Neo-Sage Nickel

A better product/service is the first step to success, right? Not at all.

 About a year ago, I was in a conversation about how to spend money when starting up a company.  The two others in the conversation thought that conserving money and only spending on a better product/service, once you get clients, was the right approach.  I disagreed and advocated spending most of your money on marketing and branding.  They thought I was crazy. 

 The reality is... I’m right!  The problem is that the vast majority of people have no idea what or how important branding and marketing are and feel lost when discussing it.

 Let’s be clear on both.  First, marketing is drawing prospects in to experience your company.  There are many ways to do this and companies should always use multiple channels on the SAME audience.  Yes, multiple on the same.  Frequency and niching is everything.  We are bombarded with marketing all day long and have become almost numb to its effects. So, one needs to hear about your company’s product/service many times from different sources until it connects.

 Therefore, when a lone advertiser approaches and says, “Advertise with me”, unless it’s part of multiple channels, your answer should be NO.  But, what if you have very little money?  Then pick a very small niche and inexpensive methods, such as: flyers, Facebook, networking events, etc… It’s always better to touch a smaller audience multiple times.  An example might be, if you have a budget to send out 6,000 mailers.  Instead of sending it to 6,000 people, send it to 2,000 people three times (preferably with a slightly altered message).  If you can niche who you are sending it to, then you can focus the message.

 Example 1:     6,000 mailers that say:

  “Everyone loves my widgets.”

 Example 2:    2,000 mailers (3 times) to ONLY attorneys that say:

“Attorneys are using my widgets to increase their hourly billing.”

 Example 2 will be far more effective - especially the 2^nd and 3^rd time that they’re seen.

In addition, if you can send an e-mail or get them to log on to your website or Facebook page, or see them at a trade show, that’s multiple channels. Very good!

 Good operations/service will usually keep clients, but unless you get them in the first place (via marketing) you can’t keep them!  Good operations/service is therefore secondary. Everyone knows of companies that have a mediocre product or service, but great marketing and they make a killing!  In addition, we all know of great products/services that went out of business. 

 OK, next is branding.  Branding is NOT your logo!  The next time a graphic designer tells you that they do branding, just smile and nod.  The odds are they do logos – NOT branding.  To be clear, branding is the EMOTION or REACTION that someone gets when they interact with your marketing and operations.  That includes your logo, but it’s just one part. 

 The critical aspect of branding is NOT necessarily being high-end.  It may be, but it’s not required.  What’s required is a consistent message.  Walmart is NOT high-end but VERY consistent and it works.  I completely believe that I’ll get the lowest price on EVERYTHING at Walmart.

 I’ll give you a very simple way to start thinking about brand.  NOTE: There are much more detailed and valuable ways to do this via professional branding firms.  This is down and dirty.

First, think about what you want your prospect/client to feel/think about when your company enters their mind.  Is it fun, smart, elite, safe, best price, luxury, comfort, love, competence, dependable, etc…?  From there you can begin.  All aspects of your brand should somehow wrap around this.  If you’ve picked comfort, then your logo should exude that feeling or an emotion similar to calmness.  You company colors should be comfort colors, your office space/store front should be comfortable.  Your employees should be very welcoming and dress comfortably, etc… Your marketing material (paper and online) should reflect this image too.  That congruent message will work.  That is your brand. 

 To use Walmart again, the stores are plastic and paper.  The floor is basically kitchen tile.  The associates are dressed casually.  The focus is on price, everywhere. The service is, at best, mediocre.  It’s perfect for the brand - a consistent message. People know what they are getting.

 So, why should YOU spend time and money on brand?  Because your brand validates your pricing and your marketing message!

 We all pay more money for the brands that we value.  If you are the most comfortable widget around, your brand is congruent with that message and says comfort, and I want comfort, then I will pay more. 

 In addition, if your brand is consistent, then I will feel more confident that you are exactly what you say you are and I’ll be more apt to say yes and pay your price.   I walk into a store and know that the ACME brand is good, so when I see a product that I like, I just buy it.  It’s ACME!

 Not just that, consistent powerful branding will help diffuse negative situations and miscommunication. When people believe in your brand, they will give you the benefit of the doubt when their experience doesn’t match.  I know that ABC brand has quality goods, so when I end up with a lemon, I think that this is obviously a one-time event and I go right back and get another ABC brand widget.

 This idea works for individuals either in sales or in operations too.  Your personal brand is the same.  What emotion/reaction do people get when they interact with you?  Your clothing, presence, language, tone and body language have an effect.  If you maintain a congruent message of: intelligence, dependability, creativity, speed, competence, etc…then your prospects and/or co-workers will be confident in you and be more apt to trust you, say yes to your requests, and say yes to your price (or salary). Your image within an office is often more important than your actual value!  Surely, you’ve seen this case many times.

Please understand that if you are in a slump, having a hard time, just starting up or just want to grow, your marketing and branding (personal or organizational) are critical and are the FIRST things you should be working on.

Good luck!

 -Larry

 “So much depends on reputation – guard it with your life”.

 -       Robert Greene, The 48 Laws of Power

We must always take the side of our client/prospect, right? Bad idea!

