SalesCourse.

CHAPTERS.

1. Defining sales and marketing. 2. Sales steps. 2.1. Preparation. 2.2. Presentation 2.3. Post-Analysis. 3. Learn everything about sales meetings. 4. Clients and Customers. 5. Learn all about calling your prospects. 6. How to make a winning SalesBrochure. 7. Learn to make the best SalesLetters. 8. Negotiating. 9. Learn how-to recruit the best SalesPeople. 10. Motivate your sales team. 11. CyberSales. 12. Sales HowTos and rules. 13. Learn everything about SalesLeadership. 14. Forecasting your SalesRevenue. 15. How to Price your product or service. 16. Your Dayly&Yearly SalesPlan. 17. SalesStrategies. 18. SalesTips.

1. Defining Sales and Marketing.

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Build your business with the right combination of the two Q: What's the difference between marketing and sales, and how can I integrate the two to build my business? A: This is an important question, because a carefully crafted combination of sales and marketing is vital for successful business growth. "Selling" or making sales consists of interpersonal interactionthe one-on-one meetings, telephone calls and networkingthat you engage in with prospects and customers. The term "marketing" encompasses programs businesses use to reach and persuade prospects, including advertising, public relations, direct mail and more. You'll often see the terms used incorrectly, such as when a business advertises for a marketing professional but is really looking for someone to make telephone calls, meet with prospects and close sales. Did you know it takes approximately eight contacts or more with a single prospect before the average sale is closed? That's because prospects normally move through the sales cycle from cold to warm, and then finally hotwhere they're ready to "close" and become clients or customers. Imagine the prospects in your database moving through your sales cycle the way hands on a clock travel around the dial from noon to close at midnight. The coldest prospects are situated from 12 to about 3 on the dial. They may recognize your company name but know little or nothing more about you. Warm prospects are located in the middle of the dialfrom 3 to about 8they're familiar with your company and what it has to offer, but they're not ready to close. Your hottest prospects, who have come to you either by referral or moved through your sales cycle, are located between 8 and midnightthe point at which they'll become customers. Throughout the sales cycle, it will take multiple contacts using both sales and marketing to move prospects to the next level. To build a successful business, you must develop a program that combines sales and marketing and reaches out to prospects in all three stagescold, warm or hoton an ongoing basis. Entrepreneurs often get into trouble by choosing only those tactics with which they're most comfortable. For example, someone who is inherently shy may forgo important sales tactics, such as networking, and rely solely on impersonal marketing programs. On the other hand, a more outgoing entrepreneur may spend countless hours making cold contacts at networking functions but fail to move prospects through the sales cycle due to lack of ongoing marketing support. To avoid this trap, divide your prospect database into cold, warm and hot prospects. Then, impartially identify the best tactics for reaching and motivating each group. Sales tactics that help you reach out to cold prospects include networking, cold-calling and trade show participation, while cold marketing tactics are advertising, public relations, direct mail, seminars, special promotions and having a Web site. To reach warm prospects using sales tactics, your business may rely on follow-up calls, meetings, sales letters and literature, e-mail or more networking. To reach them through marketing tactics, select from advertising, PR and direct mail, plus electronic newsletters and broadcast faxes. Closing sales generally requires adding "personal heat," either one-on-one or on the telephone, whether it's to make a presentation or present a proposal, estimate or contract. Rather than avoid vital tactics with which you're less comfortable, such as cold-calling or public relations, take the opportunity to brush up on your skills or bring in the proper talent by teaming or partnering, subcontracting, or hiring. Start by choosing two sales and two marketing tactics, and plot all the activities it will take to carry them out. The key is to be realistic and not go overboard. It's important to create a sales and marketing plan that includes a combination of tactics you can engage in year-round to support the growth of your business.

2. SALES STEPS.

2.1. PREPARATION. 2.1.1. Blowing Away Your Old Sales Records

Summary Create a to-do list that can lead you to your objective! Be descriptive about your standards; they must be measurable! Hold yourself to higher standards! Want a new route to the top? Here is a simple exercise you can do to see exactly how objectives and standards work together. Thousands of people have completed this exercise in my seminars and have generated remarkable results. One participant said, "I now realize I have more control over my sales than I thought I did." "I'm mad," said another salesperson. "If I had been doing the things I already know I need to do, I would have been making more money all along." It requires seven minutes of silence on your part, and a little bit of thinking and note taking. These will be the most profitable seven minutes you can spend today, so do it now. - Determine Your objective Pick a number that represents a significant increase in your sales. That's your new objective. Then decide on a time frame; you may want to consider an entire quarter or even a full year. - Make a List Enter these numbers on a worksheet, and then list 20 things you must do to increase your sales by that number in the time frame you've indicated. These will be your new standards. By listing 20 ideas instead of two or three, you are telling your brain to go to work for you and think beyond the obvious and easy answers. You have your new objective -- the dollar figure -- and you have a list of 20 ideas to help you achieve that goal. You've just started the process of setting higher standards for yourself. - Set Measurable Goals You're off to a good start, but chances are your standards aren't quite up to my standards just yet. Let me guess at a few things you wrote down. A typical list looks like this the first time through: 1. Become better organized. 2. Do more prospecting. 3. Ask for more referrals. 4. Write better proposals. 5. Ask for more money. These ideas are noble but hardly measurable. They are frail wishes instead of solid standards. Let's work with the list you created to make sure you have measurable indicators of performance. You must define what "more" means and what "better" looks like. "Become better organized" is a wish unless you can tell when you become better organized. You need to rewrite it as a quality, quantity, timeliness and/or cost standard. What would "become better organized" look like if you actually got better organized? Here are some possibilities: Take 15 minutes to plan and prioritize my to-do list (timeliness standard). 5

Keep one project on my desk at a time (quantity standard). Schedule a one-hour appointment with myself daily to work on a priority (quality and timeliness). Invest $1,500 in a new laptop computer and a sales tracking software program, and have it up and running in 60 days (cost, timeliness and quality standards).

At the end of the day, assess whether you worked to achieve those standards. If you did, you are better organized, and you know why. If you only took 10 minutes to plan, there is a gap between the standard and your actual performance. If your actual performance falls short of the standard, you have a gap. By closing the gap, you will get your performance back to the standard you set for yourself. To get started, pick the top seven ideas you came up with, and start implementing one new standard per week over the next seven weeks.

2.1.2 Coaching for Impact A Strategy for Using Newly Learned Skills in the Field
Summary Practice makes perfect when learning new skills. Managers must take an active role post-implementation. Research indicates that salespeople who attend training suffer an 87 percent loss of skills learned within one month of the training event. This leads one to the logical conclusion that training alone does not bring about the kind of sales performance improvement expected by a company implementing a behavior change process. Neil Rackham, founder of Huthwaite, Inc., has conducted studies that confirm the premise that one extremely effective way to truly impact sales effectiveness is for sales managers to make a commitment to coach their reps. Salespeople learn skills in the classroom that they don't always transfer to the real world, mostly because knowledge and skills are different, and require different training methods. Knowledge can be taught in the classroom effectively and relatively inexpensively. Skills can be simulated in the classroom, but repeated practice is necessary to truly embrace a new skill. Managers who systematically coach skills immediately following training can dramatically improve the skill retention of their salespeople. It helps for the manager to be aligned with the outcomes of the change initiative so that he or she is bought-in to the process and is ready to take an active role post-implementation. By definition, the use of a new skill is awkward and uncomfortable; you are asking a salesperson to try something entirely different that feels very foreign, and can shake his or her self-confidence. By incorporating newly learned skills during a sales call, the seller is not going to see immediate results, and will often abandon the recently acquired skills in favor of what feels comfortable. Effective coaching eases sellers through this phase because ultimately, if they continue with the newly learned behavior, the skill will feel more natural and will improve performance. When the new skills bring results, they become self-reinforcing. Coaching can vastly improve the development of sales force skills and increase the return on training investment. It is a way to motivate and retain salespeople that has bottom line results. By focusing on managers coaching salespeople, companies will see the greatest return on investment for each training dollar spent. Are you coaching for sales effectiveness?

2.1.3. Getting in to See the Decision Maker

Summary The gatekeeper is gone. Set yourself apart to get noticed. 6

 Personalized snail mail is the way to go. Early in my sales training career, I used to do about an hour on how to work with gatekeepers. Today, you no longer talk to live gatekeepers. Instead, you go straight into the prospect's voicemail system. Polite, patient executives who would never think of hanging up on you feel nothing when they delete your voicemail after one sentence. The typical businessperson has 170 interactions (or interruptions) per day. And, according to time management guru David Allen, has a backlog of 300 to 400 hours of unfinished work. Email, voicemail, faxes, scheduled meetings and unscheduled ("got-a-minute?") meetings mean that your prospect is constantly barraged by anyone and everyone. Here are three ideas that will help you get in to see anyone. Approach 1: Cartoons to Break the Ice One of my colleagues uses a cartoon seeding system. Bud clips cartoons with people's names in them. For example, he is constantly on the look out for a cartoon with "Chris" in it. Whenever he finds a cartoon with a name in it, he files it. On Saturday morning, he gets out his Rolodex and his file folder full of cartoons and sends off 10 personal notes, a cartoon and a business card. The personal note is usually one or two sentences. Chris, Thought of you when I saw this. Looking forward to catching up with you soon. Bud Get this. He sends these notes and cartoons by snail mail. The prospect or customer gets a cartoon, a chuckle and a business card. Sometimes, Bud clips articles and cartoons about a person's interests, hobbies or pets. If he finds out you own a dachshund, you will get a cartoon with a dachshund. Here's the bottom line: Bud tells me that half the people he sends cards and cartoons to call and thank him for thinking of them. The other half take his phone call or return his voicemail message when he calls. Yes, it's an extra step. Yes, it takes time. Is it worth it to you to have customers and prospects initiating phone calls to you and having a higher percentage of them return your phone calls promptly? If it is, then give it a try. Approach 2: The Article Clipper and Sender Consultants have been advised for years by their consultants to publish articles in industry trade magazines. A consultant who publishes an article is seen as an expert, and some consultants publish their own newsletters. Consultative salespeople can take a page out the consultant's marketing kit. Consider clipping and sending articles from industry trade publications. When an article pertains to a particular prospect or customer, send it to that prospect. The real article is better than a photocopy of it. Clipping something from a magazine or newspaper, attaching your business card to it and dropping it in the mail is commonly called account seeding. Try this approach instead of dialing someone out of the blue. Approach 3: The Lottery Ticket Letter Buy 10 lottery tickets and clip them to your introductory letter. Ask the customer to "take a chance" and meet with you. Unlike the lottery, you have a sure thing, a proven winner. Explain in a few sentences how you can help the customer reduce risk or increase profits. Mention that you will be following up in a few days. A lottery ticket is what direct mail experts call a grabber. It ensures that your letter will be seen and that it will be put in the A-pile instead of the circular file. One salesperson went

seven-for-seven with the lottery ticket letter. He booked seven consecutive appointments with people he sent lottery tickets to. If an appointment is worth a dollar to you, give it a try. Cartoons, articles and lottery tickets are ways to set yourself apart from the smile-and-dial, boiler-room sales types who interrupt people with their pitches. Sending prospects information of value shows that you're willing to earn the right to gain the appointment. Differentiating your approach will help set you apart from the salespeople who want to get face-time in front of the prospect. The gatekeeper is almost gone. So using snail mail and high-touch approaches will help you stand out. A real signature in ink on real note paper may take a couple of days to get to the prospect's office, but it will be more memorable than a fax or email. Your prospects just may slow down long enough to read it and take your call.

2.1.4. Learning from Professional Service Sales

Summary Consultative relationships are important to today's clients. The three principles key to building good relationships Selling now requires the ability to solve problems. A few years ago, most people would have told you that selling products and selling services were very different. Product sales were about persuasion. They started with the product solution and worked backwards to find problems for products to solve. Professional services sales were the opposite. They started with the problems and worked from there to create appropriate solutions. They were about understanding much more than persuasion. Today, sales professionals across disciplines are working with clients to diagnose their challenges. In a technology-based society where broad information is readily available and products change overnight, clients can't wait for their problems to emerge. They need professionals that will help them anticipate and address pressing business issues in a proactive manner. This strategic approach has been something that professional service salespeople have done, and done well. Based on our work with professional service firms, there are three principles that should be considered gospel for sellers who want to build consultative relationships with their clients: 1. During a professional service sale, you have to be on the same side of the table as your client -- you have to be collaborators, not antagonists! Being consultative in approach requires bringing two parties together to reach a shared understanding of the problems a client has, the implications of the problems and the value the client will gain from solving them. 2. In the event that you are unable to solve a prospect's problem, you need to be able to walk away from an opportunity to deliver an inappropriate solution or have the ability to rescope the project so that you can deliver real value. It does neither you nor your client any good to implement a solution that doesn't fit. 3. You can't sell one way and deliver another. Think of selling as a problem solving process; the way you sell must be compatible with the way you implement. Ideally, the client will be unable to differentiate between when you are selling and when you are offering a solution.

These three tenets for acting consultatively in a selling situation may seem simplistic, but all too often sellers are unequipped to act as problem solvers. Consultative selling goes beyond the ability to uncover a client's needs and demonstrate how to meet them. Helping clients recognize needs is not a skill that results from passive listening -- it's an interactive, two-way communication. You provide value to the client by actively influencing the way in which needs are defined and clarified. Needs in complex selling situations normally progress through characteristic stages beginning with feelings of dissatisfaction and progressing through an increasingly clear perception of the problem to a point where the client feels a want or desire to take action. Clients are only willing to take action when a level of expertise has been demonstrated. Often when experts sell, they tend to demonstrate expertise by talking rather than asking questions that engage clients in a problem solving dialog. It is far better to demonstrate expertise by asking smart questions, and actively listening to the responses generated. Every day we encounter a wide continuum of different client activities covered by the simple word "selling." These encompass the low value and the high, the tangible and the intangible, the consumer sale and the business sale, and so on. And it's clear that the skills that bring success at one end of the continuum can be -- and often are -- dramatically different from those that lead to success at the other. But one thing is certain; the process of selling in the twenty-first century requires the ability to solve problems, and understanding and avoiding the pitfalls along the way are the building blocks for becoming truly consultative and creating value for your clients.

2.1.5. Marketing Your Meeting

Summary Give your customers pre-meeting assignments. Never approach a prospect without a pre-call plan! A prepared prospect is a better prospect! The typical businessperson experiences 170 to 190 interactions per day. Voicemail, email, faxes and "Got-a-minute" meetings monopolize the time and attention of your customers. Chances are that even if you have a firm appointment, the person you're meeting with has not taken the time to prepare properly. Giving the customer a pre-meeting assignment is a way to market the upcoming meeting and differentiate yourself from your competition. First, some background: For three of the longest years of my life, I was the marketing director for a major Wisconsin-based retailer. Part of my job was buying advertising for the company. One hundred sixty-eight salespeople called on me in those first six months. I quit counting after that. Only two of them approached me professionally. Each of those two came to the meeting with an agenda. They went over the points they wanted to accomplish and told me how long it was going to take. They always got more of my attention and usually a larger percentage of my budget than the parade of Accidental Salespeople who passed through my office. Some of the salespeople would take a deep breath, sit back in the chair across the desk from me, and settle in like my office was some kind of rest stop. They seemed to be there to gather their strength for the next meeting. They certainly weren't prepared. "So, Chris," they'd say, "what's going on? Anything coming down for me this week?" If You Don't Have a Plan Stay in the Car (link to amazon) is the title of one of Mack Hanan's many sales books. One of the great things about Hanan's book is that you can benefit just from reading the title on the cover. Even if you never cracked the book, you would be well-served never to approach a prospect without a pre-call plan.

If you don't have a plan, stay in the car and work on your plan. When you get face-to-face with the prospect, reveal your agenda and share with the prospect what you want to accomplish. Tell him or her how much time you want to pull things together and then describe the steps you will take to make an intelligent proposal. Buyers can feel the difference when they are approached with purpose. Research from Purchasing magazine reveals that lack of preparation and lack of interest of purpose top the list of things that buyers dislike about sellers. By avoiding the two things buyers dislike the most, you instantly separate yourself from your competition. !!!! Giving your customer a pre-meeting assignment markets you and the meeting. An email, fax or written note that gets a prospect to do a small task before your next meeting gives you at a subtle edge. Instead of just confirming your upcoming meeting (always a good idea), ask your customer prepare to make the meeting more productive. Here's how a fax or email might read: John, Looking forward to our meeting tomorrow at 9. I plan to explore these issues. How do you rate the level of service you are getting from your current supplier? What does "good" look like? What does excellent look like from your perspective? In order to save time tomorrow, please take just a few minutes to think about that today. Thanks, Chris Simply sending questions you plan to ask demonstrates that you are thinking about the meeting and gets them to think about the meeting and the answers to the questions. Here's another example of a pre-meeting assignment. Mary, See you at 11:00 on Tuesday. In preparing for our meeting, I came across an article that I'd like to discuss. Would you please skim this article and give me your reaction to the highlighted segment when we get together? Chris You're going to ask the prospect to do a lot of things before you ask for the order. Get your prospects used to doing things that you ask them to do. Within reason, prospects will do lowrisk things for you if there is some benefit in it for them. Accidental Salespeople tend to be shy about asking for too much or probing too deeply. When you start selling on purpose, you will ask your prospects to do little things for you. You want to start with easy things for them to say yes to and then progress to higher-risk, higher-payoff "asks." It makes sense. A prepared prospect is a better prospect. But unless you ask prospects to prepare, odds are they won't.

2.1.6. Preparations and Guarantees

A successful sales presentation starts with careful preparation and ends with guaranteeing customer satisfaction. 1. Write out your sales presentation. Making a sales presentation "isn't something you do on the fly," warns Posey. Always use a written presentation. Think about the six major selling points of your product or service. Develop leading questions to probe your customer's reactions and needs to each selling point. "This will help you determine what objections your prospect might have, so you can show how your product or service can meet their needs."

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2. Write down objections. Show your prospect you are truly listening to what they are saying by writing down their objections. In this way, you can specifically answer their objections by showing how they will benefit from your product or service. It could be, for instance, by saving money, raising productivity, increasing employee motivation, or increasing their company's name recognition. 3. Offer a first-time incentive. Offer your prospect something significant, so if they do like your product or service, they'll be inclined to make a decision now, rather than wait a few days or put off the decision indefinitely. First-time incentives might include: "10 percent off with your purchase today" or "With today's purchase, you'll receive one free hour of consultation." 4. Offer a 100-percent guarantee. Let your customers know their satisfaction is guaranteed. "A good return policy minimizes customer objections and shows that you believe in your product or service," says Posey. Product guarantees should be unconditional and should not include hidden clauses, like "guaranteed for only 30 days." You can use a guarantee even if you're selling a service: "Satisfaction guaranteed. You'll be thrilled with our service or we'll redo it at our expense." 5. Close with two choices: Rather than ask, "How does this sound?," give your prospect a choice. For example, if you're selling educational books to preschool owners, ask if they want to purchase the book series or the book and tape series together. When they state their choice, write the order. "Your prospect is not likely to stop you," Posey explains, "because mentally they realize they've committed and they've said 'yes.' " EXAMPLE. After college, I sold advertising for a start-up fashion magazine. I was excited and thought it was the greatest product in the world. The magazine was a great place for local highfashion retailers to attract a local market. I made 145 door-to-door calls in one day, and sold all the advertising space for that issue. I didn't have the skills, knowledge or experience, but I overcame those deficiencies with a tremendous amount of work. I believe 99 percent of a business owner's success is based on his enthusiasm, faith, passion for what he does, and the commitment to work hard to get his name out in the marketplace. Those ingredients can beat any other combination for success.

2.1.7. Sales Departments vs. Sales Forces

Summary Sell, don't fax Earn your money in the field. Get off the phone and in front of your clients. Most companies have sales departments. Fewer have sales forces. After talking to a general manager about an upcoming sales training seminar I was doing for her people, we uncovered the potential key to this problem. "Carrie," I asked. "What would you like to see your salespeople doing more of? And what would you like your salespeople doing less of?" "Chris, I've got some highly paid salespeople who have developed some extraordinary faxing skills. I want them to develop extraordinary selling skills," she said. By walking around her office doing her managerial duties, she saw the problem first hand. When you have six-figure salespeople lined up at the fax machine, something is wrong. She knew that a $6 per hour intern can fax price sheets and order forms for customers. Salespeople earn their money in the field talking to prospects about problems and proposing solutions to those problems. 11

Members of a sales department may have extraordinary faxing skills. But it's the members of a sales force that have extraordinary selling skills. Today, it seems like email, voice mail, pagers and cell phones let us stay in constant communication. But they also keep us from getting in front of our customers. One of the most important things you can measure for yourself is time spent selling. How many minutes did you spend in front of live prospects and customers this week? Don't count driving, waiting in the lobby or filling out call reports. Use a stopwatch and record how many minutes or hours you spend each day in front of the people who buy from you. It's a reality check. You'll be astounded or terrified at the amount of time you do anything but sell. Once you have the baseline data, work to increase the time spent selling by 15 to 20 minutes a week. Sales go up when time spent selling increases. Sure you're working long days, but are you spending enough time selling during the day to stay on your plan? Until you make this critical calculation for yourself, you may be leaving money on the table. That's because you aren't at the table long enough to get it.

2.1.8. Selling Successfully During the Slowdown

Summary Leverage these five things for selling success. It's important to control what you can in selling, which is how top salespeople manage their personal economies. Consider these five factors you need to control during the slowdown. - Control Factor 1: How Many Times You Dial the Phone You cannot control who is in when you dial the phone, but you can control the message you leave. Make it short, client-focused and full of valuable information that piques interest. Don't just request a call back. Promise important customer benefits. You can use the ratio of dials made to appointments booked to secure enough meetings for success. - Control Factor 2: The Quality of Your Presentations There are two kinds of presentations: product-focused presentations, which are boring, and client-focused presentations, which are exciting. You can't bore people into buying, especially during the slowdown. Focus on customers' problems rather than yours to close more sales. - Control Factor 3: Whether Your Client Focuses on the Present or Future Recently, sales trainer Larry Wilson said 90 percent of life's excitement is in the future. Most problems are today. Help prospects envision a more profitable operation from your product or service. That's what selling is all about. - Control Factor 4: The Information Programmed to Your "Computer" Motivational tapes and upbeat music create a better mood than the Dow's latest plunge. Don't avoid all news, but find positive things to fill your brain. I've quit watching TV weather because of the Storm Team's approach to nonstories: "Three inches of snow could fall! Hoard canned goods! Venture outdoors only in extreme emergencies!" Viewing negative newscasts won't help you develop a positive attitude. - Control Factor 5: Your Sense of Humor About the Slowdown Some customers make the slowdown a reason not to buy. They need professional salespeople's prodding to do what's right. "You can't save your way to prosperity," is a possible one-liner. Then, give your solution's benefits. "The only way to coast is downhill," is another. People who want to wait and see, are stalling. Tell them with historical certainty, the market goes up and comes down again.

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Great salespeople thrive in slowdowns and recessions. They help their customers solve problems. And plenty of prospects have problems and money to solve them. It's a wonderful opportunity to develop new sales skills and profitable relationships. Have a productive day.

2.1.9. The Power of a Great Approach An Accidental Sales Seminar

Summary Your opening move is by far the most important. A unique angle will take you far. You don't need a sales trainer to learn valuable selling lessons. I'm walking through Terminal 2 at O'Hare Airport lugging two heavy bags. I see the shoeshine stand directly ahead. The shoeshine man is looking for his next sale. I'm walking and thinking about getting to my connecting gate. Somehow, he catches my eye. When he has it, he looks down at my shoes. My eyes follow his. As I pass, trying not to look him in the eye again, he says, Sir, let me shine those Cole-Haan loafers for you. Uh, no thanks, I've got to catch a plane, I reply. Now there's an objection he's never heard before. I keep walking, but now I'm thinking, How did he know these are Cole-Haan shoes? That was an interesting approach. I wonder if they really are Cole-Haan shoes. I duck into the nearest men's room and, balancing on my left foot, I take off my right shoe to check the label. It reads, Cole-Haan. I put it back on and return to the shoeshine stand. I've changed my mind. I need a shine after all. Are you willing to learn from someone who's not a trainer or teacher? This shoeshine professional sold me a $5 shoeshine and threw in seven sales success principles absolutely free. Sure, his service isn't very complex and his sales process isn't nearly as complicated as yours. At the same time, you can benefit from and form a philosophy around these seven ideas: 1. A Strong Opening Is Critical. (!) When you pass the typical shoeshine man, he says, Shine 'em up? My pro had taken his approach to a higher level with a customized opening line for each customer. Research ranks approach/involvement the number one must-have selling skill, way above closing. This shoeshine man's opening question and confirmation question are one and the same. A strong opening leads to a strong closing. 2. Product Involvement Is a Powerful Success Trait. By calling out the brand of shoe, he was communicating, Hey, this is what I do. I care about shoes. Wouldn't you rather buy something from a salesperson who is into what he's doing? 3. Controlling the Meeting's Focus Is Critical. When I passed the shoeshine stand, I was focused on getting to my gate. The salesperson broke my preoccupation with catching a plane and forced me to focus on my shoes. When you control the focus, you control the situation. (!!!!!!!!!!!!!!!!!!!!) 4. Eye Contact Is an Important Trust-Building Tool. You convey confidence with eye contact. Looking customers in the eye and smiling with your eyes and mouth both help build trust and reduce a customer's reluctance to do business with you. 5. Helping Customers Discover Their Needs Is Part of the Process. 13

By getting me to look at my own shoes, I discovered that it had been a while between shoeshines. People rarely resist their own data and discoveries. (!) 6. Doing It Differently Is Refreshing and Memorable for the Customer. (!!!) I have passed thousands of shoeshine stands and had hundreds of shines. I still remember the shoeshine guy who did it a little differently. Will your customers remember you? 7. Customers Buy from Salespeople Who Align Their Behavior with the Things Customers Value. Customers want to buy things. They want to work with professionals. They want to be engaged and challenged. Because I believe life is one big seminar and lifelong learners get more out of life, I can get a $129 seminar out of a 50-cent brochure that advertises a seminar on how to write brochures. And I can get seven key selling strategies from a $5 shoeshine (plus tip). Ralph Waldo Emerson said, Life is a succession of lessons, which must be lived to be understood. (!!!!!!!) What lessons will you learn today? Who will your teachers be? You never know. Just be open to learning from everyone.

2.1.10. The Power of Attitude

Summary Your choice of attitude can affect your sales quality. Putting your heart into what you're doing can make a difference. There is a scene in Ron Howard's film Backdraft that still inspires me. Kurt Russell (Bull) and William Baldwin (Brian) are talking. Bull lays out the facts about fire fighting with these words: "This isn't like selling log cabins in Aspen, Brian. If you have a bad day on this job, somebody dies." Fire fighting was a profession to Bull. Selling isn't. Selling is just a job. If you wince at Bull's dismissal of sales, think about it from the firefighter's perspective. Then ask yourself, "What if my job requires me to have one good day after another or someone might die? Would I come to work a little more focused?" One definition of professionalism is someone who has a good day at work whether or not he or she feels like it. This is critical in light of an important survey reported in Elaine Hatfield's Emotional Contagion. The survey found that 75 percent of Americans consider every third day to be a bad one. That means a typical salesperson has four bad months a year! Four Bad Months! In City Slickers, Billy Crystal's character, Mitch, declares to his wife at the end of the film, "I'm not going to quit my [sales] job. I'm just going to do it better." Your clients get better when you get better. You have to choose to like the job and then choose to do it better. Too many salespeople blame bad moods and bad days instead of taking control of their own attitudes. A good attitude is a powerful sales tool. Believing you can have one good day after another is one place to start. When you have a good attitude, you can often change others' attitudes. Here's the proof: It is 11:45 p.m. Friday night. My plane just landed almost three hours late, and I missed the second consecutive dinner party with my dear friends. I head for my car on the frigid roof of the Madison, Wisconsin, airport parking ramp. As I get to the parking control 14

gate, I discover my window is frozen solid. I open the door and hand the ticket to the attendant. She greets me with a pleasant, "Hello, that will be $12." As she completes the transaction, she hands me my receipt and says, "Thank you, sir. And welcome home." She didn't say, "Here's your receipt." She didn't say, "There you go." She didn't say, "$3 is your change." Here is the late night parking lot attendant acting as a self-appointed welcoming party. And just when I needed a kind word. I drive out of the airport and go home feeling better than I did when I landed. I think about how an attitude of service and a sincere concern about your fellow human beings can make a big of difference in even the most minor transactions. No matter how mundane your job, you don't have to have a mundane attitude. As long as you're going to do something, put your heart into it. Your clients will notice. What could you do with four more good months a year?

2.1.11. The Sales Force as a Competitive Advantage

Summary Buyers' expectations are changing. Traditional selling methods need to be updated. Take advantage of the new types of emerging buyers. The typical buyer profile has changed dramatically in the last few years. Buyers are becoming more sophisticated, information is more accessible and business acumen is increasing. Put simply, your buyers are changing, and these changes are deep and fundamental. The common thread throughout these changes is their focus on value. The increasing sophistication of buyers in their search for value poses a significant threat to the sellers trying to use traditional selling strategies in a new value-driven marketplace. This may seem like bad news, but in reality it is an opportunity if you understand your buyer's needs. Done correctly, your organization can take advantage of this opportunity and turn your sales force into a competitive advantage. In the book, Rethinking the Sales Force, authors Neil Rackham and John DeVincentis explain how companies can create opportunities by better understanding their customers' definition of value. We're all familiar with the value equation, Value = Benefits - Cost, which suggests that there are two ways of creating value in the selling process: increasing benefits or decreasing costs. From this, three very distinct types of buyers are emerging; each of which must be treated differently.

Intrinsic Value Customers These types of customers see value as intrinsic to the product itself and focus largely on the cost elements of value; they want the lowest cost. They see selling as an added expense that they as the customer must ultimately bear. Extrinsic Value Customers 15

Extrinsic value customers focus on solutions that meet their needs. They put a premium on advice and help, and expect salespeople to invest time and effort to give them new understanding of needs and options. Strategic Value Customers Demanding more than the supplier's products or advice, strategic value customers want to deeply leverage the supplier's core competencies. They will make radical changes in their own organizations and its strategies to get the best from their relationships with chosen strategic suppliers. Extrinsic value customers require a different amount of sales investment in terms of time, effort and cost. Selling consultatively requires the seller to become close to the customer and have an intimate grasp of their business issues. This requires reworking your sales strategy and investing in the development of a fundamentally different set of selling skills. Many sellers today find themselves caught in the no man's land between transactional selling and consultative selling -- too expensive for a transactional environment, but not skilled enough to provide the high level consulting expected by extrinsic value buyers. New skills are necessary for the traditional seller to survive in this rapidly changing environment. These concepts are not new; they have simply moved to the forefront in performance improvement minded companies. Selling in today's market, the seller himself is the differentiator. Successful consultative sales people are highly skilled at helping the buyer to understand their problems, issues and opportunities in a new or different way, showing customers new and better solutions to their problems and acting as advocates for the buyer even after the sale. The companies that have successfully incorporated this approach have found a loyal customer base. In today's market, without this set of skills, your sales force can't be expected to survive.

2.1.12. Understanding and Meeting Customer Expectations

Summary Providing a pleasant experience to your customer is essential. Repeat business is the most profitable. Deliver expected products and services to your customers. Most companies have sales managers, but too few have repeat sales managers. A repeat sales manager would be in charge of making sure the customer who bought the first time buys again. The repeat sales manager would make sure that the customer's experience with the company was everything he or she wanted it to be. Chances are you don't have a repeat sales manager at your company and the task of managing your customer's experience goes to you. It's a critical task. Here's why. A client of mine commissioned an extensive, expensive survey to gauge customer satisfaction. The survey revealed that the biggest area of customer concern was that the product and company that sold it did not meet expectations. Thirty-four percent of the clients polled mentioned that as an issue. And of those 34 percent, 69 percent were unlikely to do business with the company again. Repeat business is the most profitable business, so losing a large part of your customer base hurts the bottom line even if you replace the business with a fresh supply of customers. Delivering the expected product or service should be your minimum standard. Theodore Levitt wrote about the expected product in his classic management book, The Marketing Imagination. For instance, if you attend a seminar and get a nice workbook with an extensive bibliography, checklist, forms and tools, you'll expect to get a similar workbook the next time you go to a 16

seminar. If you don't get a nice workbook at the next seminar, you will be dissatisfied. Even if the speaker is excellent, you will be dissatisfied because you expected a workbook. Every industry has a generic product and an expected product. Even if you are selling a socalled commodity product, there are certain customer expectations. A salesperson selling longhaul trucking (generic service) can get a higher price per mile if he can document his firm's 98.4 percent delivery record. His customers expect their merchandise to arrive on time, not just to eventually get there. To provide a higher level of service, you have to know what the expected product is. Many times, customers don't know what to expect. Great salespeople think in terms of opening relationships rather than closing sales. They understand that the big money and job satisfaction come from keeping customers instead of churning customers. Therefore, they discuss customer expectations up front. The expected product may be different for different customers. The script for managing a customer's expectations might go something like this: "I'm excited about the opportunity do business with you. I want to be clear about your expectations of my product and me. Imagine it's six months from now. What will have to have happened during that period to make you want to continue doing business with me and my company and for you to refer my services to your colleagues?" (!!!!!) After you have adapted this script and asked the questions in your own words, listen while the customer details his or her expectations. Your job is to be clear about what satisfactions the customer is looking for. You will probably have to ask some follow-up questions to be clear. How often do you expect us to meet? What do you consider good service? What return on investment are you looking for? The way to give your customers a better experience is to ask them what kind of experience they expect and then to deliver those expectations instead of taking the order and running. Be proactive. Be sure to tell your new customers what other customers have experienced. Put things into perspective. Tell them how long it is going to take to see results or to train their people on the new equipment. You'll build your credibility when that's exactly what happens. Reading the Customer's Mind The Gallup Organization has done some revolutionary research about customer expectations and reported it in the book, First, Break All the Rules by Marcus Buckingham and Curt Coffman. Gallup has identified the four levels of customer expectations. (!!!!) According to authors Buckingham and Coffman: "These four expectations, in sequence, show companies what they must do to turn prospects into advocates. "Level 1: At the lowest level, customers expect accuracy. Level 2: The next step is availability. Level 3: At this level customers expect partnership. Level 4: The most advanced level of customer expectation is advice. Customers feel the closest bond to organizations that have helped them learn." The authors point out that you must be accurate and accessible before your customers will want to form partnerships with you and ask you for your advice. Send out an inaccurate invoice or fail to return calls and emails promptly, and they won't want to enter into a consultative partnership with you or attend your companysponsored seminars. (!!!!!!!!!!!!!) Download the attached document and make notes in each column about ways you and your company could be more accurate and accessible. Then, move to how you can form 17

partnerships and offer advice. Align your sales behavior with the things that customers want, and you'll retain more customers and gain more referrals.

2.1.13. What Do Your Little Voices Say? The Power of Positive Self Talk
Have you ever had one of those days? I'm talking about one of those days when you wake up full of optimism. One of those days that seems to offer unlimited opportunity. Until something happens. Maybe it's a cancellation. Maybe it's a client who keeps you waiting just a little bit too long. Perhaps it's a manager who just looks at you funny or says something that rubs you the wrong way. It's a day when you start out in the morning loving your job and end up in the evening fuming and updating your resume. My colleague Ken Greenwood speaks about the voices. They're in your head and say things like, "Why can't you do anything right?" "You idiot. That was a buying signal." "Look out, you're going to blow this one." "This guy will never buy." I have heard the voices. Some of them sound like my voice. Other times, the voices converge in a chorus of clients, spouses and friends. They say things like, "I sent you to four years at an expensive college and you got a commission sales job?" "You're the sixth sales rep I've seen today." "Honey, the car needs new tires and Bobby needs braces. How much are you going to bring home this month?" "Why are you working so hard?" What do your voices say to you? And what do you say when you talk back to yourself? That's a very important question, because you believe what you say to yourself, whether or not it's true.(!!!!!!!!!!!!) Occasionally I hear the voices saying things to me I would never say to another human being: "You are worthless." "You will never figure this out, because you're an idiot." "Give it up." "You're a loser." If I say those things to myself and I believe them, how do you think I'm going to feel about myself at the end of the day? Or at lunchtime? Or at the turn? The turn is a pivotal point, like when you leave the ninth hole of the golf course and head for the back nine. No matter how badly you played the front nine, the events after the turn offer new hope and a new beginning. The other day, I started out the back nine with a seven, seven, eight. Triple bogey, double bogey, quadruple bogey. Even for a high handicap golfer, that's devastating. In fact, "That devastated you," said one of the voices. Another chimed in, "You take off work on Wednesday afternoon to play golf, you deserve this. Whatever happened to your work ethic?" "Throw your clubs in the lake," said another. The voices were loud and mean-spirited. Listening to them made me feel very down about golf and even life. Then I started thinking about what I was thinking about. I decided to consciously cut a few of the voices from the chorus. I brought back the voice of my golf pro Bill, who had just given me a lesson. "Take it back in balance. Finish in balance. Part one... Part two." Then another new voice reminded me, "Forget the score. Hit the shot." As I approached 13, I had managed to get myself into a neutral state, instead of the rage I felt as I walked off the 12th green. I took a five iron and a deep breath. Part one... Part two. Finish. The ball came off the club with a nice click. It was heading left, and the wind started pushing it right. It landed about 30 feet before the pin, just off the green. It kicked just a bit left and rolled, and rolled, and then disappeared into the cup. Hole-in-one! But I admit it, my first hole-in-one came after a quadruple bogey. I had been ready to give up, but I persisted. The moral here is you have to control the voices. If you don't, it's too easy to lose focus and commitment. You end up spending the better part of the day feeling miserable and doubting your value as a salesperson or as a human being. 18

Have you ever had one of those days? I was having a bad day on the golf course, but one shot turned it around. You never get that one shot if you quit. That's the power of persistence. One shot can turn it around. One thought can turn it around. One sale can turn it around. (!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!) The first priority, of course, is to listen to the voices that build you up and cut the voices that tear you down. What do you say when you talk to yourself? Affirm success, customer focus, and your love of selling and what you sell. Your customers will catch your negative attitude or your positive one. Choose wisely.

2.2. PRESENTATION. 2.2.1. 5 secrets for success when making your sales presentation.
You can improve your sales success ratio dramatically by learning as much as you can about your prospect and focusing on his needs. 1. Build rapport. Before discussing business, build rapport with your prospect. To build rapport, do some homework. Find out if you have a colleague in common. Has the prospect's company been in the news lately? Is he interested in sports? "Get a little insight into the company and the individual so you can make the rapport genuine," says Richardson. 2. Ask a broad range of questions. Ask questions that require more than a "yes" or "no" response, and that deal with more than just costs, price, procedures and the technical aspects of the prospect's business. Most importantly, says Richardson, ask questions that will reveal the prospect's motivation to purchase, his problems and needs, and his decision-making processes. "Don't be afraid to ask a client why he or she feels a certain way," Richardson explains. "That's how you'll get to understand your customers." 3. Probe deeper. !!!!!!! If a prospect tells you, "We're looking for cost-savings and efficiency," will you immediately tell him how your product meets his need for cost-savings and efficiency? A really smart sales person won't, says Richardson-he or she will ask more questions and probe deeper: "I understand why that is important. Can you give me a specific example?" Richardson suggests, "Ask for more information so you can better position your product and show you understand the client's needs." 4. Learn to listen. !!!!! Sales people who do all the talking during a presentation not only bore the prospect, but also generally lose the sale. You should be listening at least 50 percent of the time, notes Richardson. You can improve your listening skills by taking notes, observing your prospect's body language, not jumping to conclusions, and concentrating on what your prospect is saying. 5. Follow up. Write thank-you notes, call the customer after the sale to make sure he or she is satisfied, and maintain a schedule of future communications. "You have to be in front of that client and always show attention and responsiveness," Richardson says. "Followup is critical."

