It’s true… at least for 99% of wannabe entrepreneurs and their businesses. Customers don’t really give a s*** about you, your product or your business.

The good news? It doesn’t have to be that way and the alternative means better retention, more sales, raving fans and big profits.

Creating caring customers doesn’t have to be hard. Today I’m sharing the psychological secret that can systematically turn crowds of strangers into hordes of loving clients. Here’s how to make it happen…

Imagine building a business where your customers genuinely care about you. They care so much they open every email you send, look forward to any phone calls and act on any recommendation you make. In other words, they’re infatuated and they consider their relationship with your business a top priority.

Sound like the kind of client you want? Then you’ll need to make it happen with:

The psychological recipe

1. Sell a product that transforms people (and the way they think)
2. Require a significant commitment (i.e. make it “expensive”)
3. Turn away prospects who don’t want “transformation”

Here’s an example:

Last week I was invited to give a talk to an insurance & investment company. These are big corporate players – but the same principals apply, even for solopreneurs.

In the past, this firm has successfully sold savings products (per-week contributions) to people by picking a price point so low that no one could be bothered to say no.

Make something cheap enough and salesperson will have no trouble selling it. The prospect simply thinks:

“Thats peanuts! Whatever… I’ll do it.”

The bad news: These customers had terrible retention or “lifetime value” – they were dropping off and canceling their savings plans (as easy as just not paying) like crazy!

Why?… Because they just didn’t care. They didn’t care about the company OR what the investment they’ve signed up for.

The solution?

My job was to help the sales people at this company realise that they weren’t in the business of selling investments… They’re in the business of selling transformation.

They’re selling a transformation of the way you (the customer) think about your personal finances, savings and investment. They’re transforming consumer debt, stress and worry into security, foresight and optimism.

Second, I encouraged them to raise the price of their sales. Encouraging prospects to contribute significant dollars towards a savings plan would help the product be perceived as significant. The client would consider it as a serious investment and stick with the commitment to save.

Finally, the company had to turn away the prospects who would only contribute pocket change to their savings… They’d have to choose only to do business with people committed to transforming their finances.

What does this mean for you?

Psychology tells us that the more people care about a product, the more they’re willing to pay for it.

The most expensive consumer products are produced by companies people feel enormously passionate about.

As entrepreneurs, this is the position we need to be in. When we sell things for lots of money… we win! Better customer retention helps too.

The secret to creating customers “who care” is to sell them a transformation. To do this, we must turn away the lame prospects who don’t want to transform… they’ll end up being more trouble than they’re worth anyway.

• Blogger Johnny B. Truant does it by transforming the way people think about doing business on the internet.
• Ferrari do it, by transforming the way people think about driving from A to B (and how cool they look while in-transit).
• Micro-lending Kiva does it by transforming the way entrepreneurs think about fighting poverty.
• The best health clubs, airlines, cell phones, chiropractors and restaurants all do it.

You can do it too.

Sell transformation, have your customers make a significant investment and turn away everyone who isn’t committed.

I try to sell transformation to all of my clients, my consulting work costs more than piano lessons (but it sure is worth it). I also refuse to work with people who aren’t willing to radically shift the way they approach business.

What transformation could you offer? Let me know my leaving a comment below…

I’m always pushing my clients and readers (and myself) to shorten the gap between actually doing stuff (important business activity)… and just thinking about it.

As entrepreneurs, it’s a psychological game that we struggle with. The more “intellectual” our background, the more we tend to “plan” and over-analyse things before taking action.

Here’s a new angle you might not have considered: This Thinking-Action Gap affects our customers too!

When we try and sell someone on an idea, product or service… they have to think things over before saying yes. As entrepreneurs (or sales people) we’re always looking for our prospects to take action with a quick decision.

So how do we shorten the Thinking-Action Gap?

Increase trust: Provide social proof that your solution works, present “real life” statistics or make sure the prospect knows you’ve been (successfully) in the game since the year dot.