A commonly taught axiom is, “The Customer is King.”  Another is, “The Customer is always right.”  In theory these statements are true.  And they should be considered thoughtfully in business.  But, when we allow this ideology to control every aspect of our business or when we take these axioms literally (as too many of us do) we will surely fail!  The reality is…

Your customer and your company (whether you are a sales rep or owner) must have a symbiotic, mutually beneficial relationship.  Sounds like common sense, right?  But then why do so many of us have “problem” customers?  Most of the time, it’s our fault.

To start and maintain a mutually beneficial relationship, each side must have an advocate.  The customer has one – it’s in his/her mirror!  Are we our own?  Often not!  Sales reps and solopreneurs are particularly guilty of trying to also advocate for the client at company’s expense.

We are so concerned with doing “right” by the client and keeping them “happy” that we sacrifice our own value and happiness.  In the short run, this seems good.  In the long run it leads to a terrible relationship, resentment on both sides, poor service, unhappy clients and no referrals. 

What to do?

First, remember that ALL relationships are built on precedent.  So, immediately treat the prospect as an EQUAL.  They require a product or service and you require payment.  This is an equal exchange of value and should be treated as such.  No one is doing anyone any favors.  Act accordingly – polite and friendly, but NOT submissive. This attitude will destroy respect and credibility for the future and will lead to resentment. 

Second, be the expert that they want and need.  Do NOT assume that what they say they need is what they need.  You must HEAR what they want and then TELL them what they need.  If you simply give them what they say, you are just an order taker and you are replaceable. In addition, if you give them what they want and it fails, they will blame you even if you did exactly what they said.  Again, you lose respect and a client.

Third, set expectations from the beginning.  Provide them with a realistic picture of their future success with success stories, references and examples to the best of your ability.  Set up timelines that work for YOUR Company, so you can meet them.  If their timelines do not match, do NOT comply.  Instead, compromise to ensure you can deliver and to let them know that this is an equal exchange.  You are a team.

Fourth, while discussing/negotiating pricing, emphasize their results and future success.  They are paying for results, NOT your product or service.  You may lower your price, if required for negotiating, but, always validate the reduction.  This reinforces that this is a two way street and you will be happier and able to provide better service, in the long run, making them happy.

Fifth, be prepared to walk away.  If any of the above tactics are impossible due to an unreasonable or aggressive prospect, be ready to walk away.  Not every prospect should be your client. In this case, they will either go punish someone else (good for you) or they will see more value in you (they can’t have you) and therefore gain respect for you and try to re-negotiate.  This is all good for you in the long run.

Perhaps better axioms might be:

“You and the customer are partners” and “The customer knows what he wants and you know what he needs.”

Take the needs of your company as seriously as your client’s and everyone will be happier in the long run. 

Good luck!

 

-Larry

 

 

To become an entrepreneur, the most important thing is a business plan, right? Not really!

A business plan is usually the first thing people think about when talking about becoming an entrepreneur.   If you are getting your business funded, then it is very important.  But there is something even more important, regardless of funding.  That is your mindset.

 

There is a HUGE difference between the employee mindset and the entrepreneur mindset.  That difference is often a key factor in success or failure.  OK, what does that mean?

 

1 - The employee believes that there is value in activity.  Showing up matters!  If he/she works hard and works late, that means success.   And usually, for an employee, that is correct.  If an employee shows up and does the job and works hard, steady paychecks come.  In addition, (in a good economy) he/she will keep the job and may even be promoted and/or given a raise.   This sounds great.

 

For the entrepreneur, activity matters ONLY if you are making sales.  You can work hard 18 hours a day, 7 days a week and if you don’t make sales, you fail!  Activity by itself means nothing.  Success is directly tied to closing deals and creating more revenue.  Being effective and efficient is critical.  Showing up is just nice. 

 

The entrepreneur believes that hard work is something to be avoided by generating enough revenue to make hard work unnecessary. 

 

2 – The employee believes that job skill set is what matters.  If he/she is a great “do-er” then success is coming.  And usually, for an employee, this is correct.   If an employee is a great accountant or graphic artist or analyst or technician, then steady paychecks will come.  In addition, (in a good economy) he/she will keep the job and may even be promoted and/or given a raise.   This sounds great.

 

For the entrepreneur, a great skill set matters ONLY if you have clients.  You can be the best at X in the world, but if you have no clients, you fail!  Skill set by itself means nothing.  Success is directly tied to more clients and more revenue.

 

The second aspect is that if your production is the only form of revenue, then your company is severely limited.  In fact, if you are just working on a per hour basis, then you aren’t really an entrepreneur.  You are a contracted worker; still an employee.  

 

The entrepreneur knows that success can no longer be judged by job skill set, but ONLY by business acumen.  The ability to move a company forward with both sales and operations as a leader is the key to success as an entrepreneur.  Skill at a specific task is often irrelevant.

 

3 – The employee sees the employee or company as the entity that “gives” him/her a job.  The business owner/boss is higher and more powerful and deserving of reverence.  And usually, for an employee, this is correct.   If an employee shows reverence to the boss and makes his/her needs secondary, then steady paychecks will come.  In addition, (in a good economy) he/she will keep the job and may even be promoted and/or given a raise.  This sounds great.