EXAMPLE. I had been asked to speak before groups and had been paid to do so, but I had never personally gone after a speaking engagement. I wanted to do business with a software company which was having an annual convention for its resellers, but the meeting planner was 19

hesitant to book me. He felt that, although my information was good and I knew what I was talking about, I would not be entertaining enough for his group. "Call any or all of the meeting planners on the list of references I gave you," I told him over the phone. "If even one of them says I was not the most entertaining speaker they had within the last few years, I will come and do your event for free." He called all of them, and they confirmed that I gave engaging talks, and I got the job.

2.2.2. A Friend in Need Is Really Annoying How to Sell to Friends Without Sacrificing Friendship
Friends can do a lot for you. But is meeting your quota worth sacrificing a good relationship? In part one of this series, We learned that while selling to friends can be a useful way to practice and learn, the biggest lesson you should take away is that the rules are different. Being businesslike with your buddies doesn't always work. There are ways to sell to friends without losing a friend. Facts Tell, Stories Sell: Wally and His "Aunt Bertha" Wally went to work for Weight-loss Wonderland -- a workout center that sold food substitutes as well as weight room time. Wally was more inclined to the casual approach when it came to moving merchandise among amigos. As he liked to put it, "Facts tell and stories sell." He found that presenting people with "pounds-per-power shake" and "inches-per-ingredient" in a stifling office environment was far less effective than exhibiting evidence in a spontaneous social situation. Seated in the bleachers during the seventh inning stretch of a staggeringly slow baseball game, he turned to his friend Henry, already on his sixth hot dog. As Henry complained that, by the time the game was over he'd have gained a hundred pounds, Wally saw his opening. "Remember my Aunt Bertha?" Wally asked. "The one with the chins who bulldozed the buffet at my house last Christmas?" "Yeah," Henry replied. "Well, she lost 70 pounds in two days and is posing for Playboy. Check it out!" Wally then presents his friend with a spread of Aunt Bertha in Bunny briefs. What Wally Does Right Wally's approach is subtle in that it comes up in the course of conversation and doesn't directly push the product. Instead, it aims at arousing Henry's interest (perhaps in more ways than one) and inspiring him to ask about how Bertha the Blimp became Bertie the Bunny. This approach will work if you're as able to pull off the offhanded approach as Wally is. But, be aware that if your friend perceives your parable as a ploy to sucker him into a sale, he may resent you more for your ruse than he would if you'd gone for the straight sell. Consider the person you're approaching and what would work best with them. And consider your own personality and what you can best pull off. The Consequences of Coercion: Vinny and His ValuCam A scenario to keep in mind is that of Vinny, a video cam vendor for ValuCam. Vinny was relentless with his friends, extolling the virtues of the ValuCam every time they got together. "Come on, you're my friend," he'd say. "You've gotta help me out here. I gotta meet my quota. Everyone needs a video camera. You're gonna buy one eventually. These are great. Buy one from me." 20

Vinny's relentlessness actually worked with some of his friends who figured the only way to get him off their backs was to buy. But Vinny paid a price later when it turned out that the ValuCam's value was virtually nonexistent. The camera typically broke down after only a few hours of filming and came without a warranty. Needless to say, Vinny found himself in a friendless fix. The Lessons Vinny Learned 1. When selling to friends in particular, don't use coercion, don't guilt people into buying, and don't abuse the privileges of a relationship to pressure someone into making a purchase. 2. Know your product well enough to foresee potential problems. And know that when you sell to friends, it's not only your company's reputation that's on the line if something goes wrong -- yours is, too. Conclusion: Selling and Socializing Can Kill a Friendship There are personal stakes involved in selling to friends. They may not be the promising pool of prospects you imagined. Becoming comfortable with your product and pitch may actually be less perilous in the company of strangers. The boundaries are clearer and less complicated when selling to strangers. If you blunder or get rejected, you don't have to face the person again, and a relationship you value is not at stake. So, you might want to hold off on approaching people you know until you've racked up some experience with people you don't. But when you're seasoned enough to begin summoning friends -- or desperate enough to do it despite the risks, remember: Use sensitivity, conscientiousness and common sense or risk ruining the relationship.

2.2.3.

Control

the

Focus

and

Control

the

Meeting

Summary Focus on customers' problems. Provide solutions. Ask questions. Life is one big seminar. It is not always necessary to go to formal training sessions to learn how to sell. There are many accidental seminars put on by people you encounter everyday. In this one, I learned a valuable lesson about asking questions and controlling a meeting's focus. The plan was to go out to two new restaurants and enjoy a nonwork weekend together in a nice hotel. "I don't want you to wear one of those blue suits that you always speak in, so I packed the new linen jacket I got you for Christmas and some slacks," she told me. As I unpacked, I discovered that the slacks are the ones I'd outgrown. They fit when I bought them, but they had since become a little snug in the waist. I could get them on, but I couldn't sit down in them, so it was a problem. "Of all the black slacks that are hanging in my closet, why did you pack these?" I asked. "Because they were in your closet," said Sarah. "Why were they in the closet if they don't fit?" "I'll lose the weight some day. Tell you what, I'll just wear this suit to dinner." "Oh no, you won't," she said. "I visualized this dinner, and you're wearing the jacket. We're going to go shopping and get you a new pair of black pants." 21

Our hotel was on Michigan Avenue, and out the door was one store after another. The first four did not have black slacks in my size. It was 5:45 p.m. when we walked into Lord and Taylor in Water Tower Place. The salesperson approached, and I pretty much told him the story I've been telling you. I said, "I need a pair of black pants, 38 waist, 34 inseam. They should cost no more than $40." The salesperson didn't flinch. He went and looked through the racks of slacks. When he came back he said, "Sir, I couldn't find anything in your size in that price range." (Note that he could have just as easily have said, "We don't have anything that cheap in the store.") "May I show you what I found?" "You may show me, but I want a $40 pair of pants." With great flourish, he draped the legs of the pants over one arm and presented them almost as though they were a bottle of fine wine at the restaurant I was trying to get to. "Do you know the Burberry brand, sir?" "Listen, I've got suits that cost less than that pair of Burberry pants. I just want a nice pair of $40 pre-cut pants today." "Sir, do you ever wear braces?" he says, ignoring my whining. "Occasionally." "Good, because these have the braces buttons already sewn in. They have an interior lining to the knee so that they will hold the crease longer and require less dry cleaning and pressing. That will save you money in the long run." "Okay, how much?" "Sir, they are only $120." "Look, I appreciate the quality, but I already have several pairs of black pants hanging in my closet at home. So I just want some $40 pants." "I understand. Shall we make this your back-up pair?" I'd never heard of a back-up pair of pants. "What do you mean?" "Well, it means that you can shop for a while longer, and if you can't find another pair of pants, these will be here for you." "This is my back-up pair, then," I agreed. As I turned to walk to yet another store, he asked another question. "By the way, what time is your function?" "Our reservation is at 8 o'clock," I told him, realizing that we had less than two hours until dinner. "The reason I ask is that these pants have to be tailored. Where are you staying?" "Just down the street at the Hyatt." "Good. If I can get the tailor to work on them, you could get back here fairly quickly then." (Now I'm mentally down another 20 minutes for tailoring.) "How far is it from your hotel to the restaurant?" he asked. Sarah pointed out it would take a good 15 minutes to get there. 22

"Before you go, just let me make sure I can get these tailored fast enough if you do decide to buy them." He picked up a phone and started an animated discussion with a person, who, to this day, I believe is the tailor. "No. Tonight... Uh-hum... It's his anniversary. Can you do it?" Now he's selling the tailor on going to work for me, putting my project at the top of a huge list of alterations. "I'll ask," he said into the telephone. Then, turning to me, "Straight legs or cuffs, sir?" "Straight legs are fine," I said, knowing that I have just invested in a pair of Burberry pants. "I'll run them right down to the tailor. Will that be Lord and Taylor charge or some other method of payment?" he asked. That salesperson sold me a pair of pants for $120. The sales seminar he put on was a free, value-added clinic on keeping the customer focused on his problem. He kept framing the issues for me. All of a sudden, he was selling the concept of getting to my function and looking good instead of justifying the price. My anniversary dinner was saved, and, while I've thrown out a lot of other mementos, those black pants still hang in my closet.

******* When you control the focus of the meeting, you control the meeting. Keeping the focus on the prospect's problem helps you sell faster. ******* The salesperson framed the issues for me: I could keep looking, or I could take action. He let me know what would happen if I kept looking. He kept me focused on my date, my dinner reservation and my travel time. He also did a brilliant job of asking questions and keeping the sale open long enough to get it closed. He overcame my objections about the price. He didn't give up trying to solve my problem, and, as a result, he didn't quit asking questions.

2.2.4. Do Your Clients Trust You?

Summary Establishing trust is a skill. The three components of trust Clients often feel salespeople dont show concern for them.

Establishing trust is a fundamental skill that successful salespeople possess. Because it is thought of as inherent, the extent to which the average salesperson understands its impact, and how it influences purchasing decisions, is unknown. Research has shown that in product sales, clients often trust the reputation of the product itself as much as they trust the salesperson. But when youre dealing with a service sale involving intangible elements, trust becomes the buyers primary motivator. Because of this, many professional, trustworthy people dont always come across as such. This concept intrigued Neil Rackham, Huthwaites founder. As a result, Huthwaite conducted a

23

study of professional services clients to define their perception of trust. After interviewing almost 1,000 people, Huthwaite found that trust has three essential components: 1. Candor Clients value honesty when dealing with a service company. They want a salesperson to be straight about what will work and what wont. And most importantly, they value a salesperson's willingness to say "I may not have the right answer right now, but Ill find it for you." 2. Competence Clients want to be sure you know exactly what you are doing. They need to feel a low level of risk when working with you. Because they cant see and touch the product, your ability to solve their problem becomes the focal point. In a real sense, your competence is the product. 3. Concern Clients want to know that you feel their pain and that you are concerned about them and their business issues beyond the lip service it takes to land a sale. The three Cs of trust -- candor, competence and concern -- are all essential. The absence of any one can cost you a major sale. But are salespeople equally good at demonstrating each of these three Cs? The answer is a resounding no. In both the professional services study and in parallel studies Huthwaite conducted with product sales forces, the most frequently missing element of trust was concern. Put simply, clients felt that while most salespeople were competent and candid, when it came to concern they were sorely lacking. As a result, clients didnt trust them. So why is it that clients see salespeople as unconcerned? There are a few reasons: We listen for the things we can solve rather than the things that are important to our clients. Were often too anxious to get to solutions, so we dont listen to the problem. We dont get on the clients side of the table.

As a result, while clients may see us as candid and competent, they dont feel that we show concern for them or their issues. Is this really important? The answer is yes. Unfortunately, concern is the one dimension of trust where youd want to score an "A." Not only is concern most important to clients, it is the one area where they can make a valid judgment that minimizes the perceived risk involved in buying from you.(!!!!!!!!!!!) Rackham recounted a story told by John Wilson, his former colleague. Wilson had taken his child with a high fever to a new doctor. Like most parents in an emergency, he was apprehensive about the childs well-being. Unfortunately, the doctor showed no concern for either child or parent. He performed a clinical examination and wrote out a prescription. "I just didnt trust him," Wilson said after the incident, "and I thought he was incompetent. I later found he was a top professional in his field, but thats not what came across. His lack of concern had me suspicious of his competence." We wonder how often clients draw the same conclusions.

2.2.5. From Value Communication to Value Creation

Summary Buyers today expect more from salespeople. The three new faces of buyers. 24

 Rethinking the meaning of value. What is a salesperson's job? Consultative salespeople must represent their companies professionally, have a thorough understanding of the benefits their products bring to the buyer and must be able to explain that value clearly. They must be technically astute and able to understand their clients' issues and relate them directly to the benefits offered by their products. Is this an accurate description? Perhaps five or 10 years ago. The sales professional who fits this description today is likely to fail in the very near future and is probably beginning to struggle already. Strong Words in Changing Times Fail? Isn't that a rather strong word? If salespeople listen carefully to the customers' needs and clearly communicate the value of their offerings to their customers, what more could possibly be expected of them? Buyers today are expecting much more from salespeople. The way they view products is changing, and the way they view the sellers of those products is following suit. What do buyers want? They want the greatest value, of course. But the meaning of value is changing, and for many, value is migrating from the product itself to how the product is acquired. The Meaning of Value Until recently, the value you provided to your customers rested on your product. Product differentiation was the key to success. Product differentiation, and thus value, was created by the marketing and product development teams. A new product or product enhancement created the ideal selling environment. Today, in almost every industry, new product development is happening at lightning speed. It's increasingly difficult to create lasting product differentiation. Even if one product does have unique features, another has unique features of its own that are equally enticing. The customer can substitute one product for the other and be perfectly satisfied. If the customer sees few extra or unique benefits from your version, then all your marketing and product design efforts are wasted. You may have differentiated your product, but differentiation doesn't create value unless it matters to the customer. The product has become a commodity, and as markets commoditize, the value that resides in the product steadily erodes. If customers show decreasing preference for one product option over another, then how can suppliers differentiate themselves? If you can no longer embed sustainable value in your products, then where can you create new customer value? The answer is in the selling itself. As products are perceived to be interchangeable, customers place increased value on their acquisition. The sales process plays an increasing role in creating value for customers. Dennis Courtney, chief information officer of Dunlop Tire Corporation, says that "the products a supplier offers are only a small part of the equation. In general, we could get the product from several places, so the product itself is not unique. The suppliers who try to sell the product by showing us that their stuff is better are missing the point. We're looking for business understanding, for a supplier to adapt to our special needs and to advise and help us. We want their salespeople to add something worthwhile on their own account." 25

Salespeople who only communicate the value of their products don't cut it. What Courtney and thousands of customers like him look for is the capacity of salespeople to create value. More Benefits or Less Cost? Is this the right solution for all suppliers, to expect salespeople to provide greater benefits to the customer during the sales process? That is a risky assumption and deserves a bit more attention. We're all familiar with the value equation: Value = Benefits Cost. This suggests there are two ways of creating value in the selling process: Increasing benefits or decreasing costs. The scenario that Courtney describes above focuses on the benefits side of this equation. For many buyers, however, greater value lies in reducing cost. To sell consultative to a buyer whose greatest interest is in getting the lowest cost is a mistake. Three very distinct types of buyers are emerging, each of whom must be treated differently!!!!!!! Intrinsic Value Customers see value as fundamental to the product itself and focus largely on the cost elements of value; they want the lowest cost. They see selling as an added expense that they, as customers, must ultimately bear, and they believe they would be better off without it. Extrinsic Value Customers focus on solutions or applications. They put a premium on advice and help, and expect salespeople to invest time and effort to give them new understanding of needs and options. Strategic Value Customers demand more than the supplier's products or advice; they want to deeply leverage the supplier's core competencies. They will make radical changes in their own organizations and its strategies to get the best from their relationships with chosen strategic suppliers.

Clearly, it is the Extrinsic Value Customers who respond well to the truly consultative selling style Courtney describes. Intrinsic Value Buyers, on the other hand, would wonder why you were wasting their time and assume you were wasting their money, too. And Strategic Value Customers would demand attention from corporate management and other functions throughout the organization well beyond sales. Matching the Customer's Investment Many sales forces today find themselves caught in no man's land. They're too expensive to satisfy the frugal Intrinsic Value Customers, not skilled enough to provide the high-level consulting expected by Extrinsic Value Buyers, and under-resourced and misaligned to serve Strategic Value Customers. Their survival depends upon their ability to identify the customer's buying preference and design their sales channels appropriately. The optimum selling position is where buyer and seller are perfectly matched in terms of the investment each makes. So the Intrinsic Value Customer, who sees all the value in the product and not in the sales force, will generally prefer an acquisition process that is simple, cheap, hassle-free and requiring very little investment of time or effort. These customers must be served by less expensive channels such as telephone or e-commerce. To create value for them, the supplier must strip cost out of the sales process, perhaps even eliminating the direct sales force. The Extrinsic Value Customer will generally expect the opposite. As Burleigh Hutchins, chairman of Zymark says, "A segment of your customers -- both large and small -- are buying your advice more than your product. They need you to invest in understanding their business, and they'll make the investment required to educate you...It doesn't matter if you have a better product. You can't afford to be too busy to spend the time it takes." 26

To satisfy the Strategic Value Customer, who demands extraordinary value, requires a very high level of investment on the part of both parties. The enterprise level sale may have costs to the supplier well into seven figures, and the customer may be spending an equivalent amount. If only one party is willing to make this kind of investment, the relationship is certainly doomed. Rethinking the Sales Force Irreversible trends in technology and product development are driving dramatic changes in buying behavior, creating an exciting environment for selling. The sales industry faces more opportunity for innovation and creativity than ever before. But these are dangerous times as well. Buyers are much more sophisticated than ever before, and with ever increasing acquisition options, they will no longer tolerate unnecessary selling effort as a necessary evil. Communicating value is no longer enough. Rather, salespeople must be prepared to create value for the customer. Suppliers must truly understand what represents real value for their customers and rethink their sales strategies to match the customer's investment in terms of time, effort and money.

2.2.6. How to Sell to Friends Without Sacrificing Friendship

You've landed a great new sales job. It's taken some time to learn about the product and now you're scrambling to reach your quota. You believe in the product and want to share it with everyone you know, and you need a pool of potential buyers. So what better prospects than your friends? You won't have to worry about getting a foot in the door and you'll be able to practice your pitch in a casual atmosphere with room to slip up. Wrong. Maybe not entirely wrong, but if you don't want to risk the relationship you may want to reconsider. Though friends may present an opportunity to practice and learn from the experience, the primary lesson you might take away is why the rules about selling to friends differ from those that apply in purely professional interactions. Pitching at a party Take Tabitha, who landed a gig selling life insurance. After being indoctrinated into the intricacies of the product, she felt sure it was a must-have for her friends who were starting families and at an age to begin planning for the long-term. Tabitha thought their monthly poker party would be a perfect place to pitch. She arrived with packets of information and when it came her turn to deal, instead of doling out cards, she placed promotional materials before each person at the table and set off on her presentation. One person got up from the table and flipped on the TV. Another grumbled, "I'm gonna die?" and downed a shot of tequila. A third started fiddling with her cell phone. The hostess pulled Tabitha aside and asked her to "please collect the folders and leave business for business hours." The next month the poker players "forgot" to tell Tabitha where the game was being held. What was wrong with Tabitha's tactics? To begin with, when people are in leisure mode, they don't want to be confronted with sobering financial decisions -- particularly ones that involve contemplating their own death. No matter how much your friends like you, they're likely to resent being pitched to at a party. If you're selling a product you think they'll benefit from, you may want to proceed more professionally. Being businesslike with buddies

27

Start by calling your friends at the office or dropping an email to tell them that you're representing a great product you think will benefit them. Say you'd like to set up a time to tell them about it. You can make the meeting casual and perhaps combine it with social time -- for instance, take a friend to lunch or out for drinks and plan to talk business for 20 minutes and then have some fun. Alternatively, opt for a business setting and keep things purely professional. In selling to friends, you have the advantage of knowing their personality well enough to anticipate which approach is likely to work. Use your inside info and sensitivity to tailor your approach to their tastes. If you're unsure how to proceed with a particular pal, simply say you'd like to talk about your product and want to know what setup would best suit them. Give your friend time to get back to you, but follow up a few days later if you haven't heard back. Make it clear that you respect your friend's time and the possibility that they may not be interested. And leave them room to say no. Not everyone feels comfortable doing business with a friend. And not everyone has an easy time saying no. If you sense some hesitation, ask what's giving them pause. If their concerns have to do with the product, address them professionally as you would another client. If they're about your relationship, see if you can't work them out, perhaps by assuring them that things will be kept professional. Emphasize that you don't want to make them feel uncomfortable or pressured. If your friend is not agreeable, don't take it personally. Instead, let them know they can contact you if they change their mind. Or offer to send them information they can look over if they reconsider. And, most important, ask if they can suggest people who might be interested. Perhaps your friend would feel more comfortable with you approaching their co-workers, family members or friends. This way, even if your friend doesn't buy from you, he or she can still support your cause. (Keep in mind that when you do business with friends of friends your presentation will reflect on them as well as on your company.)

2.2.7. 'Killer' Salespeople Wanted

Summary "Killer" sales is an old way of thinking. Today's superstars are more like farmers than hunters. Killed anyone lately? I saw a help-wanted ad not long ago, and the company sought a "killer salesperson." What an interesting hiring standard. There was no mention of achievement history, marketing smarts, resourcefulness, written and oral communication skills, integrity, initiative or empathy. "Only killers need apply," was the ad's clear message. A few questions popped to mind: How do you manage a killer? Why wasn't the company advertising for a professional salesperson who could pioneer new territory and build and sustain relationships? Did the company's customers see the ad? No doubt the manager who submitted the ad only meant killer figuratively. But the word choice indicates he hasn't got the message: Today's superstars are more like farmers than hunters. They cultivate relationships and see their clients as partners instead of prey. If we continue to put trained -- or worse yet, untrained -- killers on the street, our prospects will build even more elaborate defenses to protect themselves. Business is stressful enough without having to face the relentless pursuit of a killer salesperson. Before you hire a killer or seek to become one, think about the new realities of today's sales world. Consider this thought from The Idea-a-Day Guide to Super Selling and Super Customer Service by Tony Allesandra, PhD: "The sale begins when the customer says, 'Yes.' It's not a 28

close but an opening, the start of an ongoing business relationship." An analogy can be drawn between the confirming process and asking someone to marry you. If you were worried about the answer, you wouldn't ask. Obviously, the question would be premature. Many salespeople never get to a point in the sales process where closing is appropriate. In a relationship, the person who won't take no for an answer and persists despite another's wishes is called a stalker. We don't need to recruit stalkers into this industry. Old school sales training was essentially boot camp for turning people into professional business stalkers: "Don't take no for an answer." "The sale begins when the client says, 'No.'" "Get your foot in the door and your body will follow."

It appears that in some industries, the old school thinking is still in vogue. But salespeople should think farming, not hunting. It will be a less stressful world for you and your customers.

2.2.8. Lessons from the Tour Learning to Use an Overlooked Visual Aid
Summary Company tours close sales. Power Point is not the answer. "Chris, we close 90 percent of the people who tour our facility," one of my clients told me. "When they buy our product from a catalogue, they think of it as a commodity. When they see our facility and our support team, they value what we are selling," he continued. This VP of sales had learned a very important lesson: Its easier to sell a customer on taking a tour than it is to sell him a $500,000 system. And its easier to sell the $500,000 system after the customer has taken the tour. Power Point is not the answer for more compelling presentations. Actually, one of the most underutilized visual aids in selling is the factory or facility tour. Waterford Crystal knows this. They charge people about $4 to take the tour of their factory, and have more than 250,000 visitors a year. A few years ago, my wife and I went on the tour. Uniformed guides took us through the whole process. We progressed from the blowing room to the cutting room, and learned that it takes eight years of apprenticeship to become a cutter. Twenty-two minutes into the tour, we learned that Waterford doesn't produce any seconds. Every piece is inspected by a master and if it doesnt meet exacting standards, the piece is broken. The tour progressed through the engraving room and into the shipping room. After 42 minutes we learned that the price of their crystal is the same in Dublin as it is in Chicago or anywhere else, because the company controls the supply. Even if we bought something in the factory gift shop, we would have paid the same price if we had bought it anywhere else. Our purchase would be put into the process and made in the factory we had just toured. We also learned that we wouldnt be taking home any crystal that day; all of it is made to order. At the end of the tour, I watched 120 people line up and buy crystal at full retail price. They most likely thought they would get a deal, but were so impressed with the quality that they were willing to pay more. They paid for the tour and then paid full retail for the crystal. What did you learn from reading this article that you can apply to your sales career? 29

2.2.9. Quit Playing the Commodity Game

Summary Once your product is tagged as a commodity, the margin plummets. Add value by presenting your products as engineered solutions. Be proactive and creative to bring your clients to your business. Buyers try to make everything we sell into a commodity. You're no different than your competitors, is their mantra. As salespeople, we have to engineer solutions to our clients' problems instead. Unique Product vs. Commodity One of my clients is a Wisconsin-based equipment manufacturer for the food, dairy, chemical, pharmaceutical, biotech and beverage industries. They sell their products to ConAgra, Kraft, Pepsi and Budweiser, among others. A major strategy in their marketing plan this year is to give plant tours. When potential customers come into my client's ISO9000-certified, state-of-the-art facility and see the laser welding station and pumps being engineered to each customer's exacting specifications, they gain a new appreciation for the product they normally buy from a catalog or distributor. Seeing the production process, the people, and the equipment in person adds value to the sale and cements relationships with customers. Their goal this year is to have 50 key food processing clients tour their facility, and they are on target for that. Mike, the company's national sales manager, makes it very clear that once the buyer positions you as a commodity, your margins are gone. "We want people to know that we are selling them an engineered item and not a commodity," he says. Ideas turn a commodity into an engineered solution. However, ideas take more time and investigation. Having rep firms investigate needs and fact-find instead of waiting for the buy to come down is a proactive approach everyone can learn from. Getting your clients to tour your facility gives them a connection with your business instead of simply buying a product from you. Your clients need to see the people who make the product and your company's investments in buildings and equipment. It's good business to get your customers on your turf once in a while. Putting It into Action If you haven't already set a goal to get clients to your facility, you might want to do so. Create an organized, logical presentation that shows a client how his purchase goes from paperwork to finished product. He can see you have an ordered process for doing business. If you're worried about getting higher prices and not being seen as a commodity, it's a safe bet that just about every business has the same problem. The good news is people still buy things from people, and we still have some highly paid salespeople who have developed extraordinary faxing skills. "There is no such thing as a commodity," wrote Theodore Levitt, in his groundbreaking book The Marketing Imagination. Your job is to find ways to differentiate your product and yourself from the competition. A tour of your facility is one way to show the uniqueness of what you do.

2.2.10. Show Your Love A Little Passion can Go a Long Way in Sales
Summary Product involvement makes customers happy. Get excited -- don't just go through the motions. Sell something you love. Successful salespeople are involved with their products -- and they show it. When I was in the radio business, my wife and I had an ongoing argument about commercials. We would be 30

driving along in the car, listening to the radio like a normal couple. When the song ended and the commercial came on, Id turn up the radio. "I was talking to you," shed say. "This will just take a minute," Id say. "Its just a commercial. Im your wife." "I know, but I wrote this commercial. Be quiet. I want to hear how it sounds on the air." While it doesnt always help a marriage, product involvement is a powerful tool that can help you when youre meeting with a customer or prospect. When a customer senses that you care deeply about what you are selling, you will be less likely to get stalls and objections. It doesnt matter what youre selling, if youre excited about your product or the way it helps the people who buy it. Your enthusiasm will send out positive vibes to your customers, which will help them feel good about doing business with you. Compare that to the salespeople who are simply going through the motions. Would you want to buy something from a salesperson that didn't believe in the product he or she was trying to sell? Aristotle told us that the three principles of persuasion are ethos, logos and pathos. That may be Greek to you, but it is vital to your sales success to be ethical, logical and passionate. There are three vibes you need to give off when you walk into a customers office: Im glad to be here. I know what Im talking about. I love what Im doing.

So do you love selling? Do you love the process or at least the opportunity to render a service to your customer and solve real problems? It shows if you do love selling, and it shows if you dont. Caring deeply about what you are doing will help you more as a salesperson than all the books and tapes you will ever buy. Sales skills will not take you as far in your career as product involvement will. Decide what it is you love about your product and your sales job, and show that every time you deal with a customer or prospect.

2.2.11.
Summary

The

First

Two

Minutes

of

Your

Meeting

State your focus and control the meeting from the start. Get the customers' full attention. Identify a problem and how your product will solve it. When you control the meeting's focus, you control the meeting. During the first two minutes, you want the meeting's focus to be the prospect's problem, not you and your product. We live in the Age of Interruptions. The typical businessperson experiences 170 to 190 interactions per day. These interactions include voice mail, email, faxes, pages, hallway conversations and the dreaded "gota-minute?" meeting. 31

There's a good chance that when you show up, your prospect is thinking about what just happened and what they are going to do about it after you leave. Many sales trainers suggest a startling statement to break preoccupation and focus the customer on a problem that he or she has and you may be able to solve!!!!!!!. The startling statement can be a quote from a recognized business expert, a statistic or a short testimonial from a happy customer who is already benefiting from your solution. For example, when I sell sales training, I will say to the company president or VP of sales, "Ninety-five percent of the people working for you got into sales accidentally or as a second or third choice when something else didn't work out. There are more wannabe Web site designers, future firefighters and aspiring astronauts in the third grade than there are prospective salespeople. So sales training must teach skills and sell the participants on the value of what they are doing. It must convince them that they have wonderful opportunities even if they didn't choose sales as a career." An opening like that will break their concern over whatever they were doing the minute before you walked in the door and will get them thinking about what you want them to think about. Your biggest competitor is not necessarily another salesperson at another company. It might be your customer's belief that everything is fine. You can learn a lot about sales by staying up late and watching infomercials. Infomercials virtually always start out with a problem that thousands and thousands of people have. One of my favorites is for a videotape called, "Where There's a Will, There's an A." The opening line goes like this: "Parents, did your child bring home another bad report card?" Notice the focus of the question? Another infomercial, this one for a real estate course, opens: "Most people, when they retire, sell their house, move into a smaller place and live off the difference. What if you had five houses?" In the first two minutes, the copywriter gave the viewer a selfish reason to stay tuned. Rent The Music Man and watch the first 30 minutes. Notice that Harold Hill doesn't try to sell anyone in River City, Iowa, any band instruments until he has painted a picture of the terrible, terrible trouble that is about to befall the town. "Either you are closing your eyes to a situation you do not wish to acknowledge or you are unaware of the caliber of disaster brought about by the presence of a pool table in your town. Well, you've got trouble my friends" Every salesperson can benefit from having a trouble talk. It should be honest, wellresearched, articulate and customer-focused. You can also start the meeting by asking a provocative (but not obnoxious) question. We sell a pre-employment personality test to HR directors and sales managers who are hiring candidates. Mark Peterson, our top producer in this division, often opens meetings by asking prospects, "Have you ever hired a salesperson who performed better on the interview than on the job?" The answer is always yes, and the meeting is off and running. Think about the problems your product can solve. Talk about the trouble you've gotten so many businesses out of with your solutions. Getting the customer worried is the fastest way to get the customer to buy. People who are satisfied don't want to change. Why should they? Everything is just fine. Once you've broken the prospect's preoccupation and focused on the problem he or she has, move into your purpose-process-payoff speech. Control the meeting by controlling its focus. Work on your startling statements and craft your trouble talk. It's all part of doing it better. And your clients get better when you get better.

2.2.12.
Summary

What

Buyers

Dislike

Most

about

Salespeople

Lack of preparation and interest and no nos. 32

 Pay attention to the salespeople you respect and learn from them. Your clients are rooting for you to get better. Compelling research tells you exactly what to do to make more sales. Never approach a customer unprepared. According to a survey by Purchasing magazine, lack of preparation is the number one dislike buyers have about sellers, with a lack of interest or purpose following close behind. "Hello, your account has just been assigned to me," is blatant behavioral evidence that the salesperson is going through the motions. A better opening would be, "In preparing for this meeting I..." Then tell the customer exactly what you did to prepare. To be welcomed into a buyer's office, you must have a valid business reason for being there and be able to quickly articulate that reason. Larry Wilson and Spencer Johnson describe the "Purpose, Process, Payoff" speech in their book, The One-Minute Sales Person. The purpose, process and payoff speech can answer four of the prospect's unasked questions in the first two minutes of your meeting: 1. 2. 3. 4. Why are you here? (Purpose) What's going to happen in the meeting? (Process) What's in it for me? (Payoff) How long is this going to take?

Here is how a purpose, process and payoff opening might go: John, the purpose of this meeting is to exchange some information about sales training. Here's how I see our meeting going. I'll present a 12-minute video that frames some key training issues. Then I'll ask five specific questions about your sales team. At the end of this meeting (which will take no more than 40 minutes especially if we can limit the interruptions), you'll be a more informed consumer of training programs and training products. And at the same time, I'll know if you want to take the next step in our process which would be the proposal phase." Fair enough? Your customers buy the way you sell before they buy what you sell. Selling them on the way you're going to work together is a step you should not skip. So many salespeople skip it that you have an unfair advantage over them if you include it in every meeting. To show you're very prepared, you can send your bullet-pointed purpose, process and payoff agenda two days before the meeting to confirm the meeting and market it as well. Being more prepared will help you seem more interested and purposeful. It's important that you give off three vibes when you are with a customer: 1. I'm glad to be here. 2. I know what I'm talking about. 3. I love what I'm doing. You can't fake it. Vibes are non-verbal manifestations of what's going on inside of you. Your smile, posture, tone of voice and the depth of your conviction will let the customer see that you are different than all the salespeople who meet with the customer. Your clients get better when you get better. The corollary to that is this: Your clients are rooting for you to get better. Your customers want to have engaging meetings and work with the best salespeople and companies in the business. Think about salespeople you respect. What do they do differently than salespeople you don't respect? Chances are they are into what they are doing. And when you are with them, you feel like an important customer. They focus on you and not their next meeting. They listen and respond appropriately. As a buyer yourself, you don't throw up as many stalls and objections. You may even be willing to pay a little more because you enjoy buying from them. 33

Be prepared. And approach your customer with a sense of interest and purpose. Aligning your behavior with the behaviors that customers value is the fastest way to earn respect and credibility. Orders that come from respect and credibility are more profitable than orders that come from price-cutting. Take this idea into the field this week. Build a purpose-process-payoff speech for each meeting you have scheduled. It can be very simple, one or two bullet points under each heading. You will find that your customers will treat you differently and better. After all, you're treating them the way they want to be treated.

2.2.13. When You're Smiling

Salespeople need to smile more, and not a forced smile like Arthur Miller envisioned in Death of a Salesman: "He's a man way out there in the blue, riding on a smile and a shoeshine." It takes much more than a smile and a shoeshine to succeed in sales today. Still, they are a good place to start. I sell speeches. A few years ago, I participated in a speaker's showcase held by a speaker's bureau. I paid the bureau a fee, and they invited meeting planners to see speakers, including me, deliver speeches. We each got 15 to 20 minutes to perform some material in front of this live audience of buyers. It's like a battle of the bands. Each speaker tries to wow the audience to win business. When it was my turn, I did my 20 minutes and then yielded the stage to the next speaker. Out in the hotel hallway, I ran into another speaker. "Wow, you really looked like you were having fun out there," he said. "If I'm going to pay my own money to speak, I'm going to enjoy myself," I replied. "I'm too nervous in front of an audience to have fun," he told me. He was a college professor who felt comfortable facing his students but not in front of the corporate market. "I wish I felt the same way about speaking that you do." Here's the point: People can tell when you're enjoying what you do, and they can tell when you're not into your job. How does your customer experience you? These are the three vibes you must give off when with a prospect or customer: 1. I'm glad to be here. 2. I know what I'm talking about. 3. I love what I'm doing. Work is not God's punishment for not being born rich. It is critical that you find joy in your sales job. The great author Elbert Hubbard put it this way: "Get happiness out of your work, or you may never know what happiness is." Not only that, if you don't have passion for what you're selling, the prospect won't either. So working on your belief and attitude is critical for sales success. The following exercise will help you identify what you love about your sales job. Once you have discovered what you love, share it with your customers. For example, you could say, "One of the things I love about my job is to see customers get the outcomes they want from the products and services I sell. It's even more fun when I get a letter from a happy customer who was skeptical at first."

34

It is energizing to focus on the good things about your job, and when you share your enthusiasm, you may find the meeting has a different dynamic. When you're glad to be there, your customer may be glad you're there too. Completing these five sentences will get you started: 1. One of the most exciting things we're doing at our company today is 2. I get a great deal of job satisfaction when 3. The best thing a customer ever told me about our company is 4. I took this job because 5. The reason I'm doing this -- besides the money -- is that it offers me the opportunity to As you complete those sentences, you develop your own sense of what is important about your job, and you discover some things to share with your customers. Whether you make the sale or not, one of the impressions you want to leave with a person is: "That salesperson really loves what he is doing." When you're at your very best in sales, you are happy. You feel important. You get great satisfaction. If you're not getting great satisfaction from your work, customers will know. It's the vibe. They will wonder why you're not enjoying your job -- maybe your product is inferior or your company is undergoing a tremendous upheaval. They will wonder if they'd be better off with your competitor's product. So start smiling.

2.3. POST ANALYSIS. 2.3.1. Its All Relationships About People Build and Nurture Those

These days, you don't have to be willing to sell your mother up the river to succeed in sales. And you don't have to leave integrity and compassion by the wayside, to close a deal. With growing interest in New Age principles, the movers, shakers and innovators in the sales industry have been touting alternative approaches to selling -- ones that emphasize that sincerity and respect for the buyer need not preclude generating volume, filling quotas and racking up high commissions. To be sure, the shyster, the huckster and the scammer still exist -- as films like Boiler Room, Wall Street and Glengarry Glen Ross are quick to point out. But you need only browse your local bookstore's sales and marketing section to find a slew of new ethics-based options for the seller who prefers to see himself or herself as a "buying facilitator" or "solutions provider," rather than an insensitive, product-pushing flack.

35

In Selling with Integrity, author Sharon Drew Morgen discusses how bringing "personal spiritual values into [her] job of selling" brought her success as both a seller and an entrepreneur. Morgen encourages readers to see the selling process as that of "buying facilitation...a questioning and listening process, for the purpose of serving, that facilitates a buyer's discovery of how best to get his or her needs met." She emphasizes creating a relationship of trust and collaboration with the prospective buyer by really listening to the buyer's needs and bringing personality and humanity to the interaction. "Let the relationship come first," Morgen advises, "and the task second." Selling Solutions "Most people do not like to feel 'sold,'" agrees Michael T. Bosworth, author of Solution Selling. "It makes them feel manipulated or taken advantage of." Rather than trying to unload your product on a wary buyer, Bosworth recommends seeing yourself as a "buying facilitator." Cultivate a collaborative relationship with the prospective buyer by focusing on value over product. Value -- which includes the service, training, consultation and any other perks that accompany your product -- is what sells. It offers buyers solutions that are sensitive to his or her wants and needs, exceeding the intrinsic value of the product. Selling solutions also facilitates an ongoing relationship with the customer. "Salespeople who are good enough to facilitate the buying process," Bosworth insists, "rarely have to close -- the buyer volunteers to buy." Forging Ongoing Alliances In this era of sophisticated consumers and comparable products among competitors, customers are not only buying a product, they're buying the way a company does business, the service that comes along with the product and the relationship between the buyer and seller. In other words, as Harry Beckwith argues in Selling the Invisible, consumers are interested in relationships, not features. And, as the authors of The Cluetrain Manifesto point out, "Markets consist of human beings, not demographic sectors...Markets do not want to talk to flacks and hucksters." Rather, the human beings who comprise the markets want to develop trust and, in many cases, an ongoing in-depth partnership with the company whose product they purchase. The Softer Sell Can Still Be Hard Core All this emphasis on respect and concern for the buyer is hardly a call to forego strategy for sentiment and sympathy. In fact, this kinder, gentler approach is conducive to honing your strategy and skills. When you really listen to and hear what a customer's needs and wants are, you're in a better position not only to meet them, but also to anticipate those of your next customer. And you begin to develop a sense of what's going on in the industry you're targeting.

