This can be a close relative of #1, in that both are a failure to do homework.  If you’re selling payroll services, for instance, why are you calling one-person businesses?  I see this all the time.  There are simply too many good resources out there, from ReferenceUSA to Hoover’s to D&B to Jigsaw, to call inappropriate prospects.  Doing so means that you haven’t taken the time to learn these resources.  Take away:  Go to your library, get a card and PIN, and then ask the reference clerk to teach you to use ReferenceUSA.  It’s a business database that’s both complete and FREE.  You can afford free, right?
  5. Failure to contribute value.  This usually manifests itself in the call that begins, “I’d like to talk to you about your ___________ service.”  That’s a call that’s a dead player 9 out of 10 times.  Instead, have an idea and contribute value!  “Mr. Harrison, we’ve been helping companies like yours make more money and reduce operational time through (your stuff) for the last 10 years.”  That’s a statement that contributes VALUE into the call.
  6. Failure to engage.  As you can see above, I’m a fan of showing value immediately.  Past that, you’d better ENGAGE them by asking a question or three to get them involved in the conversation. What are they doing now?  What do they like/dislike about it?  You get the idea.  And finally:
  7. Selling the product and not the appointment.  Remember, all you’re selling on the initial phone call is the APPOINTMENT – the value of spending time with you.  Crossing that line and getting into serious feature/benefit discussion of product or service only makes it easier for the prospect to cut you off without giving you the opportunity to assess needs and present recommendations – which, after all, is the object of the call.

If you’re doing any of these things, the only advice I can give you is to STOP, redo your technique, and try again.  You’ll increase your odds and your appointments – which, after all, is what we are shooting for.