 

For the entrepreneur, prospects and clients should be seen as equals.  They are experts in their fields and the entrepreneur is an expert in his/her field.  The entrepreneur provides value (as a product or and/or service) and the client provides revenue.  It is a deal between two companies; two entities; two equals.  Showing reverence for the client will almost always result in lost deals and lower revenue. 

 

Why?  As you place yourself on a lower pedestal, the client/prospect will lose confidence in you and therefore either negotiate your price down or go with another vendor that they believe in more.  In the long run, most clients want experts, not servants.

 

If you see yourself not as expert, but a servant, you will act accordingly.  You will simply ask what the client wants and give it to them directly.  That sounds great, because that what an employee does.   The boss is an expert, we follow his instruction.

 

The entrepreneur must understand that the clients are not experts in your field.  They are often wrong and the project will fail to achieve what they really wanted if you just do what they say and not what YOU KNOW WILL WORK.   Then, even though you followed the client’s direction, they will blame you and never use you again.

 

The entrepreneur knows that each deal is an agreement between two equals.  You must know that the responsibility of an expert is to hear what prospects want, and then to show them how you can give them what they need to achieve exactly those goals. 

 

I hope this will assist you with your decision to be, or not to be, an entrepreneur. 

 

 

“Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage.”

 

- Niccolo Machiavelli

 

 

Good luck!

 

Larry

Making mistakes is a great way to learn how to change, right? Not really!

Making mistakes is a great way to learn how to change, right? Not really!

 

On my radio show last week, a caller asked why people continue to be fooled by outrageous marketing claims even AFTER they have experienced failure!  The lose weight fast, easily while you sleep and still eat pizza and soda everyday plan failed, yet they still buy the next one advertised.  Are these people suckers?  No, they are just human.  The reality is that we are all susceptible to this.   It is very natural for us to continue to make mistake after mistake.  We hate change.

 

 A few years ago, a friend of mine, Michael Weitz (a great personal coach by the way – www.ovationcoaching.com), told me a story about a group of people who had undergone heart bypass surgery and were told by their doctors that if they didn’t change their lifestyle they would die.  After 2 years, only 10% changed,  Only 10% of people who were in an actual life or death situation AND went through a traumatic event!*

 

We are told that doing the same thing over and over again and expecting a different result is a working definition of insanity. Clearly NOT!  This is how we are hardwired and this is actually the definition of HUMANITY.   But why?  Well, there are two reasons.

 

1 - At the most tribal level, change is often bad.  The elders already figured stuff out, so going outside of these teachings may get you (and your tribe) dead!   Plant the right stuff at the right time or we all starve during the winter.  Hunt the way you were taught or you might become dinner yourself. 

 

Also, basic society depends upon many social rules.  Change those rules and you upset the social equilibrium.  That makes people anxious and worried.  You may be a witch and find yourself burning at a stake.   

 

So, we fear change and keep doing the same thing because it feels emotionally comfortable, even if it hurts us physically.

 

2 – The brain doesn’t want two things.  It doesn’t want to die and it doesn’t want to be embarrassed.  Not always in that order.   With that in mind, we will often rationalize ANYTHING to make ourselves right and therefore avoid embarrassment.  The best examples of this are “Doomsday” cults.  Jesus is coming next week or the spaceship is coming tomorrow.  Whatever the ideology, after Jesus and/or the spaceship fail to show up, you would think that the cult is over.  Here is the ultimate proof that Reverend Gorlock was wrong.  NO!  This is when the cults gain the most power!  Yes, the most power.

 

Why?  Because at this point the flock must come up with a logical reason for their savior’s delay and once they do, the brain gets behind it 100% as a self-defense mechanism not to be embarrassed or wrong.   They become even surer that next time is the right time.  And their renewed vigor grows the cult. 

 

So, failure often results in denial, even self-delusion and then more powerful renewed faith. 

 

Does this mean that people are just doomed to keep buying “miracle” pills, machines and books?  Yes.  And marketers know it.  They add two additional pieces to ensure it.

 

1 – They often focus on the desperate.  When we are desperate we want to believe anything and so we do.  If you have tried to lose weight so many times and you are desperate for a magic pill, you are VERY apt to believe in one, even if the last two failed. 

 

2 – They use language and techniques that help you create a logical reason for the last failure.  “This is not like those others”   “This is new and improved”  “Never before…” etc…  Since you want to have an excuse for the last failure, they help you find it. 

 

We all have had this happen to us.  Yes, you too.  It happens in all aspects of our lives.  Maybe it was in business or a relationship or a product.

 

Examples –

 

1 - You are attracted to the “bad boy”, but your last three “bad boy’ relationships were disasters.  You find an excuse for them and when you meet the next “bad boy” he tells you that he’s different and you believe him because you want to!  6 months later, you are in another disaster relationship.  Are you crazy?  No, you are human. 

 

2 – You’ve joined two different Multi-Level Marketing (MLM) or Network Marketing Companies and both times they failed to work for you.  When another person approaches you with a new MLM and you find an excuse and believe this time it will work.   A year later, this one is failing too.

 

These types of stories are everywhere.

 

So, what can we do?  Four things:

 

1 - The most important thing to do is to realize that you are hardwired to do this.  Once you really get this fact, you can see when you begin to act this way and do something about it.  You are NOT immune, no matter how smart you think you are.