2.3.2. Learning from No How to turn a negative reaction into a positive one
"No" is unpleasant. It's frustrating, it's demoralizing, it's downright annoying. It's also inevitable if you have a career in sales. You're going to hear it at some time or another, and though that initial sting might get you every time, there are ways to make "no" work in your favor. It doesn't have to resound endlessly in your mind and undercut your morale. 36

To begin with, be aware that as much as "no" is a refusal, it's also an opportunity -- one that many salespeople fail to capitalize on. When you're met with "no" as the final answer, rather than trying to force it into a "yes" or feeling bad and walking away, try asking questions. If you can find out why, you'll be in a better position to garner a "yes" from your next prospect. Why Ask Why? People have all sorts of reasons for not buying, and you shouldn't necessarily take "no" personally. The more you can put your ego aside and gracefully accept the refusal, the more you might learn from the experience. So, assume for the time being that you've been turned down and your business with this person is done. Make it clear that you've accepted their reply. If you're no longer trying to sell them, you and the buyer will be in a more neutral territory, and you'll have an easier time getting information that will help you. Begin by saying that you appreciate the time they've given you and ask if they would be willing to take just a few more minutes to talk about why they aren't interested. Explain that the information will be helpful to you in your job and you'd be thankful for their feedback. You might not get a straight answer initially, because people are often uncomfortable with having said no and want to get out of the situation as soon as possible. They're likely to offer a pat answer about price or prior loyalty, but if you probe a bit you might find your way to a more substantial reply. Some approaches that might lead you to the truth include: "I realize price is an object. If it weren't for the price what would you think of the product?" If they say they'd be interested, gather more information by asking how they think their company would benefit from it. "Might there be a time in the future when my product will fit your budget or is there something more than the cost involved?" "I respect loyalty to X company, and I'm wondering if you can tell me what sort of things have inspired that loyalty. What do you like most about doing business with them?" "Is there something we could be offering that would make our product more attractive to a company like yours?"

Was It Something I Said? A difficult question to ask, but a crucial one to find out whether there was something in your presentation that the prospective buyer found off-putting. Again, you'll want to indicate through your attitude that you aren't going to fall into a fit or respond in rage. Attitude and tone are crucial here, and unless you've established a friendly rapport, you may not be able to pull it off. If the mood seems right, try saying, "I hope this isn't asking too much, but was there anything I did that interfered with your decision?" You might want to add, "This is what I do for a living, and it would really help me to know." Even if there is something about your approach that blew the sale, keep a professional attitude. No salesperson is perfect, and any approach can stand improvement. Also, an approach that works for one customer does not necessarily work for another -- this is just one person's opinion based on one interaction. Gather as much information as possible and consider the criticism carefully. Perhaps run it by colleagues and friends to see if they think it's well-founded. But rather than letting it get you down, focus on how you can use it to improve your approach. And remember, a problem with

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your presentation is not an indictment of you as a person or a determination of your future in sales. No Does Not Mean Never When you're turned down for a sale, whether you're able to gather more information or not, don't give a "no" more weight than it merits. If you find yourself panicking that it's all you'll ever hear or that you'll never meet your quota, remind yourself that it's just one sale. Every salesperson hears "no," and it's no indication of how your next meeting will go. And don't forget, if you field this "no" with finesse, the person who didn't buy may be left with fond enough feelings to find a way to send future business your way. Establish whether you can call on them again in the future (be specific about when, suggesting a time when the circumstance that led to the "no" may have changed), and make sure they know that they can call you as well. When to Take Your No and Go In some situations, you'd be better off letting "no" stand without questioning it. If the person you've been dealing with has been a naysayer from the start -- if he's been patronizing, prickly, or strikes you as pretty imperceptive -- it's probably not worth pursuing his opinion. Solicit feedback only from people you respect and who you sense will be honest and constructive in their response. Finding the Yes If every cloud truly has a silver lining, your challenge as a seller is to find the sliver of silver sagacity in every sale that slips away. If you set your sights on what you can learn from each "no" and the sales it might lead to, who knows, you might come to see "no" as an inspiring response and the seed for a future "yes."

2.2.3. The Platinum Service Calendar

Summary Customers need to feel special and important. Different types of customer accounts = different types of treatment. Use the Platinum Service Calendar to maintain interaction with top clients.

If you cannot benefit from repeat business, you can stop reading right now. If, however, your business relies on selling more to the same clients or forging strong relationships throughout their companies, the Platinum Service Calendar is going to change your life for the better. Not every customer is going to get the same level of service. Do you have platinum accounts two or three big customers or any customer who makes up 5 percent, 10 percent or more of your monthly billing? A gold account might rank four through 10 in terms of billing. Your silver accounts would be 11 through 15, and your bronze accounts would be 16 and lower. You decide. You can use or adapt this calendar to put your service plan into action and let platinum customers know that they are indeed special. Let's look at the components of the Platinum Service Calendar. 1. Send a thank-you note. A three-line, handwritten thank-you note has more impact today than one generated by computer. Here's an example: Dear John, 38

Thank you for the order you placed today. Our mission is to make successful companies even more successful. All of us appreciate the confidence you've shown in our company and will work to build your business. Sincerely, (Your name). I recently heard a sales trainer say that you don't owe the customer a thank-you. He or she didn't do you a favor. Customers do themselves favors, so instead a reinforcement note is in order. Dear John, You made a good decision, and I look forward to working closely with you to achieve your objectives. Sincerely, (Your name) 2. Make a follow-up phone call. The purpose of the first phone call is to add more information. "Your order just shipped. The installation is Monday the 6th. Thanks again." You're really letting the client know that you're on the case. 3. Send an article or factoid about the prospect's business. These level-three touches keep reinforcing that you are the source of the service. Set a goal to provide one such touch eight or 10 times a year. The goal is to keep your name and company name before the buyer. 4. Get key customers to your facility. Give them a tour, have lunch in the conference room with a manager or two, or do some brainstorming about strategy and gather data on how this client thinks things are going. Giving more people in your organization line of sight to the customer is a very good thing. Letting customers see the people and equipment in your operation will help them understand why it's more expensive. 5. Interact socially with the client. Plan a series of breakfasts or lunches with the buyer or end users. Depending on how often you see the customer, breakfasts and lunches help you build relationships and gather more data. 6. Clip a cartoon or article about the client's hobby. This is actually my colleague Bud Stiker's idea. He clips cartoons and keeps them in a file. He has golf cartoons, tennis cartoons, even cartoons that have the names of people in them. On the weekend, he goes through his files and sends a few golf cartoons to his clients who play golf and sends the cartoons with names in them to the people who have the same name that's in the cartoon. It's his way of keeping himself on the mind even though he may be in another country. 7. Send a letter from top management. This can be a typed form letter but should be personally signed by someone high up in the company. It follows a big order or the one-year anniversary of the first order. Getting recognition from a company's management tells clients that someone else has noticed them. 8. Make a second follow-up phone call. 39

9. Have top management visit the client. 10. Have a member of your team visit the client's facility. 11. Consider providing a 24-hour hotline for questions or problems. 12. Consider Web site links from your site to the client's site. 13. Send a birthday card. 14. Send other holiday remembrances. 15. Make a donation to the client's favorite charity or cause. 16. Give your client a business book. 17. Give your client logo wear. 18. Give your client specialty items. 19. Have a seminar for your customers By having a one-year tracking program that has actual planned service activities for your customer, you can count how many touches you actually provide. This Platinum Service Calendar becomes part of the client's permanent record and lives in the client's file. It's how you begin to upgrade customers to clients and clients to advocates. If you have a service department, you may be doing these things already. The big idea is to put customers into a service process, just like you put prospects into your sales process. They are still hearing from your competitors, after all. They really need to hear from you so they feel important.

2.2.4. The Secret to Winning Back Customers

Summary Sales managers must drive a customer win-back program. Manage customer expectations from the beginning. There's a difference between lost customers and dead customers. Most sales managers and salespeople don't make that distinction, but Jill Griffin does in her book Customer Win Back: How to Recapture Lost Customers and Keep Them Loyal. In the rush to get new business, we ignore lost business. Marketing Metrics, a Paramus, New Jersey-based consulting firm estimates that the closing ratio for new prospects is 5 to 20 percent. The potential for winning back lost customers is 20 to 40 percent. Here are five ideas for creating your own customer win back program: 1. Sales Management Must Drive the Win-Back Program. It's unacceptable to give the lost causes and hopeless cases to the new salesperson. Sales managers have to identify the lost list and get out of the office and visit them with their sales reps. During those meetings, sales management's job is to listen, take notes and summarize the lost customers' comments to demonstrate they are understood. 2. Establish the Measurement System for Tracking Losses and Win Backs. Sales management needs a system for identifying lost and recovered business. If you're not measuring lost customers month-to-month, you're not managing churn. Identifying which

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customers who did business with you last month are not doing business with you now is vital for beginning your win-back program. 3. Create a Strategy for Revisiting the Lost. Your win-back strategy might include a meeting with top management, a letter from the CEO and a new needs analysis meeting. This all flows from the first face-to-face meeting where you discover the problem and refine your approach. 4. Celebrate Your Win Backs. Make sure the salesperson who wins a customer back gets recognition for that sale. What gets rewarded gets done. 5. Document Your Successes. Winning back customers is a process, and it should be a repeatable one. It may take seven steps instead of the four above, but once you've won back several customers, you'll begin to see patterns. The last thing you should do is document the steps that work and make them part of your training program going forward. As you can probably tell, prevention is easier than the cure. Manage customer expectations at the beginning of the relationship, not the end. Ask, "What result are you looking for in the next quarter -- or appropriate time period -- that will make you continue to do business with us?" Knowing the expectations at the beginning makes your life as a salesperson much easier and increases your chances of renewing a client. It's not easy to win back lost customers. There may be some confrontation and you will undoubtedly hear things you don't want to hear. However, it's hard to correct a problem you're not willing to discuss. According to George Walther in his book Upside Down Marketing, the easiest sources of new business are customers who got frustrated, aggravated or annoyed and can be seduced away by the competition. So why are you sitting there reading this? Go talk to a lost customer.

2.3.5. The Yardstick: How Do You Measure Up?

Summary Make a lasting impression on your customers. Avoid the top 10 no-nos. Be part of a sales force, not a sales department. Are you a member of a sales department or a sales force? There's a big difference. Members of a sales department are easy acts to follow into clients' offices. They don't make much of an impression on the prospect and, as a result, make the next person look better. Members of a sales force are tough acts to follow into clients' offices. Consider figure skating. There are certain figure skaters -- Peggy Fleming, Dorothy Hamill and Katarina Witt come to my aging mind -- who were so good that following them onto the ice would be a daunting challenge for any competitor. Compared with the passionate and masterful performance each gives, even competent skaters look less competent if they have to follow one of those ladies onto the ice. 41

But back to selling. We received a copy of this letter recently. It's from a satisfied client to a sales manager. Dear Kelly, I am writing this letter to you concerning the attention and service I have been receiving from your sales associate Kim Delwiche. She has taken my account and shown me not only the benefits of WAPL, but educated our company in regards to the best approach in marketing, positioning and our media analysis. She has done an extensive amount of research, made us feel comfortable with her, and shown us the strengths and weaknesses in our media plan. If you don't have a nickname for her, I suggest you try "The Yardstick." Why? Because here she is the standard of measurement with which we measure all of the other media sales associates. If I could only instill in my own staff the tenacity and willingness to do work in the fashion she has done with our company, I would be worry free. I believe you should know this since it is far more common to hear the negative than the positive. Without Kim's attention and skills, we would have taken a less beneficial path. [I believe] we are headed in a better direction than we were without your services and your station. Sincerely, Ray Lasee, Store Manager Parker Coatings, Inc. Kim is a tough act to follow into Ray's office. Clients buy the way you sell before they buy what you sell. The most interesting thing to me about Ray's letter is that, at the time Ray wrote it, Kim Delwiche had only been selling advertising for six months. It's a great coup for Kim to get a letter like that. At the same time, it says a lot more about the impressions the veteran salespeople and top billers are making, or not making, on the client. Salespeople are not just competing for dollars in the marketplace. They are competing for precious time in front of your market's buyers and prospects. Until you get more face-to-face time, you'll be hard-pressed to land bigger orders. What can you do right now to set the standard for how things are sold in your industry? Start by avoiding the top 10 things salespeople do that buyers dislike (This list comes from a Purchasing magazine survey.): 10.Failure to keep promises. 9. Lack of creativity. 8. Failure to make and keep appointments. 7. Lack of awareness of the customer's operation ("What do you guys do here anyway?"). 6. Taking the customer for granted. 5. Lack of follow-through. 4. Lack of product knowledge. 3. Over-aggressiveness and failure to listen. 2. Lack of interest or purpose ("Anything coming down this week?" or "Just checking in."). 1. Lack of preparation.

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Being a great salesperson is more than just avoiding the 10 things buyers dislike, of course. The salesperson who wants to be a member of a sales force instead of a sales department will want to make every call one that could trigger a letter like the one Ray Lasee wrote. The goal is not to get clients to write you a letter, although that's a nice reward. The goal is to get the clients to reward you with larger and larger orders. Then you can write them a thankyou letter. Your clients get better when you get better. And your clients are rooting for you to get better.

2.3.6. Top 5 ways to retain your clients

Consider: If one year you increase your customer base by 20 percent and retain 85 percent of your customers, your net customer gain is 5 percent. Suppose the next year you institute a customer-retention program. Your customer base increases by the same 20 percent but you boost your retention rate to 90 percent. You now have a 10 percent net increase in customers, double the previous years growth. Small improvements in retention can produce sizable benefits, which is why effective sales people always focus on retaining the customers they have. Its been estimated the cost to land a new account is as much as six times the cost to retain an existing one. Not only does retention reduce costs, it boosts your productivity by allowing you to spend more time servicing your customers and expanding your sales practice. How do you know if youre doing a good job retaining customers? Look at your retention rate. Has it changed over time? How does it compare with your competitors? If you have a mediocre or poor retention rate, you need to immediately start working on ways to keep your customers coming back to you. 1. Please your customers To retain customers, you must focus on customer satisfaction. Rather than just making a sale and then moving on to the next customer, savvy sales people are turning themselves into "account managers." They work at creating and maintaining an ongoing relationship with their customers. Never before have customer expectations been higher, and the salesperson who ignores these expectations and needs, will be replaced by others who understand them. To keep a customer, you need to get close to the customer and understand his or her wants and needs. 2. Manage expectations But you need to manage expectations. Customers with unrealistic expectations of what they want and what you can deliver will never be happy. Theyll waste your time and then take their business elsewhere. Your job as salesperson includes teaching your customers what they can realistically expect from your product or service. Ask the customer: Six months from now, how will you know if this purchase was a success or failure? With the insights you get from the answer, you can properly guide the customers expectations and set yourself up for success. 3. Know your customer This is part of a retention strategy that emphasizes the need to know your customer. Sounds simple, but it isnt. The better you know your customer, the better you can advise them and help them. Those who provide good advice and help are retained, while those who just sell are often dropped. To know your customer, you must go beyond your contact person. Organizations are more than an individual, and if you want to retain customers, try to get to know others in the organization, and their wants and needs. This will give you a better picture of the customers needs, and help you retain the account if your contact person were to leave the company. 43

4. Stay in touch Maintain communications. Reach out to the customer four times a year, minimum. Call them, send an email or letter, take them out to lunch. Do simple things like mailing a thank you note or birthday card. If you come across an article or Web site you think of interest to the customer, send it along. Out of sight, out of mind, as they say. You need to regularly remind the customer that youre around and can provide valuable services and advice. 5. Keep consistent Perhaps most important, dont take your customer for granted. If you provide good customer service at the beginning of your relationship, for example, dont let it slip -- you will eventually lose the customer. Dont ignore the customer. If you want to retain your customers, you have to treat them as you would like to be treated.

2.3.7. What I Learned by Watching Too Much Football

Summary Identify parts of your sales process that need work. Measure total performance The day after the Wisconsin Badgers had barely beaten the Oregon Ducks, the pundits proclaimed that one of the problems was tailback Michael Bennett's extraordinary performance. Bennett, you see, had run for 290 yards. Unfortunately, three of his runs had been for 52, 72 and 80 yards. For the first time in many games, Wisconsin had less time of possession than its opponent. Coach Barry Alvarez likes ball control. Bennett, a world-class sprinter, was piling up too many yards at a time, thus giving the opposition more time to score. Football coaches obsess about time of position, first-down yardage and touchdown-tointerception ratios. Look at the sports pages on Monday, and you'll see box scores that detail yards rushing, yards passing, fumbles and a host of other team and individual statistics. What's the lesson for salespeople? You need to measure more than the score. In sales, the score is your monthly or quarterly billing. It's what you sold. But why you sold is just as important. A football coach can't coach the score. He has to focus on improving performance next week. If special teams gave up 250 yards in punt returns, that tells the coach where to spend additional practice time. Chances are you are not going to be a professional football player. However, if you want to be a professional salesperson, you can measure the game within the game. You can maintain your own box score. An easy way to do that would be to keep track of 10 prospects as they go through your sales process. You can measure ratios like prospects identified to decision-makers identified. Since you can't call on a company, you must convert the business name into a contact name. Then you can measure contacts identified to contacts you send something to. I like the idea of sending a prospect an article about his or her industry instead of a brochure on your company. This is called seeding the prospect. You can then dial the prospects you've seeded and see how many you actually contact. You can measure the percentage of prospects reached to interviews booked and so on. Your closing ratio doesn't tell the whole story. One time a salesperson told me that he had a 75 percent closing ratio. "How did you measure that?" I asked. "Simple, I made four presentations and closed three sales." "How many prospects did you start with?" "Twenty. Why?" 44

"Because, you actually closed 15 percent of all the prospects you put into process." "I never thought of it that way," said the salesperson. Unless you measure your advancing ratios, you'll never know what's working and what part of your sales process needs work. Many sales managers call me and say their salespeople have closing problems, when in reality, these salespeople never get into a position where closing a sale is appropriate. In reality, they have a prospecting problem or an opening problem. They are not getting enough appointments to begin with, and therefore, they aren't doing enough fact-finding meetings. That's why they are not writing as many presentations as more successful salespeople are writing. If you'd like to have your own selling box score like the one we've used here, you can download it and start using it today. We call it "The Ten Most Wanted List." The FBI uses a similar idea to help them focus their resources on the worst criminals. I suggest you use it to focus your sales energies on your best prospects. Always have 10 prospects in process, so if you close one, add another to replace it. When you close one prospect, add another to replace it. You can also count how many new business moves you make in a week. Like a football coach, you'll know exactly what's going on in your sales career and what to do about it. The numbers don't lie. Don't fool yourself into thinking you can be a pro without measuring the game within the game.

3. LEARN EVERYTHING ABOUT SALES MEETINGS. 10 Steps for Successful Sales Meetings Use these tips to master this crucial piece of your sales process.

Many entrepreneurs face a common challenge as they launch and grow their companies--their first meetings with prospects. Even if day-to-day business meetings are old hat to you, you'll find that holding new business meetings with prospects and closing sales face-to-face require mastering a different set of strategies and skills. Here are 10 steps to successful meetings to get you off to a great start. 1. Gather background information. A pre-qualifying telephone call will help you anticipate what your prospects' needs are. Learn as much about them as possible. As you prepare to meet with a business prospect, become familiar with basic information on his or her company. Then make a list of all the ways your product or service will benefit the company. 2. Set a realistic goal. Depending on your industry and where you're located, some experts estimate the average meeting with a prospect can cost up to several hundred dollars. So it's essential that every meeting moves your prospect incrementally closer to a buying decision. Before you leave your office, set a primary goal for your meeting. If you're a public relations consultant, for example, a realistic primary goal for a first meeting might be to set a date to present a comprehensive proposal. If you're a painting contractor, your primary goal might be to provide an estimate for your work and obtain a signature to begin. 3. Prepare quality materials. Create a family of high-quality printed tools that includes everything from business cards and stationery to printed estimate sheets, brochures and presentation tools. Take a hard look at all the materials you'll use in a typical sales meeting. Are they wellwritten? Do all the colors, typefaces and creative elements work together to create a cohesive, professional image? Pay close attention to any materials you intend to leave with your 45

prospect, especially if you're in a competitive bid situation. These materials must help close the sale long after your meeting is over. 4. Rehearse your presentation. It's a big mistake to bring materials to a new business meeting unless you've practiced how you'll use them. This is particularly true if you're making a new business presentation to a group. Rehearse your presentation using the visuals and handheld materials. If possible, videotape your rehearsal and examine it critically to be sure your tone is upbeat, your materials are effective and your pace is appropriate. 5. Build rapport using property observations. Imagine you're in the office of a business prospect. An autographed baseball is on his desk. A photograph on the wall shows a farmhouse surrounded by rolling fields, and a tape of the Beatles is playing softly in the background. By noticing the baseball, the photograph and the music, you've made three property observations. You've also detected three opportunities to build commonality and rapport with your prospect. Talk about your mutual enjoyment of baseball or your childhood growing up on a farm, or refer to your favorite Beatles song. Any of these will help you break the ice and create a relationship based on understanding and trust. 6. Observe your prospect carefully. During the meeting, is your prospect sitting forward and nodding with interest, or is he or she sitting back with arms folded and head tilted to one side, indicating a lack of connection, boredom, disinterest or disbelief? Be aware of the physical cues your prospect is sending you and respond accordingly. 7. Ask qualifying questions. A new business meeting isn't a "pitch." It's a conversation--an opportunity to uncover your prospect's needs and to present solutions for meeting them. If you find yourself doing all the talking in new business meetings, you're probably talking yourself right out of business. It's just as important to ask good questions and listen carefully to the answers as it is to provide solid, helpful information. One of the most important and often overlooked questions to ask is, "Are you the person who will be making the final decision?" 8. Present case histories. Case histories are stories that demonstrate the ways you've successfully met the needs of your customers or clients. Prepare about half a dozen case histories demonstrating a wide range of capabilities, and be prepared to discuss them in your new business meetings. Case histories are great for positioning your company against competitors that offer similar services. Never directly criticize a competitor. Instead, present a case history (in other words, tell a story) that demonstrates the benefits your customers or clients have enjoyed by working with you. 9. Offer good solutions. In order to successfully close any business transaction, the prospect must be convinced you provide the solution to his or her challenge. It all comes down to how well they believe your product or service will meet their needs and their confidence in you to carry out your promises. To close, summarize your suggested solution and answer any final questions that may stand in the way of the prospect's decision. 10. Take action. You've gotten fully prepared, used property observations, asked great questions, listened carefully to the answers, presented case histories and offered solid solutions. Now it's time to ask for what you want. It's amazing how many entrepreneurs take a meeting successfully to this point and then simply stop and walk away without closing for their primary goal. If you're having difficulty closing, it may be because you haven't provided sufficient reasons for your prospect to buy. In that case, go back to step seven and ask why. If you've followed the advice in steps one through nine, your prospect will be eager to get moving and may even help you close. Don't be surprised if he or she asks, "When can we get started?"

4. CLIENTS AND CUSTOMERS.

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4.1. Ever After Will you still respect your clients in the morning?
Have you ever given thought to what the term "follow-up" really means? How does "anything that follows something else as a review or addition" sound? And what about that other common marketing term, "follow-through"? According to Webster's, it's "the act of continuing an undertaking to completion, to its natural end." But just what does all that mean in selling? What is the natural end of a sale? Is it when the sale is closed? Not if you're looking for repeat business. For most people, selling requires constant cultivation. In order to keep your relationships growing, you've got to look at each one and ask yourself "What related actions can I take today to strengthen this connection and move it toward a natural end (or at least the next natural level)?" Elements of Success It's easy to think of follow-up as summary memos and thank-you notes. Those are important, but they're not the bottom line. There are three important areas you can't ignore if you're looking for effective follow-up and follow-through: 1. The Will: If you don't have the desire to move ahead, you'll fall back. It's the will to win-in your heart, body and mind-that will push you toward the next step in the sale. It's the ability to stay focused and concentrate on the task at hand. The determination to keep going and the belief that failure is not an option will lead you to discover the steps necessary to move the sale to the next level. 2. The Steps: What can you realistically do to move this sale, this relationship, to the next level? You can-and should-take the standard follow-up steps: When you attend a meeting, follow it up with a letter that summarizes the main points of your discussion; send thank-you notes for appointments, demonstrations, orders and referrals; send articles of personal and professional interest; and find new ways to reach out to your customers. But these steps should not be taken in a vacuum; they must be taken with an eye to considering the benefits. 3. The Benefits: Effective follow-up is not just about providing additional information. It's about discovering the steps you can take to increase or enhance your customer's growth, how you can help build his or her business in ways beyond this particular sale. A robot can perform standard follow-up tasks. Effective follow-up means finding out what you can bring to this relationship that someone else can't. Think about who your customer is, what he or she needs most and how you can best meet that need. Then your follow-through will come naturally; you'll be following the customer's agenda, not yours, and providing a valuable benefit. Most people think of follow-up as a system to ensure that everything called for gets done. That's only part of it. Follow-up is what you do to ensure that you build the strongest, longest-lasting relationships possible. Your enthusiasm, will and determination to succeed-combined with benefits for your customers-are the fuel that will help you take the most effective steps to follow-up and follow-through.

4.2. Get to Know Your Customer

What's the best way to identify with your customer? Know his business and ask for his feedback Here are five top sales secrets: 1. Know your customer's business. Customers expect you to know their business, customers and competition as well as you know your own product or service. Study your customer's industry. Know it's problems and trends. Find out who his biggest competitors are. Some research tools include the company's annual report, trade 47

publications, chamber of commerce directories, and the company's own brochures, newsletters and catalogs. 2. Organize your sales presentation. The basic structure of any sales presentation includes six key points: build rapport with your prospect, introduce the business topic, ask questions to better understand your prospect's needs, summarize your key selling points, and close the sale. "Always begin the process by first visualizing a successful outcome," Farber says. 3. Take notes. Don't rely on your memory to remind you of what's important to your prospect. Ask upfront if it's alright for you to take notes during your sales presentation . Write down key points you can refer to later during your presentation. 4. Answer objections with "feel, felt, found." Don't argue when a prospect says, "I'm not interested", "I just bought one," or "I don't have time right now." Simply say, "I understand how you feel. A lot of my present customers felt the same way. But when they found out how much time they saved by using our product, they were amazed." Then ask for an appointment. 5. Ask for feedback. If you want to improve your sales presentation or your relations with your customers, ask them what you need to do to maintain and increase their business. "Many customers have minor complaints but will never say anything. They just won't buy from you again," Farber says. "If you ask their opinion, they'll be glad to tell you, and to give you the chance to solve the problem." Just because they're experts now, that doesn't mean they didn't have the nervous jitters the first time they did sales. But check out how they impressed their first clients. Shari Posey: When I introduced my audio-tape series at a trade show, I negotiated for a larger space so I could have room to conduct informational seminars on my product. I invited several of the entrepreneurs featured on my audio-tape series to speak on how they started their businesses and to answer questions from the audience. These informational sessions, I believe, were one reason I sold so many tapes at the trade show. Giving out information is a strong statement that you care about your prospective customers and are willing to give them something for free, whether or not they buy your product or service. Giving out free information also sets you apart from your competitors, most of whom focus strictly on a heavy-duty sales pitch. When you host an informational session, select a speaker who can make a dynamic presentation, and who can articulate the benefits of your product or service.

4.3. Overcoming When A Customer Says No

A customer says no? It's not over. As an entrepreneur, you will hear "no" no matter how thoroughly you follow the tips on these pages. In fact, if you haven't heard some nos by now, you're not selling hard enough. But a no isn't necessarily the end of your hopes for making a deal with a prospect, says Jeffrey Gitomer, a Charlotte, North Carolina, sales trainer and co-author of Knock Your Socks Off Selling (AMACOM Books). He offers tactics to use in overcoming initial nos: 1. Use humor. "Say to the prospect, 'Thanks for telling me no. I usually have to hear four nos before I hear yes. Do you know anybody else I can call who'll say no?' " suggests Gitomer. Or: "Say 'Is that your final answer?' " says Gitomer. These tactics can help to defuse the tension triggered by a no and move conversation to the next level. 2. Ask why five times. "Ask why and ask why again, and keep asking until you get to the truth about why this prospect said no," says Gitomer. For instance, if the customer says, "I said no because I need a voice-actuated wireless telephone," start by asking: Why do you

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need voice-actuation? Ask enough questions, and the customer may find that your product or service does what he or she needs. 3. List the things of value you offer prospects in addition to what you're selling. "If you don't have anything to put on the list, you don't deserve this sale," says Gitomer. He explains: If you're selling long-distance telephone service for businesses, for instance, you might offer free sales training tapes to customers who sign up. To make any deal of value, "You need to offer more than just what you're selling," he says. 4. Tell prospects you can't accept a no until they make two phone calls. "Ask them to call two of your customers who initially said no, then decided to buy," says Gitomer. "You may not be able to overcome a prospect's resistance, but he or she might listen to your customers." 5. Find out whom your prospects eventually buy from and what the criteria were. Maybe you won't get this sale, says Gitomer, but if you get the reasons you didn't, you'll be more likely to get the next deal. People don't care how much you know, until they know how much you care.

4.4. LISTEN TO THE CUSTOMER

A costly mistake in sales technique, is talking too much. You don't need to sell the customer on every benefit that your product or service has, you just need to sell them on the one or two benefits that they are looking for and need. Listening is the key to finding out what your customer is looking for, then you can tailor your presentation to suit that need. What your customer wants is really the only thing that matters. Don't be so concentrated on what you're going to say, that you don't hear what your customer is saying. A wise person listens, a fool just waits his turn to talk. PERSISTANCE IS NOT THE SAME AS PUSHY Always have a reason to get back to your customer. It could be: a new product additional information news they may want to know about making sure they received your information and understand it getting back to the customer about questions.

This is service - get into a serving mode by doing all you can for your customer whether they buy or not, and you're on the right track for success. KNOW YOUR COMPETITION Believing you don't have competition is your first mistake. It doesn't matter if somebody else is trying to sell an inferior product to yours, if they are after the same sale as you are, consider them your competition. Anyone that competes for the same market share is competition. Research the market, find out what people are using now. Study what your competition is selling. This way you will know how you can compete against them. Know how you stand up against the competition, good or bad. If your product costs more than the competition, then you better know why your product is better. Always speak positively about your competition, it will put you in a good light with the customer. THE GOLDEN RULE Treat everyone you meet with kindness and respect, even the ones that appear to have nothing to do with the sale.

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If you follow the simple rule of treating everyone the way that you would like to be treated, you can't go wrong. It's easy to be nice to someone if you want something from them, or if they can help you, the real test is when there is absolutely no benefit to you to be nice to this person. The problem with treating some people well, and others not so well, is that you just don't know how another person can affect your life. So even when it's hard, and doesn't seem to be necessary, remember - doing good will always have a reward attached to it, even if you can't see it right away. KNOW YOUR PRODUCT Knowing your product doesn't only mean knowing its benefits and limitations, it is also applying your knowledge to solve someone elses problem. People aren't stupid, and miracle products just aren't out there, your product has some limitations to it. Don't oversell what the product can do for your customer. Overselling may get you the sale, but it is temporary and will turn against you in the long run. If your product won't do what the customer needs, then recommend something that will work, even your competition. After all, the best interests of your customer should be your main concern. It may cost you a sale, but it will earn you trust and a good name - something that can't be bought. KEEPING YOUR CUSTOMER HAPPY Your customers aren't put here on earth to make your rich and successful. They are people with their own lives and own challenges. The best thing you can do is have a serving attitude toward them. You are there to help them whether it is to your benefit or not. Brighten their day when you call on them. Don't always come off as wanting something, but genuinely care about them and their business or job. This isn't a technique you can apply, but rather an attitude you acquire. People don't care how much you know, until they know how much you care!

4.5. Retaining Customers

How to get customers to buy again and again If you're not getting repeat businessthe same customers never buy from you time and time againyou're working way too hard. As any smart salesperson knows, the real profits come when past customers return to make additional purchases. To make sure your customers are return customers, hungry for more, try following these tips from John Tschohl, author of Achieving Excellence Through Customer Service (Best Sellers Publishing) and president of Minneapolis Service Quality Institute: Love your customers. "A customer knows within five seconds if you like and care about them, and they want to do business with people who do," explains Tschohl. "There's a tremendous amount of indifference in today's wealthy economy, but customers still want to be cared for." Call them by name. "This is simple, but it's a magical tool," says Tschohl. "People love it when you call them by name, and they want to do business with people who know them." But just make sure to use the proper pronunciation. (His is pronounced "shoal.") Focus on speed. "People want it now; they want immediate response," says Tschohl. "If you want to keep customers, you'll set standards for response times and keep working to do it faster." Keep your promises. "Nothing turns off a customer faster than when you don't keep your promises, but nowadays few businesses do," says Tschohl. "If you say you'll handle it tomorrow, make sure it's done by then or sooner. Whatever you say you'll do, do it." Make sure everybody has been trained in service. "It's not good enough when only the salesperson knows customer service," stresses Tschohl. "Everybody on your team has to knowand practiceservice basics." A consistent commitment to serving the customer is key to winning repeat business. 50

What not to do when selling Ask Kevin Davis for a list of the five most frequent sales blunders, and his biggest problem becomes trying to narrow down the field of countless common mistakes to a select few. That's because this Danville, California, sales trainer and author of Getting Into Your Customer's Head (Times Business/Random House) has made a distinguished living studying such goofs . . . and, believe us, he's seen plenty of them. If any of the following sound familiar, at least you can take solace in the fact that you're not alone: 1. Thinking about the selling process, not the buying process. Make this big mistake, and "you're too focused on your own agenda, not the customer's. You're self-absorbed," says Davis. Worse still, customers today can actually predict your next moveat least when you concentrate too much on technique and not enough on what the customer needs. Says Davis, "Today's customers are sick and tired of self-focused product-pushers. Sell slower, and your customers will buy faster." 2. Failing to identify behind-the-scenes decision-makers. Up to 90 percent of the buying decision occurs when the salesperson isn't even around, says Davis, who points out that many other parties often participate in making the decision to buy. Successful selling means identifying those behind-the-scenes decision-makersand making sure features and benefits resonate with them, too. 3. Neglecting to educate customers about the costs of doing nothing. "For many salespeople, the number-one competitor is the customer's decision to wait," says Davis. Savvy sellers know how to show a customer the real costs associated with delaying a purchase. Waiting might seem a safe choice to them now, but successful salespeople make a habit of popping that balloon. 4. Calling on prospects who don't value your value. If your big selling strength is high quality, you're probably wasting time going after purchasing agents who are far more pricefocused, says Davis. A key to successful selling is identifying the right potential customers who already want, need and value the product or service you have to sell. 5. Failing to resolve a customer's fears. What kills the deal in the eleventh hour, when you're sure you've landed a big one? What makes customers quake in their boots before they sign on the dotted line? What's the big reason why customers pull out of a deal in those last minutes? They're afraid that, somehow, their buying decision might be wrong and that they'll suffer in the eyes of their co-workers, boss, family and friends. We're all fearful that we just might be buying the next Edselthe little product that couldn'tand the smart sales-person "identifies the sources of a customer's fears and finds ways to alleviate them," says Davis. So in every one of your potential sales, be prepared to fall back on a plan for resolving your customers' biggest fears.

4.6. Persuasion is a psychologically complex--and sometimes intimidating--business art. Well tell you how to persuade your prospects to say "yes."
Getting people to do what you want isn't always as easy as you'd like it to beespecially when you're trying to sell your product or service and the ears of your skeptical audience automatically tune out when they sense you're "pitching." The art of persuasion and influence is a tricky area for entrepreneurs, but it's not as mysterious as you think. So how do you become a master at influence? We've asked author Harry Mills, owner of international sales, negotiation and influence consulting and training firm, The Mills Group, and 22-time author (including his latest book, Artful Persuasion: How to Command Attention, 51

Change Minds and Influence People, available for $17.95 from Amacom), to offer his tips and advice for mastering persuasion and influence. Q What is a USPa unique selling propositionand why is it important when you're trying to influence people? A: Jack Trout recently wrote a book called Differentiate or Die, and what he simply says is there's so much for people to choose between, we just can't make up our minds. If you wander into a supermarket and you have to choose betweenliterally150 items in very narrow product category, you get confused. So we need some ability to narrow our choices. If companies or individuals don't differentiate themselves, they don't give the person being influenced any way to make a choice. So differentiation, or the unique selling proposition, is an old idea, but it's back and it's more important than ever. Q: You have a very helpful chapter called "Power Talk" in your latest book. What are some characteristics of power talkers? A: The easiest way to recognize a power talker is by what they don't do. The first thing we know is power talkers don't use weak language. They don't use "ums" and "ahs." They don't qualify their expressions. They don't apologize by the way they talk. They speak confidently and assertively. They use also very strong words. Their language is almost littered with what direct-mail people call the "power words." For example, you can see it in an advertisement for a Pentium III processor. You'll see the word "new" used as many as five times on a half-page ad. Power talkers do the same thing. They use words like "new" and "guarantee" very often and very persuasively. Q: You say in your book that "credibility rests on two pillars: trust and expertise." What are some methods business owners can use to be seen as credible? A: We live in a world where people are incredibly skeptical. We won't listen to people even if they have a brand name like Mercedes, which has been around in the luxury car business for, say, 100 years. If the company claims, "We're the best" and we're the [potential] Mercedes buyer, our radar screens go up: "Does not compute. We do not believe you." So the first thing you have to do is establish some form of trust. And it's the same with everybody because if you don't establish your credibility up-front, you don't establish your believability towards persuasion. If you're selling something, the first thing you've got to do is get the person who's buying to believe you're not acting in your own self-interest. You've got to convince the customer you're acting in their interest. Very skillful persuaders often seem to act in a way that seemsinitially anyhowcontrary to their best interests. For example, they'll tell you about a deficiency in one of their products to make you trust them and listen to other advice they want to influence you with. [Getting your prospects to] trust you comes before everything. The second [half of building credibility] is expertise. What you've got to doparticularly if you're selling an intangible as a consultant or a professionalis consciously sell your expertise. That's why, for example, the most highly paid professionals in the world, say the Mackenzie consultants and the like, spend a huge amount of time reinforcing their expertise by publishing books about their area of expertise. They then become authorities so they've got some sort of reference to their expertise. If you can get a business book on the New York Times bestseller list, your outright fee, for example, will go up [five-fold]. And that's simply recognitionyou've been recognized publicly as an expert or an authority in your field. Q Why is emotion so important to influencers? A: You can influence people in two ways: through their head and their heart. And while we'd all like to think that the rational side of us is the one [we use to make decisions], the fact is that our emotional brain is the one that first kicks in when we're being persuaded. The general theme of my book is that we're being influenced almost every second of the day, but our rational brain, which concentrates on arguments that are logical and planned and supported by 52

evidence, is only in gear for a small portion of that day. The rest of the time, the brain is locked on automatic. And when it's locked on automatic, the things that cut through first are emotions. So emotions are the most powerful persuaders. That's why people often say we buy emotionally first and then justify the decision with reasons afterwards. In other words, when we go out and buy a car, we first fall in love with the look and the feel and the color and how we see ourselves driving down Main Street. Q: What are some tips you have for the actual structuring of a presentation? A: The formula I use is the AIM formula, where the "A" stands for "attention." The first thing you have to do is use some sort of hook or emotional appeal to grab your prospect's attention. The second thing you've got to do is grab their interest. So the "I" is for "interest." And you normally interest them by putting up a proposition with benefits specifically targeted or designed to appeal to them. The third part of structuring an argument is "M," which stands for "motivate." You've actually got to get people to take action. For example, you listen to someone give a presentation and they deliver a rousing speech. You're just about ready to pick up your guns and walk into battle to die for them. But then they don't ask you to do anything; they just leave you charged up. So professional persuaders' real skill is they know how to get you to do something. Q: What is self-persuasion? Why is it important to involve people in the persuasion process? A: In the United States, we live in a world where democracy is the main form of government. We know that simply persuading people through the use of sanctions or commands can work, but it leads to limited involvement and limited compliance. So to increase commitment, you've got to involve people; you've got to consult with them. Self-persuasion means using tactics that involve people, that get them committed to a proposition. If you ask people questions and you structure arguments that pull them through the process rather than push them, then you're much more likely to get increased commitment from them. If you ask people why they like something rather than tell them that they should like something, you've got a much greater chance of being successful at persuasion

4.8. Top ten reasons I won't buy from you.

Want to ring up sales from cold calls? Here are my top ten reasons why I might not want to talk to you if you make your next cold call to my phone number (just like everybody else you are trying to get your foot in the door with). If you study these reasons, you can overcome my objections. Then you can sell me and all of the other KDMs (key decision- makers) who have ignored you, hung up on you or otherwise shut you up. Here goes: 10. I am often too darned busy to actually listen to what you are saying. The mail is backed up, and I need to spend time with three of my own salespeople who need advice, concessions, alternatives, solutions and other creative thinking so they can close deals. Given the choice of spending my time to help you sell to me, or using that time to help my own salespeople sell our stuff to others, what should I do, talk to you? Don't fret. Just call back when I have more time. 9.You're pitch is too boring. Think about it. You finally have the good fortune to get through to me, or to anybody, at a time when I am not three phone calls and two meetings behind schedule. So what do you say to turn me on? NOTHING. The truth is, I do give most telemarketers more time than most people do and I even prompt the incompetent ones, which sometimes makes our staff fall down laughing. One morning, our receptionist was downright hysterical listening to me coach an insurance salesman who had called, but had nothing to say. 53

Salesman: "Mr. Rosenzweig, I'd like to come by and introduce myself." Me: "Why?" Salesman: "I represent XXXXXX Financial Services and I would just like to come by and introduce myself." Me: "We own a financial services company (It's true. My wife Ronna, in the very next office, manages around $75 million). I may not be your best prospect." Salesman: "Well, I'd like to come by and introduce myself anyway." Me: "Why? What can you do for me?" Salesman: "I don't know, but I'll be in the neighborhood." Me: "You'll be in the neighborhood? I appreciate your persistence. I really do. But, not to put a fine point on it, I don't have a lot of time and you really need to tell me what's in it for me to take the time to meet you." (At this time, Lori, who has been sitting at the conference table in my office, is about to split a seam from laughter). Salesman: "I can't say what's in it for you, but I'd like to come by and introduce myself." ...And on it went, until I had to get on with the day. Face it. I gave him every opportunity to give me a reason to get that appointment, but he didn't. He blew it. 8. You sound too mechanical - not human, not warm. You don't sound like someone I might want to get to know, nor anyone I would care about. If you want me to buy from you, you need to sound likable. Don't think, for a minute, that telephone personality is something you are born with. It's not. Telephone personality is no more complicated than simply this: Imagine what your called party looks like and establish a conversation with him or her like you would with a stranger at a cocktail party. If you take the time to visualize me as more than a phone number, I will feel it and I will not visualize you as someone sitting in front of an automated computer list dialing for dollars. It's the start of genuine communications. 7. I'm really the wrong guy for this meeting. I may own the company, but I may NEVER get involved in the decision making for what you sell. This is hard to convey to most salespeople, but it's true. I learned this very hard lesson the very hard way... not once, but twice, while training a new business associate who had great "business connections" four years ago. First, we met with the owner of an enormous import business who turned to his CFO and said, "all things being equal, I want these boys to get the deal". We didn't get the deal. I asked the CEO what went wrong. "My CFO wanted the other guy and I can't override him if I want to work with him." We knew the owner, but he was the wrong guy and we didn't have enough of a clue to consider working on the CFO. The same thing happened one month later. Our new associate had a great list of friends who were happy to meet with us, but who would never step down to the decision-making process at our selling level. 6. I don't know if I can trust you.

