Be sure to also read:
Part Two: The Visual Components of Your Brand
Part Three: China-Proof Your Business in 10 Minutes
Cold calling. Just the word promotes dreadful thoughts of gatekeepers, “rejectionists,” and a long haul toward getting to the right person, much less at the right time. Ever notice that most top-producing sales/business people rarely cold call?
They don’t have to, because they focus every day on developing relationships that generate business by referral. And business by referral—when properly conducted—is equivalent to being ushered into the CEO’s office with an escort! When that happens, your sales cycle could be dramatically condensed—from six months to perhaps six days.
No need to meander through the corporate ladder to get to the right person at the right time. No need to be rejected by gatekeepers. We’ve all heard that people do business with people they know, like, and trust. So the question becomes: How can a sales/business person be known, liked, and trusted by a prospect he’s never met? It’s easy when the sales person has a network of people the prospect already knows, likes, and trusts.
In this context, we’re talking about “who they know” being just as important as “who you know.” As Verizon® so prominently advertises, “it’s the network.” When you have the right network in place and you work it correctly for everyone’s benefit, you’ll be guided through the right door, at the right time, to the right person.
Here are two quick, cardinal rules about networking:
1) You must have the mindset of helping others. Networking must work both ways. Zig Ziglar said it best: “To get what you want, help others get what they want.” If you don’t have this mindset, no matter what type of networking you do, you’ll experience mediocre results, if any.
2) You are not selling when you’re networking. This is the most common mistake people make. Instead of selling, you are sorting to find contacts who are mutually beneficial.
Now that you know the “cardinal rules,” here’s how to best develop a quality network, then “work your network” to dramatically condense sales cycles without having to deploy the debilitating demands of prospecting:
Quickly Find People Who Target Similar Markets
First, stop wasting time on people whose Rolodexes don’t complement yours! It’s unfair to them as much as it is to you. You want to meet people who target similar markets in a non-competitive manner or work with the same personnel within organizations as you (i.e., the CIO or the CEO).
Imagine the time wasted, for example, at a Chamber of Commerce mixer event when you allow yourself to get stuck talking to the Manager of Collections for ten minutes when you sell enterprise computer systems.
Your objective at business networking or social functions should be to meet people and quickly determine if it makes sense to schedule a later discussion. This can be done diplomatically and politely. After all, if there’s no fit, they shouldn’t be spending time with you either!
This process is called, in the words of millionaire Mel Kaufmann, finding beneficial “links” in contacts. Mr. Kaufmann recommends getting a conversation started with a general question like, “How did you hear about this event?” Then ask the following “link” questions that will allow you to see if the contact’s Rolodex complements yours:
What does your firm do?
What do you do for your firm?
What is your target market?
How long have you been with your firm?
Then have a short dialogue, three to five minutes. If you think the person is a mutually beneficially contact, ask if you can have his or her card and say, “Maybe we should get together to see how we can help each other develop some business. When would be the best time to call?” Then be sure to make the call!
If you determine there is not a good fit, then politely excuse yourself by saying, “It was a pleasure meeting you. I’m sure you have other people you would like to meet, as do I. I look forward to seeing you again.” And then move on!
Notice you are not selling but sorting. These conversations should take only several minutes. The key at business networking events is to meet as many people as possible. As you build your network, you build your opportunity pipeline. Join your local
Chamber of Commerce or as many business organizations as time permits. Get involved on the committees within these organizations so people get to know you. While you might not think at first that these are business building activities, realize that they are.
Your involvement will save a huge amount of time in prospecting and will inevitably put you in the right place, at the right time, ready to close business.
Attend or Organize a Structured Referral Group
The most focused way to network for referrals is to attend or organize a group that meets regularly for the sole purpose of exchanging personal referrals. This is not a “mixer” where you throw around business cards. It’s not a coffee club. It’s a structured meeting of professionals specifically designed to generate highly-qualified referrals.
The group you attend or organize should be appropriate for your type of business. Many “lead exchange” groups are consumer-oriented (B2C). If your business caters to other companies (B2B), a group with mixed membership or solely B2C will be a waste of time because Rolodexes are generally not complementary.
Here are some guidelines for an effective referral group:
1) The group should preferably be made up of business owners who target the same type of market, either B2C or B2B (not both).
2) Give attendees at least five minutes each to present their business, outlining:
a. A brief description of business and why it’s unique
b. Mention of key clients currently served3) Clearly articulate and describe the types of business opportunities desired, including:
a. Specific prospects wanted for introduction or referral (by company name or description).
b. “Hot Buttons”—things group members should look for in a prospect that would make for a good referral.
4) Give referrals to other people! Make it a goal to give referrals, at least ten per month. This gets you talking to people and it’s a universal rule that when you give you receive.5) Use a three-way call to introduce, edify, and transfer trust for a truly qualified referral. Don’t just tell someone to use your name (nor accept someone telling you to use their name). A three-way introduction call generates immediate credibility, and eliminates phone tag. The key factor in a three-way call is properly edifying the referral in front of the prospect.
As the structured referral group matures with regular attendees, you’ll be amazed to see the synergy between members and the relationships that develop. Soon you’ll have a “team” of people out there looking for opportunities to help grow your business. And more importantly, they’ll dramatically cut your sales cycle by getting you in the right door at the right time with the right person.
Say good-bye to cold calling!
Learn more on how to Network for Referrals and other marketing secrets in the great book 49 Marketing Secrets That Work to Grow Sales
Read Part Five: Teleseminars, Great for Products and Services
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