 

2 – Do NOT act impulsively.  Once you see what is happening, stop and set a time in the future to deal with this.  Ex.  When you see the commercial for the magic pill, write down that you will look into this tomorrow afternoon.  Now you have time to think and take the emotion out of the equation. 

 

3 – Gain outside perspective from a source(s) you trust.  This can be a friend, a relative or research from websites that you trust. 

 

4 – Tell someone else what you plan to do.  If you can’t or are afraid to, it’s probably a bad idea.

 

Hopefully this will help you be wiser in the future. 

 

“When we are dealing with people, let us remember we are not dealing with creatures of logic. We are dealing with creatures of emotion, creatures bustling with prejudices and motivated by pride and vanity.” - Dale Carnegie

 

Good luck!

 

Larry

 

* An article on this is here - http://www.fastcompany.com/magazine/94/open_change-or-die.html

 

Remember to listen to the Ivory Tower Radio Program – www.IvoryTowerRadio.com

 

People need to see you working hard now more than ever, right? Not now, not ever!

Being known as a hard-worker is critical to keeping your job or getting a new one, right?  Wrong.  Being a hard worker is a good trait, but more important is how you are perceived in the work place and/or the market place.   The reality is that lots of people work very hard and still fail or get laid-off, while many others work very hard and succeed.  At the same time some people work rather lightly and succeed, while others work lightly and get no where.  So what’s the answer?  Perception of CONTINUED effectiveness and efficiency!  This always wins.

NOTE:  This is a modified repost of a Neo-Sage Blog from February 2009.  The subject is still relevant so I've reposted it, slightly modified.

If you are an employee:

 

Probably everyone knows of someone who worked very hard for a company but was still laid off.  The thing to remember is that companies/managers DO NOT CARE how hard you work or have worked.  They will still lay you off.  They care about what you can provide for them in the future.  So, for you to keep your job you need to look like you have FUTURE value to include items like:

   

• Seem to do as much of your boss’s job as is realistically possible:
• As long as you are careful not to look like a usurper, the more of your boss’s job you do, the more he/she will have to do if you are let go!
• Do NOT seem to be working to hard – just seem busy:
• If you are working hard that means you will either leave or will soon be asking for help.  Either way they can’t give you more work in the future - bad.  If you are just busy, that’s good and valuable, and they may think they can give you more responsibility in the future.
• Take managerial control over as many areas/personnel as you can:
• The more people that you manage, the more SOMEONE ELSE (perhaps your boss) will have to manage if you are let go.  In addition, if it looks like you are managing well, they would be better served to fire another manager and put his people under you.
• Have people report to you (paper trail):
• This part is critical – this let’s everyone know that you are busy and important.  Have paper/e-mail coming to you and going from you to your seniors constantly! This paper trail should have benchmarks that have been and that will be achieved for as many projects as possible.

 

If you are a sales rep:

 

We’ve all heard of reps that have lost clients because of shrinking budgets.  Just because you work hard for your client/prospect doesn’t mean that they say yes or give you repeat business.  Working hard just means that you’ll have no time for family and friends, but it doesn’t guarantee more sales or that you’ll keep your job. Here are some good ideas:

 

• Niching now is even more important:
• More time in less industries/sectors means you are most efficient.  As long as these sectors aren’t completely destroyed, you’ll be positioned to get whatever business there is, since many others will be running all over the place.
• Confidence is effective:
• Acting like things are not so bad (whether they are or not) is critical!  In addition, it should seem like your product or service is exactly what they need now.  When prospects are worried or scared, your confidence is the absolute best antidote.  If you seem worried or hesitant, your odds of closing go into the toilet.
• Constant reports with $ values and good pipeline:
• This is similar to the paper trail concept above.  When managers have to decide who to boot and most are performing just at par (or worse), they are more apt to keep the rep that has an OBVIOUS plan for the future.  Lots of reports with dollar values help tremendously.
• Staying in front of clients:
• This makes them feel like they are part of your team.  In addition, you are set up to receive referrals, and any up sell business.  More importantly, they often know who is hiring!  It may even be them.  Many sales reps are hired by their former clients.

 

If you are an owner/entrepreneur:

 

Times are tough for many of us and most owners/entrepreneurs have felt the pinch.  Working hard means that you’ll hardly be home, but it doesn’t mean that you’ll keep your business running.   In fact, you may become obsessed and other relationships may suffer.  No good.  Here’s a better answer:

 

• No one should ever see you worried:
• Clients will think that you can no longer deliver, prospects will think that you about to go under (no new business), vendors will start asking for money earlier and your employees will be a mess (inefficient because of worry) and you best talent may leave.
• Market as if:
• Still market like your product or service is the answer!  So many others will cut their budget and your target market will notice.  You are positioned to get any business that is there and you will be far ahead in the market confidence game when the economy turns.
• Should seem magical – no complaining:
• You should NOT seem to be struggling.  It should seem like you can handle anything and that you were ready for this – even if you weren’t.  So if you are working hard, let it seem like you are having fun.
• Talk about past successes as if they are still current:
• Keep everyone reminded of what great things have happened and speak like they are still happening, such as client success stories and client acquisitions.  In addition, speak about how great the future is.  This will get as many people as possible (both clients and employees) to stay positive.  Clients will pass on referrals and employees will still perform well.