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I have had hundreds of people cold call me on the phone ...and that's only this week. Who are these people? Why should I trust any of them? Why should I take the chance? Nothing overcomes my fear like a good set of references. Testimonials impart credibility to give me comfort that you might be OK. 5. You're not offering enough free stuff. What? You don't think I am so shallow that I would ignore everything that is really important about running a business to glom free trinkets? Get real! Free stuff gets everybody's attention. I give away a great, but inexpensive six-inch ruler that measures floor plans in floor plan feet. They love them. One year, Microsoft stole the show at COMDEX when they gave away thumb sized little white furry toys, which they called "Microsoft mice". Try this: You: "Let me bring over one of these very handy letter openers and tell you about our wonderful new software." Me: "OK." 4. You don't tell me anything that is new and informative. New York City has three all news radio stations which keep us tuned in even on days when there is no news to listen to. We have this great compulsion to be informed. Men suffer from this more than women, but women will listen, also, if they feel that they are learning something that isn't generally available. If you want to be really interesting to prospects, read the Wall Street Journal before each session on the phone. 3. You're not compelling. There's no story line to your call. Consider how much more engrossing (and entertaining) you might be by simply telling me a story about your company, your customers, you, how you got into this business, etc. The story has two benefits to both of us. It is a delivery vehicle for items four, six, eight and nine. Also, if the story is well rehearsed and entertaining, it keeps even the busiest Exec on the phone until you get him or her to agree to the appointment. 2. You're no fun when you're working. No fun is depressing, and depressing phone calls are destined to fail. People who have fun on the job sound happy, creative and fun to be with. How can you hang up on a fun person? In the spring of 1978, my company got a phone call one Wednesday at about 5:30 PM and there was nobody left to answer it but me. The caller worked for a hard-driving CEO who wanted her to get lots of bids to move their phone system from Manhattan to Stamford, CT. "I hate bids" I told her, ten minutes into a very irreverent conversation. "How can I rip you off if you compare me to twenty other guys?" "Aren't you ever serious?" she laughed. "Never after five." I said. So, we met at her office the next day (at 5:30 PM, incidentally). We signed the deal and I got to move their very large phone system. Thus is the power of fun. And finally, the number one reason why I may not want to talk to you when you make your next cold call to my phone number:

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1. You don't sell anything that is useful to our company. There is nothing as dumb in business as trying to get an appointment with someone without first qualifying them as a prospect for what you sell. Think of the salesman in item nine, above. He neither knew, nor tried to learn if I could buy anything from him. If I had agreed to meet him, he might have simply wasted his time and mine. Now isn't that silly?

5. LEARN ALL ABOUT CALLING YOUR PROSPECTS. 5.1. 6 Steps for Turning Cold Calls Into Hot Sales Overcome your fear of cold calling with these tips
When Donna Chaiet looks for new students to enroll in self-defense classes at Prepare Inc., her New York City-based business, she does something many start-up entrepreneurs consider totally outside their comfort zone: She makes cold calls. Her goal: to encourage the person to request information about Prepare Inc., drop by the school for a tour or sign up for a 20-hour Impact Personal Safety training seminar. "I make 20 to 50 calls a day, depending on my schedule," says Chaiet. "I found it intimidating [at first]. But I took a deep breath and told myself to believe the person wouldn't be turned off by my call but would want to hear about my seminar. This shift in my attitude, plus being passionate about my services, makes cold calling more palatable and a successful marketing tool." Calling strangers to get their business can sound daunting. The process becomes easier once you practice what you plan to say, map out your prospects and learn how to handle their objections or rejection. Here are six proven techniques you can use to turn your cold calls into hot sales: 1. Analyze your fear. Fear is simply an anticipation of negative results. Once you understand this, you can turn the adrenaline fear produces into a positive motivator. Rather than thinking about the rejection you might experience calling a stranger, think about the potential business you could gain by making the call. 2. Develop a target market. The key to effective cold calling is identifying the right prospects before you call. Rather than randomly selecting names from the phone book, target individuals who have an interest in your product or service and the money to buy it. Chaiet finds her ideal cold-call prospects by inviting the public to attend open-house graduations after the completion of each series of classes taught at her school. "We invite the general public to watch what the students have learned. They sign a guest book when they come in the door. I follow up the next day or two with phone calls to these people to see if they're interested in enrolling in a training seminar," she says. Other ways to find prospects include asking existing clients for referrals; calling people you meet at civic, business or service organization meetings; or taking the names of people attending a trade show or conference and calling them afterward. 3. Know what the prospect wants. Prospects aren't interested in what your product or service is (its features); they're interested in what it will do for them (its benefits). That's why it's critical you talk in terms of benefits. Will your product or service help the prospect make a profit, reduce costs, save time, improve productivity or attract more customers?

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4. Use a script. Once you have your prospect's attention, ask specific questions to learn more about what your prospect wants and how you can fulfill his or her expectations. Chaiet asks prospects if they're concerned about personal safety, want to increase their self-confidence in threatening situations and would like to learn techniques to protect themselves. "I speak from a list of prepared questions," she says. "It gives me confidence, lets me concentrate on what the person is saying [instead of what I'm going to say next], and helps me direct the conversation in a fairly organized manner." 5. Be a good listener. "Listen more than you talk," advises Chaiet. "This way, you find out what the person's needs are rather than simply telling him [or her] all about your product and how wonderful it is." You'll also score big points with prospects by not interrupting and by asking relevant follow-up questions to clarify or acknowledge what they're saying. 6. Accept "no" and go on. Not everyone wants or needs what your company offers. Don't take rejection personally; just proceed to the next call. Says Chaiet, "Your success rate definitely increases as you make more and more cold calls."

5.2. Calling The Shots Hit the phone running by preparing your pitch before you dial.
If youre a homebased entrepreneur who conducts most of your selling and marketing by phone, you might want to keep this column right up there next to the Chinese takeout menu. Even if you think you give good phone, stellar seller Art Sobczak points out that many folks sell by throwing things against the wall and seeing what sticksand we dont mean the receiver or chow mein noodles. One of the hallmarks of poor preparation for a cold call is nonexistent or inadequate questioning. You lose credibility in the listeners mind when you ramble foolishly on about what youd like to sell rather than what the listener might be interested in buying. Usually, the prospect then channels all their energy into thinking of reasons why he or she should get you off the phone. However, you can turn things around by mapping out your questions before your call. Make three columns on a piece of paper. In the left-hand column, write down all your product or services benefits. Label the middle column Needs Filled/Problems Solved, and for each corresponding benefit, write down what customer need or problem it satisfies. Label the third column Questions to Ask. For each need or problem, jot down a question that would determine whether that situation existed. Obviously, you cant script out an entire call; there are too many possible ways the conversation could branch. But you can be prepared by brainstorming every possibility beforehand. You can also improve your perception of your prospects needs by getting them to think about the pain. If they tell you they waste time now, ask how much. If theyre losing money, ask for the figure. Finally, clarify the fuzzy phrases. For example, if a prospect says, Well think about it. Lets stay in touch, counter with, Does stay in touch mean I should call at a certain time?

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5.3. Developing Smooth Cold-Calling Moves Don't live in fear of the phone. Create goals and a plan for every cold call you make.
Q: I'm in the process of building our B2B prospect list and will be contacting businesses by phone. Can you give me some tips on what to say? I'm worried about coming across as pushy or inexperienced. A: Contacting prospects for the first time by telephone, especially if it's new to you, can be a daunting challenge. But don't worrythere are guidelines to follow that will get you off to a successful start. Begin by focusing on the purpose for your calls: to qualify prospects and uncover their needs so you can determine how to fill them. Right now, you know very little about the companies and individuals you've listed, so it's vital to qualify them carefully to see that they fit your criteria for good prospects. This will save time and money in the long run, because you won't meet with unqualified prospects or squander your budget on marketing to less than ideal targets. Before you ever pick up the telephone, it's important to set a goal for each call. What would you like to see happen as a result of your contact? Are you hoping for an appointment? If so, make this your primary goal. Whatever goal you set should move you one step closer to a sale. Create a solid opener. For many people, the first few sentences of a cold call are the hardest. No matter how well-executed, a cold call is an unscheduled interruption, and your prospect will make a quick decision in just the first few seconds concerning whether it's worth his or her time. That's why you need to be prepared with a three-part opener that includes an introduction of yourself and your company and an opening benefit. Write down the principal benefits you expect to bring to the clients or customers you contact. Then include them in your opener. For example, imagine you own a PR company that specializes in grand openings and other events and you're contacting a retail prospect. You'd say "This is Jean Jones, president of Jones Events Inc., and my special reason for calling today is to tell you about some ideas we have for building traffic at your next grand opening." Ask great questions. To effectively qualify prospects and uncover their needs, you must learn to ask closed- and open-ended questions. Closed questions uncover facts or can be answered with "yes" or "no," while open questions reveal the feelings and emotions behind the answers. The key to success is to practice using both until you find a comfortable mix. Get your feet wet by writing down a list of closed questions, such as: "Who is your present supplier?" "How long has your company been in business?" "How many units do you purchase per year?"

Next, create a list of open questions, such as: "What do you like best about your present supplier?" "Which kinds of grand opening activities have worked for you in the past?" "In what ways do the new types of accounting software impact your department?"

When you're ready, review your questions and make a final list. In all, successful cold-calling comes down to asking good questions and listening intently so you can propose solutions that will help your prospect achieve his or her goals. It's conversation at its bestonce you get the hang of it. 58

Close for your goal. The "close" is where many entrepreneurs run into trouble because they hesitate to ask for what they want. If you begin your call with a solid introduction, ask excellent qualifying questions and respond with beneficial information, at the close your prospect will be highly motivated to choose your firm. There's no need to worry about being perceived as pushy. If, for example, your goal is to set an appointment, you should suggest a date and time. Closing is simply a matter of reaching agreement on the next step and then following through.

5.4. Three

easy

ways

Ringing to sell better

on

the

True phone

Selling over the phone is never as easy as selling face to face. But even when you have a large number of calls to make in a small amount of time, the one thing you can do is build rapport. Rapport is built on good listening skills and the ability to get the customer to talk. (Sometimes, a bit of humor comes in handy, too.) Most telemarketers are so busy following their own scripts, they never hear the customers' needs or desires. However, by following the "D-E-F" formula of telemarketing, you can get prospects to open upand you'll achieve a more powerful, effective and efficient method of making the sale. D: It's all in the details. People get calls from vendors all the time. What makes one telemarketer different from all the rest? More often than not, it's attention to detail. That attention could be really listening to what the prospect is saying, or it might even be sending a thank-you note after the call. !!! Ask your prospects "What's the greatest challenge you're facing right now?" Many times, their answers, such as "Finding a more economical way to ship my product," will tell you a great deal about their businesses. Sometimes, you'll get answers that have nothing to do with their businesses, like "Getting rid of my back pain." Whatever the answer, get off the phone and search for a newspaper or magazine article, or even information on the Internetanything you can find to send with a note that says "Hope this helps. Speak to you soon." After that, you can bet you'll be the one tele-marketer they're happy to speak to. E: Second only to product knowledge, the most important asset telemarketers can have is enthusiasm. If there's any doubt your product is worth its price or suspicion that it's not what you claim it is, your prospects will sense it. It will come across in your inflection and tone. Of course, the opposite is true as well. When you believe in your product, your prospects believe in it, too. They trust that you know what you're talking about. Once you establish that belief, you're on your way to closing the sale. Call satisfied customers and ask them why they like your product, why they do business with you and what the benefits are. This follow-up technique will pump up your enthusiasm. Plus, you can use their answers in the next step. F: Telemarketers have probably heard every objection under the sun: "We're not interested." "We're happy with our present vendor." "It's too expensive." "We take care of it in-house." "I don't have time." You can't argue with any of these points; as soon as you do, you lose. That's when you should use the tried and true "feel, felt, found" method. When you hear an objection, pause and let it sink in. Don't rush to answer. Listen carefully, then empathize with your prospect by saying "I understand how you feel" or "I can appreciate that." Then build on the success you've had with other customers by saying "Many of my present customers felt the same way. But when they found out how much time they saved using our system, they were amazed. I'd like to find out whether we can do the same for you." Of course, you would insert your own benefit statement. (This is where you should use the responses you got from the satisfied customers you talked to in step E.) This method has been used over and overand it works. But it doesn't work when you do it by rote. You've got to know your benefits inside and out. Practice using this technique until it sounds natural.

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Ken Blanchardalso known as the "One-Minute Manager"once told me that in today's business world, anyone can beat you on price. Many people can imitate your product or service. But one thing people can't do is take away the relationships you build with your prospects and customers. When prospects feel that what you're saying rings true, they'll be happy to have you call again.

6. HOW TO MAKE A WINNING SALES BROCHURE. 6.1. A Surefire Way to Get Your Brochures Read
Your company spends thousands of dollars a year on the creation, printing and mailing of brochures to help your sales efforts. Before you send out your next brochure/letter, read the following tip. It will pay off for you in increased sales, and save your company thousands of dollarssome of which just might find its way into your pockets. This is what happens to most sales brochures: Ordinarily, your sales letter and brochure is opened by a secretary for the decision maker. It is her job to screen out sales materials and allow only important correspondence to get through. The rest is trashed or routed to nondecision making subordinates. Make your letter important: In order to eliminate the chance that the secretary will trash or re-route your brochure/letter, and to make sure that it gets in the hands of the intended decision maker, do the following: DIRECTIONS: Attach a post-it-note to the front of the letter. Write the following: (Prospect's Name), Here is your reference number: #356821 also, see highlights. Why does this work? When the secretary sees this note, she'll think that this is an important number that the boss has been waiting for. How is she to know that it is just an internal file number? To her, this is an irreplaceable number that must be passed through. How do we get the decision maker to read the brochure? That's where the highlights come in. When we wrote "see highlights" on the post-it-note, the prospect is forced out of curiosity to at least take a peek. Note. It is important that you only highlight a few key sentences that must include the benefits that are important to your prospect. If the benefits are enticing enough, he'll call you back, or at least be more receptive to your future calls. How can I make a better brochure? If your sales letter or brochure doesn't ooze with benefits for your prospects, you're dead in the water. Ask your marketing director or president to contact an advertising agency to create a brochure that will SELL.

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6.2. Sales Materials That Shine

Want to really impress your prospect and give him sales materials that will make him want to order now? Follow these five important sales secrets. 1. Target your material toward a specific audience. These days, it's not possible to understand and meet the needs of every potential customer. Show you are a specialist, Bly urges. "You have a selling advantage and come across as believable when your sales materials are tightly targeted to specific audiences," he explains. "Say you offer 'accounting services for advertising agencies,' not just 'accounting services.' " 2. Use testimonials. People might not believe your product or service can do what you say it will. You can overcome this disbelief by having a past or present customer praise you and your company. Testimonials are usually written in the customer's own words, are surrounded by quotation marks, and are attributed to the individual. They can be used in sales letters, brochures and advertisements. 3. Write from the customer's point of view. "Start your copy with something that engages the prospect," Bly suggests, "and what most people are interested in is themselves." If an insurance agency wanted to introduce its new employee health-benefit program for smallbusiness owners, it might be tempted to state the obvious, using the phrase, "Introducing our Guarda-Health Employee Benefit Plan." The agency would get better results if it wrote something that directly interests the prospect: "Are the skyrocketing costs of your insurance premiums threatening to put your company out of business?" As Bly explains, "That's something business owners who provide benefits to their employees can relate to." 4. Use questions. A great way to engage your prospect is to pose questions in the headlines of your sales literature. "Every car-wash owner should know these seven business-success secrets. Do you?" Or, "Why haven't satellite-dish owners been told these facts?" 5. Turn a negative into a positive. If you are new in business and haven't sold many products or signed up many clients for your services, don't despair. You can phrase your situation this way: "Not one widget buyer in a thousand has ever experienced the advantages of this new XYZ widget design." EXAMPLE. I had formerly been a teacher and had done corporate training before I started my own company that designs custom-tailored sales-training systems for corporations. The first four months, I had no clients. I told myself to practice what I preached: "The next sales call, I'm not going to mention my product until the meeting is over. I'm going to build rapport and spend time on the client's needs so I can position my product." I braced myself and did it. At the end of the meeting, the man said, "You knocked my socks off. When do we start?" The major difference was in asking for the client's needs, probing deeper and deeper, and really understanding what the organization was about, what they wanted to achieve and why.

7. LEARN TO MAKE THE BEST SALES LETTER. 7.1. 7 Tips for Writing Dynamic Sales Letters Beat your writing--and sales--block with these great tips.

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Does your mind go blank when you begin writing a sales letter? Do you have good ideas that somehow don't come together on paper? If so, you're not alone. These are common obstacles many business owners face. These seven tips can help you write more effective sales letters: 1. Be the customer as you write. This is the most important aspect of a good sales letter, but it's often overlooked. Imagine yourself as the reader of your letter, and write what the customer wants to know--not what you want to say. You have one page to attract a customer; you'll lose the opportunity if your sole emphasis is on your business. Remember, your customer's main concern is fulfilling his or her needs and desires, not increasing the balance in your bank account. 2. Organize your letter. Sales letters, just like high school term papers, need an introduction, a body and a conclusion. In the introduction, tell why you're sending the letter. The body is your "sales pitch," where you'll explain why your offer is irresistible. The conclusion wraps it up by briefly bringing your points together and asking the customer to take advantage of the offer. 3. Make it easy to read. Many sales letters are thrown away without being read simply because they appear too complicated. Don't let this happen to you. Use the following guidelines: Write in a conversational style, just as you would normally speak; formal tones are usually unnecessary in sales letters. Use short sentences. Once you start writing more informally, you'll notice your sentences will get shorter. Compose short paragraphs. People like to have breaks in their reading. If it doesn't flow smoothly and sound natural, rewrite it. Edit and then re-edit your letter. Besides being difficult to read, misspelled words and grammar errors destroy the credibility and effectiveness of your letter. 4. Capture your reader's attention. Headlines are not limited to ads. They can also be used in letters to tell readers something they want to know in a bold way that grabs their attention. You can also use longer headlines--up to three or four sentences--to present important information. In either case, always make the headline compelling so customers want to read the rest of the story. 5. Get your readers interested. Involve the reader in the letter by bringing it to life with a steady flow of interesting information. Write in an active voice. Build on your sentences and paragraphs so the reader is encouraged to continue reading. Every sentence needs to be interesting; a reader can become bored quickly. June Van Klaveren, owner of Compelling Communications, a copywriting firm in St. Louis, recommends including a handwritten note or an arrow in a different color ink to highlight an important fact and retain your reader's interest. "I also include a `P.S.' at the bottom of the letter," says Van Klaveren. "You can count on this and your headline being read because you've piqued the reader's curiosity." mail--all trying to sell something. Your letter can stand out by not selling, but offering benefits. People don't buy products or services, they buy the benefits derived from their purchases. Remember, you're not selling dining room tables; you're selling a joyous haven where families bond and friendships flourish. There's a big distinction between the two approaches. 7. Ask your readers to take action. Potential customers won't know what you want unless you tell them what to do next. If you want them to call you, say that in your letter and provide your phone number. If you want them to visit your facility, invite them to stop by and give them clear directions and specific office hours.

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It's also important to urge your readers to take action right away. The longer it takes them to respond, the less likely it is you'll hear from them. If you're running a promotion, offer the special for a limited time. If you only have a few units available, be sure to state that quantities are limited. This generates urgency to follow up on your letter. 6. Make your readers want your product or service. This is best done by answering the reader's question, What's in it for me? People are bombarded daily with billboards, commercials and direct

7.2. Letter Perfect Ink the deal with a solid sales letter.
While I was speaking at a conference in Atlanta not long ago, I met an entrepreneur named Bob. He said he continually sent letters out with his company brochures, but he never got a positive response from prospects. In fact, most prospects couldn't even remember having received anything from him, and others refused to take his follow-up phone calls. I asked Bob to send me a sample of his mailings. The brochure was professionally produced and was clearly not the problem. The sales letter, however, was another story. It was basically a letter all about Bob--what his credentials were, what his company did and how he really wanted to have a meeting with this particular prospect. Like many new entrepreneurs, Bob had failed to realize that prospect letters, like all other sales literature, must be outer-directed and answer the prospect's question, "What's in it for me?" Unless you're writing a letter to your mother, no one wants to hear all about you. They want to learn about the benefits to themselves or their companies of using your company, your products or your services. The best prospect letters are about "what you get," not about "what I offer." A top-flight prospect letter speaks directly to the benefits your prospect will derive by selecting your company or purchasing your products. Make sure you open and close your sales letters with a benefit statement. In between, explain the benefits and what they mean to your prospect. Be sure your closing pragraph states exactly what you plan to do, and then be certain to follow through. Create one or two good sales letters that you can keep on file and customize for each prospect. That will simplify your sales efforts, reduce the time you spend on each prospect and ensure consistent, high-quality follow-up every time.

7.3. Penning the Perfect Sales Letter Entice your prospects with a well-written sales letter by following these guidelines.
Q: I often send letters along with my brochure to follow up my phone contacts with customers, but I don't seem to get a positive response. How can I make my letters more effective? A: Every entrepreneur, at one time or another, needs a terrific sales letter. Whether it's to follow up a telephone conversation with a prospect, accompany a written proposal or send "cold" to a prospect you can't reach by phone, a great sales letter is the one tool no entrepreneur can do without. Not to be confused with direct mail, which is sent to thousands of prospects at once, a sales letter is typically sent to one prospect at a time. You don't need a degree in journalism or lots of experience to write a good letter, but you should follow these guidelines to produce letters that will motivate prospects and successfully help you achieve your goals. 1. Set aside enough writing time. The first mistake novice letter-writers make is to assume that writing a one or two-page sales letter should be easy or quick. The truth is, writing a solid sales letter should take several hours. But that doesn't mean each 63

time a letter goes out, hours must go into crafting it. Instead, it's best to create a few sales lettersone for each of your principal sales tasksand keep them on hand, ready to be personalized for each new prospect. 2. Make it outer-directed. Unless you're writing a letter to your mother, no one wants to read all about you. Effective sales letters are about what the prospect "will get," not about what "you offer." Prospects will read your letters with one question in mind: "What's in it for me?" So resist the temptation to effusively detail your company's services, awards and credentials, unless you first address the benefits prospects will receive when they select your firm. 3. Present benefits followed by features. Make a list of the principal benefits your prospects will enjoy, then weave them into your opening paragraph. Does this letter present a special offer? If so, that should be a part of the opening hook which, along with your benefits, will draw the reader in and entice him or her to read on. The body of your letter should use features to explain how your prospect will realize the special benefits your company offers. Suppose your opening benefit promises to help your prospect save moneythen the body of your letter will use features to explain how. You may choose to use bullets to itemize facts, but be careful not to overdo it. Keep your letter professionallooking and easy to read. Your closing paragraph should contain a summary of your initial benefits and a description of the next steps you plan to take. For some types of businesses, the final paragraph includes a call to action with a time-dependent special offer. But no matter what business you're in, it's always best to take responsibility for following up. It's a mistake to rely on your prospect to take the next step. Clearly state what you plan to do, and carry through on your promised action. 4. Add a P.S. It's always a great idea to include a P.S. at the end of your letter, because it's generally read long before the body copy. Refer to your chief benefit or special offer in the P.S. to entice the reader to spend time with the body of your letter. The key to writing a great sales letter is to make it outer-directed and to clearly state the benefits prospects will enjoy when they select your firm. This will keep readers engaged and bring you one step closer to achieving your sales goals

8. NEGOTIATING. 8 Strategies of Wise Negotiators Straight from the mouths of successful CEOs, these strategies will give you the upper hand in any negotiation.
I just finished writing Chapter 19 of my new book, Think and Sell Like a CEO, due out in September from Entrepreneur Press. It's on the topic of negotiating. I thought since the first quarter of 2002 is all but done, it might be a good idea to share with you some of the most advanced tactics that I've ever seen for the all important task of getting what you deserve (or giving up as little as possible). Here's a glimpse of what I've learned so far from the people I considered to be the wisest, most experienced people. Not too surprising, I imagine. Let's look at the most profound yet subtle strategies for wise negotiatingas practiced at the top. 1. Pick Your Battles Carefully CEOs who sell and negotiate successfully know that sometimes even the most valiant fight may not be worth the potential loss it entails. They know it's up to them to assign value to the 64

campaign they decide to take on or decline--not outside forces like sales vice presidents or prospective customers. In other words, good CEOs are more likely than most other businesspeople to "walk" when they sense there will be no alternative to a bad deal. They don't negotiate a deal just to be able to say they've negotiated something. Karin Bellantoni, CEO of I-Mark (the company that specializes in "permission-based" voice-mail messaging systems), puts it this way: "I'll only negotiate with people who can hear my message." 2. Leave No Loose Ends Once they take on a negotiating project--or any project, for that matter--CEOs make sure everything on the "hot list" gets taken care of. They can't afford to leave any loose ends in a negotiating session, and they commit to following through on all their commitments. You'll want to do the same. (Side note: Every CEO I interviewed for this book had some personalized strategy for making sure that nothing "fell through the cracks.") Joe Gustafson, CEO of Brainshark, knows both sides of the "get it done" equation: "I'll run fast and far from salespeople and prospects who cannot clearly commit to what needs to be done." Moral: Before entering a negotiation, make your list and check it twice! 3. Know When to Ask, Not Just What to Ask For Successful CEOs know that you can't reap what you don't sow. Their actions always seem to be in accordance with the "ebb and flow." They get involved early in important deals, they know when to wait, and they know when to push. This trait comes in handy in negotiating sessions. Emil Wong, CEO of Latitude, attributes this trait to an ability to be involved throughout the sales process; he points out that the sales and negotiating functions are really interwoven. "You've always got to be 'closing' for something," he says. "I need to get involved early in the sales cycle. I can't wait until we're losing the deal or until we're at an impasse. I'm not big on waiting until the bottom of the ninth to get things done." 4. Don't Take Shortcuts CEOs have certain values that they just won't compromise. That's not to say they are stubborn, but they do know how, when and where to draw a boundary. Ill-advised departures from guiding principles can carry huge costs, the most important of which are non-monetary: lower self-worth, lower esteem, damaged reputation and damaged self-image, to name just a few. Keith McCumber, CEO of DayLite Systems Inc., has a core value that says (as he puts it): "Learn to recognize early on when we're looking at a situation in which we're unlikely to be successful. I allow people to fail but making the same mistake twice is out of the question." This translates, in his case, to highly focused negotiations, and hardly any that drag on interminably.

Turn Envy Into Energy

Successful CEOs are happy with what they have and who they are. That doesn't mean that they don't want to grow and prosper. They just know the importance of being happy with what is taking place in the here and now. That may not seem like a trait for successful negotiation, but it is. Envy saps energy and poisons relationships; admiration of another's positive traits and accomplishments is a supreme compliment that helps you focus on what you need to improve in your life, your business, your relationships, your finances--and your negotiating posture. Sam Katz, CEO of Sam Katz Inc., says: "Don't try to be a wise guy! Skip the typical sales spiel--which usually covers something negative--and stay on-purpose." (Sam also points out that we tend to play power games with people we envy, and he advises against this: 65

"Whenever you're in a negotiation never, ever interrupt the person doing the talking." His reasoning? Interrupting that sounds like interrupting looks like an attempt to shift the power, control and authority away from the other person and onto you. Not a good idea.) 6. Avoid the Other Person's Problem(s) This is a great (and simple) "negotiating tactic" that more than one of the CEOs I interviewed for this book mentioned. It is also one I've used regularly over three decades of negotiating with CEOs and other high-level contacts. This tactic is all about not inheriting someone's unresolved problem as your own. If I had a dollar for every time I've heard "We don't have that amount of money in our budget," or "We don't have a budget," or "Your price is too high," or "I don't have the authority," or "We can't move forward right now," or "We need this by no later than next Monday," I'd be a millionaire. Look at all these typical responses again, and you'll see that each is an attempt to put the buyer's issues onto the seller's list of problems. Instead of fighting the problem, putting it off until "later on" in the negotiations or throwing a new one into the mix, what would happen if you approached the problem from the standpoint of finding a solution--of acting as a consultant with the responsibility of finding an outcome that makes both sides happy? Keith McCumber, CEO of Daylite Systems Inc., urges you to address of the issues whenever they come up. Prompt the issues, and don't pick up any baggage that doesn't belong to you. "Beware of any term or condition that is put off for later discussion. When someone says, 'We can discuss this at a later point--I don't see this condition as being a big problem,' watch out!" This "insignificant" issue is very likely the deal-breaker that will be rolled across the table when time is running out for you, the seller (i.e., it's getting close to the end of your quarter or fiscal year, or some other important deadline is looming). CEOs and other effective negotiators know that people tend to become much more flexible when the time is running out. Heed McCumber's warning. Don't wait until "later." Deal with the issues now! 6. Do the CEO Swagger To think, sell and negotiate like a CEO, you must understand that more than anyone in an organization, the CEO has the ultimate walk-away power. The power to walk away is the most profound negotiating tactic that a CEO will use. She/he basically says "I am totally willing to pass on this opportunity." There is a big difference in that thinking vs. "I am going to get the price as low as I can before I buy." Walk-away power takes the opportunity past the point of no return. The winning party will convince the other party that they can and will walk away from the relationship (buy or sell). Keep in mind that the goal here is not to actually 'walk'; the goal is to get the other party to do whatever the 'walking' party wants them to do. Joe Mancuso, CEO of the CEO Club, points out there are two very distinct ways to protect yourself against this tactic: Increase your options. If you're looking to contract with a business consultant, make sure you've got at least one other business consultant that you would hire. This way, when it comes to "walking" on the first one, you've got a backup. Make sure you don't give too much early on in the selling or buying process. The point here is that "give and take" makes much more sense than "give and give some more." If you and the buyer/seller both invest in the relationship, you're more likely not to run into the "walk-away" tactic at the bottom of the ninth inning. 8. Ask for the Stars Asking for more than is expected (moving beyond expectations) is a great trait of the CEO. You'll be able to see this one coming if you're a salesperson because you're already conditioned to the "do whatever it takes to get the sale" mentality. CEOs know this, too. Therefore, be prepared, and you may even want to use this yourself when 66

you're on the "seller's" side of the table. By doing so, you'll be modeling an important CEO negotiating trait. Consider this about asking for more than is expected: It's one of the only ways to establish perceived value beyond actual value. Example: ask your prospect CEO if they would be willing to be used as a reference site as soon as they receive their expected result or within three months, whichever comes first. It gives a CEO room to "wiggle" later on. She/he can always lower their expectations. Example: in the spirit of "marketing mobility" (Chapter 13 of my book), ask your prospect CEO to allow your products to be included in their quarterly newsletter to their customer base. It tends to prevent "deadlocks" in negotiations because it promotes free discussions of the most important issues early on in the process. Example: Asking for payment upon receipt of order in place of the "normal" net 30 will help with your organization's net working capital and put the pressure on the "buying" organization.

Asking for more than is expected will almost always create a feeling that the other person has won when the expectations are lowered. Example: Giving net 30 in the above case will almost always make the "buying" CEO happy, and you'll be right where you need to be.

9. LEARN HOW TO RECRUIT THE BEST SALES PEOPLE. 9.1. Game Plan

Looking for employees who can help increase your sales? Here are a few rules from our Sales Expert that will point you in the right direction.
Q: How can I recruit good salespeople? A: Outstanding salespeople come in all shapes and sizes. So your job is to devise a way to find those candidates who walk in the door primed for success. Don't shoot from the hip. During the hiring process, design a system that improves your chances for making better choices. The key characteristics to be on the lookout for are a willing, trainable salesperson with a strong, disciplined work ethic. Sounds impressive, but the trick is finding such a perfect candidate. Here are some rules to follow: Rule #1: Create a candidate profile. Do your homework. Create a system before you attempt to interview your next prospect. Build a profile of a salesperson who is compatible with your company. Ask yourself the following questions concerning the best salespeople you've ever hired: 1. What do my best salespeople do differently than the rest? (For example: Early riser who habitually makes prospecting calls the first two hours of the day.) 2. What was their level of education? 3. What was their history of employment before joining my company? 4. Did they have the ability to work unsupervised? 5. What was their level of sales skill knowledge? 6. What was their level of verbal and written communication skills? 7. How much sales training did they require? 8. Did they have good organizational skills? 9. How much money did they earn prior to joining my company? 67

10. Was there a common situation or trait in each of their backgrounds that allowed them to come into my company and succeed? (For example: Oldest child in the family? Highly motivated by money?) Tip for new entrepreneurs: Interview some successful role models and ask them the above questions about their salespeople. Rule # 2: Construct interview questions. Design and ask interview questions that will give you more insight into how the candidate thinks and acts. Then you can determine if they have the values and motivation that will complement your company. Create your own questions based on what you discovered by applying the first rule. Here are a few examples: 1. What's your opinion regarding most salespeople? 2. What have you been doing since high school? 3. How do you feel about cold calling and door knocking for business? 4. What are your income goals? 5. Why are you considering sales? Or why are you changing companies? 6. What's the strongest asset you bring to this career? 7. How would you handle this situation? (Prepare a sales scenario that involves a challenge or objection/rejection.) 8. Where do you think you'll find most of your prospects? Rule # 3: Begin with a resume. No one should be interviewed until they send you a resume. Then decide if an interview is appropriate. During the interview, don't be tempted to skip certain key questions because you're getting a "good feeling" about the candidate. Stay focused. Ask questions and listen. Remember, the candidate is supposed to sell you on hiring them. Don't reverse the roles

9.2. Salespeople Wanted The rules for prospecting apply to customersand your sales force.
Q: How do you find good salespeople for a growing and profitable small business? A: The same way you prospect for customers. It occurred to me most business owners seeking candidates for their sales force don't approach it the same way they would when prospecting for customers. But your business is built by your salespeople who are actually your first and best customers. Here are a few tips to keep in mind: Create an image. Business owners spend a lot of time and money creating materials and a marketing image to impress their customers. The same time and effort needs to be put forth on marketing materials presented to sales candidates. What opportunities do you offer to salespeople? Do you use endorsements from your current salespeople to attract future ones? What's your image? Have you created a buzz in the marketplace regarding working at your company? A buzz comes from the mouths of your current team and your customer base who broadcast your good news to the world. Qualify your candidates. Remember, you qualify prospects before they become customers. The same rule applies with the candidates you interview. Qualify first by asking important questions. Don't hire the first person who walks through the door. And don't sell them on your company until later. Let them sell themselves first. Once you get some important questions answered, you can begin presenting information. Don't sell the candidate on working for your company. All the selling should come from the candidate. Set goals. Top salespeople spend at least two hours a day prospecting. Business owners and sales managers need to apply the same amount of time to finding the right candidates. How many salespeople are you looking for? The old rule that it takes 100 calls to get one yes still holds true. So get specific and figure in the times each day that you'll work the territories. 68

Business development for candidates must become a habit. Even if you have some solid salespeople right now, situations can change overnight. If you never prospect for them, suddenly losing a key salesperson on your staff will cost you time and profits. Never put all your eggs in one basket. Consistent goal setting and prospecting for staff keeps your company secure no matter what changes occur. Work the territories. Where are the territories that are ripe for prospecting? You need to designate them. The following centers of influence can help get you thinking about where to go: Chamber of commerce Community service involvement (either not for profit or for profit) Social relationships from church, school, volunteer work or health clubs Industry-related events and trade shows Referrals from past customers Advertising in a specific, targeted magazine or newspaper Internet postings on your Web site Referrals are always your best source for finding qualified candidates. But referrals come about when business owners make their needs known to customers, friends and family. Each day make at least 10 calls to those folks and ask them to keep their eyes open for qualified salespeople. It's really as simple as picking up the phone, composing an e-mail or making a passing comment to your friendly grocer. Once your spheres of influence are aware of your needs, you'll be surprised how many choices will be presented to you.

9.3. Star Search A stellar salesperson does not a stellar sales manager make. So . . . who does?
In assembling an ace sales team, you promoted your finest salesperson to sales manager. She's smart and assertive, and unfailingly gets clients to sign on the dotted line. Fast forward several months: That employee is threatening to quit, morale is hovering around zilch, and you're dazed from the fallout. What went wrong? "It's rare that a superstar salesperson makes a good sales manager," says Herb Greenberg, co-author of How to Hire and Develop Your Next Top Performer: The Five Qualities That Make Salespeople Great (McGraw-Hill). The "blood running down their chin" drive of top sales performers isn't what makes a great leader, he adds. "Think of the biggest sports stars. How many have gone on to become great coaches? Not many." That's because the skill sets for each role are different. Super closers are motivated by their egos, which help them deal with rejection while simultaneously pushing forward. They also have a thrill for the chase and the high of closing a big deal, and a restlessness that keeps them in motion, not sitting around cubicles. But put those Qualities of a Successful people behind desks, reading reports and delegating closes to Salesperson others, and they become ineffectual mopes. Is aggressive Is a winner "I see salespeople get promoted to positions of authority because they were star performers," notes Jennifer White, Is personable author of Drive Your People Wild Without Driving Them Crazy Can prioritize (Capstone/Wiley & Sons). "They really liked being the Is product-smart superstar, but the natural progression is to climb the corporate Is a good listener ladder. So they do, and they're miserable because of it." Qualities of a Successful Your ideal sales manager may not be a current employee. "It's Sales Manager Gets things done better to look outside the company for new talent," says Stephan Schiffman, president of D.E.I. Management Group, a through others sales training company in New York City that has worked with Hires effectively Is company-focused 69 Has no knee

more than 500,000 sales professionals since 1979. "Outside hires bring fresh ideas to an organization. In the highly competitive world of sales, this is key." When you search for new sales manager talent, look for these indicators of future failure or success: Enormous egos need not apply. The sales manager's job is to motivate, not overwhelm. "Never hire a sales manager with a big ego," says White, "because it'll bite you every time." Experience counts. Find someone who can get up to speed right away. "Don't hire someone thinking you'll train them," White says. "You won't. You don't have time for it." Look for leadership and mentoring skills. "A good manager has lots of patience and follow-through ability," counsels Greenberg. Company fit. Seek out a manager comfortable in an entrepreneurial environment. White suggests asking prospects how they handle chaos and a fast-moving organization. Details, details. Managers are responsible for running reports and knowing how to analyze outcomes. Says White, "Hire someone who understands the numbers and can drive the right results." Ability to delay gratification. Sales is about the immediate yes. Sales management is about mentoring, supporting and cajoling until you get it.

9.4. Use the Force Your sales force, that is, because you cant just sit there waiting for customers to find your Web site. You have to go find them.
Only a few years ago, some experts were predicting salespeople would be displaced by the New Economy. Netpreneurs have learned the hard way that a Web site alone doesnt bring in customers; now many are turning to traditional sales forces to pass the word about their products or services. 70

The best way to build long-term customers is with a well-trained, well-motivated sales force, says Dave Donelson, president of Sales Development Associates Inc., a management consulting and training firm in West Harrison, New York, and author of Creative Selling (Entrepreneurs e-books. A Web site might introduce someone to your product once; but after that, you have to go after [people]. Thats what a sales force does. Theres no substitute for it.

Testing, Testing When interviewing potential salespeople, Dave Donelson, president of Sales Development Associates Inc., a management consulting and training firm, suggests asking these questions: Whats the most important skill a salesperson should have? And why? It comes down to the basics, says Michael J. Doyle, 43year-old chair and CEO of Salesnet, a Boston firm that analyzes companies sales processes to benchmark current ones, identify areas of improvement and codify their best sales practices. Flashy hype doesnt always translate into good products, he notes, so working through traditional mediums to make distribution deals is the best way to reach customers. Salesnet provides an Internet-based tool that offers sales professionals a proven and customized sales process, optimizing selling efforts and driving a more efficient sales cycle. What company is your biggest competitor in your present job? And how do you compete with them? Whats the best sale you ever made? What are things you do to improve yourself?

Whats in it for us if we E-commerce does offer new means of distribution, though decide to hire you? Donelson doesnt think it changes the characteristics that netpreneurs should be looking for in their salespeople. Describe an ethical Selling is selling, he says. And I dont think dotcom sales dilemma you faced. What did forces should differ much from brick-and-mortar [ones]. It you do about it? depends on the product youre selling and who youre selling it to. If youre selling a retail product like clothing, you [should have] a salesperson who can make a quick assessment of what the customer needs. In a complex sell, like software or insurance, the process is going to take longer. That means youre going to require a salesperson who has the persistence and patience to make multiple calls on the same person. Traditional sales forces are especially important for B2B companies. Selling on a B2B basis is going to take at least 12 contacts between the salesperson and the customer before a sale occurs, says Donelson. You cant make those 12 contacts just by having a Web site. Tenacity aside, Doyle says successful dotcom sales forces need a combination of skill sets. Those whove sold through traditional methods also need to understand the Internet and how 71

to think out of the box. With sales force automation, companies can instantly connect their sales teams worldwide to share information such as automated reporting, calendars, scheduling. Deployment speed is quicker when you mix new technologies with traditional products or services.

10. MOTIVATE YOUR SALES TEAM. 10.1. Cheer up Downturn got your sales team down? Turn their frowns upside down.
Capitalism is a mercurial master of fatessmiling and generous one day, cruel and miserly the next. Many of you, after a rousing ride on the New Economy wave, are now facing hacked budgets, equivocating clients and possum-playing prospects. No wonder your sales force's esprit de corps is looking a tad shabby. As the economic Geiger counter of an organization, salespeople are first to take the hit when times go from rah-rah to ho-hum, so it's crucial to pay attention to morale when the economy cools. There are myriad signs that sales-force confidence may be headed south. "Complaining, grousing, negativity, cynicism, closed doors, arriving late, leaving early and generally not seeming to care are symptoms of slipping morale," says Bob Nelson, a speaker on management, employee and sales motivation and author of 1001 Ways to Reward Employees (Workman Publishing). While it's easy to get caught up in the doom and gloom heaped on nightly by network TV Chicken Littles, remind your reps that the United States (and the rest of the globe) is still open for businesseven during a slowdown. "Markets seldom disappear," says Steve Waterhouse, president of Waterhouse Group, a Scarborough, Maine, company that consults, trains and speaks on sales topics. "A decline of 20 to 30 percent can seem like a disaster, but the reality is that a significant number of orders are still being written," adds Waterhouse, who encourages sales teams to get aggressive when the order rate drops. In fact, your sales team may be able to turn the tables on a slowdown. Think about it: Your competitors are running scared. Capitalize on their paralysis by courting their clients. Consider the marketing industry: When times started to slow, agency owners and independent consultants beat feet to get back to cozy corporate positions. Simultaneously, companies pared back in-house marketing staffs, though their marketing needs didn't evaporate. As the independent talent pool withered and fewer marcom professionals were on payroll, agencies and independents who held firm got even more business after the slowdown. Just make sure a declining economy doesn't pull your sales staff's morale down with it. Consider these attitude-enhancing tips from Waterhouse: Stay positive. If your salespeople smell fear, they'll start to worry. Have a plan. When the economy takes a dive, sales are tougher to find, and your sales team will need new ideas. Plan promotions and specials to get things moving. Investigate new markets or launch new products. Active people are positive people. Get out in the field. Schedule ride-alongs with salespeople to visit key clients. Use this time to hear their problems and ideas. In tough times, we all need to be heard.

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Rev 'em up! In a soft market, salespeople are getting beaten up every day. It's your job to inject a positive attitude into their lives. Leave them encouraging voice mails or pager text messages. Be a cheerleader. Make a big deal out of every sale. Celebrate successes to motivate your team to keep on winning. Set realistic goals. Reset your goals to reflect the tougher market. Consistently missed goals lower morale. I'm not recommending an economic downturn as a bottom-line enhancerthat's too much Tums-taking to be advisable. But you can guide your troops through the rough spots by assuring them that, given the right attitude, just about any negative can be flipped.

10.2. Keep the SalesPeople motivated What's the Hook? If you find the right bait, you'll keep your salespeople motivatedand selling.
Before becoming an entrepreneur, I supervised a sales team that was responsible for supporting clients with clout, mostly Fortune 500 types. After months on end of murderous 70hour workweeks while managing a staff that just about Caine Mutinyd me during a reorganization, I was publicly rewarded with a faux gold medal that was inscribed with my name. Instead of being a rose-colored career highlight, the occasion was actually quite the opposite. The whole experience played out like a Fox special: "When Well-Meaning Incentive Programs Go Bad." I quit soon after. Incentive programs can be tricky beasts. What motivates one salesperson may completely discourage another. Consider the allure of cash. I appreciate a cash bonus and suffer no hangups about the lack of thought on the part of the giver. Beats a cheese wheel, and the fit is always just right. But monetary awards, which you'd think would be a powerful catalyst and inspiration for a sales team, have both supporters and detractors. Proponent Rashid Khan, founder and CEO of Ultimus, a technology business in Cary, North Carolina, says, "If your salesperson isn't motivated by money, you have the wrong salesperson." Others take a dissenting view on the use of currency to spur sales. "Cash has no bragging value," says Andrew Perlmutter, vice president of online incentive program provider InMarketing Group Inc. in Mahwah, New Jersey. "It's absorbed into the family budget and not used to enjoy luxuries."

Motivating factors: Joel Silver of SalesDriver, a Maynard, Massachusetts, provider of online sales force incentive programs, offers these tips for setting one up: Have a goal. The clearer it is, the more effective the program. Focus the incentive program on a specific product or on meeting one key goal. Keep your first program simplelike a bonus for reaching 10 percent above quota or contracts exceeding $10,000. Watch out for administrative fees, which can quickly eat into a program's profitability. Consider outsourcing. Don't try to save a couple of bucks on rewards if you're going to waste your time trying to figure out who ordered the golf bag. If outsourcing, beware of programs that want you to buy all your points upfront at a discountyou may not know how many you'll use.

So what does get salespeople all fired up? Perlmutter says travel awards and merchandise seem to be the most popular motivators. With such diverse personalities making up the typical sales force, it's important to create a program that takes individuality into consideration.

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Incentives run the gamut, from the simple to the sublime. If you're offering a sophisticated program that allows recipients to choose their own rewards, you'll probably want to outsource it to a company like SalesDriver, a provider of online sales force incentive programs. According to Joel Silver, vice president of Maynard, Massachusetts, SalesDriver, managing the details of an incentive program can take a significant amount of timemore than most entrepreneurs can spare. And he points out that while you may save money on rewards if you do the work yourself, you can lose that savings in time spent on administration. Another option is to lump special perks, like flexible schedules, together with tangible incentives, such as travel rewards. Though flexibility in the workplace is a real plus for some, dont confuse soft benefits with tangible perks. "Flextime, overtime and four-day weekends dont work as incentives in small companies," says Khan, 48. "You cant develop energy when employees aren't there when you need them."

10.3. The Is your compensation motivated?

plan

Right keeping your

Carrot salespeople

You need a sales force that's motivated to pad their pocketbooks by moving your product. Structuring a compensation plan is critical to attracting and retaining sales professionals whose success will enhance your bottom line. Designing an appropriate compensation plan depends on what you're selling. "The standard rule is that the more persuasion needed, the more commission [and] less base will be involved," says Brent Longnecker, executive vice president of Resources Connection Inc., a Spring, Texas, firm that specializes in finance, accounting and human resources. In structuring or restructuring your sales compensation package, consider calling in an expert to help you cover all the bases. According to Longnecker, "The best way would be to partner with an expert, let them learn a lot about [your] business and sales process, and have them propose a few different compensation alternatives." Secrets to Success Jerome Colletti, managing partner of management consulting firm Colletti-Fiss LLC in Scottsdale, Arizona, and co-author of Compensating New Sales Roles: How to Design Rewards That Work in Today's Selling Environment (AMACOM), recommends three key principles of designing a sales compensation plan: 1. Design the plan for the job, not the individual. Too frequently, entrepreneurs are attracted to a "type" of salesperson (such as one who sells on commission) rather than considering the characteristics of the selling situation. Focusing solely on people instead of on the job is the difference between hiring a few "rock star" salespeople and putting together a scalable sales force that can leverage the business. 2. Keep plan mechanics simple. A limited number of measures (no more than three) and simple formulas make a plan easy to explain and understand. One of the goals of any plan is to direct, motivate and reward the desired behaviorand that's not possible if salespeople don't understand the plan. 3. Make it pay for salespeople to overachieve. If the target incentive opportunity (commission or bonus) is $50,000, then, assuming profit margins and talent retention will support it, the upside should fall in a range of two to three times the target ($100,000 to $150,000) for outstanding performance. Salary.com is a Web-based recruiting company that provides businesses with compensation evaluation tools. Bill Coleman, senior vice president of compensation for the Wellesley, Massachusetts, firm, adds these ingredients for designing a good plan: 74

 Remember the customer. Treating customers well before, during and after the sale is a wise investment. Account for sales cycles when designing the plan. Know how long it will take to close a sale and how much time and effort is required per sale. Select a fair commission. Whether it's a percentage of pay, a percentage of sales or a target dollar amount, proper calibration of your sales plan is crucial. Don't neglect base pay. Use market information to ensure your base pay levels are competitive. Salespeople live on base pay until their bonuses are paidso if pay is insufficient, a few bad cycles could send your salespeople elsewhere. Revisit, revise and reset. Your business, your strategy and the economy will change with time. The plan should be flexible enough to change in stride. Encourage cooperation among salespeople. Sometimes it makes sense to give credit for an assistthat way, salespeople can bring in the best person for a particular deal without losing the commission.

10.4. Top 10 ways to teach your staff how to overrun the competition
1. Make very sure you have a better trained sales army than they have at the competition. We use our own exclusive "Stealth Sales Training (c) program." It doesnt require us to take everyone out of the field to attend class. o o If you dont have a better trained army, competition will destroy you. But, if you do, you will destroy them, which is always the more preferred choice.

2. Make sure you only sell the most terrific products in your market segment. o o o If you dont have the best product in your space, strategize to find a better product. Or, if that isnt an option, strategize to move you to a more appropriate market space. Either way, you win. You do not always have the means to switch products mid-cycle, but its a rush to find out that changing the market focus often works better, faster and cheaper.

3. Listen to your customers. Youve heard it before, but it is still the best way to meet needs. o o o o Sell what they need, not what you have. Even when you have what they need, many sales people sell from the wrong prospective (It does this. It does that. It does this. It does that). Teach your staff how to return to "empathy" and tell what the customer needs to hear. Teach how to really find customer problems and then solve them.

4. Find better, more aggressive sales people, or train existing ones to be more aggressive. 5. Spend more time identifying prospects most likely to need what you have, before you make the sales call. This saves time that would usually be wasted and concentrates sales talent on more likely sales. We employ a unique copyrighted process called "Prospect Profiling,(c)" which identifies those prospects most likely to make our sales people successful. 6. Shorten your sales cycle by simplifying the sales proposal process even for complicated technical sales. 75

7. Customize and then standardize your proposal into a generic template that is very customer-centric, yet quick and easy to prepare. This frees sales people for more time prospecting for opportunities. 8. Teach your sales people how to work as a team and share successes (yes, and failures) effectively, to improve the "learning from mistakes" yield and shorten time-to-market of new training. 9. Improve sales managements ability to fill the prospect sales funnel by combining the best of traditional and non-traditional thinking. 10. Practice "top down" aggressive management. Specialize in growing sales in shrinking markets by keeping the energy level very high at the highest levels of management. We never stop teaching how to aggressively improve share of the market by the process we call "steal from the competition."

11.

CYBERSALES.

11.1. Cybersales
Whenever I try to convince myself that I am not a salesperson, but a company president, I just take a look at my incoming revenue. No Sales = No Revenue. Whatever your feelings are about the sales profession, the fact is we've all got to have it. Also, it's no mistake that the more successful the business, the more people it has selling at all levels -- no matter what their position or job function. Is an online business any different? There is probably little or no personal, face-to-face selling involved and seldom any telephone contact. Yes, the Internet offers us a different medium, but the basics of selling are the same. Several things occur in every sale, and like a chain, any links that are missed or weak can cause the whole process to break down. These weak links may show themselves in the form of high returns or no repeat sales or visits. Or your customers may fill their shopping carts only to abandon them when it's time to submit their orders. Let's break down the sales process and identify the links that, when strengthened, can yield more sales and revenue for your site. Establish Rapport Credibility and trust are the desired outcome of this very important step, and the number one reason sales are lost. If your orders are getting canceled just before completion, provide your prospects with assurance that they will be satisfied and safe doing business with you. How do you do this? Try one or more of the following: Testimonials from satisfied customers Endorsements from respected authorities (the Better Business Bureau, chamber of commerce, etc.) Offer a money-back guarantee Phone number to reach a live person Pay for shipping if there is a return Qualification, Probing & Questioning Determining your customers' needs, issues and problems is important so that you can recommend the best solution. But what about your customers? Do they know they have a problem? Is the problem big enough or causing enough pain for them to make a change?

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In the SPIN selling model, used for years by Xerox, the P and I of SPIN, represent Problem and Implication. What are the problems that your product or service will solve, and what are the implications of those problems? For example, your business offers electronic check processing, both online and over the phone. A client may already take checks on a mail-in basis. They currently delay shipment until the check is received and clears their bank. They know customer satisfaction would be improved significantly if they could reduce the two- to three-week shipment delay, but they can't afford the financial risk of shipping without payment. To make matters worse, the facts show that less than half of these customers actually mail the check as promised. The other half made a buying decision and wanted the product, but either forgot to write the check or came to the justification that it was too much trouble to write the check, address an envelope, find a stamp and mail it. Here a sale was made, but became inconvenient for the customer to execute, resulting in a lost sale. These lost opportunities really add up when you also factor in that 75 percent of all transactions in the United States are made by check. Not to mention the fact that over 70 million American consumers don't have a major credit card, have reached their credit limits, or prefer not to use credit cards. Each of these issues on its own may not be causing enough "pain" to initiate a change, but stacked on top of each other, they present a much bigger, more painful problem. By pointing out the customer's problems, and all the associated implications of the problem, you help your prospects see the big picture. Help them see the entire problem, and feel all the pain associated with not buying from you...now. Product Presentation & Demonstration This is where the features and benefits of your product or service come into play. And yes, benefits are the key. The difference is significant, and remember, it's the benefits that people buy. Features are the properties or characteristics of the product -- what it is. Benefits are what it does. There is an old saying, "Tens of thousands of -inch drills were sold in a year, but no one wanted a -inch drill, tens of thousands of people wanted a -inch hole." If your site is getting a lot of lookers but few takers, you may want to ensure that more of your copy is dedicated to how the features of your products benefit your customers and solve their problems. Put yourself in your customer's shoes. Objections & Questions The easiest way to answer an objection is before it is made. Address all the most common issues up-front, before they become a reason not to buy. Within a very short time you can compile a list of questions and objections that you regularly address. Why not set those up on your "Frequently Asked Questions" page? Most sites with a FAQ section do a very good job of removing obstacles before they become obstacles. Closing The Sale Traditional sales training tells us to close and close often. Whether you ask directly or in a more subtle way, you must ask and make it easy for your customers to buy from you. At each stage of the selection and ordering process, make it easy for them to take the next step. Options and choices help. Implementation & Follow-up This is where the sale is made, and more importantly, where the next sale is made. You must happily deliver on everything that you've promised. If you're really smart you'll deliver more than you've promised. Amazon.com is a great example of delivering more value than is expected. I ordered some books last year, and included in my shipment were 10 1-cent 77

stamps. Wow! Everyone had to pay the new 34-cent postage, and I still had some 33-cent stamps on hand. For a cost of only 10 cents, I've thought of Amazon no less than 10 times this week. That's creative value. It's also important to follow up. Drop your customers an e-mail after they've had your product a while. "Are you happy with XYZ?" "Is there anything we missed?" "How can we serve you better?" And don't forget to ask, "Can you refer us to your friends?" If you ask, they will. When in doubt about what to do next in the selling process, just look to yourself. We all want the same things from any transaction -- value, quality, dependable service and courtesy. Selling over the Internet is no different than any other sale. Just remember, if you're not taking care of your customers, someone else is. Larry Russell is the president of Capital Resource Corp., a supplier of embroidery tools and products. He has been in the industry since 1990 and has been involved in the technical side of embroidery, including schiffli products, software products and training, wireless networking of embroidery or monogram machines and digitizing software. Untangling the Web is a new column intended to give you insight into the options available for the design and maintenance of your Web site. It will undoubtedly save you time and significantly shorten your learning curve.

11.2. Four keys to technology selling success:

1. Redefine complex technology. Make it simple so sales people can explain it to mom. 2. Create structure for every sales call. 3. Focus away from tech-speak and onto key fact-finding to better communicate and close more. 4. Guide the sales process toward problem solving and away from classic feature wars, ending with greater customer benefits and, thus, higher dealer margins.

11.3. Selling Online Whats the difference between online and brick-and-mortar sales?
Q: How does the online sales process differ from brick-and-mortar sales? A: The difference is merely in the process of communicating with the customer. But the basic goal is the same: to find more qualified customers. Here's a three-step process to drive more prospects to your Web site: 1. Build a user-friendly site. Start by allowing viewers to navigate easily through your site. Make sure the categories are clearly identified and are logically organized specifically and clearly. Is your site visually interesting? Are you keeping your site current and updated? Designing a Web site is no different than dressing a store window or creating an appealing advertisement. It must seduce all types of buyers. Remember, some of your prospects have never accessed the Internet before and don't want to be taken through a complicated process. Keep it simple. Make sure your site is creating an impact. Research qualified Web builders and make it a point to see their work before you hire one. 2. Use a variety of advertising vehicles, such as print, telemarketing and direct-mail advertising. Make sure each advertising campaign drives customers to your site. Don't count on people surfing the Internet to find you. For example, include your Web address on your voicemail an in all newspaper ads, brochures and newsletters. Say something to entice the

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reader to your site such as, "Check out our Web site and you'll learn three things you never knew about (pick a topic)." 3. Join an affiliate marketing program. Think of it as practicing network marketing on the Internet. Take my friend, Cathy. She started a "kit business" on the Internet. The first kit she produced was an "Official New Bride Name Change Kit." It's an easy-to-use kit for new brides customized to the bride's state and ZIP code. It contains all required government forms, personal record change forms, and, an instruction guide and checklist to help new brides change from their maiden name to their new married name. Then she created an affiliate program link on her site. This means she partnered with other complementary companies that have products or services that are compatible with her kit. One of her affiliates is an attorney who sells legal forms. If a customer or prospect from her site connects to his site and purchases his services, Cathy earns a commission check. Of course the same applies to the attorney when one of his prospects connects to Cathy's site and buys a bridal kit. You can partner with numerous other businesses on your Web site. But before you add banners (more partner links) to your page, research which businesses are compatible with you. If you're part of the hospitality industry, for example, you can link with travel agents or realtors. Once you figure out who's compatible with your business, then be sure your future partners are reputable. Taking time to research credentials is especially important on the Internet. Try to get a face-to-face appointment with your prospective affiliates. If they're in another state, references will be particularly important. Another exciting aspect of the affiliate program is incentives. You can create perks that will motivate affiliates to drive qualified prospects back to your site once they've purchased from them. Affiliate programs cost nothing to set up and provide a quick source of income for your business. All the same principles that apply to brick-and-mortar sales apply to online selling: Follow-up, go the extra mile to please the customer, and ask them for future referrals. Online selling is simply another option you can tap to double your income and increase your lifetime customer base.

12. SALES HOW-Tos and RULES. 12.1. Believing in What You Sell
Create a sense of purpose throughout your company by building a belief system and sticking to it religiously Passion and Believing in What You Sell Jim Amos is big on believing in not only his abilities, but also in the value his company delivers and the abilities of his team. Here's some of what Jim had to share about passion and belief: "Knowledge-based workers own the knowledge we don't. They may obtain information from our systems, but they individually own the knowledge. People run the systems--the systems don't run the people. Knowledge-based workers must be passionate about their purpose, beliefs and mission; they must have and then apply their discretionary energy with all of that in mind. "My job is simply to keep the dream in front of them--to keep the Mail Boxes Etc. dream in the forefront of their minds at all times. But it doesn't stop there. The sales process is about constant communication. My job is to be popular and 'well known''--someone who constantly shares the dream with customers, with board members, with employees and with franchise owners. 79

"Basically, I believe that courage is a work ethic. That means that I must respect my people and allow them to retain their own dignity. I lead not with an anvil, but with benchmarks." Sharing the dream (or, if you prefer, the vision) is, of course, just as important when interacting with our own sales team members as it is when you're meeting with a CEO from another organization. To share the dream, you must, as Jim notes, embody it wherever you goand broadcast it to every "customer" you meet, whether that customer is internal or external. Jim is a great role model for that kind of passionate commitment to his company's dream--its mission. Jim also told me: "My conviction is that unshakable trust, solid core personal values, integrity and honesty pave the way to a successful relationship in all business and personal endeavors." I can personally attest that Jim lives up to that high standard. I can also attest that he tries not to let anything build unnecessary obstacles between himself and those he connects with. "When I make a mistake," Jim told me, "I show the humor of it; I laugh at myself and allow others to laugh at me, too. And then I move on. Relationships are built in the trenches; that's where the real tests come. Being truthful in how you react to a situation--that's what matters most." The Power of Purposeful Belief To learn how to put the power of purposeful belief to work in accomplishing your own mission, you'll need to do what Jim has done and continues to do on a daily basis. You'll need to get in touch with what gives you that power in the first place: you! In the end, you are your own best ally--or your most formidable competitor--when it comes to harnessing a sense of mission and purpose. This intangible quality, essential to successful interactions with top "C"-level decision-makers and approvers, either arouses your own opinions, beliefs and convictionsor doesn't! Let's take a quick look now at what Jim emphasized when I asked him about the mission of sales leadership: opinions, beliefs and convictions. (Note: I'm basing what follows on my discussions with Jim and also on my knowledge of how CEOs tend to operate.) Opinions fall short of having the need for positive knowledge. An opinion is a combination of facts and ideas that can be true, or are likely to be proven truebut that may not be. (Many opinions, of course, share a fuzzy border with those disempowering d's, delusion and denial.) It is possible to have one or more opinions on the same topic. It's also acceptable in the business world of a CEO to change an opinion when it becomes necessary (or politically wise) to do so. There are occasions when CEOs have no opinion whatsoever on an important business topic, but they're quite rare! Beliefs are based on specific past experiences, generalizations or conjecture. Once a belief is obtained, it's generally held to be true and is rarely challenged or changed. Sometimes, we are tempted to defend our beliefs to the bitter end, even when there may be no factual basis for the belief.

Convictions are certainties of the mind in either of the two previous categories, that is, fully settled opinions or assured beliefs. Once established, convictions defy alteration. In extreme situations, convictions can cause serious financial, social and/or physical setbacks. On the other hand, convictions can also be responsible for total success in every aspect of business and life. The Constructive Belief Systems of CEOs During my interview with Peter Bell, the co-founder and CEO of StorageNetworks, he shared with me his very strong belief about his involvement in the sales process: "I believe strongly that I must routinely 'disrupt' the sales process--from the standpoint of shortening the sales cycle--by doing a 'title-to-title' call or in-person meeting. In all these cases, though, I will still hold my sales team responsible for working the sales process."

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Peter believes that involving himself in the sales process has a clear benefit: shortening the amount of time it takes to turn a suspect into a customer. He has amassed so much evidence for this belief, in fact, that it has taken on the form of a conviction. Could Peter's belief be changed? Perhaps, but I doubt it. Why? Because the emphasis he put on the word "strongly" gave me the sense that he had strongly invested himself in this way of looking at the world, and that employing this vantage point had paid off for him handsomely. Peter has developed a constructive belief system about involving himself in the sales process. Does that belief, that sense of conviction in what his company has to offer, pay off? Consider the following story. "For two hours," Peter told me, "a C-level prospect spoke of nothing but what our competition could do for his company. I thanked him for his time and hospitality. I gave the deal a 50/50 chance. Two days later he called me and gave us the business." Take Control of Your Own Beliefs and Convictions It's virtually impossible to understate the importance of beliefs when it comes to harnessing the power of a CEO who sells. Once you take total responsibility for your own empowering beliefs and convictions, you will, by definition, be thinking, acting and selling like a CEO. Perhaps it's time to examine some of your own beliefs. Here are some examples of what I call self-limiting "killer beliefs": CEOs would never take time out of their busy day to see me. (After having met with hundreds of CEOs, I can attest--this one doesn't withstand the test of experience.) I have nothing to offer this person. I'll never make "salesperson of the year"; my territory isn't good enough. CEOs make me nervous. I choke under pressure. CEOs are difficult people to talk with. My parents ruined me for life! (I think we should all get rid of that one.)

Each of the negative beliefs has a corresponding positive counterpart. (For instance: "I can add significant value to the day of the highest-positioned person in any organization.") Take a moment now to write positive, empowering beliefs on a separate sheet of paper; make sure to compose one for each negative belief you feel you may now be harboring. Change Your Own Beliefs and Sell Like a CEO on a Mission! It's not always easy, but beliefs can be changed. It's a matter of applying the right stimuli and taking advice from the top. Let's start by focusing on the three conditions necessary for our mind to change or adopt a new belief or strengthen an existing one. When we're done, we'll take a look at a list of core empowering beliefs that the most effective CEOs have--the beliefs that make their sales meetings less like presentations and more like divinely ordained missions. What have you got to do to change a belief? 1. Gather or create new information. The more supportive information you add, the stronger your belief will become, until it eventually develops into a conviction. Because convictions tend to stick around forever, the ones we embrace have a huge impact on the quality of our lives and the success of our business endeavors. The right convictions can mean prosperity, optimism and happiness. Latching on to the wrong convictions, on the other hand, can literally kill you. So focus on the right stuff. (Note: You've already taken a huge step in that direction by reading this column every month, because you

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are gathering new, positive, empowering information that will help you begin to change your beliefs about selling.) 2. Add emotion. Once you gather your new information, you'll need to apply your emotions to the process. The greater the emotions, the greater the speed at which the new positive belief will move toward the level of a conviction--a "way of life." The greater the emotional experience we connect with a belief, the stronger the belief tends to become. (Example: At the conclusion of my interview with Jim Amos, he gave me a bear hug! Let me tell you what that did for my beliefs and convictions about this man, his mission and purpose. I am now ferociously proud to be one of Jim's allies, and I know I'm not the only one who feels that way about working with him.)

3. Gather social proof. If Siskel and Ebert give a film "two thumbs up," millions of people are likely to attend that film with the expectation that they will enjoy it--which certainly doesn't hurt the odds that they actually will enjoy it. This illustrates the power of social proof as a reinforcer of beliefs, positive or negative. So choose the experts you decide to "tune into" carefully. (How's this for an example of social proof: From the moment you drive into the parking lot of Mail Boxes Etc., you can see the recognition that is paid to the management and top producers. Covered parking is provided for all key employees and top producers, with their names and titles proudly displayed. As soon as you enter the lobby, you can clearly see all the recognition plaques hanging on a "wall of honor." Constructive social proof is everywhere you look!) Six Questions When you want to rid yourself of any beliefs that aren't serving you well at this point in your life, ask yourself the following six questions. Take 20 minutes or so to write the answers down. Be sure the answers you write are scrupulously honest. 1. Where did I get this belief? 2. How long ago did I adopt this belief? 3. Have I ever compromised this belief? If so, how many times? How long ago? Why? 4. What have been the consequences, if any, of compromising this belief? 5. What have been the consequences, if any, of maintaining this belief? 6. What would happen to my health, finances, and personal and professional life if I eliminated this belief? Principles for Sales Leadership Over the past twenty-eight years, I've worked with a good many CEOs and top- producing salespeople. I challenge you to put their principles of sales leadership to work during the next situation in your professional life that requires positive change. They're accountable. They live by a code: "If it's to be, it's up to me." They're confident. They have a strong belief and faith in themselves, and they constantly reinforce that belief. They want to find out more. They're in constant search mode; they want to find ways to improve themselves, develop their strengths and understand their weaknesses. They're generous. They're always trying to find ways to help others grow and develop.

They embrace new situations and actively look for new challenges. They look at change as an opportunity to benefit by using each of the above strengths, making them even stronger and more resilient.

12.2. Dress up your SalesPeople!

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Every customer's crazy 'bout a sharp-dressed salesperson.

I'm ever amazed by the undignified mien of many sales reps. Out of the hundreds I've met over the years, only about 10 percent have projected an image that inspired buying confidence. Salespeople have shown up late or not at all, looking like they'd slept in their cars or wearing suits even moths would reject. Sales pros in the 10 percent club have been men and women, youngish and more mature, but they've had much in common: All were welldressed and well-groomed, and had a relaxed and courteous communication style. I trust these people with my clients' money, the biggest compliment I can bestow. Your sales reps are hired to fly the flag of your brand and champion your business. Their image is your image, and if they blunder, your company suffers. "If a salesperson is poorly groomed or their clothes aren't pressed, the product is cheapened, and the sale is in jeopardy," warns J. Kevin Hand, president and CEO of Hand & Associates, an image enhancement company in Los Angeles. Hand says executives view a positive image as essential for success. "It's the packaging that makes the ultimate difference," he says. With that in mind, you must consider all that goes into the image of your salespeoplefrom tattoos and piercings to suits and hairstyles. While you may not personally feel any disdain for nose rings, it's a sure bet many of your clients do. And what about suits? Many executives now spend their careers clad in Dockers instead of Brooks Brothers, so how should your sales force dress? While a suit may no longer be required, it's still better to be overdressed than underdressedreps can always take jackets off if they find themselves in casual land. As you lead the charge in dressing up, though, keep in mind the corporate culture of your prospects. "It's not too different from trying to understand tribal customsyou have to know something about the group you're going to spend time with before you get there," advises Patrick Lennahan, director of the career center at Roger Williams University in Bristol, Rhode Island. Be extra cautious when your sales reps encounter what Lennahan calls a "crosscultural" experiencelike when artsy-hippie dude meets corporate muckety-muck. In this instance, it's wise to emulate the look of your client. "A person who wears a pinstripe suit in the wrong place can be just as suspect as the person who wears jeans in another setting," says Lennahan. If you have any doubt image can make or break your sales efforts, consider some persuasive statistics from a survey published in March 2001 Sales & Marketing Management magazine: Of 651 executives polled, more than 94 percent said a sloppily dressed sales rep had a tougher time making a sale, and 80 percent would avoid hiring any sales rep who was a sloppy dresser. In the image game, don't underestimate your role. As the boss, the sales force looks at your words and actions as indicators for the proper behavior. "If the top dogs in a company are slobs, then the support staff will be, too," says Don Farrell, 44-year-old founder of Signature Inc., a sales and service training company in Dublin, Ohio. According to Farrell, companies take on the personality of their leaders, so entrepreneurs must be sure to lead by example.

12.3. Get Real Ditch the tricks and put puffery aside According to sales expert Jacques Werth, honesty really is the best policy

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In his 40-plus years of selling everything from fork lifts and cars to machines used in making silicon chips, Jacques Werth has accomplished at least two things: He's made a lot of money and learned a lot about sales--enough, in fact, to write a book entitled High Probability Selling (Abba Publishing). But it's not just Werth's experience that makes him noteworthy; it's his revolutionary view of selling, which downplays aggressiveness, has little use for motivation and disdains even the modest use of puffery. Following is an interview with Werth, who, for the past nine years, has run High Probability Selling, a sales and marketing consulting firm in Dresher, Pensylvania. Q: What is the biggest misconception concerning sales? A: Most people think it's important to be aggressive in sales, but the opposite is true. Aggressive salespeople don't deal with the world the way it is; they try to force their way on the world. These salespeople try to convince others they want their product, and that whole proposition is flawed. Q: Why? Most salespeople feel convincing prospects is crucial. A: It's flawed because the vast majority of people resist being persuaded or manipulated. In fact, they resent it. It's far more effective to find consumers who want to buy what you're selling and do business on the basis of mutual agreement. Q: How do you do that? A: By qualifying your prospects, you can quickly find out who isn't going to buy and move on, instead of trying to persuade them. Q: You feel most salespeople do a poor job of prospecting. What are they doing wrong? A: They start with the wrong objective: To find people who are interested, get appointments and try to turn that interest into a need or a want. But prospects who are merely interested are the worst ones to have. Having an interest in a product is no indication that someone is going to buy it. Q: You mean if I walk into a car dealership and say I'm interested in a certain car, that's not a good clue? A: It's a good clue to the salesperson who's been trained to persuade people. To him, you're a hot prospect, yet you haven't said you were going to buy a thing. You just said you were interested. Q: In that case, according to your theory of selling, what should a salesperson do? A: Just flat out ask them if they're going to buy. I used to own a car dealership. Typically, I'd say, "Hi, I'm Jacques Werth. I'm a salesperson here. If you want me to show you anything in particular, that's fine. If you'd rather look around and have us leave you alone, that's OK, too." Interested prospects would say, "We're just looking." Prospects who wanted to buy would say, "Well, I want this or that," and we'd continue. Q: Isn't there any room in sales for persuasion or puffery? A: No. We advocate "radically honest selling." Tell them the truth. Anything else, and you're manipulating people. It's like telling a prospect you can help grow his or her business. That may be an off-shoot of the sale, but the reason you want someone to buy from you is to [make money]. There's nothing wrong with that. So many sales techniques and tricks turn people off. For example, a salesman recently called me and used my name 22 times in about 10 minutes. In real life, who does that? It's fake. Q: Entrepreneurs are usually pretty aggressive types. Are they in danger of hiring the type of aggressive salespeople you feel aren't as effective? 84

A: Yes, because [people] generally view salespeople as aggressive or obnoxious, and when it comes time to hire one, if they don't know any better, that's the type they look for. Entrepreneurs could be in more danger if they're new to sales. They may feel they have to get those really aggressive types because they're just staring out. Q: So what should an entrepreneur look for in a salesperson? A: Honest, confident people who know how to listen. They may be ebullient or quiet. It doesn't matter, if they know how to be truthful.

12.4. How to Charm the Socks Off Anyone Don't pass up your chance to make a stellar first impression -it's what makes or breaks any business interactionNewsflash: If the first impression you make with someone is less than positive, it takes 20 positive second impressions to change their mind and win them over . Each month, this new column will give you insiders tip for creating high-voltage charisma with everyone you meet. Here's a simple quiz to help you see if you know the codes of conduct for creating trust and rapport the workplace: 1. If you enter a large building through a revolving door that rotates into the lobby of the building with a customer (could be male or female), who would enter the revolving door first? You? Or the customer? Answer: You would enter through the revolving door first and then pull them through with your strength instead of having them pull you through the door with their strength. This is a subtle way to show respect. 2. If you and a customer approach a moving escalator that will take you upstairs, who would step onto the steps of the escalator first? You? Or your customer? Answer: You would motion for your customer to step onto the moving stairs first for the escalator ride up. You would stand behind them (going up), giving them the subtle (unconscious) clue that if they fell backward, you would catch them. 3. If you and your customer were returning to the floor below and you were approaching the moving escalator steps to take you back down to the lower floor, who would step onto the moving steps of the escalator first? Answer: You would step onto the down escalator first, giving your customer the subtle (unconscious) clue that if they fell forward, you would catch them. If you're thinking these subtle behaviors sound strangely like manners and diplomacy skills, you're right. Today's business is a carefully orchestrated symphony of relationship management skills for the purpose of creating loyalty among customers and retention among employees. For today's first lesson, here are five easy skills you can practice for charming the socks of anyone you know without even saying a word. When you meet someone, you instinctively use a simple gesture called an eyebrow flash, which is a primal response that leaves your eyes unprotected and vulnerable. The simple gesture of quickly raising and lowering your eyebrows gives the recipient of your eyebrow flash the feeling that you're trustworthy. Consciously use your eyebrow flash during times that you want to create instant rapport and trust. In areas of sales and customer service, when other people are talking, you're in control. Get other people to talk by nodding affirmatively. If you'll train yourself to nod 85

knowingly when people are speaking, they'll keep talking while you're gathering more information and staying in control. Make open gestures by keeping your arms, legs and ankles uncrossed. Make slow gestures with your hands and arms as an indication that you're relaxed and selfconfident. Avoid carrying briefcases, purses or files when you want to demonstrate your power or dominance. Ladies, if you carry a purse, make it a small shoulder strap bag. If you'll notice, you'll never see the president of the United States carrying stacks of files and paperwork into a meeting. He has paid staff who carry things for him. The less you carry, the more you're able to gesture, too.

Mirror people's movements very subtly. If you're obvious, you'll get caught. If a person holds both their hands behind their back, hold both your hands behind your back. If they cross their left leg over their right leg, cross your left leg over your right leg. Unconsciously, they'll trust you, but they won't know why.

12.5.