 

The most important thing is to NOT seem to be working hard, but to seem busy and effective - in the best interest of those you want to impress.  Perception is EVERYTHING.  Even if you are working hard or being efficient and effective, if it doesn’t LOOK that way, you will probably still fail.  We all need people to act (or NOT act) for us to be successful.

 

Understanding this and ensuring that those people see what they want to see, will increase your odds of success in whatever you endeavor you are in.

 

 

“Make your accomplishments seem effortless”

 - Robert Greene, 48 Laws of Power

 

"The performance of the expert seems relaxed. The actions of trained people do not seem rushed. "
- Miyamoto Musashi, The Book of 5 Rings

 

Good luck!

 

Larry

Over 90% of our communication is body language and vocal/verbal cues, right? So wrong!

You have probably heard this before from a coach or consultant in some type of seminar or presentation: 55% of communication is non-verbal (body language), 38% is vocal (tone, inflection, etc...), and only 7% is the actual words that you use.  At least that’s what the wannabe self-help gurus would like you to believe.  The reality is…

 

In 1971, Dr. Albert Mehrabian published a study on communication.  The good doctor, a psychologist, released a study that concluded the impact of a message should be classified as 55 percent non-verbal cues (like hand gestures, facial expressions, etc...), 38 percent vocal (like your tone, inflection and such) and ONLY 7 percent the actual words.  This means that 93 % of communication is NOT words!

 

This study has been quoted so many times by so many consultants that most people believe it to be accurate.  It is NOT even close to accurate.  The study is broken. 

 

The study is broken for two reasons.  First, it doesn’t take into account the realities of today’s modern communication, namely e-mail and texting.  Second, it fails to take into consideration who the audience and listener are and their social environment.  Position, image and relationship are the critical facets in ANY form of communication.

 

Looking at the first reason, what are today’s most common forms of communication, both in business and personal life?  Yep, phone, e-mail and text!   We communicate this way all the time with our friends, family and business associates. 

 

When we talk on the phone, where are your non-verbal cues?  Where’s the body language?  Nowhere!  55% is gone!   And where are the tonality and inflexion when we are texting and e-mailing?  Nowhere!  38% is gone!  All you have is words.  They are critical to your successful communication.  Words account for FAR more than the 7% we are often led to believe.

 

Looking at the second reason, how many times have you heard a message from a stranger and ignored it, but then when you heard the SAME message from someone you trust, you accepted it?  Or how often do you hear a marketing claim and disbelieve it, but then see it mentioned in a blog or website message board and then believe it?   This shows how our social environment and relationships affect communication.

 

You might say, well, the doctor was talking about face-to-face personal communication only.  Ok, I’ll buy that.  Then why are business gurus today, who know that the vast majority of communication in business is NOT face-to-face, still quoting this study?   Because they are just repeating the same old folklore and don’t know any better!   Word selection is crucial to your success in business and communication overall.

 

Examples of how image, position and environment affect a message:

 

#1: A very successful man that you and most people respect says, “It’s time for you to focus on marketing.”

 

In this case, you respect the man’s success (image and position) and you are listening to him to get advice (social environment).  You will probably accept his message easily. 

 

#2: A guy you just met selling ad space says IN EXACTLY THE SAME WAY, “It’s time for you to focus on marketing.”

 

In this case, you barely know the man, and you are on guard because you think he has an agenda of selling ad space.  You will probably be very leery of him AND his message even though it’s the same message as in #1.

 

The image and position of the person, as well as, the fact that one of them is trying to sell you something changes how you take the message.  How can we overcome these image and/or environmental issues?  Word selection!

 

#3: A guy selling ad space RE-WORDED: “Right now, all the marketing gurus like, (insert guru that you respect), are telling us to focus on marketing.”  That will be taken much better since he is now attributing the message to someone you respect.  Which words have a better chance of moving you, #2 or #3?  Obviously #3!

 

This all may seem like common sense, but then why do so many believe Dr. Mehrabian’s study?  They haven’t tried to break the folklore.  It sounds good, so they keep teaching it.

 

Your words hold more power than you think, so think carefully and choose them wisely. 

 

Examples of how you are accepted by your word selection:

 

You are late for a meeting.

#1 – “Sorry, I’m late.”

#2 – “I was delayed, please excuse me.”

 

In #1, you are seen as irresponsible, disrespectful or a knucklehead

In #2, you are almost a victim.  Poor you, you got delayed by some terrible thing outside your control.

How would you prefer to start a meeting with a prospect?

 

You want to speak from your heart.

#1 – “Can I be honest?”

#2 – “May I be forward?”

 

In #1, it seems like you’ve been guarded all along.  Maybe there isn’t that much rapport after all?

In #2, it seems like you have rapport and want to open up more.  You’ve been truthful the whole time, but now you want to have a deeper connection.

Which way do want a prospect to think about you?

 

In business, word selection is your most power tool over ANYTHING else!  Never let anyone tell you otherwise.  Choose your words carefully, both connotatively and denotatively, and you will be more successful.