How

To

Sell

To

Team

Q U E S T I O N: I've always sold to one person. Suddenly I'm working our biggest account and I'm dealing with a committee. - Help! I'm Surrounded A N S W E R: Spencer Tunick might just be the best salesman ever. He's an artist and his specialty is taking photographs of nude crowds in urban settings. Yep, you read it correctly, nude crowd scenes. He expected 300 to heed his call in Montreal, and more than 2,000 showed up. Not only did they disrobe, but they did it in less-than-tropical 55 degree weather. Luckily for you, you don't have to try to talk your client's team out of their clothing. But you will have to strip away all the politics and process that you can to keep your sale moving through their system. I've listed some questions to help you sort things out below. For more sales strategies, check out Kevin Davis's book, Getting Into Your Customer's Head (Times, 1996). Know Your Audience How will they make the decision? The good news, many organizations do have an internal process developed for handling their purchases. The bad news, they often won't volunteer this information to you. So you've got to do all the homework you can to discover how they get from point A to point B. Don't limit yourself to just the most powerful person you can get in contact with, secretaries, for example, can supply important pieces of the puzzle. Who carries a disproportionate amount of influence? Someone almost always carries more clout, the problem is that it's not always the person highest up in the chain of command. So you'll have to keep your ears to the ground to discover who is the 500-pound gorilla for this sale. How will it benefit them? Anyone who has ever served on a committee knows that much of your time is spent feeling stuck in a bureaucratic maze. So you need to keep them focused all the benefits that will take place if they act. At the same time, be careful to not come across like a snake oil salesman, but do remind them about the benefits that will accrue once they sign the bottom line. Can you make it hard for them to say no? Pilot programs, tours of other clients operations, there are often a variety of ways that you can take the mystery out of working with you. 86

Committees often have the tendency to focus on everything that can go wrong, help yours to see how everything will work out to their advantage. Who are the people who might oppose the sale? There is nothing like turning an adversary into an advocate to influence anyone still sitting on the fence. On the other hand, you can waste a lot of time preaching to people who refuse to be converted. So you've got to be very careful, and strategic, on how you handle people opposed to working with you. The naked truth, a team sale will take a lot more of your time and energy. But the results are often worth it. Winning Strategy Our winning strategy for motivating people at work comes from H.R. in New York City. "Too many employees overlook the opportunity to learn at work. I think that is the most important thing to focus on. I try to find interesting committees and task forces, worthwhile training programs and interesting metaphors. And when most of my peers shy away from a tough assignment, I volunteer for it. Work is all about adding to your skills and expertise. So the number one thing that I look for in a boss is someone who cares about me and my career. Sorry to say, they are few and far between." List of the Week The gift that keeps on giving ... Tips for recognizing employees: Make it something with lasting value Inspire pride of ownership Suit the personal taste of the recipient Reflect the best image of the sponsor company Reflect the effort of the person who is being recognized Source: from "1001 Ways to Reward Employees" (Workman, 1994)

12.6. Just Be Yourself Next time you go on a sales call, don't pocket your personality at the door.
Think back for a moment to your greatest sales calls. What made them so successful? Usually, it's because the sale went so smoothly. You did all your research, you had in-depth knowledge of your product or service, you set your objective for the call, you closed and, voil, sales success. But there's another factor that contributed to that success: you. Because you were so wellprepared, you were able to sit back and sell from the heart. Baseball's Yogi Berra once asked, "How can anybody think and hit at the same time?" My question is, "How can anybody think and sell at the same time?" The best salespeople are those who feel so comfortable with selling that they don't have to think about what they're doing. When I was a sales manager, I had a rep who wasn't doing very well. At first, I couldn't understand why. He had a great personality; people thought he was a natural-born salesperson. But he wasn't making sales. So I went along with him on some sales calls to find out what the problem was. He stepped into what he perceived to be "salesperson mode" and stepped right out of a sale. It didn't take long to realize what was happening. As soon as we got in front of a customer, his personality changed. It was as if he'd tucked his true self away in a pocket, and another person came out of his mouth. He took the customer through a robotic, by-the-book sale straight out of Selling 101. He stepped into what he perceived to be "salesperson mode"and stepped right out of the sale. The best relationships with customers often happen when you can just be yourself. When you feel comfortable with clients, they feel comfortable with youand that's when they buy.

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There are four stages of competence in any pursuit. When you begin a new skill, such as selling, you're unconsciously incompetentyou're not really aware of what to do to be effective. Eventually, as you improve, you become consciously incompetentyou know there's more to learn and you need to make improvements. Then, when you gain experience, you become consciously competentyou're aware of the steps you're taking and the things you're doing well. The last and most important step is when you become unconsciously competent. At that point, you're so thoroughly skilled that you no longer have to think on a technical level, and you can sell straight from the heart. "To thine own self be true" was Polonius' advice on how to be successful, and being true to yourself is what selling is all about. Understand your customers' needs and challenges, and keep your objectives in mind at every call. Then, trust yourself enough to let your customers see who you are as a person, and they'll return that trust. No matter what, don't be like that young sales rep with a split personalityone for real life and one for sales. When you hide your personality, you're hiding your most valuable sales tool.

12.7. More Than Words Use nonverbal cues to help the sale along.
Youre sitting across from a prospect whos leaning back, his arms folded across his chest. "Oh, no," you think. "His arms are folded. Hes leaning back. Ive lost the sale for sure!" Suddenly, your enthusiasm fades and you become insecure about your next move. At this point, you really have lost the sale. What you dont know is that the prospect is simply getting comfortable in a brand-new chair and thinking that the air conditioning is too high. Many people believe that body language reveals other peoples inner thoughts. Problem is, its too easy to misinterpret the signs. I believe people mirror the body When I work with language you present to them. If youre enthusiastic, the prospect someone, the trust will be enthusiastic. If youre uncomfortable in a meeting, the and comfort level I prospect will be, too. sense from looking into his or her eyes is If you want to generate positive body language in your prospect, stronger than any youve got to lead the way. Here are three great ways to do that: contract (although my attorney would beg to 1. Smile. Nothing communicates pleasure better than a smile. Its differ). the international body language everyone understands. People cant help but smile back, and once they smile, theyre apt to be more receptive to what you have to say. 2. Give a firm handshake. Many a good impression has been ruined by an ineffectual or overly vigorous handshake. The physical contact of two hands meeting gives you an unparalleled degree of bonding. But youve got to do it right. Grasp the other persons hand fully and firmly. 3. Make eye contact. Twelve years ago, when I was about to go into business for myself, I asked a good friend if he had any advice. His simple words of wisdom? Make eye contact. Theres no substitute for looking a person in the eye, smiling sincerely and saying "Hey, its nice to meet you." When youre making a sales presentation, or anytime youre making an important point, be sure to look into the other persons eyes. One of my business partners, who is approaching 70, recently said to me, "What makes me happy now is that I dont do business with people I dont like, dont feel comfortable with or dont trust, even if that means turning down business. Ive learned that unless those things are present, you have to walk away."

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I believe that the eyes are the windows to the soul. When I work with someone, the trust and comfort level I sense from looking into his or her eyes is stronger than any contract (although my attorney would beg to differ). Thats the body language I trust.

12.8. Sales Rules Not To Break Dare to break these lawsand you'll fail in sales
If you had to name one of the world's top speakers on achievement, the first name to come to mind should be Brian Tracy, who has written several books, including Advanced Selling Strategies (Fireside Books) and the recently released The 100 Absolutely Unbreakable Laws of Business Success (Berrett-Koehler Publishers). Based on his two decades of experience, he shares these five "absolutely unbreakable" laws for sales success: Thou shalt build credibility with thy customer before attempting to sell. "The most important ingredient in a long-term sales relationship is trust," says Tracy, who adds that the more a customer trusts you, "the easier it is to sell and keep selling to the customer." Thou shalt learn the customer's real needs by asking questions and listening carefully to the answers. "The better you understand a customer's situation and what he or she needs to improve his or her work or life, the easier it will be for you to match the benefits of your offering to the customer so the customer accepts your recommendation," says Tracy. Thou shalt position thyself as a problem-solver, helper and teacher in the mind and heart of thy customer. "The way the customer thinks about you when you're not there is the most important determinant of how the customer responds to you when you are present," says Tracy. When you're viewed as a problem-solver, the customer welcomes your input. Thou shalt commit thyself to excellence in selling and never stop growing in skill. Like anything, good selling takes hard work. Tracy urges entrepreneurs to "resolve to be the best at what you do. Read in your field. Listen to audio tapes. Take sales seminars. Never stop improving." Thou shalt set goals for every area of thy life and work on them every day. If you want to succeed in selling, says Tracy, you must "have specific, written goals" and set daily schedules to achieve those goals. Tips for perfecting "the close" An undisputed master of selling, Tom Hopkins is one of the nation's top names in sales training. He spends much of the year on the speaker's platform, but Hopkins is also a prolific author, whose titles include Selling for Dummies, Sales Prospecting for Dummies, and Sales Closing for Dummies (all from IDG Books Worldwide). If you want to close more sales, take these tips to heart: Eliminate distractions. "You need to be in control of potential clients' attention," says Hopkins. "Keep them focused on the matter at hand by moving to a quiet area." Be enthusiastic. "If you're not enthusiastic about the wonderful benefits of your product, why should potential clients be?" Hopkins asks. Emphasize the emotional aspects of the sale. According to Hopkins, people make decisions emotionally, then defend those decisions with logic. "So, you must be prepared with the logic, but sell with emotion," he says. "Get them thinking about how they'll feel after they own the product or service." Be direct. "You'd be amazed at how many salespeople think they didn't make the sale because the client said no, when what really happened is that the salesperson didn't ask the client to say yes," warns Hopkins. "After doing a summary of the points you've covered, hand [the prospective client] the paperwork and pen and be certain to say, for example, 'With your approval right here, John, we'll welcome you to the family of XYZ clients and arrange delivery of your new widget.' Those words are soft and gentle, yet get the message across that it's time for a decision to be made." Stop talking. "After you ask for the business, wait for the answer," says Hopkins. "I've long taught that the first person who talks owns the product or service. Stay quiet until the 89

client gives you an answer. They'll either make the purchase or give you an objection. Then you can talk."

12.9. Selling Your Services Pop quiz: How do you sell something you cant touch? We've got a few answers.
Q: How do you sell a service vs. a product? A: This question keeps coming up with our readers. It's a challenge that takes a strong belief in the invisible and a specific four-point strategy for creating perceived value: 1. Show exciting visuals. Say you produce fashion shows for nonprofit fundraising events. Your brochure, Web site and presentation portfolio should include photographs from past events that display the models, the room set-up, and the sponsor banners and booths. Always carry a camera so you can include the most up-to-the-minute documentation of your work. As your budget builds, include video clips. Be sure to download the footage to your Web site. Your job is to constantly think of ways to show your future customers how your service is being experienced in the real world right now. 2. Seduce customers with free trial offers and money-back guarantees. New business owners have to practice acts of generosity. Use the word "free" in your advertising. Whether you own a car wash or a massage-therapy business, each week give away your services to a certain percentage of customers. It's good public relations, and it helps develop your good name. Money-back guarantees should be company policy, too. When I began my career as a motivational speaker, my booking agent advertised: "If Danielle doesn't deliver, you'll receive a full refund." It's smart to include a deadline date in the guarantee. Otherwise, some folks could abuse your offer by trying to insist on a refund months after the service was rendered. 3. Ease your way in with endorsements. I keep harping away about getting endorsements, but you can never be reminded enough of their value. It's especially important that a satisfied customeror twotalk to a prospect investing in a service yet to be experienced. For example, if you have a catering business, your prospect has no proof you can supply him or her with first class, crowd-pleasing menus, a unique presentation of food or a high-caliber team of servers. At this point, it's all talk and no action. But when you add past customer endorsements into the equation, your believability improves dramatically because your past customers are the proof. They witnessed and paid for a successful event. Here are people who have experienced your ultimate service and are willing to stick their neck out for you. The endorsements themselves give your company tangible credibility. 4. Ask for input. The great thing about selling the invisible? It has the ability to change and grow on the spot. Today's car-detailing job can be better executed than yesterday's work was. But these lessons can only be learned if business owners are willing to ask, "What are we doing right?" and "What needs to be improved?" Then you must put those changes into effect immediately. If you make a habit of thinking and acting like a perpetual student, your service will constantly improve. Then what used to be considered invisible will truly come to life and stand out in any crowd.

12.10. The 10 Golden Rules of Selling Like a CEO The simplest rules of selling are right under your nose All the more reason for you to find out what they are and get to work boosting your selling power
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Some of the most advanced sales tactics I've ever seen were demonstrated during a weekend seminar given by two purposeful, motivated, passionate salespeople who truly know how to build relationships with executives. These two pros are persuasive and relentlessly positive. Like millions of other professionals in their field, they get up every day and head out the door with a firm sense of the value message they need to convey to their prospects. And like millions of their colleagues, they don't carry a briefcase, a business card or any formal presentation materials--as a matter of fact, they sometimes need help selecting and putting on their clothing. They're children, and the two seminar leaders, Anthony and Nicholas, are my nephews. They truly are masters at the art of enthusiastic persuasion and presentations. Let me explain. Anthony and Nicholas wanted an hour of uninterrupted playtime from me. And they got it. How, exactly, did they get what they were after? By using two of the "golden rules" of CEOs who sell (I'll give you the other eight shortly). Specifically, they embraced the following: "Be honest about the situation, even when it hurts," and "Redefine the word 'no.' " They used a personal approach that allowed them to start off their "relationship" with a new "prospect" (me) by sending the correct initial authentic message: "We're going to have a blast together-you just watch!" That, it turned out, was the message I needed to hear. It was a significant motivator for me to find a way to "work" with these two seasoned sales pros. As you read about the 10 golden rules of CEO selling, you'll find that Anthony and Nicolas were as close to the bone as you can get when it comes to embracing a CEO selling style. When they read this article, they'll become totally unstoppable, and so will you! As you read what follows, I suggest you ask yourself at the end of each one of the "golden rules" how closely you adhere to the meaning of the rule. Of course you'll have to adapt each of your first meeting situations to each rule, but as you do this you must keep the rule's integrity. In other words, don't change the rule--just adapt how and when you use it. 1. CEOs are honest, even when it hurts. This is one of those rules that you should carry into your day-to-day interactions with everyone. Never, ever lie to a CEO or anyone else (including yourself). If you don't believe in what you're selling enough to tell the truth about it at all times, find something else to sell. CEOs can't afford to tell a lie. Why? Because there are too many ears listening to what they are saying. Stockholders, the media, employees, suppliers, customers, etc. CEOs know, and so should you, that problem accounts (like problem relationships) are those that someone over-promised and under-delivered on. CEOs and those of us who sell to them must be totally ready, willing and able to stand behind every word that we write or that comes out of our mouths. If that means "walking" on a short-term opportunity today, so be it. You can always come back tomorrow. And when you do come back, you will be remembered as a person of integrity. 2. CEOs touch people in a special way. CEOs who sell have a "signature" that's all their own. They create a look and feel that others associate with them that's as unique as the logo on their products. Consider Nancy Allen, aka the "cookie" lady. One Friday of each month, Nancy delivers homemade (in her kitchen) chocolate chip cookies to her best customers. Why? Because she wants to show her gratitude in a way that's remembered. If you ever want to see grown-ups fighting over a cookie, follow Nancy on her next Friday's run. 3. Know what you want, and keep it simple and straightforward. CEOs are incredibly simple in their approach. Every single CEO I interviewed was able to quickly and accurately articulate what they want. Can you? Let's do a quick exercise: Write down, in 30 words or less, what you want from the CEO of your largest prospect. For example: "Your opinion on how to use my proven ideas to increase the size of your entry point orders, compress your sales cycle and get add-on business from your existing customers." 4. Show your feelings. How are you today? Oh, I'm fine. No, actually I just got word that my cholesterol level is dangerously high and I must go on a very restrictive diet. How many times do you tell someone how you really feel? How many times when you take that step are your feelings acknowledged by the other person? CEOs who sell show their own feelings and 91

respond to others' feelings, and they are always in the present moment and time. Most of us think that doing this takes too much time. Actually, you'll save a lot of time if you take the lead from the CEO, and here's why. If you take the time to make every interaction you have with everyone on your way to the CEO's office memorable, your return trip will be much easier. Your calls will be accepted, voice-mail messages returned and ideas entertained. In other words, you'll get top-of-mind. Making yourself and your interactions memorable isn't that hard--all you have to do is show your feelings in a sincere way and acknowledge the feelings of others in a sincere way. Let's look at that conversation again: How are you today? Oh, I'm fine. No, actually I just got word that my cholesterol level is dangerously high and I must go on a very restrictive diet. What types of food must you avoid? Fried food, some dairy products, any types of snacks that have more than 4 percent fat, for starters. Sounds like you'll be eating pretty healthy! Maybe I should look at this diet! After this conversation, you send the person a recipe book on low-fat cooking and sign it with a message that comes from your heart: "To your health!" or "Here's to healthier eating!" or "Put this to the taste test!" 5. Say you're sorry when you mess up. Too many salespeople (heck, too many people) seem to assume it's bad etiquette to admit you've made a mistake. Nothing could be further from the truth! CEOs know the importance of taking personal responsibility, and so should you. That means saying and meaning those dreaded words "I'm sorry" when something goes wrong or is about to go wrong. You, not anyone else, should be the person to deliver this message, and here's why: Someone else may have a different agenda than you. For example, let's say you've been doing business with a company for two years but you've never met the CEO, and one day your product causes a production delay or some other big problem. If you allow someone else to get the word to the CEO, it may not be as accurate as you want it to be. It may be burdened with other "baggage" that's been plaguing the production line. What the heck, nothing wrong with finding a scapegoat once and a while. There are two other reasons that you want to be the person to deliver the "we messed up" message to the CEO: A CEO is the most forgiving person in the organization. They know they aren't perfect, and they know they've walked in your shoes before. Therefore, you'll best serve the CEO, your cause and your company by meeting with the CEO and asking for their advice: "Ms. CEO, if your organization were to make a mistake similar to this one, how would you make it right with your best customer?" After you say that, sit very quietly and listen intently to what the CEO tells you. Then simply do it! You'll strengthen your business relationship with the CEO, because problems, when promptly corrected, will always show your organization's better side and commitment to their customers, marketplace and integrity.

Go ahead, put the first five rules into your daily sales work, and next month we'll discuss six through 10.

12.11. The 3 Keys to the CEO Sale When CEOs are making a buying decision, they've got 3 things on their mind Learn them, and learn them well.

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There are three elements necessary for a CEO sale: knowledge, action and currency. Every time I conduct an interview with another CEO, I reacquaint myself with a simple fact: When a CEO enters the buying process, his or her final decision is always filtered through these three factors. If you don't make the grade in all three of these areas, and if the CEO is involved in the sales process, you won't get the sale. And guess what? The CEO is involved in your selling process even when that doesn't seem to be the case. Think back, and you won't have any difficulty coming up with at least one time when everything seemed to be in order--the buy signals were all there from your decision maker, and then, for no discernible reason, the sale stopped dead in its tracks. That impossible-to-explain pause was, I would be willing to bet, the buying organization's CEO or other Very Important Top Officer (VITO.) exercising the ultimate veto power behind the scenes. The moral: It pays to learn the keys to the CEO sale... even if you don't think you're selling to a CEO! Knowledge If a CEO is going to buy from you, he or she has to see that your plan reflects the right knowledge. I'm not talking about product knowledge here, although that is certainly important. But most CEOs don't spend their day focused on that kind of knowledge. The kind of knowledge I'm talking about is knowledge about the strategic goals that determine where a CEO's organization is heading in the market. This information is usually reflected in the strategic plan, which is an overview of the approach that will be used to get the company's products, services and solutions out to customers. This document offers "big-picture" answers to the question, "What are we trying to do here?" Yes, it's true. In order for you to sell your stuff to the CEO, you have to be sure that what you offer matches the CEO's big-picture goals for selling his or her stuff! CEOs must know, for example: Will focused direct-mail campaigns be used? Will advertising support the mail campaign? Will telemarketing play a role in identifying potential customers? Will automatic voice-mail messaging be used in the business-to-consumer model? Will e-mail campaigns support all these efforts? Will the organization invest in trade shows and conventions? If so, who will attend? Will a partner or re-seller channel be developed? Is one already in place? Who else will support the direct sales force? How? Most salespeople don't bother finding out this kind of information about their customers or prospects. If you're targeting a CEO, though, you must know the strategic plan of his or her organization. In order to sell like a CEO, you have to think like a CEO; you have to face up to the same challenges your target market faces and look at the tough questions in the same way that they do. How do you learn about all this stuff? For starters, take your own company's VP of marketing out to lunch. Even better, spend some time in his or her world. Sit in on a few marketing brainstorming sessions. Be a fly on the wall. Take lots of notes. Afterwards, when the meeting has ended, ask some intelligent questions. The strategic plan may be difficult or easy for you to track down from the outside. The point is, whatever value proposition you or your team ultimately make to the CEO or other senior decision maker/approver, it should be rooted in your knowledge of the target company's strategic plan. Whether you get that knowledge from news reports, independent phone research or (my favorite) face-to-face meetings with CEOs, just get it somehow. Action If a CEO is going to buy from you, he or she has to see that your plan supports their company's actions to implement their strategic plan. What, specifically, is the target company going to do to turn its strategic goals into reality? If you have the answer to that question, you can build your approach around the action the CEO's target company plans to take. Again, if you want to sell like a CEO, you must have an understanding of the overall tactical plan so you can find a way to support that plan. The details of a target company's tactical plan are usually hard to get if you start your sales work at the middle or bottom of the organization--but ridiculously easy to get if you start at the top, with the CEO. This is one of the reasons that sales cycles tend to be so much shorter 93

for CEOs who sell (and salespeople who model their techniques). When a CEO has a meeting with another CEO, the first meeting typically results in the buying organization's top person picking up the phone, calling the VP of marketing and saying something like: "I'm talking with Jane Smart, CEO of Brilliant Co. I want you to fill her people in on everything we're doing to penetrate the consumer market." If the top person takes your organization on as an ally, you get the information you need--fast! If, on the other hand, you start out by calling the VP of marketing and asking for a copy of the tactical plan, you may spend a month swapping voice-mail messages, and even then may not get half the information you need. Admit it. Why should they give it to you, anyway? So, to win the action part of the equation in a timely fashion, you have to be willing to start at the top--or, at the very least, get your own CEO to help you start at the top. As you've no doubt noticed, this is something most salespeople don't bother to do. But those who do work their way down from the top, and get all the action information they need, sell bigger deals and close them quicker than those who don't. Currency This idea goes well beyond the "currency" you carry in your pocket. If a CEO is going to buy from you, he or she has to agree that your plan is part of a current priority for implementing the strategic plan. This is the tricky one. Each and every successful CEO has a set of priorities for daily action supporting the strategic plan. When someone proposes an idea that is a perfect match with a current priority of the CEO, that idea tends to get implemented quickly. When someone proposes an idea that falls into a gray area--or that actually conflicts with a CEO's current priority--ominous silence tends to ensue. Here's where the real problem begins--because, hour by hour, day by day, week by week, what was a perfect match a while back is now a conflict...and what appears to be a conflict is now a perfect match. Here's how to protect yourself and your sale from the classic "conflict/match" shift. At the onset of your sale, someone at the selling organization must place a call to the buying CEO and say something along the following lines: "It looks like our teams will be spending a lot of time together pursuing some ideas for your organization. These ideas have the potential of helping you overachieve in A, B or C. Could you do me one personal favor? When you make the decision. either for or against my company, would you grant me the honor of an in-person visit with you?" When the CEO of the buying organization agrees (which is much more likely than you imagine), make a note of the exact day, date, time and place and put that note into the account file. If the CEO of the buying organization declines your request for the meeting, say: "My organization will be investing some very significant time and resources over the next several months. Meeting your criteria is of the utmost importance to us. If we fail to earn your business, my company has to continue to learn from our mistakes. This will really be the only way we would be able to justify making this investment." My own experience is that, if the work leading up to this point has been done properly, the CEO will almost always agree to the request for a meeting, especially when you frame it in these terms. Now here's when you will use the competitive advantage that your request has established. If, at any point during the extended sales cycle, you detect any signals that you're losing, call the CEO for that promised face-to-face meeting. "Back on (quote the exact day and date), you promised me the privilege of an in-person visit, whether your decision was for or against my organization. Will you honor your promise and grant me that visit tomorrow?" Note: This "visit" could be a telephone call to save time and expense. If you've done your job correctly up to this point (which includes keeping in touch with this CEO throughout the entire sales cycle), you should have no trouble getting a positive response of some kind to your request. You'll then have the opportunity to learn what's really going on within the buying organization. 94

Don't get nervous about making this call! CEOs are the most honest people in any organization. When they make a promise, they'll keep it. (They may not always remember their promises, however, which is why it's important to quote the day, date and time from your notes. All three of these keys are important, but if I had to pick one factor to understand in any given sale, it would be currency. Currency connects with the full worth of an organization as the CEO defines that worth right now. Currency includes, but is not necessarily limited to, financial performance, image, reputation, brand awareness, market niches, human assets, industry standings and/or awards, competitive strategies and so forth. All these elements can and do shape the CEO's priorities at any moment. Here's the good news: If what you propose matches up with the CEO's currency, it will probably already match up with the knowledge and action components. You will know not only about the goals and the steps necessary to turn those goals into reality, but also about the way the CEO is now looking at those goals and those action steps.

12.12. The Buying Game Not all pitches to retail buyers are created equal Here's what you need to do to ensure your product is the one that generates attention--and sales
Goose island Beer Co., a Chicago brewpub and regional brewery, had its work cut out for it three years ago when it decided to sell beer to wholesalers and retailers in other Midwestern states. The market for specialty beers, while flourishing in the Pacific region, had floundered in the Midwest, and many beer companies had gone out of business trying to break into the market. But in its first full year of business, Goose Island sold more than 20,000 barrels of beer, an achievement almost unheard of in the industry. "Goose Island Beer Co. is the only Midwestern microbrewer to have grown into a regional producer in its first calendar year in business," says David Edgar, director of the Boulder, Colorado-based Institute for Brewing Studies, a division of the Association of Brewers. "You just don't grow that big that fast." What did Goose Island do that other brewers trying to edge into the Midwestern market did not? Goose Island president and founder John Hall attributes much of his company's success to good marketing--not to consumers, but to wholesale and retail buyers. "A product only makes sense if it makes sense to the buyer," says Hall. "To sell a product, you have to understand what the buyer wants." Many tips for selling to buyers are industry-specific. For example, catalog companies such as Lillian Vernon Corp. in Rye, New York, need shippable products, so the company requires prospective suppliers to prove they can package their products well. But other companies, such as retail stores that display products on the shelf and "gourmet of the month" clubs that repackage products themselves, care more about the label than the box. Some tips span industries, however, so we asked successful manufacturers and buyers who work with small businesses what it takes to get a product on the shelf. Here are their 8 steps to success: 1. Develop A Quality Product This step may sound like a given, but many manufacturers underestimate the importance of the quality of the product they're selling. In some industries, such as software, a quality product with great market potential will virtually sell itself. "The most important thing is to have a good idea that you can execute well 95

and that someone with the ability to distribute and market sees an audience for," says Harry Gottlieb, president of Jellyvision Inc., a software developer in Chicago. "People doing full-blown software demos are rare, so publishers tend to be fairly willing to look at people's material." Some manufacturers argue that it's more difficult to get a product to buyers in other industries. QVC Inc., a West Chester, Pennsylvania-based TV shopping channel, looks at 80,000 sample products per year but puts only 12,000 to 15,000 on the air. Many of the products that don't make it are good products. Even in the most competitive industries, however, ingenuity and quality can go a long way. "Never underestimate the importance of a good product and word-of-mouth," says Bert Suarez, founder and president of Diesel Radiator Inc., a Melrose Park, Illinois, manufacturer of heavy equipment radiators. "About 25 percent of our new customers are referred to us by other customers." 2. Understand the Market According to Hall, one reason for Goose Island's instant success was its complete understanding of the industry. "We asked ourselves why what was happening in the other regions didn't happen here," Hall says. "That showed us what others did right and wrong, and gave us a big advantage. If other companies had looked around like we did, they would have seen and done the same thing." It may also be a good idea to start small. Before approaching buyers at large companies, entrepreneurs should try selling to a local store. According to Judith Barker, president of American Traditional Stencils, a Northwood, New Hampshire, stencil manufacturer, this creates awareness among larger buyers. "We spent years selling to individual stores that were part of chains," says Barker. "It was only recently that we contracted with the corporate headquarters of those chains. Selling to the smaller stores probably played a part in getting the corporate contracts." "Find any store in your area--not more than one in an area if you're in the gift industry--and sell something as a brand-new product," says Mary Anne Johnson, co-owner of The Chandlery, a Roswell, Georgia, gift shop. "Develop some accounts that give you enough capital to figure out what really sells. After you know your product is salable at the retail level, and after you have the capacity and efficiency to fill orders, then you can approach buyers on a grander scale, such as at trade shows." 3. Create A Marketing Plan Retail and wholesale buyers don't exist in a vacuum--they know the market and usually recognize products that have potential. But small businesses without track records have no credibility. That's why they need a marketing plan. Case in point: Goose Island. Before approaching buyers, the company crafted a marketing plan that left no question in buyers' minds about the potential success of its brews. In addition to solid research showing the profits that could be gained in the fledgling Midwestern specialty beer business, Goose Island's plan showed buyers the microbrewer would follow through. "We made sure buyers were aware that the category was growing and that there were good margins for buyers in it," says Hall. "Then we showed them how we envisioned taking the product to market." Hall advises entrepreneurs to develop a plan that works for everyone in the supply chain. "Your plan has to work for distributors, because they have to feel confident that retailers are going to order your product, and it has to work for retailers, because they have to feel confident that consumers are going to buy it," says Hall. "Our plan worked because it supported the entire distribution chain, from packaging to advertising." 4. Develop Collateral According to Pam Marker, a Greenwich, Connecticut, marketing and design consultant and former small-business owner, one of the best ways to grab and keep a buyer's attention is to put together a catalog to display your products. "[A catalog] is your best salesperson," says 96

Marker. "Hundreds of your competitors are contacting the same buyers you contact. You want to give buyers something they can keep so they'll remember you." Catalogs and other materials, such as presentation kits and price sheets, don't have to be glossy, expensive brochures. The key is to look organized, says Johnson, who is impressed when her suppliers have product specification sheets, price lists, order forms and invoices. 5. Target Buyers When looking for a buyer, your first step is to find the right buyer for your particular product. If you're selling gifts, try visiting gift shops in your area. If you're a software developer, locating a potential buyer might be as simple as walking through a computer software store. "With a CD-ROM game, you need to know whom the publishers are, so you go to software stores and look at the backs of the game boxes," says Gottlieb. When approaching a buyer yourself, the key is understanding the buyer's needs. "Specialty stores [such as family-owned gift stores] are most concerned with quality and fashion. Department stores look mostly for fashionable items, but price is important as well. Mass merchants look primarily at price," says David Richardson, president of DHR & Co., a manufacturer's representative company in Atlanta. If you're not succeeding using the direct approach, or even if you've made a few sales this way, you might want to go where buyers are looking for products. That's where trade shows come in. For example, Lillian Vernon attends almost 25 trade shows worldwide each year, including the Chicago Housewares Show, the New York Gift Show and the San Francisco Gourmet Products Show. And The Chandlery's Johnson visits five to 10 per year. "If a manufacturer is going to get to me, it will be at a trade show," says Johnson. "That's where you can find the most buyers in the shortest span of time." If you need a bigger sales effort, you can also turn to manufacturer's representatives for sales assistance. Representatives act as a contract sales force--they agree to sell your product to buyers in return for a commission on sales. In addition to having their own showrooms, they also take products to buyers. You can probably find a rep by visiting a trade show, where most representatives have booths. According to Richardson, you should look for a reputable firm with many repeat customers and an account base in your region 6. Pitch Your Product the Right Way "The key to approaching a buyer is to know whom you're pitching," says David Hochberg of Lillian Vernon. "Everyone's requirements are different. We're immediately turned off if we see the product in every major catalog in America. Suppliers sometimes come to us and say `We're in 80 catalogs!' thinking that's great. But for us, that's a negative thing. Why should we sell it if everyone else has it? If we do, we lose our exclusive edge." After you know whom you're pitching, the biggest hurdle to overcome is the fear of coldcalling. "You think `Good grief, why would they talk to me?' " says Bruce Irvine, executive vice president of Irvine Flexible Packaging Inc., a Rock Hill, South Carolina, packaging company. "But if you have something to offer, you can get to the right people." Keep in mind, though, that the initial phone call should only be used to determine if the company is accepting samples and to get a contact name. In most industries, it's standard to send a sample with a catalog sheet. "Some wholesalers with catalogs send us just the catalog tear sheet. But that's just one more piece of paper in a massive pile of mail that arrives every day. It's easy to ignore or misplace," says Hochberg. "[If you] actually send a sample, we see a tangible product that's hard to forget." Never try to charge buyers for or be stingy with samples. "That's a real turnoff," says Bob Beaubien, COO of Merchant Direct, the Chicago parent company of five mail order "gourmet of the month clubs" that sell coffee, beer, wine, cigars and spa products. "Some people send us one bottle of beer instead of a six-pack or a case. We're not being wasteful when we ask for a lot of product--we have many tasters, and the more product we have, the better we can get a taste of the product." 97

A follow-up phone call is appropriate after sending a sample, says Hochberg; just don't badger the buyer. 7. Prove Your Production Capabilities Across industries, buyers look for manufacturers who follow through. To that end, name recognition and industry references go a very long way. "With beer, we find out if they've won medals. With cigars, we look for rankings in Cigar Aficionado magazine," says Beaubien. "But even a start-up can have name recognition and references. For example, we'd buy beer from a start-up brewery if the master brewer had a track record at another brewery." But small businesses often don't have the track record to obtain name recognition. If that's the case, many buyers look at production capacity. "We only buy half the quantity of projected sales before the catalog is mailed. It's the obligation of the supplier to fill reorders quickly," says Hochberg. "To find out if they can, we pull the Dun & Bradstreet [report] to make sure they have financial resources and manufacturing capability." If you're a small company without a proven history and without financial resources, one way to break into the market is to take advantage of what you can do that bigger, more established companies can't. "What small companies can offer are short lead times, quick responses to modifications in design, and smaller quantities," says Suarez. "They should capitalize on those abilities." This technique has worked for more than one small business. "We knew one larger packaging company that had a backlog of 12 weeks," says Irvine. "They needed a partner that could quickly turn products around. So we said to them, `Let us do the stuff you don't want to do.' " 8. Handle Negotiations Like a Professional Many buyers, regardless of the industry, say one of the biggest turnoffs occurs when manufacturers have almost sealed the deal. Manufacturers act like they've sold the product when they enter negotiations, but negotiations are still part of the selling process. "Manufacturers often enter into negotiations with a higher price than is realistic in the industry," says Beaubien. "They need to be cognizant of how much the buyer knows about the industry. If manufacturers start with an unrealistic price, we know what they're doing and we immediately cut them down, but we also feel like they've wasted our time." Beaubien also dislikes when a company with which he's negotiating tries to substitute a different product during negotiations. "It happens all the time," he says. "For example, we may have been looking at a brewery featuring beer X, but a couple of weeks into negotiations, the brewery says `Hey, why not use beer Y?' and puts a positive spin on it. That indicates that the brewery is incapable of production or not organized enough to handle production within our time frame." We Think You Can, We Think You Can . . . Goose Island succeeded, in part, because its owners knew something that all good manufacturers know: Selling your product to retailers can be just as significant as developing a good product and marketing it to customers. But perhaps the best advice for manufacturers approaching buyers is to try, try again. Even the phenomenally successful Goose Island didn't succeed the first time. "We've had some challenges," says Hall. "For instance, in Chicago, we did well because we had name recognition there; our brewpub had been operating in the city for years. As we've branched out into other states, it wasn't as easy. But we kept trying. When a buyer said no, we went back again. And we succeeded. So if you don't [make it] the first time, it doesn't mean you won't be able to succeed at all."

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12.13.

The

World

of

Barter

Mention the word "barter" to your CEO, and it might conjure images of Revolutionary War soldiers trading furs or foodstuffs along the banks of the Hudson River. What many people don't realize is that not only is the practice of barter still alive today, but it has evolved into an accepted and effective method of inventory cost management for companies of all sizes. More than one-third of all U.S. businesses engage in some form of barter, and fully 65% of the companies listed on the New York Stock Exchange use barter to reduce inventory, bolster sales, and ensure capacity at production facilities, notes the barter industry's leading trade group. In addition, the U.S. Department of Commerce estimates that between 20% and 25% of all world commerce is done through barter. Actually, barter networks provide goods and services to an estimated 200,000 companies in the U.S. and Canada. The 25 largest commercial exchange firms handle approximately 50% of the estimated $700 million in transactions that flow through these networks annually. Corporate barter of tangible products and services is now a $20 billion industry. What makes these numbers even more compelling is that this degree of penetration was the result of grassroots activities, not an organized marketing or industry-specific effort. This reflects the commitment of likeminded companies to one of the first, and most elementary, forms of business transaction. The evolution of barter into a more formal, sophisticated process is a testament to its timelessness and continued viability even in today's technologically based, global economy. Essentially, if something can be bought on the free market, chances are it can also be bartered. From airline seats to hotel rooms to advertising space, any combination of products, goods, and services imaginable are bartered. National trade exchanges facilitate these transactions and make it easy for buyers and sellers to find each other. BARTER THEN AND NOW The modern barter industry took shape in 1969 with the creation of the first retail barter exchange. Prior to this time, a lack of formality was barter's most dominant trait. This was probably why the notion of "barter" often carried a somewhat mysterious or even negative connotation. But as businesses realized the benefit of greater structure and process for barter, more than 400 small exchanges were created throughout the U.S. Unfortunately, with more structure came less variety. The simple fact was that the type of products available through any given network were limited to-and indicative of-the companies who were participating. For example, a clothing store chain in California might have been limited to local trading with other apparel companies, or a manufacturing company might have been restricted to exchanging spare components with companies in their home city. Over the last 15 years, industry consolidation and acquisitions reduced the number of exchanges almost in half to approximately 250. More important, through this consolidation the geographic reach of the remaining networks expanded, further enhancing and advancing barter. As the practice of barter grew, it also adopted the structure and process associated with most established industries-namely, self-regulation and guidelines. In 1984, at the behest of a group of independent trade exchanges, the National Association of Trade Exchanges (NATE) was formed. The association serves to ensure that consistent financial, fiscal, and ethical practices are pursued by all independent, commercial bartering enterprises worldwide through accreditation and training programs. These standards are particularly effective as barter continues to evolve beyond simple purchase/sale transactions. Recognizing the proliferation of barter trading, the Internal Revenue Service simplified the tax process by developing a series of barter-specialized forms. Barter transactions that represent sales revenue are taxable as ordinary income to the recipient of the trade dollars in the 99

conventional dollar amount of the trade dollars received and conversely are deductible as ordinary expense by a purchaser in the conventional dollar amount of the trade dollars paid. Barter income is reportable by the trade exchange to the IRS on Form 1099B. THE BARTER ADVANTAGE Under traditional finance theory, a company is worth the present value of its future cash flows. As such, companies can maximize their value by expanding cash inflows and reducing cash outflows. The value proposition of barter to this equation is extremely compelling as it can influence both sides of the equation. In a typical sale, companies will offer their goods or services in exchange for cash (and equivalent) consideration-a cash inflow. But to support existing and new sales, companies are required to invest in both hard assets, like property, plant, and equipment, and in intangible assets, like human and intellectual capital-a cash outflow. Companies that use barter as an additive function to their existing sales strategies and inventory management processes reap its benefits, thereby maximizing cash flows. Here's how it works. Instead of traditional cash currency, today's barter networks use proprietary currency methods referred to as "barter dollars" or "trade dollars" to complete transactions. Instead of receiving cash for their goods or services, companies get trade dollars, which can then be used to purchase any products or services being offered by other members of the exchange. Clients are charged a small fee for each completed barter transaction. Since a typical member is purchasing a good or service in exchange for his or her own good or service, each purchase has a high likelihood of resulting in a completed sale transaction. Barter exchanges are often considered secondary markets since most companies that enter into trades otherwise wouldn't be doing business. Therefore, barter transactions can be considered incremental business. In addition, the value proposition of barter networks is highest when companies are operating under full capacity. This usually translates into companies with unsold inventory or unused service capacity. Thus, when companies are having difficulty selling their goods or services in their primary markets, they can turn to barter networks as a means of absorbing the slack. In doing so, a company can offer its goods or services to an entirely different market of potential buyers whereby new sales can arise even beyond the point of the initial transaction. Also, the company can limit its cash outflow by purchasing needed goods or services using cashless barter dollars. Barter can be readily applied to all types of businesses seeking to improve their inventory management of tangible products as well as intangible services. Given the advancements in geographic reach and scope, as well as expanded network capabilities and currencies, it's relatively easy for companies of all sizes to become involved in the barter process. Throughout the U.S. and Canada, this has evolved into the Barter Association National Currency (BANC), which has become the standard monetary exchange unit for more than 75 national barter networks. Through their NATE membership, these independent trade exchanges have come together to create the most accepted standardized international barter currency in the world. This offers tremendous inventory management flexibility to companies of all sizes. Whether for an excess of traditional inventory or seasonal merchandise sitting idle in a warehouse, barter serves as a compelling alternative to costly inventory management issues. APPLE VACATIONS Apple Vacations, one of the largest travel companies in the United States and a leading international charter airline operator, has been using the barter network for more than five years to grow its business and expand into new markets. Like many airlines, the company couldn't always ensure that its jets were departing at full capacity-a major source of lost revenue. In addition, as a company operating in numerous markets nationwide, Apple's advertising and promotion requirements are quite extensive. 100

Regardless of negotiations, national advertising typically is an extremely expensive proposition, yet Apple has been able to successfully convert its inventory of empty airline seats to effectively remedy both challenges. By using barter, Apple has been able to run promotions in new markets without increasing its marketing budget. The company exchanges unsold airline seats for advertising, event marketing, and promotional materials to support its growth and promotional initiatives. In the last year, Apple has completed more than $90,000 worth of barter exchange trading. Barter has become a necessity for Apple, not just a means for filling empty seats. The trade exchange allows the company to maintain a presence in markets where the advertising budget would have been depleted otherwise. CLEAR CHANNEL COMMUNICATIONS Clear Channel Communications, the largest radio station network in the country, relies on the barter system to fill its airtime inventory requirements. Like Apple, Clear Channel faced two distinct issues. First, it regularly had surplus airtime that was resulting in lost revenue. Second, the company had an ongoing need for an inventory of goods and services that could be awarded to listeners during broadcast programming. Barter proved to be the answer that linked and addressed both areas. Clear Channel exchanges its timeslot inventory to purchase a variety of promotional goods and services, such as airline tickets, sporting and concert tickets, printing services, and other materials. These exchange transactions have allowed the company to increase its purchasing power without increasing expenses or straining existing budgets. Barter has opened many avenues and also created new relationships that have been fruitful on both the buy side and the sell side for Clear Channel. You might not consider airtime to be a commodity that can be exchanged, but quite the opposite is true. Clear Channel is able to maximize its airtime inventory while perfectly balancing it with demand for promotional goods. This inventive application of barter demonstrates the limitless variety of trading available to customers of the exchange system. A WIN/WIN Because companies are faced with constantly shifting supply and demand factors, barter is a highly effective tool that enables organizations of all sizes to creatively manage their inventory. It enables business owners to gain value from goods or services that would otherwise be rendered worthless. And barter provides an effective means for companies to expand into new markets, gain trial usage from prospective customers, or increase market share. What was once a simple type of goods-for-- goods transaction has evolved into an established and accepted system for facilitating a limitless variety of exchanges for products and services.

13. LEARN EVERYTHING ABOUT SALES LEADERSHIP. 13.1. . . . Follow discover five The the great Leader ones share.

and

traits

What makes a great sales leader? There's no single, remarkable secret. In fact, great sales leaders are many things. Depending on the situation, a great sales leader is a timemanagement supervisor, a meeting planner, a contest coordinator, a talent scout, a coach, a trainer and a psychiatrist. All of those roles put togetherand executed wellmake for a great leader.

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However, there are five key areas in which the best sales leaders excel. Great leaders: 1. Are passionate and enthusiastic. These traits are transferred to the entire sales team. If the leader is negative, everyone else will be pulled down. How do great leaders maintain a realistically positive attitude? Great leaders are great readers; they read everything they can find about their crafts and industries. They seek out mentors whose wisdom and experience can help them achieve their goals, and they encourage their reps to do the same. They surround themselves with high-quality people. 2. Recruit great salespeople. Many managers don't start recruiting until someone leaves, which means they often settle for second best in order to fill the gap. Great leaders, on the other hand, are always on the lookout for talented people. One way they do that is by carrying two-sided business cards to give out to people they meet at other businesses who demonstrate great sales and service skills. One side of the card contains the standard name, address and phone number. On the other side, it might say, "I was very impressed with your service and professionalism. Please call me if you're ever looking for a career." The success of a sales leader is in direct proportion to the success of the team, which is why it's critical to hire the best people. 3. Make their numbers through their salespeople, not for them. The greatest difficulty a sales team can have is a manager who closes for his people. When that happens, the reps don't learn the skills they need to move to the highest level of self-sufficiency. It's instinctive for a manager to want to jump in and save a sale, but the message you send is that you don't trust your reps. Then when the reps are on their own, they won't have the experience of handling difficult situations themselves. Close a deal for a rep and you've made one sale; teach him how to close and you've made a career. 4. Lead by example. Great sales leaders are out in the field with their people 60 to 80 percent of the time. There's an old saying that goes, "Don't expect what you don't inspect." If you don't inspect your reps' performance in the field, you can't expect improvement. Spending a day with your reps not only shows you how they're doing, it also gives you firsthand knowledge of what customers are thinking and what their needs are, based on your products and services. Most important, sales reps respect leaders who know what it's like in the trenches. Surprise your reps occasionally by saying, "I thought I'd travel with you today and see how you're doing." How do they plan their day? How do they do on calls? What methods are they using to prospect? 5. Understand their reps' individual strengths and weaknesses. They're able to ask non-directive questions like "What do you think you could have done differently on that call?" or "What was your objective?" When the reps say it, they own it; when the manager says it, they doubt it. Great leaders are aware of what motivates each rep and know how to get the best from everyone. They expect excellence. If your reps know you think they're capable of reaching greater heights, they'll strive for them. Your role as a leader is to encourage your people to succeed. There may be substantial monetary rewards in being a great sales leader, but the greatest reward is having helped others reach their goals. Our material possessions won't really matter once we're gone. Our greatest legacy is the people we've helped build, who are left to build others in the same way.

13.2. Higher Power 9 secret weapons that will make you a hands-on leader for your sales team.
Some entrepreneurs love to take matters into their own hands when it comes to selling faceto-face. Others choose to delegate selling authority--and in so doing, they cheat their businesses out of a great deal of selling impact. My question: What does the first group know about selling that the rest of us wish we knew? 102

Here, based on interviews with some of the most successful top executives in the country, are 10 actions that CEOs who sell successfully do on a regular basis. Consider working these strategies and tactics into your daily routine, and have your sales team do so, too. Know Your Ideal Prospects. CEOs who sell hate wasting time, so they target the people and groups most likely to buy from them. Wasted time in the sales process adds to the cost of sales and extends the critical time-to-revenue benchmark. Bob Palmisano, CEO of MacroChem, a transdermal drug delivery company in Lexington, Virginia, learned about targeting ideal prospects early on at Bausch & Lomb, Playtex and Mobil Oil. "You must figure out very quickly how you fit in with a given prospect," he says. "You must back away quickly when what you have doesn't fit what they need." In addition, CEOs who are successful in sales have no qualms about calling another organization's top person to find out whether there's a potential fit between their respective companies. That means you should be willing and able to do the same. It's also helpful to identify all the sales that are taking too long to close. Go ahead, pick up the phone and don't be shy-you'll quickly find out what's taking so long and speed things up in no time. Understand That Other CEOs Use Similar Criteria to Buy and Sell. CEOs who sell take the same energetic, visionary approach to buying as they do to selling. If you were to pick up the phone and call Mike Borer, 43-year-old CEO of Xcel Pharmaceuticals in San Diego, you would likely get shunted to one of his staff. Why? Because Borer learned that giving employees ownership of their ideas and making them accountable for their decisions works. He trusts his people to help him in the buying and selling process. He has to: His organization operates in a market where strict government regulation is the norm, so he looks for high degrees of accuracy in all sales pitches. And he relies on his team of experts for help. The moral of the story: Find out what the target CEO's buying and what the selling criteria are before approaching him or her. Secrets #3 4 Have the Final Say. Even when they delegate, successful CEOs are the final approvers of every initiative with which they come into contact. Their employees are charged with the task of conducting the fact-finding process and making decisions and recommendations, which the CEO must approve. They manage a tight circle of influence and authority. "My persistence and my ability to identify and clarify set the pace in my organization," says Andrew D. Horowitz, 34-year-old CEO of The Estate Management Group, a wealth management consulting firm in Valencia, California. "Everything echoes back to me." Horowitz never settles for what he calls a "stopper" in a sales situation or decision process. As he puts it, "Failure is quitting." Horowitz takes responsibility seriously, no matter how much he delegates. You should, too. Model the Ideal Sales Process Consistently for Your Organization. No one plays the role of a model salesperson better than the head of the company. Here are thoughts on the ideal sales process, culled from successful CEOs who make it a priority to share these fundamental selling lessons with everyone in their organizations. >> "Trust, integrity and honesty pave the way to successful relationships in all business endeavors." -Jim Amos, CEO, Mail Boxes Etc. >> Focus on the right prospect. "Yes, you need to sell--but you don't need to sell everyone." -Karin Bellantoni, CEO of I-Mark, a voice-response marketing firm in Newport Beach, California >> "Following up and persistence are critical. Answer and return all phone calls." -Doug Simon, CEO of Mobility Elevator & Lift Co., a custom elevator manufacturing company in East Hanover, New Jersey 103

>> "Forget the typical ice-breaker. Get down to the real business issues first." -Keith C. MacCumber, CEO of So-Luminaire Daylighting Systems Corp., a commercial skylights manufacturer in Carlsbad, California >> "Constantly 'blitz' your territory." -S. Cash Nickerson, CEO of Team America, an employee benefits outsourcing company in Washington, Ohio At Team America, a territory blitz is a concentrated effort to reach out and contact many prospects or existing customers in a short time. You can do it by sending a letter or e-mail first, then picking up the phone or making a series of in-person calls. >> "Always ask permission before you start to take notes. It lets the other person know that what they're saying is important and it clears the issues of confidentiality." -Joe Mancuso, CEO of The CEO Club, an association of more than 2,000 CEOs and presidents in New York City >> "Always be clear about the fact that you are here to sell." -Bob Posten, CEO of Landis Strategy & Innovation, a research and consulting firm in Palm Beach Gardens, Florida >> "Aim high. It's best to cast a bigger net into your territory." -Kevin Dyevich, CEO of Comfort Direct, a mattress manufacturer in New Brunswick, New Jersey Think of the last big deal your business landed. Now take the total time it took to get the deal, and divide that number by the amount of the sale. Now, do the same with the smallest sale. Finally, compare the numbers. If you're honest, you'll find big deals are always more worthy of your time and effort. Secrets #5 8 In other words, try becoming visible in your community of potential and existing customers. Volunteer your time to a professional organization and get on the mailing lists of associations whose members can purchase your products. In addition, you should consider joining five organizations. "If you don't," Ash warns, "one of your competitors will." Personally Monitor Changes in Your Marketplace. Sure, this is extra work. But it pays off--and it's already part of your job description. That's what Mancuso of the CEO Club does. "Become a super information processor," he says. "Open all your mail, watch the phone log and visitor's log, read the business journal, spot a growth industry, and organize and attend a customer focus group." Chances are, you're already doing these things-but it never hurts to ask yourself "How does this information affect our selling process?" Build on Interpersonal Relationships to Secure One-On-One Loyalty From Customers. Posten, CEO of Landis Strategy & Innovation, puts it this way: "I had to get real about what I was doing for my customers. I had to use what I was selling. [Only] then was I able to articulate what I did to my prospects and customers." Once Posten did that, he earned the loyalty of his customers and was able to build new market share quickly for his business. Bob is an expert at building loyalty by making deposits into-rather than withdrawals from-the "relationship bank account." Perhaps we should all check the balance in that account from time to time. Have a Crystal-Clear Understanding of Your Vision. Many would say that Howard Putnam, former CEO of Southwest Airlines, stands out as the ultimate "champion of vision." Before you internalize his advice, keep in mind that Southwest Airlines is the only American-owned, major air carrier showing a profit. "Vision is critically important when it comes to training customers on what your mission statement really means," Putnam says. "It's important when it comes to showing your marketplace and your team members.

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And it's a critical part of making sure all your team members become salespeople." How clearly do you articulate your vision to your organization, prospects and customers? Secrets #9 10

Make Intelligent Decisions Quickly and Independently. Joel Ronning, CEO of Digital River, an e-commerce outsourcing provider in Eden Prarie, Minnesota, makes decisions for his company based on this equation: "Experience plus intelligence equals intuition." To this, Ronning adds a degree of fearlessness and puts the element of time in front of every decision. When does a given outcome have to take place? What choices must be made now to bring about the necessary results? Follow Ronning's lead. Look at opportunities in your sales forecast and ask yourself these questions: When does an outcome need to take place, what has to happen to get the results that you, your prospects and your customers want?

Stay Focused. Isn't it amazing what the power of focus can accomplish? In the field of medicine, a focused beam of light performs laser surgery that's less intrusive and less destructive than doctors 30 years ago could have ever dreamed possible. And in your own business, you have the opportunity to take the power of focus and use it to change everything. Emil Wang, CEO of Latitude Communications, a provider of e-conferencing services in Santa Clara, California, is big on focus: "Come at me with what you're selling, but be honest and stay on purpose," Wang says. "Be very clear about what you want and don't ask premature questions. If anyone, regardless of title, sounds flaky, I'll brush them off." Further your own agenda by sticking to the prospect's. In fact, that might be the ultimate CEO selling secret.

13.3 Supervising Salespeople Lay down the rulesand put their commissions on the line
Q: I have a commissioned sales force that I have difficulty getting to do paperwork. In fact, some of my best salespeople are the worst at reporting. Any suggestions? A: This is a common problem for sales managers in companies of all sizes. Managers are often afraid to demand paperwork as a condition of employment, because they're afraid the top salespeople might quit. However, if you don't require it of the best, how can you demand it of the worst? The solution to this problem can be found in a problem presented to Benjamin Franklin when he was assigned to the Pennsylvania Militia. The chaplain of his unit complained to him that the men were not attending evening prayers. Franklin reminded him that each soldier was promised, as a condition of enlistment, a gill (4 ounces) of rum a day. He suggested to the chaplain that he should serve it only after prayers. The success of the intervention was reflected in the statement of Franklin when he said, "Never were the prayers more generally and punctually attended." The way to solve your problem is to clearly communicate the behaviors and results that are necessary to earn a commission, and then pay the commission only after those prerequisites have been completed. Most organizations are so happy to get a sale, particularly during these hard times, that they often overlook the administrative aspects of the sale that come back to haunt the company later. Lack of documentation may result in lost revenue, because the customer's memory of what was agreed to is different than what the salesperson remembers. It doesn't take much imagination to think of other problems that can result from lack of attention to administrative detail.

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Make a specific list of all the things you'll expect from someone in exchange for a full commission. Be sure to include a request for complete and accurate paperwork done in a timely manner. Every sales organization is different, so requirements will differ among organizations. Some products may require competitive information on a weekly basis; others won't. Some require appointment logs; others don't. Regardless of the requirements, make sure your salespeople understand that meeting them means receiving a full commission. One company I worked with had a problem getting commissioned salespeople to make calls on small companies. Because the commission is much larger for large companies, that's typically where efforts are expended. But the business in question realized it needed sales coverage of both large and small companies. The solution was simple. In order to earn a full commission, salespeople had to have 25 percent of their sales come from small customers. Suffice it to say, salespeople soon discovered that it takes just as much time to call on a small customer as it does to call on a large one. While this solution to your problem seems simple, it's violated all the time. It's akin to something my daddy used to tell me, "Never pay a painter before the job is done to your satisfaction." My advice to you is to never pay a commission until the order is completed to your satisfaction. You'll be happier, and your salespeople will ultimately be happier as well.

14. FORECASTING YUR SALES REVENUE. Creating reasonable sales forecasts for your company is easier than you might think.
Q: How do I forecast annual retail sales revenue for my small business? A: Think of your sales forecast as an educated guess. Forecasting takes good working knowledge of your business, not advanced degrees or complex mathematics. It's much more art than science. The research for a good forecast is almost always harder than the final process of actually making the educated guesses. Your business size can determine whether your forecast may be simple or detailed. When the research is already done, the mechanics of sales forecasting are relatively simple. Forecasting is usually easier when you break your sales down into manageable parts and then forecast the parts. Estimate your sales by product line, month by month, and then add the product lines for all months. Typically you'll need to project monthly sales for the next 12 months and annual sales for the following three years. Consider a forecast that projects $1,000 in sales for the month, compared to one that projects 100 units at $10 each for the month. In the second case, when the forecast is price times units, as soon as you know the price is going up, you know the resulting sales should also increase. A narrative contained in your business plan or similar document should summarize and highlight the numbers you've entered in the sales forecast table. Make sure you discuss important assumptions in enough detail and that you explain the background sufficiently. Try to anticipate the questions your readers will ask.

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Somewhere near the sales forecast, you should describe your sales strategyhow and when to close sales; how to compensate salespeople; how to optimize order processing and database management; and how to maneuver price, delivery and conditions. Explain the details of how you'll achieve these numbers you've forecasted.

15. HOW TO PRICE YOUR PRODUCT OR SERVICE. 15.1. How To Price Your Product Or Service This three-step process will help you decide
Q: Im starting a wedding planning business, and Im wondering how much I should charge. How do I price my services? A: Unfortunately, theres no easy answer to your question. Every business owner must arrive at his or her own pricing structure. The good news is, the information you need is readily availableyou just have to do your homework. Ultimately, your rates will depend on three things: your actual costs plus a reasonable profit margin, the pricing the market will bear and the ways youll add value to your service offering. Start by itemizing the cost of a typical job, including a markup on any subcontracted products or services. Consult your industrys national association for rate guidelines, and contact a range of potential vendors to learn what it will cost to purchase their goods and services. Then add overhead items to your pricing, such as the costs for your rent and marketing materials, plus a sufficient profit margin to grow your business. Your next step is to review your local competitors marketing materials, including their brochures, ads, direct mail pieces and Web sites. If their rates are unpublished, you may have to mystery-shop them by speaking with their sales staffs. Youll undoubtedly note similarities in their pricing structures. This will give you invaluable insight into the rates the local market will bear. After surveying your competitors rates, you may be tempted to price your services lower, thinking youll gain a competitive advantage. This would be a mistake, as prospective clients are more likely to base their buying decisions on value than price when choosing between similar services. Decide how youll add value by offering special features that clients will find worth paying a bit extra to obtain. Finalize your pricing based on your fixed costs, what youve learned about your competitors pricing and the ways you plan to add value to your service offering. That will give you just the right solution to your pricing dilemma.

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15.2. How To: Set Prices Is the price right? 9 steps to pricing your product or service for maximum profits
One of the earliest--and trickiest--decisions for new business owners is determining what to charge for their products or services. Some entrepreneurs use elaborate computations. Others just guess. But if you calculate or guess wrong, you'll soon be out of business. "Setting prices is an art, not a science," says Edith Quick, partner with her husband, Roy, in Quick Tax & Accounting Service in St. Louis. The art is in striking a balance between the money you need to stay in business and the customer's perception of what your product or service is worth. Here are nine methods commonly used when setting or rethinking your prices. (Yes, rethinking. You should evaluate and adjust your prices at least once a year to accommodate changes in competition, the economy, consumer tastes and your company's needs.) 1. Compare with the competition. Find out what products and services similar to yours cost in your area, advises Andi Axman, coauthor with David H. Bangs Jr. of Launching Your HomeBased Business (Upstart Publishing, $22.95, 800-245-2665). "Prices vary from big cities like Boston or New York to rural ones like mine," says Axman, who owns a marketing communications firm in Epsom, New Hampshire. If nearby competitors won't reveal prices, try calling similar businesses in other communities similar to yours, she suggests. Shahid Kinnare's Timezone store in Memphis, Tennessee, has numerous watch and jewelry retailer competitors nearby. "So I look at what services they don't have," Kinnare explains. "I give free jewelry cleaning for a lifetime. I give a lifetime guarantee on all my watches." 2. Check industry standards. Axman recommends asking trade associations, chambers of commerce or other industry groups for pricing studies, surveys or related information. She also notes many industries have helpful pricing books on the market. For example, desktop publishers can turn to Robert Brenner's Pricing Guide for Desktop Services (Brenner Information Group, $34.95, 800-811-4337). 3. Figure by formula. The owners of Huckleberry Mountain Co., a Jackson Hole, Wyomingbased specialty manufacturer of candies and preserves, determine wholesale prices by multiplying ingredient costs by two, then adding 20 percent, says Judy Johnson, co-owner with her husband, Doug. The 20 percent covers distribution and sales commissions; the doubling of ingredient costs covers labor and overhead. Posh Impressions, which sells decorative rubber stamps and scrapbook supplies over the Internet and at retail stores in Irvine and Brea, California, sets its stamp prices at cost times two, says co-owner Warren Gruenig. Many entrepreneurs find such formulas easier than trying to figure out all their costs or surveying their customers. However, use any formula with caution. It may not cover all your actual costs--a quick path to financial disaster. Or you may cheat yourself out of some profits because customers may be willing to pay more than the formula dictates. No formula can substitute for the one number you must know: how much it costs to make a product or deliver a service. This is your break-even point and your price floor. 4. Calculate backward. Some service providers and consultants start with the annual income they want, then calculate backward, says Roy Quick. If you work 40 hours a week all year and take a two-week vacation, you'll put in 2,000 hours. However, service businesses can't bill for every hour. In the first place, it's virtually impossible to schedule clients for every single hour

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of every single day all year. Second, you must do administrative tasks, marketing, bookkeeping and other duties for which you can't bill any customer. The rule of thumb is that you will have 1,000 billable hours a year. If you want to gross $50,000, you have to bill $50 an hour. If you want a $50,000 profit, you must carefully calculate your costs and add that amount into your hourly rate. 5. Add wiggle room. Roy Quick recommends service providers add a little to their hourly rate "so you don't nickel and dime your clients to death. If a client calls us with a question that takes five minutes, we don't charge for that, but we do track those calls. Then if a client complains about the bill, we point out all the free services we gave all year." 6. Use "magic numbers." Psychology plays a role in pricing, says Kinnare of Timezone. "I go for magic numbers. All my watches are $19.99. When I first started, I charged $20.99, but they didn't sell as well as [at] $19.99." Many retail items are priced at a digit less than a round number, such as $9.99 instead of $10 or $999 instead of $1,000, because the mind tends to perceive the difference as much greater than just a penny or a dollar. 7. Use introductory or limited-time pricing. Another quirk of the mind is that customers perceive your original prices to be the correct value for your products or services. If you start low and try to raise prices later, customers will balk. If you price high at first, you can always reduce prices or add extras later to attract more customers. Homebased entrepreneurs sometimes run into customers who think their prices should be cheaper because they don't pay commercial rents, Axman says. But homebased businesses still have overhead that must be included in their prices. Besides, Edith Quick adds, if you lowball your prices, then eventually move into a commercial location, you'll have to raise prices--and that can drive away customers. 8. Charge what the market will bear. The prices you calculate using formulas or adding up costs plus profit margin are your ideal prices. "We have to balance our ideal with what the market will pay," says candy-maker Johnson. "We do about 40 trade shows a year and see what customers are paying. If we're 40 percent higher [than the competition], then we'd better have something really special or drop our prices." Just as your costs put a floor on your prices, consumers will establish the ceiling. Do market research before investing thousands of dollars in mass production, distribution and advertising. If you invent a product, make a prototype; then survey potential customers about the price they would pay for the item. If your survey indicates people won't pay your break-even price, look at ways to cut your expenses. Or look for ways you can add value, such as better performance, higher quality, faster delivery time--whatever will make the product or service worth more in the customer's mind. If you can't make your product or deliver your service for less than customers will pay, you're not ready to go into business. 9. Charge what you're worth. Many new business owners suffer from "lack of courage in pricing," says author Axman. But underpricing can backfire, she adds, because if your product or service is too cheap, clients may assume it's of poor quality. Roy Quick agrees: "You have to bill at the rate you're worth. We tell [service business] clients `If you're as busy as you want to be, your prices need to go up.' Many start-ups aren't charging enough to succeed." The art of pricing means achieving what you need by delivering the goods and services your customers want. Add It Up 109

To price your product or service accurately, you must calculate your costs. Here's how: 1. Add up all include rent, Variable costs office supplies costs. Fixed costs are constant no matter how much or how little you sell; they property taxes, insurance, advertising, depreciation and interest on loans. fluctuate based on the amount you sell; they include labor, sales commission, and sales tax. Semivariable costs include telephone, electricity and postage.

2. Determine your break-even point. BP = VC + FC + SC (break-even point equals variable costs plus fixed costs plus semivariable costs) Example: If variable costs = $1,000, fixed costs = $1,000, and semivariable costs = $1,000, then break-even point = $3,000. 3. Calculate P = TC+M/N your cost per unit (products) or per hour (services).

Price equals total costs plus markup divided by number of units you expect to sell or hours it will take to complete a project Example 1: total costs = $3,000; markup = 50% ($1,500); number of units = 10,000; price per unit = 45 cents. Example 2: total costs = $3,000; markup = 50% ($1,500); number of hours to complete a project = 50; price (hourly rate) = $90 (Note: If market research indicates consumers won't pay this price, you have to cut costs, and/or reduce your markup, and/or increase the number of units you sell or reduce the time it takes to complete a project.)

15.3. Should You Offer Extra Services or Lower Prices? How to decide which is better for your business: adding an extra service to your product or lowering the price
Q: I'm working on starting a clothing line that I would sell primarily online. My question is, I know that having free shipping is appealing to the customer, so which is better: to include shipping fees in the item price and then advertise as having free shipping, or to sell lessexpensive products without including shipping? A: As a general rule, it's always better to give a service to customers for free rather than lower the price of your product. Here are two good reasons why: First, truth be told, whenever we make a buying decision, greed is a bigger factor than we would like to admit. Everyone likes to get something for free, and that's great! Second, whenever we lower the price of our product, we lower the perceived value of that product. That's not so great. The word "greed" definitely has a negative feel to it. But it should be recognized as an effective element that, when properly employed, gives you a great edge for making a sale because it plays on practically everybody's desire to get more than they are paying for. Whenever you increase the value of whatever it is you sell (more on this in a moment), you'll almost always end up with an easier sale. When you increase the value and then provide a valuable service for free, you'll begin to appeal to the greed factor. Continue to add value and free services, and you'll end up with a sale that requires less justification and less logic. Continue this process, and you'll create an enhanced emotional desire for your product, service or solution. However, let me caution that your margin must be your primary consideration when it comes to giving services for free. And here's another cautionary note: If you go too high with the value and give too much for free, your prospects will start asking, "What's wrong with this picture?" 110

There is no better way to outsmart and outposition your competition than to increase the value of your product to customers. Value comes in two forms: Tangible, or hard-dollar, value: Easy to measure and see, the tangible value is measured in numbers or percentages. For example, you can increase the effectiveness and efficiency by a certain percentage or reduce the expenses by an absolute number or percentage. Intangible, or soft-dollar, value: More difficult to measure and see, intangible value is expressed using descriptive words and phrases. Some examples include less risk or worry, enhanced image or reputation, or a greater peace of mind.

Whenever you can, increase the hard- or soft-dollar value of your product. The easiest and fastest way to accomplish this is to ask your customers how you can improve your offering. After all, that's what customer surveys are for. Now take a moment and complete the following three-step exercise: 1. Write down all the value you deliver to your prospects and customers free of charge. This list should include all the items that you deliver that don't show up on your invoice or the cash register receipt. Examples include expedited delivery, a help desk, preinstallation consulting, installation and setup, warrantee periods, first-year service, extended service hours, optional equipment, return policies and so on. Try to list at least five items and write your value down on a separate sheet of paper. 2. Attach a dollar amount to each of these items of added value. In other words, what would it cost your prospect if he had to pay for all the things you typically deliver for free? Make sure your estimates are realistic. Include a breakdown of the aforementioned value in your next 10 proposals, presentations or on the merchandise price tag. As the prospect understands the value that you deliver, you can begin to appeal to his greed by "reducing" the overall price by providing free services. You can do this with statements such as, "On this slide, we've listed the price for each of the added value initiatives that we provide to our customers free of charge. We wanted you to know that it's because of this value that our price and cost of ownership is actually 30 percent below that of our nearest competitor."

16. YOUR DAYLY AND YEARLY SALES PLAN. 16.1. Your Daily Sales Plan Our Sales Expert shows you how to increase sales by the hour
Q: What's a typical day like in the life of a new small-business owner? A: I receive this question from many new business owners. There are certain routine tasks entrepreneurs need to accomplish every day. However, the problem some new owners have is the tasks they're performing may not be getting them closer to building a successful business. Entrepreneurs who succeed are focused on completing a specific daily sales plan. Modify the 111

following plan to fit your business prospects-then watch your business grow. Here's a look at the entrepreneur's daily plan for success: 5 a.m. Wake up, exercise and eat a healthy breakfast. Entrepreneurs are in training just like athletes preparing for the Olympics. You need to be in good mental and physical shape, so start your day in a healthy way. 6 a.m. Shower, dress and review your daily plan. Remember, the early bird catches the worm. 6:45-7:45 a.m. Drive to the office. Listen to sales training tapes to get in a selling mood. (If you're homebased or live close to your office, begin business development immediately.) 8-10 a.m. Business development time. (Like exercise, you need to get prospecting out of the way early. Long term, you'll be glad you did.) If you have salespeople, this is the time to make sure they're prospecting. Note: Most new business owners can't afford to hire a salesperson right off the bat. That's OK: Doing it yourself gives you the opportunity to perfect the art of prospecting. Then when your budget permits, you'll have the necessary experience and skills to train your growing sales force. Here are some prospecting options to try: Stuff mailers and write personal notes. Write e-mails to leads or prospects from a targeted list. Make long-distance calls. Some businesses on the West Coast start their prospecting calls at 6 a.m. Follow up on leads. If you must handle all your incoming calls, learn to do two things at once, so when you're not speaking directly with a call-in or walk-in customer, you're focused on any of the above options. 10:45 a.m.-1 p.m. Recruiting interviews. If you're building a sales team, schedule appointments in this time slot. No luncheon appointments, particularly on the first interview. Eat lunch alone and don't waste time. 1-4 p.m. Plan A: Visit your territory of prospects. If you're training salespeople, take them out in the territory and show them how to introduce themselves and get a toe in the door. Plan B: If you've completed your visits for the week, use this time to check your books and make sure you're in close touch with your spending, expenses and balances. As soon as you can sign up for online banking, do it. But never lose track of your books. Business development and keeping an eye on the books are a new entrepreneur's two key priorities. 4-6 p.m. Answer phone calls, read mail and play catch-up for the day. Review your sales plan for tomorrow. Be sure you complete all necessary cycles of activity so you can leave your desk clean and ready for a new day.

16.2.

New

Years

Sales

Plan

Resolve to increase your sales this year

Q: Can you get me started on formulating a 2001 sales plan for my business? A: Here's a four-month sales and marketing plan to jump start your business for the new year. Keep in mind, the entire focus of a sales plan is to generate business. So each month, I've listed prospecting ideas to help you achieve your goal. Hopefully these first four months will encourage you to create your own ideas for the rest of the year January: Get The Word Out Prepare an inexpensive one-page sheet that describes, in a nutshell, the benefits of your business. A black-and-white piece with one color is effective, for example, black, white and red. Your one sheet-page can be scanned and sent over the Internet, mailed to prospects or 112

delivered door-to-door. Offer something free to entice the reader to call you. Include a customer response section with a place for a name, phone number, e-mail address and so on. Sample copy to include: Money-back guarantee if you ACT today. Offer good for 30 days. Free demonstration every Tuesday at (grocery store, hair salon) or at (your Web site). Spend two hours each day three days a week for inundating the marketplace with your onepage sheet. February: Love A Past Customer Is your customer list up-to-date? If several months have passed since new customer names have been inputted, get your database current. Then send a letter to them. Thank them for doing business with you, and ask for referrals. Sample themes for the letter: You have a stake in my success. I want to make you look good. Let me prove myself to one of your associates or friends. Spend 90 minutes every day working on your past customer campaign. March: Sponsor An Event This can be inexpensive. Go to your local Children's Hospital or any local nonprofit group that's well-respected and say you'd like to sponsor a fundraisera 10K run, a fashion show, a bingo party at the local church or a "souper supper" to feed the homeless. With the right charity on board, you'll be able to enlist lots of volunteers. When anyone asks what's in it for you and your company, always respond with: "Good rumors. We build our reputation by word-ofmouth." Sample themes: The Spring Fling Fashion Show, Spring Into Shape 10K run, a St. Patrick's Day bingo at your local church hall. Spend two hours a day for three weeks prior to the event preparing. Pick the right volunteers and cut your work load in half. Your volunteers could be potential future customers, too. April: Buy A Booth Would your business benefit if you attended a particular trade show in your area? Buy a booth and plan ways to attract prospects. Food and beverage are always a good incentivefree samples. You don't need the biggest or most expensive booth. Shoot for a good traffic area. If you can get an attendance list ahead of time, you can send out invitations. Arrange for another person to be at your booth with you, then you can work the territory. Circulate. Sample invitations or printed matter (not too much copy): Don't pass up the best opportunity of this convention. Stop by booth # 67 for this convention's best-kept secret. (Use mystery and secrets to seduce the prospect.) Spend at least one hour per day for two weeks preparing for the trade show. Now it's your turn to work on the other eight months. Remember, in order for your sales plan to become profitable, each month must contain specific prospecting activities such as coldcalling and warm-calling past customers, in-person calls to your territory and participating in local business network activities.

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17. SALES STRATEGIES. 17.1. 10 Tips to Get Your Business Airborne Simple sales strategies that will put your time, money and resources to good use
Don't Be Everything to Everyone 1. Focus on a single product or product line. Study successful businesses in your market, and you'll find out they all share a common heritage: They started out with a single product or product line. If you have multiple product lines or a catalog of products and services, you may have to sacrifice them for the short term. 2. Focus your sales and marketing on the most promising product or service. If you find that a product or service is selling well early-on, take advantage of this success. Get early wins, and build on them. Gather testimonials and case studies. Launch a PR campaign around your recent success. 3. Narrow your target market. Hopefully you defined your target market in your original business plan. Revisit the plan to see if you've actually been selling to the market you originally defined. In many cases, what you planned for and whom you sold to will be different. Make a decision to either adjust the plan to reflect what's working, or redefine and narrow your target market. This keeps your sales and marketing efforts focused. When you get up each day, you'll know who you are trying to help and what you can do for them. Stop Testing New Ideas 4. Evaluate the advertising and marketing that you've been doing. If you've been running numerous campaigns in numerous types of media, stop and analyze which one has been the most effective. Continue to advertise and market with the campaigns that have worked the best so far. 5. Fine-tune and expand existing programs. Continue testing and refining the marketing activities that have been bringing in leads and sales. In fact, instead of trying any new ideas, apply the money and time to programs that you know work. 114

Leverage Existing Relationships 6. Look at current relationships. Do you have existing relationships that can help you increase sales quickly? Is there a joint marketing or sales program that you can enter into with your existing suppliers? 7. Look for complementary offerings. Perhaps you have partners with a product offering that's complementary to yours. Propose a joint venture. You can bundle both companies' products and services together to form a new solution. This gives you a fresh reason to approach one another's customers or prospects. The result is a quick introduction to an expanded target market and additional cash flow. Use Your Time Well 8. Determine whether you're building your business. Author Michael Gerber, who wrote a series of books on the "e-myth," suggests that many entrepreneurs get stuck doing their business instead of building their business. Take a look at how you have been spending your time, and check to see if you've been caught up with all the administrative demands or been able to break free and focus on what builds your business. 9. "Grade" your opportunities. Take a look at all the opportunities that you're presently working on, then grade them A, B or C. Mark A as "revenue producing," B as "needs to get done" and C as "enjoy doing." Grade your opportunities by value, and complete them in order. 10. Focus on what you do bestdon't diversify. Keep focused on the goal at hand; get your business off the ground. Once you're airborne, you'll have lots of time to evaluate other ideas. Some of these tips may seem counterintuitive. When bills are still coming in and sales aren't, there's the urge to "take whatever you can." That may give you a little more time by extending the runway, but it doesn't help get your business off the ground. Ultimately, it takes you away from the controls and doesn't increase the speed of your sales. Stay focused; work smart. In business, you don't get airborne unless you're at the controls and applying full throttle.