 

Good luck!

 

- Larry

 

If you get more appointments, that means that you are better at selling, right? Not at all!

There are so many out there that tell you they can improve your selling.  They proclaim to be a sales coach or sales trainer.  But in reality, they are either a motivational speaker or a marketing coach.  What they do is offer you motivation or more prospects to see.  Both are good, but neither is making you sell better!   Being motivated and/or seeing more people just makes you work harder, not smarter.  You’re not really getting better.  To get better at least one of three things must improve:

1 – Close Rate:

    As simple as it sounds, very few people pay attention their close rate.  How many prospects do you close compared to how many you meet?  The majority of professionals don’t know!  Out of 10 prospects is it 2 or 4 or 7?  Most just look at the number of overall closes and not the percentage. 

So, as an example, you had 4 closes last month and then you decide to hire a new “guru”.  This month you have 8 closes and you say, “WOW!  My guru is awesome!”   But, how many people did you meet?  You usually meet 20 people in a month, but this month you met 40.  Still good, right?  NO!  Because you had to work twice as hard to get twice the closes!  In fact, you’ll have to work that hard on a continual basis to keep those 8 closes per month!  In addition, if you want 16 sales in a month, you have to meet 80 people!  This is terrible. 

Before the guru you closed at 20% and after the guru you still close at 20%!  But the guru is a hero and walks away smiling?  Why?

    What if instead, you learned tactics to close 8 people for every 20 you met?  Now you haven’t worked harder, but you’ve doubled your sales!  Now, you can decide to meet more people or you can build other aspects of your business!  That is valuable - that is powerful - that is better selling!

2 – Price Points (Dollar Value):

    If you ask most professionals what is the average dollar value of their sales, they don’t know.  If we follow the Marketing/Motivation guru way, it doesn’t matter.  We just need to work harder and meet more people and we’ll make more money.  Bad idea! 

What if instead, you figured out ways to show your prospect enough value so that they would accept a higher price tag, or negotiate the price less, or buy more? You would bring in more profit WITHOUT meeting more people.  And now exponentially, you get more if you decide to increase meetings.  That is better selling!

3 – Sales Cycle:

    How long does it take to close a deal?  1 week?  3 months?  2 years?  If the time it takes you to close a deal shrinks by 50%, that means you can go through double the number of sales processes in the same time!  That means twice as much revenue and profit in the same time.  That is better sales!

So why do you care?  Because it’s much easier for both YOU and the SALES GURU to not attempt real change in these three areas!   It’s difficult to do.  It’s difficult to teach.  It’s difficult to sell.  So instead, you get to work harder with motivational stories and fun marketing tricks.  Not bad, but not better selling and not sustainable, particularly if you are in a small business.  Efficiency is everything!

Envision gaining all three.  As an example, currently you meet 10 prospects in a month, it takes you 8 days to close on average, you average closing 2 out of the 10 and you average $1,000 per sale.  That’s $2,000 per month.  Now imagine that the next month you shorten your sales cycle by 2 days, close 3 out of 10 prospects and average $1,500 per sale.  That’s $4,500 per month (a 125% increase) with a 25% decrease in time! 

This is what you MUST demand from your “Sales Gurus”!  If you don’t, you’ll end up working harder and not smarter. You’ll get a system that requires constant maintenance. so you can keep up your motivation and hard work.  Or, you can gain skills to make closing deals more efficient forever. 

So, the next time someone tells you that they are a sales guru, coach or trainer, ask them if they can guarantee to increase your close rate, your price points or decrease your sales cycle.  If they can’t guarantee at east one, preferable two or three, you know what to tell them! 

Good luck!

 

Larry

Setting SMART goals is the answer for 2010, right? Think again!

With the New Year here, we are all talking about what we will do differently in 2010.  We want to be better, richer, thinner, smarter, etc…  Well, the answer is SMART goals, right?  Well, you know the answer is no.  SMART goals, limited goals, action goals or blah, blah, blah goals - they’re all the same ol’ stuff that we fail at every year.  Instead, what should happen is…

When you set your goals, regardless of the type, you should have the following components to ensure the best chance for success:

1 - Ask honest “Why” questions with three specific components.

• Promise of Gain – What specifically will you gain if you achieve it?

Will you gain self-esteem, money, freedom, etc…

• Fear of Loss – What will you lose if you don’t achieve it?

Will you lose opportunities, friends, your house, etc...

• Honor – Why is doing this the right thing for you to do?

Do you feel you should?  Is it expected for your profession?

2 - Now put these components in a larger context.  Expand the questions beyond you.

• Promise of Gain – What will be gained if you achieve it?

Will your family be freer?  Will this set you up to achieve larger goals?

• Fear of Loss – What will be lost if you don’t achieve it?

Will your friends and family lose time with you?  Will your family be ashamed?

• Honor – Why is doing this the right thing to do for others you care about?

Will this bring more respect to your business?  Will others be inspired by you?

3 – Add a VISUAL timeline with a system of routine and reward

• Visual timeline/reminder – A board, pictures, poster, Word documents on desktop, etc…
• Routine – Do X every day, week or month (same time/same day, etc…)
• Reward – Have some type of ceremony at benchmarks (money, food, event, etc…)

4 – Add a social component

• Love – Find how this goal affects someone you love.  Tell them and add a reminder of them to your visual timeline.
• Respect - Find someone that you respect.  Tell them what you plan to achieve.  Then ask them to help by checking up on you AND add a reminder of them to your visual timeline.

Example 1 – You want to lose 30 lbs.

1 – Write out:

If you do it, you’ll be able to enjoy the beach in the summer with your loved ones.

    If you don’t do it, you’ll lose money because you can’t wear your clothes in the closet now and have to buy new clothes.

    As a parent you should set an example for your kids

2 – In addition, write out:

    If you do it, you’ll be able to do more things, feel better about yourself and have a better life.

    If you don’t do it, you’re health will suffer and you won’t be able to spend as much quality time with your loved ones

    Losing weight will show everyone around you that you are a strong and determined person.  This may also inspire those who you love that are overweight to lose weight themselves.

   

3 – Create a chart that goes on your wall which follows your weight loss.

    You need to do X things every day to achieve your goal – have a check box for each day.

    Weigh yourself, eat breakfast, etc…

    At each milestone, create a reward (a special treat, celebration, gift, etc…)

4 – Tell your significant other that you are doing this because you love him/her and it will make your relationship better.

    Tell your friend of many years that you are doing this and ask if he/she will follow up with you every week.

Example 2 – You want to double your income.

1 – Write out that:

If you do it, you’ll be able to have a great vacation this year with your loved ones.

    If you don’t do it, you won’t be able to move to a better home.

    You’ve been working for X years, it’s about time you made it!

2 – Write out that in addition:

    If you do it, you’ll be able to have more free time, feel better about yourself and have a better life.

    If you don’t do it, you’re going to feel stuck and will likely be unhappy for years.

    Doing this will set you up for an investment in your business and/or yourself.

   

3 – Create a chart that goes on your wall that follows your progress.

    You need to do X things every week to achieve your goal – have a check box for each week.

    Make X phone calls, Read Y data, etc…

    At each milestone, create a reward (a special treat, celebration, gift, etc…)

4 – Tell your significant other that you are doing this because it will make your life together better and you really want to go on a long romantic vacation with him/her.

   

Tell your business associate of many years that you are doing this and ask if he/she will check on you every week.

Follow these steps to increase the odds of your success!

Happy New Year and Good luck!

- Larry

‘Tis the Season for gifting clients! Or is it?

The Holiday season officially started the day after Turkey Day - Black Friday.  So, it’s time to get out there and get gifts for your clients.  You need to spend good money on your best clients and reward them for their loyalty, right?  No!  This is a common mistake.  The reality is….

 

You do NOT need to go crazy with great gifts for your best clients.  If you do, it will be a waste of good money, for two reasons.  One - they are already your client, so you aren’t gaining much.  Two - if you give them a great gift during the holidays, they will assume that they deserve it and not be moved.  You are just training them to expect great gifts from you each year as a part to doing business with you.  Not powerful and not valuable for you.

 

But think about what would happen if you gave them a nice inexpensive promotional item like a pen or mouse pad or even a card.  There’s little difference in the client reaction, but it’s a lot cheaper for you.   And then imagine if you took the savings and sent nice gifts to several prospects that haven’t done business with you!   What would happen then?  Those prospects are NOT expecting gifts.  They will feel surprised and special and are now more likely to return your phone calls, or restart talks, become your client or pass you referrals. Here, you gain something.

 

Gifts should not be given to REWARD good behavior; they should be used to CREATE good behavior.   As counter-intuitive as this seems, it is true.

 

In fact, if you can send someone a gift at a time when they don’t expect it, it’s even more powerful.  Think of the value of sending a good client a holiday gift, compared to sending a prospect a gift in the middle of January!   The client says, “Oh, that’s nice.” the prospect says, “Wow!  That was very thoughtful!” - Big difference!

 

If you have never given gifts to your clients during the Holidays, do NOT start.  If you want to be magnanimous then send cards.  If you really want to be fancy, send custom cards and have your team (hire interns if need be) to hand write them all.  Hand written cards add the personal touch which adds rapport value and increases the odds that the cards will be noticed and read.

 

If you already have set the precedent of Holiday gift giving, then send inexpensive promotional items.  Try to be creative, but do NOT spend a lot of money.  The return is low.

 

Take that same budget and begin to send gifts to people who’ve told you NO, or who are hesitating.   In addition, if your business can afford the wait, send them in January or February.  Here you can spend some money, but unless you know exactly what the people want, spend no more than $25 per gift. 

 

Gifts must always be under $25.  If you send an expensive gift, the gift will be judged on its actual value.  If you send an inexpensive gift it can only be judged on its thoughtfulness.   In addition, an expensive gift may be seen as a bribe.   Example:

 

$250 green designer flower vase – Receiver can/will say things like:

    “I don’t like this green.”

    “He thinks I can use this?  Really?”

    “$250 for this?  Wow, he has no taste.”

    “$250 is a lot of money, what does this guy want from me?”

 

$15 hat from trip to Sea World – Receiver can/will say things like:

    “Wow!  That was nice of him.”

    “My kid will love this.”

    “Yes, I want to go to Sea World too.”