17.2. All Work & No Play Targeted mailings and research are in. Client dinner outings are out. If you expect to sell in today's economy, you need to stop wasting everyone's time.
For Chad McClennan, the only thing that's changed about selling is everything. Compared to a year or two ago, says the 35-year-old Chicago entrepreneur, leads are harder to get, and fewer turn into prospects. It takes more time to turn those prospects into customers, and, if they buy at all, it's usually for different reasons than in the past. He's paying his salespeople differently--while hiring more of them--and investing more in training, supervision and technology to support sales. "We've changed organizationally and technically, and we've changed the sales process and compensation," says the president and CEO of The Customer Group, a 25-person customer service consulting firm. "And we're beginning to see results." "Today, sales is heavy on marketing, McClennan's sales experience reflects the changes sales experts customer insight and and entrepreneurs have seen sweeping through selling in recent systematic selling, and months. New developments have ranged from the emergence of light on taking orders, savvier but less patient customers to the availability of more but taking clients to lunch and taking breaks." 115

sometimes less qualified candidates for sales jobs. Overriding everything is a profound change in the ability of many customers to buy in the manner and amount they used to. "Our current and potential customers are saying to us 'Right now, we're not doing any business. We're waiting to see how our numbers are going to look,'" says Pat Cavanaugh, CEO of Cavanaugh, a 44-person promotional products firm in Pittsburgh. "It's a holding pattern." Out With the Old Though the recession may be behind us, its effects can still be felt. Clearly, selling in a recovery economy is not the same as selling during the thriving economy of a few years ago. Things have changed, but entrepreneurs must still find new ways to sell. McClennan said his list of valid prospects doubled during the first three months of the year. Cavanaugh, 35, who was named the country's top salesman-CEO by a trade magazine last year, expects to continue a growth track that's increased sales 4,000 percent over the firm's past seven years. How are they doing it? They're not doing what they did a while back. They're not wasting prospects' time with chitchat. They're not looking for easy, quick closes. They're not coldcalling. They're not selling solely on price. They're not just peddling products and services. And, above all, they're not waiting one minute for buyers to come to them. "We were getting a lot of business through word-of-mouth," recalls McClennan, who started his company in 1999. "There was such a great demand for consulting services from businesses feeling the need to be competitive, but now supply outpaces the demand. So we're doing email campaigns, we're doing targeted mailings. We never had to do that before." Today, sales is heavy on marketing, customer insight and systematic selling, and light on taking orders, taking clients to lunch and taking breaks. "It's not as easy to get orders," says Atlanta sales consultant T.K. Kieran. "You must create demand instead of just fulfill demand." What's in It for Me? Creating and fulfilling demand these days starts with changing your sales strategy. It's not enough to be the cheapest, not enough to be newest, not enough to be fanciest, not enough to be an interesting idea. Customers are looking for solutions to problems, and those solutions have to relate to cutting costs or increasing profits. "If it can't make you money or save you money, I wouldn't bother trying to sell it," says Blair Singer, a Zephyr Cove, Nevada, sales consultant and author of Sales Dogs (Warner). "Because that's where people are." If salespeople present products and services in that light, they have to know how their customers generate sales and profits. And that's the second major shift in sales: Now salespeople must understand customers in a way that was optional a year or two ago. "People don't have the time to hear what you have to offer," says Cavanaugh. "People want to hear, 'Here are your needs, here's the solution.'" To get insight into solutions, salespeople have to study customers thoroughly before they even meet them. Cavanaugh directs his people to scan company Web sites, read corporate annual reports, and talk to competitors in the industry so they can get a feel for prospects' issues. McClennan assigns employees to interrogate nonsales contacts in organizations where he hopes to get sales. "They ask questions about challenges they're facing today and what initiatives they have underway," he says. The need for knowledge is exacerbated as customers seek greater oversight on spending, salespeople must sell to higher-level managers now more than ever before. Senior executives have less time to spend listening to salespeople, and it takes salespeople longer to get a chance to be listened to. That means every presentation is more valuable, and it's more important not to fumble it. "The first meeting you're in," says Cavanaugh, "you'd better have options for them." Training Trends

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Once they are aware of the issues facing a company, salespeople must develop solutions. That calls for more and different sales training. Salespeople need less training on products and features, and more on how CEOs and other high-level executives address the problems they face. "The product training is great, but what they really need is to understand more about what is driving the company they're trying to sell to," says Kieran. "They need to be able to think like an executive." One of Cavanaugh's gambits is to try to demonstrate that an investment in his products and programs will provide an attractively positive return. "We're going to do a cost-benefit analysis with them to show that if they spend X, they'll get Y in return," he says. For example, a company with low employee morale and poor attendance would be shown how one of Cavanaugh's programs could cut the number of temporary employees needed to replace absent workers. From there, it's straightforward to quantify cost savings in fewer temp salaries and, hopefully, justify the buy. To think of that kind of objection-beater, salespeople need training in general business management and in specific problems facing their target companies and industries. Kieran recommends coaching salespeople on competitive pressures, regulatory issues, supplier conflicts and other sensitive issues executives encounter. Says Kieran, "If you take a 360degree view of what that company is facing, you can get pretty adept at figuring out what [the executive is] going through." Mixing It Up Some experts say the fence between marketing and sales has to come down. "Salespeople used to be take leads from marketing or generate their own from cold-calling," says Singer. "But the days of cold-calling are numbered. Today, a salesperson needs to know how to do direct marketing, how to write a headline, how to do a sales letter, and how to generate leads without picking up the phone." Singer recommends salespeople get training in conducting e-mail campaigns, publishing client newsletters, writing print and radio ad copy and more. "It's always been sales on one side and marketing on the other," he says. "But marketing is the same thing as sales. It's just sales in a different medium, in print, audio or e-mail." McClennan echoes Singer's call for more marketing-oriented salespeople. He's training his to develop marketing lists and use e-mail client letters created with contact management software to stay in touch efficiently with large numbers of prospects. "We've also found we need to make sure our marketing and sales [efforts] are well-coordinated," he adds. "Our salespeople need to understand what the marketing message is and see that it finds its way into sales scripts." Developing Process At the root of what entrepreneurs and sales pundits are talking about is the need to approach sales as a process. Rather than calling prospects and expecting to close a deal upon first contact, salespeople are expected to systematically learn a market, develop leads, prepare solutions and present them effectively. "A lot of salespeople tried to hit holes-in-one," says Stephan Schiffman, CEO of sales consulting firm DEI Management in New York City. "There was a time when you could do that. But now you have to go back to the process and be good at it," adds Schiffman, the author of many sales books, including one he considers particularly appropriate to today's selling environment, Make It Happen Before Lunch: 50 Cut-to-the-Chase Strategies for Getting the Business Results You Want (McGraw-Hill). Salespeople can't expect golf outings and other forms of entertainment to yield rapid results-or that time-pressed clients will even accept such offerings. "Entertainment is on the wane," says Schiffman. "Unless there's already a relationship, taking someone to lunch doesn't serve a purpose."

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Developing and executing a sales process can takes a while. Eighteen months ago, an opportunity that did not pan out after four to six weeks would have been labeled a low priority. "A sales cycle of three to four months is now mainstream," Schiffman says. It may take twice as many contacts to close a sale today, says McClennan. And surprisingly, both entrepreneurs and experts agree sellers can't always shortcut the process by just dropping the price. "The old method of selling by price is falling by the wayside," explains Dennis Kyle, a sales consultant with Positive Results in Avon Lake, Ohio. "Organizations are willing to pay more if the product's value is evident. They won't pay a dollar for anything if they don't see the value." In the Now It looks as if the future of selling resembles the distant past more than recent history. If there is a theme to this new selling environment, it's this: back to basics. "The philosophy of going in and finding out what customers need dates back to 1980," says Schiffman. "Now they're returning to what worked years ago, which is seeing people and establishing relationships." One major difference between 1980 and today is the Net. Some see it will play a major role in one shift: that is, to deploy salespeople only to those accounts identified as having the biggest potential. The rest will move to less costly Web-based sales interfaces. "The top accounts are going to get the attention and the others, unfortunately, aren't," says Kieran. Meanwhile, entrepreneurs forced to cope with the effects of September's terror and the 2001 recession are now looking on the bright side. They've dusted off sales tricks they haven't tried in years. And they're not sorry. "The marketplace dictated we do this," says McClennan. "I wish we had done it a lot sooner."

17.3. Creating a Chain Reaction of Sales Don't just focus on finding any old prospect. Find the ones who will lead you to other sales prospects.
Q: What's the best way to contain our cost of sales without containing our potential revenue? We're a start-up Internet company with limited funds and an unlimited market. A: In the past month, I've received five questions revolving around the same three issues: 1. Compression of sales cycles 2. Containment of pre-sales costs 3. Qualifying good prospects In my opinion, these problems are rooted in declining attention spans, brutally increased competition, and ever-increasing depersonalization in business relationships, arising from misuse or overuse of today's communications technology. In addition, there are more salespeople today than there are potential buyers. In short, your company, like many others, is suffering from what I call "New World Economy blues." The good news is, these "blues" are not incurable. This month, we'll discuss how two businesses have responded to the three issues mentioned above with the help of "marketing mobility"--and how you can do the same. Kevin Dyevich, CEO of therapeutic mattress manufacturer Comfort Direct in New Brunswick, New Jersey, knows the importance of marketing mobility. He and his partner, John Wilkinson, strive to become the world's largest manufacturer and distributor of mattresses--and they're well on their way in spite of the woes of the economy and their competition. Dyevich's first really big sale was made to a very large hotel chain. His cost of sales for landing this customer was the cost of one of his mattresses--plus shipping--plus a few phone calls. I'll 118

let him tell the short version of his story: "I sent the CEO and his wife one of our mattresses. Shortly afterwards, I got a call from one of the CEO's top staffers with a request for a meeting. The order is so big that our small manufacturing facility can't meet the demand. So we're going to license them to build our mattress, and they're going to help us market it!" This illustrates a key principle of selling with marketing mobility: Wherever possible, multiply your effects, not your efforts. Each one of your prospects must have the ability to tender more than one sale. They must be conduits for getting additional qualified prospects. In Dyevich's case, his first big sale isn't the biggest sale he'll make from this transaction. Here's why: "When each guest checks out, they'll get a pitch about the mattress, my mattress that they slept on. Can you imagine it? We hit them with the wake-up call and the check-out pitch--and a 25 percent discount coupon!" Here's another example. Heather Steven, CEO and founder of feng shui consulting firm Ch'i Wisdom in San Diego, admits that getting her company off the ground was a slow undertaking at first--until she did the following: "I sought out each of my friends and family members who had lots of satisfied repeat customers--chiropractors, insurance agents, real estate salespeople and the like. My plan was to give each of them a preview of my serviceswith the understanding that if they liked what they saw, they would give me the names of their best patients, clients and customers." As you can see, the concept of marketing mobility fits a dizzying array of products, services and solutions. You get the idea: Make sure your sales efforts qualify a prospect who has depth of market and can lead you to future business. In other words, always pick a prospect who can take you to many more prospects. (I like to use a multiplier of at least 10, preferably more.) So put on your thinking cap, and figure out how your prospects can become your best marketers.

17.4. Creative Sales Tactics In today's competitive marketplace, you've got to get creative if you want prospects to listen.
Most of us don't associate the word "creative" with "selling." For some, "creative" conjures up images of starving artists dressed in black, "trying to make a statement" with paint and old auto parts. "Creative" people wear berets and read The Village Voice. Salespeople wear ties and read The Wall Street Journal. At least those are the popular stereotypes. But don't salespeople create things, toolike opportunity? Don't salespeople create demand for products and services? Customer satisfaction? Wealth? The nature of the sales process is, in fact, creative. A good salesperson creates demand where it doesn't exist. He or she creates a message (the sales pitch) using various media (face calls, telephone calls, written presentations, slide shows) that influence an audience (the prospect). A salesperson explores new territories (cold calls), introduces new ways of thinking (persuades prospects) and makes the world a better place (provides customer satisfaction). OK, maybe I'm overstating the case a bit. Lots of perfectly productive salespeople are nothing more than harvesters of existing businessthey take orders, fill out paperwork, collect their commissions and go home. And they never break rules. Those salespeople still play a role in our economy, although they're on their way to being replaced by order-processing technology. But I'm here to talk about creative selling, the favorite activity of wild, vibrant, risk-taking sales fanaticsthe Michelangelos of sales. These

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people use the power of ideas to create customer satisfaction and wealth for themselves and their companies. Think of Creative Ideas Ideas are scarce. They don't exist until someone creates them. They can be copied, but only after the original hits the market. Because there's nothing to compare them to, the price of an original idea is determined solely by perceived value. There is no competitive bidding or price shaving for market sharejust the seller's ability to create perceived value by presenting the idea as a solution to the buyer's needs. And by offering ideas clients haven't seen before, creative sellers create another tactical advantage. Traditional sellers make presentations full of information about their own products or services. So what do prospects talk about? The seller's products, of course. But when you talk about ideas unique to your prospects, they'll talk about how your idea applies to their businesses. This is all you wantto hear prospects talk about their needs. The more they talk about those needs, the better you'll be able to shape your ideas to meet them. And when you become identified as "the idea seller," prospects open their doors. Use Your Head It's not enough just to sell anymore. Now every potential client is looking for a few creative ideas to go with your sales pitch. Most of us don't associate the word "creative" with "selling." For some, "creative" conjures up images of starving artists dressed in black, "trying to make a statement" with paint and old auto parts. "Creative" people wear berets and read The Village Voice. Salespeople wear ties and read The Wall Street Journal. At least those are the popular stereotypes. But don't salespeople create things, toolike opportunity? Don't salespeople create demand for products and services? Customer satisfaction? Wealth? The nature of the sales process is, in fact, creative. A good salesperson creates demand where it doesn't exist. He or she creates a message (the sales pitch) using various media (face calls, telephone calls, written presentations, slide shows) that influence an audience (the prospect). A salesperson explores new territories (cold calls), introduces new ways of thinking (persuades prospects) and makes the world a better place (provides customer satisfaction). OK, maybe I'm overstating the case a bit. Lots of perfectly productive salespeople are nothing more than harvesters of existing businessthey take orders, fill out paperwork, collect their commissions and go home. And they never break rules. Those salespeople still play a role in our economy, although they're on their way to being replaced by order-processing technology. But I'm here to talk about creative selling, the favorite activity of wild, vibrant, risk-taking sales fanaticsthe Michelangelos of sales. These people use the power of ideas to create customer satisfaction and wealth for themselves and their companies.

17.5. Five selling mistakes your salespeople can't afford!

In my many years of training, I've noticed certain selling mistakes committed repeatedly, by both veteran salespeople as well as new hires. Here's five of the biggest. 1. Unprepared How many salespeople have a written outline of what they expect to achieve on a sales call? Many simply walk in a prospect's office, and ask, "What is it you need today?" If the prospect knew the answer he or she would get the yellow pages out and buy some! Spend time on understanding the real needs and wants of prospects before sales calls. If that means doing some research at the library or on the internet then consider that time spent as an investment 120

in

your

success

2. No formal sales presentation Presentations can be dynamite selling tools if they address issues near and dear to the prospect. Of course if the salespeople know little or nothing about a prospects needs then they can't give a dynamite presentation, can they? A good sales presentation is not "canned" or "memorized" so the salesperson sounds like a parrot. It is however an explanation of what you sell, presented in an orderly fashion, in plain talk, so prospects can easily not only understand what you sell but also why they should buy. Some salespeople forget that many prospects only have a surface understanding of what they sell, yet may be embarrassed to let the salesperson know. A good sales presentation simply covers the bases and guarantees prospects know all the benefits. 3. Reading too many "Relationship Selling" books. I'm for building positive relationships with customers, however, people don't become lifelong pals after one or two sales calls. Pushing the issue too quickly to "buddy up" may cause some people to back off instead. Another difficulty is when salespeople spend too much time with non-selling conversation about personal matters, sports, family, the list is endless. Always remember your customers are in the middle of doing a job that feeds their family and are expected to produce results, taking too much time with small talk or hanging out at a customers business breeds resentment. Be respectful of other people's time. Good business relationships develop slowly based upon mutual respect. Keep initial sales calls cordial but professional. Being attentive to customer's needs so they see you as a dependable problem solver is one of the best ways to develop a long term business relationship. 4. Not listening Some salespeople simply talk too much! When you are talking you are not listening, not learning about your prospects wants and needs. A good salesperson should talk no more that 30% of the time, the prospect 70%. The more they speak, the more information you gain about how to best serve them. Salespeople also must understand the art of asking open ended questions to keep the information flowing. 5. Not taking care of established customers. Some salespeople enjoy the chase of obtaining new accounts so much they tend to ignore their established business. One of the most powerful marketing tools today is good customer service. Never allow customers to be treated as poor relatives looking for a handout. They are your most valuable asset.

17.6. Focus Pocus. Focusing your sales efforts. A Target Market. A Focus On Your Core Business. Short- And Long-Term Goals
Watching Mark McGwire hit his record-breaking home run, you could almost feel his intense focus on the ball as it sped toward him. Beyond McGwire's tremendous upper-body strength and dedication to the game, focus played a key role in his ability to break the home run record for a single season. Focus is a major problem for many new business owners, who often find themselves pulled in multiple directions. To be a big winner in business, you'll need to have something in common with sports superstars like McGwire: the ability to focus your efforts on clearly defined objectives and stay the course despite constant distractions. Here are three ways to bring your sales into focus:

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A Target Market 1. Successful entrepreneurs don't wait for the right prospects to find them. They put programs in place to win the business they need to get their companies on the fast track. Who are your ideal clients? If you're targeting too many different types of groups, you may be unwittingly fragmenting your marketing program and compromising its effectiveness. Worse yet, if you're accepting anyone who comes your way, you're sacrificing your ability to build the type of business that fits your vision, while letting the competitors who actively pursue the plum accounts walk away with the most desirable work. To build a strong client base from the start, focus on creating programs that reach your best prospects. If you're selling to other businesses, decide which types of businesses need and currently purchase your kind of product or service. Focus on your prospects by category and any special qualifying criteria that are important to you. Keep your number of categories small (no more than six) in order to maintain your focus and to prevent your marketing campaign from becoming too fragmented. If you're marketing a consumer product, such as custom draperies, or a consumer service, such as home remodeling, it's extremely important to focus on a narrow target audience. This will save you money on advertising and help ensure the leads you generate meet your criteria for good prospects. Write down a target audience profilea brief description of your prospects that includes important demographic information such as their ages, genders, and household incomes. Then use this profile to guide your marketing. A Focus On Your Core Business 2. Do you have more than one business or does your business offer a range of unrelated services? When you run more than one business, you're pulled in different directions all day long. To be successful, focus all your marketing efforts on your core business and communicate a single unified message to your best prospects. What do you want prospects and customers to remember about you? It all starts with the right business name. Choose one that's highly descriptive of the products or services you offer. If you choose to include your last name in the name of your business, be certain it's clear what you're selling. If you're saddled with a nondescript business name, you'll need to add a positioning statement. That's a four- or five-word phrase that should appear along with your company name and logo on all your stationery and marketing materials. To position your new business properly in the minds of your prospects, everything that is read, heard and seen about your firm must relate back to a single message. That message must focus on the benefits customers will enjoy when they hire you. Make a list of the principal benefits your customers receive by virtue of working with your business, and string them together into a single sentence that you can easily say or write. Short- And Long-Term Goals 3. When you maintain a clear focus on your short- and long-term goals, you'll wake up each morning prepared to sell. Assign a goal to every interaction with prospects. Before you ever pick up the telephone to make a call, decide what you want to happen. Will the goal of your call be to secure a meeting, or must you close a sale? The same principle holds true when you meet with prospects. You wouldn't build a backyard deck without a set of plans. So it's not surprising that something as complex as building a new business requires a strong, written marketing plan. One of the most crucial sections of any marking plan is your list of marketing objectiveswhat your business will accomplish in the coming year and how you'll do it. Refer to your written plan regularly to measure your progress. Think about the way McGwire focuses on his objectives the next time you're tempted to stray from your core business prospects, message or goals. Just keep your eyes on the ball!

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17.7. Get Uncomfortable Nobody ever became a success sitting still in the cushy confines of the same ol, same ol.
I got sidetracked from my main business several years ago when I started working to syndicate a radio program with a world-renowned comedian. I risked a lot of my own hardearned moneyand failed. However, the knowledge I gained from that experience and the contacts I made eventually helped me start my own radio program, which led to my TV program, which gave me greater visibility and credibility. You get the point: No pain, no gain. The world is full of great, albeit risky, opportunities. If we get complacent and try to take the safe route all the time, we lose chances. Taking a risk means jumping out of the comfort zone, adapting to changing situations and going beyond the norm. Here are four ways to do that: 1. Shoot for the big deals. Go after the large accounts you dont think you can get. Aim for the big contactspresidents, CEOs and key players who can leverage your efforts. Going for the big deal is like planting bamboo: It remains underground for four years, then suddenly breaks through the earth and grows more than a foot in one day. The next day, it grows another foot, and the next day, one more. In 100 days, the plant will grow as much as 100 feet. Your big deal may not happen overnight (it may take years of nurturing to come to fruition), but once that account starts sprouting, youll reap the rewards. And although you may have to risk putting time, energy and money into it, eventually youll get a great return. 2. Go outside your world. Whenever you take time away from running and growing your business, you take a risk. However, using that time wisely can return a great deal of value. One valuable risk is taking time to look at other industries. Study how management works in different fields and how other products are sold. Learn how to apply other industry successes to your own business. Studying whats going on outside your world can give you a unique viewpoint that will differentiate you from the competition. 3. Invest in people even when you think you cant afford it. A few years ago, a study looked at companies with the most successful sales forces. Whats the common trait shared by those businesses? Even when business (or the economy) was bad, they doubled their training budgets. At the most critical times, those companies risked spending more for a greater payback. Rick Yoswein, president of Alpha Business Machine Corp., an authorized dealer of Ricoh copiers, printers and network solutions in New York City, knows all about risk, which he defines as a matter of looking beyond what you have, seeing where you want to go, evaluating what its going to take to get there and then doing a risk-to-reward ratio. That means asking yourself if its worth doing all the things necessary to reach your goals. Adds Yoswein, who recently invested about $300,000 to renovate and add office space, You have to keep up with changing times and technologies. 4. Dare to be wrong. Carl Hamilton, author of Absolut: Biography of a Bottle (Texere) and a columnist for one of Swedens largest newspapers, says, When Absolut introduced its vodka to the U.S., it broke all the rules. [Company executives] wanted Americans to drink vodka from Sweden. They came up with a clear bottle, and everyone said, Thats wrong; you cant see [it]. Put it on the shelf and you can see a bottle of Smirnoff right through itmagnified. But Absolut succeeded in taking a new and original approach. The lesson? When you challenge the conventional, you risk being defined as the guy whos doing it wrong. But if you truly believe in what youre doing, you have to take that risk.

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We have to make difficult decisionswe have to risk being wrong. We risk money, energy and time. We sacrifice one goal to achieve another. But risks can be calculated so they pay off more times than not. When you lose sight of risk, you lose sight of opportunity. Erica Jong once said, The truth is, if you dont risk anything, you risk even more. 17.8. On The Horizon To ensure success is in your future, keep your goals in sight. There are many ways to define a goal, and dozens of synonyms for the wordtarget, purpose, objective, destination, intent and aim, to name a few. Goals give us direction and focus. They turn impossible undertakings into achievable tasks. They help us keep our vision clear and our footing steady. A goal accomplished isn't just another step toward a destinationit's a building block in the foundation of success. Successful salespeople usually reach for many goals at once. That's why it's important to write down your goals and keep them in plain sight. If you lose sight of them, they disappear from your mind, and you begin to lose track of where you're going and how you're going to get there. One way to help you stay focused on the challenges you've set for yourself is to keep the acronym GOALS in mind: G: Gather Information. This is an ongoing activity in sales. Not only do you gather information in a general sense (about your industry, marketplace, product or service) to keep yourself apprised of the big picture, you also focus on information specific to one customer or one goal. O: Organize. After you've gathered as much information as you can, sift through the data and prioritize it. Successful people know nothing is ever achieved in one giant leap. It's the tiny steps you take, one by one, that help you reach your destination. You also need to prioritize your list of goals. There may be times when you realize goals are no longer valid, whether because of changes in the marketplace, changes in your business or changes in what you want. Constantly clarify your goals to make sure you're on the right track. Organization applies to your files and materials, as well as your overall action plan. A: Act. Some people get so caught up in writing down their goals, they never take the steps to achieve them. No matter how distant your goals appear, the only way to get there is to take the first step. The best salespeople never stop making calls, following up or sending letters and articles of interest. Find ways to maintain a constant connection with your customers; let them know you're always thinking of new ways to serve them. L: Look To The Past And Look To The Future. Keep the past in mind so you can see your mistakes and learn from them, but also look toward the future. For example, I was replanting a tree recently and wanted to put it in a certain spot so it would block an opening. The landscaper moved the tree so it was between two other trees, no longer blocking the opening. He said, "You're thinking right now; you're not thinking in the future." In other words, I needed to leave room for the trees to grow together so they would naturally close the open space. If I'd planted the tree in the first spot, there wouldn't have been enough room for it to grow. S: Set New Goals. You gather strength through struggle, not when you grab the prize. We're at our best when we're climbing, stretching and challenging ourselves. Don't settle for what you know you can doreach for the next star. Success can make you complacent, so the best way to keep going and remain successful is to always set new goals and start new journeys. Many people are afraid to write goals down, because that makes the commitment real. But there's no better way to go about it. Perhaps you'll need to change the way you gather information, change the prospects you call on or change the times you work. Change is

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difficult; it creates obstacles that must be overcome. But the best rewards in life often come when change happens, when we've opened new pathways to reach our goals.

18. SalesTips 18.1. Here are 29 sales and marketing tips.

TIP NO 1

Basically I feel that the telemarketer should be warm and friendly and NEVER sound desperate. They should address the consumer's concern instead of blowing right through it....take the time out to really LISTEN to what the consumer is saying. TIP NO 2

What I have found to be extemely successful is to make sure your prospect enjoys your visit. They might be having a hectic day, forgot you were coming, or something going wrong at home. That's okay. Appreciate their situation, and try to be a bright spot in that hectic day. This can be done simply by listening. They will be more apt to by from you if they know you understand their situation. TIP NO 3

You have to act like your not selling anything to the customer, but recomending to the client. You are simply there to 'help them'. No body is going to buy anything, they are simply going to reflect on the recomendation they recieved. Always rememeber, sales is not the word. recomending is. Your goal is making them believe your helping them, not pressuring them. But don't be to passive. Some aggression is needed to succed! TIP NO 125 4

A telemarketing sale is not brain surgery and you don't always get scholars in your training classes. If you explain the sales process in easy to understand term, what I like to call "Kids Term", then the sales force will understand it better and feel more comfortable using it. Example: Handling customers objections to your sales pitch. Use the A, B, C approach A - Acknowledge the objection that the customer(s) give. OK, I UNDERSTAND, I CAN APPRECIATE THAT (and you can use these on any and all objections throughout the call) B - Give the customer a benefit statement that will answer their objection or turn their objection into an agreement. C - Control the call by questioning the customer. Ask them a question that gets the customer to give you more information about them (needs and wants) and then focus you sales approach on those needs and wants. TIP NO 5

Watching the bottom line. As salespeople we often tend to focus on price, in fact it is really easy to think that you can solve all problems by lowering your price or offering additional discount. Be careful to think before you act and when confronted with a problem during a negotiation or sale think to yourself, "how can I resolve this issue without reducing the price?" You may find that there are a number of ways you can improve the 'value proposition' without impacting the bottom line. This'll help your pocket and dramatically improve the company's bottom line - if you know your accounting you'll realise that discount is actually NET PROFIT you are handing over to your client. TIP NO 6:

Being a good listener is important as you are getting to know your potential client. If you can remember something the potential client has said to you and relay this back to him/her the next time you speak, well the potential client may just be impressed that you actually recalled something they said to you. I usually take down a quick note as a reminder to myself that this particular item will be used in my next call. For example, I spoke with a gentleman and he told me he was quite busy to have a conversation at this time due to the fact he was on his way to visit his daughter and new grandson in the hospital. I politely told him I would return my call. When I did I remembered to ask him how his daughter and new grandson was doing. He was amazed by this cordiality and it gave us an instant ice breaking place to start building a good business relationship. TIP NO 7

Companies do not buy anything just because they like you, or if you have a great sales pitch. They buy because your product benefits them in some way: lowers their manufacturing cost, increases their productivity, or helps them gain a competitive advantage in some other way. In order to paint a clear picture of how your product will benefit the prospect, you need to find out what they do, what their key management issues are, and identify a way your product will help. Then you need to quantify this for the prospect in terms of RETURN ON INVESTMENT & PAYBACK time. This is what will catch the attention of the key decision makers. TIP NO 8

Not Much.... If a customer states they do not use much of something I sell, I always ask, and I now make sure the reps in my department ask, "How much is not much". This is relative to what other products they use. Your product, or alternative product, could be considered a slow mover to this company overall, but could result in a sizable sale to you. In other words, get specific usage per month, quarter or year. TIP Use these three things when interviewing: 126 NO 9

1. One very good word to use is Why? Why is a very powerful word one can use in order to start a sale or finalize a sale. 2. Another powerful phrase is: In Addition to that? It is a very good phrase to use when you feel you have a good chance at selling.

3. The third and final is: If I were your own brother, I would say to you what I'm going to say
now. The prospect would usually answer with What's that. This final phrase is a good phrase to use when you have competition, or if you think the prospect needs a powerful confidence booster. Also, find out what he wants. Then SHOW him what he wants. He will then move heaven and earth to get it, making the sale. TIP NO 10

People do not want to be "sold" anything;however, most people like to "buy". Buying is an active process When people are talking they feel a sense of control; they are actively making decisions and controlling their own future. This feeling is especially stong when the listener appears sincerely interested. In any selling process it is essential that the salesperson knows how to "actively" listen.This "active" listening involves three steps: 1. provide good eye contact with the person talking.Eye contact is very powerful as a form of attention.Think how you would feel if someone you were talking to began looking away or at someone else while you are still talking. Even looking down at your notes may be distracting and thus not a good idea. 2. Repeat the main message you are hearing at selected times to be sure you are picking up the accurate meaning. 3. Lastly it is important to repeat what you think the person talking is feeling as well. "It sure sounds like you angry" or "confused", "frightened" or whatever. This often results in the quietest person talking nonstop and of course feeling great about the experience. This process has several benefits: 1. If you do it sincerely people will like you and remember prospects have to "buy" you first. 2. You find out what is actually important to this prospect so that when you begin talking about your product, you will focus on only the benefits to that individual buyer. 3. People will usually talk alot and by asking more specific questions you will be able to gain more knowledge about that prospect than you have ever done before which further prepares you for any future objections.

TIP

NO

11

For as long as there have been sales people, those who sell most, rely least on artificial closing techniques and more on creating a strong emotional bond with prospects through the sales story. Want to get more sales to close? Do this: 1. Create a complete story with a beginning, a middle, and an end. Tell who your company is, how it got started, how it developed your product, etc. 2. Include all your sales facts, benefits and talk points in a narrative. 3. Build and keep a varied and rehearsed library of compelling openings. People love to hear stories. They stay interested longer and they are less likely to cut the interview short. To learn more about this lesson, go to More. TIP NO 12 127

Cold calling is simply a numbers game. The more calls you make the more meetings you will set. Increase you current calls by making 3-5 calls from your car on your way into work and on your way home. The prosepect will be impressed to hear from you before and after normal business hours. This is also a good way to get past the "gatekeeper" because they generally are not there before 8 or after 5.

TIP NO 13. What if we showed you a big bowl of multi-colored jelly beans and we threw in one $50,000 diamond. Then we blindfolded you and said you could scoop handfuls of the mix as long as you wished, before giving the next guy a shot. When do you think you would stop "prospecting"? Before you got that diamond? Of course not. Would you keep on "prospecting" after you did find it? No, again. You would work only until you met your payday goal and, since there would be nothing more to gain, you would then quit. Think of that bowl of jelly beans as you set your sales goal each day and go for that diamond. Then, when you get it, go home, enjoy your success and get stoked for a great day tomorrow. TIP NO 14.

NEVER ask a customer a question like "Would you like to try a sample" they always have a power to say no...suggest it, they will try it! TIP NO 15

I never begin selling until I have done a complete job qualifying. I always know who makes the buying decision, how the decision will be made and how I can make the transaction a success before I have told the prospect any pricing or benefits. Knowing these makes my sales presentation shorter and targeted--saving my prospect time. Clients always appreciate it. TIP NO 16

When asking for referalls, ask for a specific one. Example: If I do business with a mortgage comapny, I know they do business with a Title company. I ask them for that SPECIFIC referral. 80% of the people will give it to you. It's a lot better than "who do you know?" You could also ask for a "generic" referall. Who does you cleaning, security, etc. If you sell to consumers, ask if they have any brothers or sisters, daughters or sons. This is a powerful technique. TIP NO 17

Clean out your prospect funnel. Put your current prospects through a sieve. The biggest mistake sales people make is they call on the same useless prospects over and over. If you have not been able to get anywhere with a specific group of prospects move on and find new prospects. Being persistent is good. However, if you are spending too much time on fruitless leads you will just burn out. "After a shepherd's herd has eaten all the grass in a specific pasture he knows its time to move on to a new pasture. If he does not move on his sheep will starve. Move on if you are not getting anywhere with old prospects and come back at a later date. TIP NO 18

I make the suggestion to my sales staff to get the customer to fill out their warranty card while in 128

the store. This way the customer doesn't have to worry about mailing it and won't have to hang on to his receipt for dear life. We also use this information to update our marketing data base. TIP NO 19

You need to be excited about all of your current promotions, even something that seems obvious to you the customer might not realize (for example the length of the warrenty)many times the customer will buy from you if you point all these little things out. TIP NO 20:

One of the keys needed to sell is entertainment, the more you entertain your prospect the greater your chance of creating a personal contact. This does not mean going to the pub or girly bars. This means during your presentation, being interesting and annimated. TIP NO 21

To target, qualify, establish and maintain productive prospects, one must create trust and a personal relationship and understand the prospects needs, budget and expectations. -Website is great. -Been in sales part time for 5+ years now and currently I sell two services (finacial aid services and safety services) -This was my first visit to this website and I was impressed. TIP NO 22

I am a trainer with Telemarketing Vendors. My simple sale tool is to tell the TSR's to sell themselves and consider and be empathetic to the customer. It always works. Make the customer a friend. The they have your trust and faith to purchase your product TIP NO 23 If you're making telemarketing calls and having trouble getting past the receptionist, then the next time you call that company go up or down 1 number on the last digit of the general phone number to reach someone else who might be more helpful. Usually, every time I've tried it people other than the receptionist have been more than helpful. TIP NO 24

If you can't get through to the right person in the prospect company, for example the stubborn receptionist won't put you through, ask for the accounts department (or accounts receivables, as we call it here in the states, Matthew) and they will put you straight through. Once there, say, "Is that John Smith?" They will say no. Then ask to be put through to John Smith. It's never failed me.

TIP NO 25 When should you keep fighting for sales and when should you move on and make better use of your time elsewhere? To help you make that decision, here are the five biggest reasons prospects don't buy from you and what you can do about it: 1. You don't know your prospect's budget. 2. They truly don't need what you sell. 3. They don't trust you. 129

4. They don't like you or your company. 5. You don't understand the internal politics of the prospect firm and can't create rapport with all of the forces for change.

TIP

NO

26

Seriously, you can learn a lot about sales and marketing from studying insects. The two insects I like to watch most, marketing-wise that is, are bumble bees and spiders. A bumblebee flies as much as 50 miles from home to pollinate a really choice flower "prospect". Here comes that big bee. There goes that big bee. He really, really racks up the frequent flier miles... know what we mean? The spider, on the other hand, puts less emphasis on "direct sales" and relies more on studying the best principles of salales and marketing. He does marketing research and determines that if he locates his web in an area of high traffic flow, he will snare more than his share of "customers" without having to pack as little as a toothbrush for those tiresome road trips. Strategic marketing beats road selling every time. Who says you can't make a living sitting in one place? Couch potatoes, rejoice... but tend to your "netting."

TIP

NO

27

You may be really good at what you do, but how can you convince your prospects of that. A reference letter serves three purposes: 1. It gets your client to thinking proactively about you, great for additional work. 2. It uncovers hidden problems in the job while there's still time to do something about it. Reluctance to provide a written reference brings this out. 3. It produces a reference letter that can be used in your selling efforts. A great, low-cost marketing tool. Never pass up the opportunity to ask for written reference letters. Keep an updated file and never pass up the opportunity to use them. Watch your closing rate increase.

TIP

NO

28

Many an intelligent sales person has wasted his or her entire career stubbornly telling customers what he thinks is best, instead of giving them what they really want. Is this you? Selling, and life, really isn't so hard if you listen to your prospects and meet them half way.

TIP

NO

29.

Never stop including telemarketing in your prospecting mix, even though you hate it. It's the fastest way to qualify prospects. It lets them know what you do. It's targeted. It's the best way to learn who the decision maker is. It creates a personal relationship with the buyer. 130

It keeps you productive when leads are scarce. It reaches prospects you miss in other selling activities.

18.2. Sales Tips for First-Time Entrepreneurs

1. Sell benefits, not features. The biggest mistake entrepreneurs make is in focusing on what their product or service is. Rather, it's what it does that's important, says Tracy. "A health-food product contains nutrients that are good for the body. That's what it is. What the product does is make the customer thinner, more energetic, and able to accomplish more with less sleep," he explains. "Always concentrate on how your product will benefit your customer." 2. Sell to the people most likely to buy. Your best prospects have a keen interest in your product or service and the financial resources to purchase it. They are the ones who will buy most quickly. "If you're selling photo-copy machines, don't try to sell to people who have never bought one before," Tracy suggests. "Sell to those who already have one, or to those you know would be interested in buying one. Show them how yours is superior." 3. Differentiate your product. Why should a customer buy from you and not from your competitor? Tracy suggests coming up with at least three features that will give a customer reason to buy from you. "People don't like to go out of their comfort zone to try something new. So, give them three good reasons to try your product," Tracy explains. "Your product or service, for example, works faster, is less expensive, and has a higher-quality level of ingredients." 4. Get face to face. Spending huge sums of money on print-media advertising or direct mail is one of the least effective ways for first-time entrepreneurs to build up their business. There is no shortcut to the personal approach. Get one-on-one with your customer--if not in person, at least by phone. 5. Focus on the second sale. Nearly 85 percent of all sales are produced by word of mouth. "They're the result of someone telling a friend or associate to buy a product or service because the customer was satisfied," says Tracy. Therefore, concentrate on developing future and referral business with each customer. "Everything you do must be aimed at the second sale. Ask yourself: Will this be such a satisfactory experience that my customer will buy from me again or tell his friends?" EXAMPLE! I was 11 years old, selling soap door to door to earn my way to YMCA camp. I'd say, "Hello, my name is Brian Tracy. I'm selling Rosamel beauty soap. Would you like to buy a box?" People would say, "No, don't need it, don't want it, can't afford it," etc. I was very frustrateduntil I rephrased my presentation: "I'm selling Rosamel beauty soap, but it's strictly for beautiful women." People who had been completely uninterested would say, "Well, that's not for me. It wouldn't help me. How much is it?" I started selling the soap like hot cakes.

18.3. Seven Things Every CEO Should Know

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Even as a CEO, you should never be above getting your hands dirty in the sales process.
At some level, of course, all business leaders must "sell." But why do so many CEOs, owners and presidents either remove themselves from the sales process altogether, or limit sales exchanges to "closing" or "top-dog" meetings? The answer is that most leaders of companies have gotten used to delegating. Even though they make a habit of exercising their significant analytical, interpersonal and persuasive skills during interactions with employees, suppliers, board members and other key players, most CEOs find a way to rationalize away any personal commitment to ongoing involvement in their organization's selling activities. Maybe they've forgotten the importance of selling; maybe they feel they've outgrown the world of sales; maybe their idea of selling is coming in at the end of the process and hobnobbing with a client or prospect. An elite group of dynamic, revenue-focused CEOs knows better. (I'm interviewing a group of them right now for an upcoming book.) They know there's much more to a sale than a close, and much more to a relationship with a customer than schmoozing. In my experience, CEOs who get out there and sell tend to do so in very large volume indeedby adhering to the following principles, all of which can and should be adopted by entrepreneurs. 1. Personally and consistently model the ideal sales process. Talk about a moralebuilder! Everyone needs role models. Who plays the role better than the head of the company? 2. Establish personal visibility within the marketplace. Imparting a touch of personal accountability and a sense of mission enhances the organization's brand(s), image and reputation. 3. Personally monitor changes in the marketplace. There's nothing like talking to customers directly about how they're using your product, service or solution. Leaving this to the marketing department or a team of consultants can lead to missed opportunities and a slower-than-necessary time to market for new products and services. 4. Constantly build interpersonal skills to secure one-on-one loyalty from customers. Top CEOs send personalized, handwritten thank-you notes to each and every one of their colleagues at client/customer organizations. (Don't underestimate the power of a hand-written notethese can build truly extraordinary customer relationships.) 5. Increase the amount of high-margin add-on business. Often, this occurs when a CEO assumes direct, personal responsibility for connecting with people at the highest level of the target organization and building long-term partnership plans. 6. Call a meeting of your best (noncompetitive) customers. Not a fiscal quarter should pass when you don't have a customer "touch point" that will keep you and your ideas in the "top of the mind" category. Customer summits are a great way to do this. 7. Send a gift that dramatically illustrates the value of the relationship. Here's a realworld strategy I love: Get a fancy coffee mug with your company's logo on it, place your signed business card inside, and attach a large "Sale Price" tag to the handle. On the front of the tag, list the hard-dollar value that your business relationship has delivered; on the back, list the harder-to-quantify soft-dollar value that has accrued to your customer. Send the mug to the CEO of your top customer. Then repeat the process for the next most important customer after that. So what would happen to your own "top line" if you took action in each of these seven areas? If you modeled the ideal sales process for others? Established a personal sense of mission that reflected well on your organization? Monitored changes in the marketplace firsthand? Sent handwritten thank-you notes? Called meetings for the express purpose of building long-term 132

partnership plans? Held an event to honor and celebrate a group of key customers? Sent a gift that dramatically illustrated the value you've already added? My guess is that if you did all these things on a consistent basis over the next 60 to 90 days, you would gain additional highmargin business, and you'd build massive loyalty within your customer base. The moral of the story: When CEOs sell, two great things tend to happen. First and foremost, more deals (and bigger deals!) close. Second, every employee gets to witness top-down involvement in Priority One: revenue-generating activity. Let's face it: When a CEO, president or owner does something, everyone in the organization takes notice and perceives that activity as important. So if you're a CEO who wants ground-level selling to take on added importance, hit the phones and make some cold calls in a visible way. If you're a salesperson who wants to hit the top, start selling like a CEO!

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