 

Now the one exception to the $25 rule is if you know exactly what a prospect wants.  ONLY in that case may you exceed the $25 mark.

 

These types of gifts to prospects WILL garner a better return in direct business and in referrals.  The prospects will be affected by the law of reciprocity and will be much more inclined to do business or to pass referrals to you.

 

In this economy, we need to be as efficient as possible when it comes to our marketing.  Gifting is just another part of our marketing budget.  So, avoid the common wasteful ideas and streamline this aspect of your marketing budget also.  Effective gifting has a great return.  Traditional gifting wastes a lot of money.

 

Let’s get the most from our marketing!

 

Of course, all of this goes out the window if you just WANT to give a gift.  Please do so, especially if it’s to me. J

 

Happy Holidays and good luck!

 

- Larry

When someone is down, tell him to count his blessings, right? Please don't!

Yes, this is a season of both joy and pain.  With the economy the way it is, there will probably be more pain than usual.  So, when we hear someone talk of their pain, we should obviously tell them to count their blessings and look at the good things they have, right?  NOPE!  That often makes things worse.  What we should do is…

 

First acknowledge their pain.  It doesn't matter how we feel about their pain, or even if we think they are exaggerating.  In fact, whatever pain anyone has, someone thinks it’s minor, but to that person it’s major. 

 

NOTE:  This is a modified repost of a Neo-Sage Blog from this time last year.  The subject is still relevant so I've reposted it, slightly modified.

 

DISCLAIMER - THIS ARTICLE DOES NOT CLAIM TO CURE DEPRESSION OR ANY OTHER MENTAL CONDITION. NOR DOES IT CLAIM TO TAKE THE PLACE OF A COMPETENT MENTAL HEALTH PROFESSIONAL. THIS IS TO SHOW THE READER HOW TO HANDLE THE OFTEN AWKWARD CONVERSATIONS THAT BEGIN WITH HEARING SOMEONE’S PAIN/PROBLEMS. 

 

If you do not acknowledge the pain and just start with the common, “Come on, look on the bright side, you have…..”  Or worse, “Hey!  Some people have it worse because…” You probably have done several bad things: 

 

1. You’ve just invalidated the person’s feelings.
2. You’ve shown them that you don’t “get them” and therefore you’ve broken rapport.
3. If you are close to the person, now they feel stupid or selfish for having their worries.  If they are depressed, now it’s worse.
4. If the person was trying to confide in you, they may never try it again and you may have limited a potentially close relationship.

Well done!?

So DO NOT go with the have "gratitude for what you have" idea.  Instead, acknowledge the pain and then DO NOT try and fix it or make it better.  Just ask a question about it.  This shows that you hear them and that you are interested. 

Example:

 

Friend: “Wow!  This year has been really tough.  I don’t know how I’m gonna make it next year.”

 

You (BAD):  “Cheer up.  At least you got your health.  Bob Jones lost his job and he had to check into rehab!"

 

Now your friend feels worse because his pain is invalid!  Good job!

 

You (GOOD): Yeah.  That sucks.  What are you thinking about doing?

 

This will not magically make them better, but they will feel like you are “with” them.  They probably will not button up and may even vent some more.

 

Once they talk, listen and nod a lot (say, “uh-huh” often, if you are on the phone) until they are done.  If possible, tell them about another person who has a similar problem/concern AND who is ALSO WORRIED.  They should not feel alone or singled out.

 

Example:

 

Friend:  “I’m not sure.  I may need to change careers.  My resume isn’t up to speed yet.” Etc…

 

You: (BAD):  “You know Bill Smith decide to go back to school.  That’s your answer.  You should just go back to school like Bill.”

 

Again you’ve invalidated his feelings and his problems.

 

You: (GOOD):  “Uh-huh.  You know Bill Smith lost his job too.  He’s worried just like you.  He was telling me about some of his friends who feel the same way too.”

 

This broadens the blow so he may not take it so personally and validates his feelings.

 

Then ask if he needs any assistance with something.  This should NOT be assumed or forced.  It must be an option for him to deny if he wants to.  It is the thought here that matters more than the actual help.  Of course, make the offer real in case he does want it!

 

Example:

 

Friend:  I don’t know.  Maybe I should just look into becoming a cupcake squiggle inspector.

 

You: (BAD):  I’ll have you meet with Jane Johnson.  She’s a cupcake squiggle Inspector recruiter.  I’ll call her and set a meeting on Monday.  Also, you should call my brother.  He was one out of college.  I’ll have him call you tomorrow.

 

He may just be venting, he may not want help, he may just be upset and grasping at straws!  Now he has to really think about this and then somehow tell you no.  It may also make him feel helpless or silly.

 

You: (GOOD):  OK.  Well, if you want, I know some people in the industry.

 

Let him decide if he wants your help.  He has control and power.

 

If he doesn’t want your assistance, leave it alone and move on to another subject.  You are NOT doing him a favor by trying to solve his problem.  Things will just become awkward. 

Tell a positive story about someone else - not you or him.  It could be anything, just positive and try to move on.

 

So remember:

 

Acknowledge

Ask

Nod

Broaden the Blow

Offer

Nice Story

Move on!

 

Good luck!

 

Larry