Make the required action smaller: By asking for less, you make the decision easier. Be careful though – it’s easy to fall into the trap of “just emailing an overview” and extending the sales cycle out far too long. Ideally, ask for a small decision that opens the door for you to show huge value – then ask for the big decision straight away.

Offer true risk reversal: It becomes a no-brainer when you take all the danger out of the deal… but this trick has been around a while, so “just mail it back for a full refund” isn’t going to cut the mustard anymore. “Free” is special kind of zero-risk (just ask Google) but there are other approaches too.

Interestingly enough, all three of these approaches also works in the context of personal (psychological) development. Next time you’re procrastinating (because of lizard-brain fear) check to see if:

• You trust your plans will actually deliver
• You’re not being overwhelmed by unnecessarily huge steps
• You’ve protected yourself from every risk you can

Hmmm… what do you think?

On a sunny day last week, I walked through the historic Sydney suburb of Glebe for no other purpose than to enjoy a cafe lunch and browse 2nd hand book stores.

What I was to discover, however, was startling proof of “The Entrepreneur’s Dilemma”.

This is a social-psychological phenomena that plagues innocent business owners – sowing the seeds of self-doubt and financial disaster.

Want to know what it is?

Unisex (isn’t the answer)

On my stroll, I walked past an interesting kind of store.

A sign (you can see it on the left) lured me towards the store’s proudly displayed merchandise.

Unisex is an interesting idea simply because male/female differentiation is one of the more traditional demographic gaps.

Today, more and more businesses are discovering that increasing the gender focus of their products is a valuable move. Coca-Cola, for example, recently made the decision to market Diet-Coke to women, while reserving Coke-Zero for a high octane, testosterone driven campaign for young guys.

However, there are plenty of things in the world that benefit from being unisex.

Wine (luxury or otherwise), travel and real estate seem like great examples of industries where gender is irrelevant and unmeasured. They’re unisex by default.

So what was so unusual about this cheap, “NEW” item of undetermined gender?

The sign was attached to a rack of shirts

This store was the kind of budget clothing outlet that hocks off un-branded beach clothes to passing student travellers.

Shirts (T-shirts especially) have always been potentially unisex, but no one ever advertises them as such.

Here’s why:

The store owner meant well in this scenario and the basic logic is simple: If you advertise shirts to both men and women, you should double the chance of a sale.

WRONG

When you try to appeal to anyone, you end up alienating everyone.

As you may be able to see from the photo below, the shirts are unusual… but there wasn’t anything wrong with them.

What is wrong is how full the rack was. Clearly the shirts were not moving out the door.

I can’t help but think that the store owner would have been more successful if he had put a sign up that said:

“Crazy hippy beach shirts – $5″

… because that would grab the attention of every free-thinker headed to the beach!

What does this mean for your business?

I got an email from a client yesterday, asking my advice on a proposed re-brand and new focus for her business.

As a financial advisor, she was considering the one of the following options:

1. Focus entirely on working with female business owners as a specialist advisor

2. Go after women in business, newly graduated students, young professional couples and families

Friends told her that she’d be very brave to go for option one’s niche focus. Others thought she’d be stupid to “limit” herself.

I cant help but wonder if the T-Shirt store guy was afraid of the “limitation” too.

At the heart of it, many entrepreneurs have a powerful fear of “potential loss” tickling the back of their brain. The thought of all those customers outside of your target market, who won’t buy from you, is kind of scary right???

Reality check: Be scared if you’re not in a niche

Internet marketing folks have known this truth for a while – but the lesson is just as relevant for today’s real world, brick-and-mortar entrepreneur:

By trying to target the “Mass Market” you put yourself in competition with the biggest brands in your industry. These are the corporates that have multi-million dollar ad budgets. You will not win.

The world (or even my client’s city) does not want or need another financial advisor – but an expert on helping female entrepreneurs plan their financial life might be useful.

I ended the email dialogue by challenging my client to target only entrepreneur mothers! This would take her niche to a whole other level – and give her an excuse to market to any number of coffee groups and day-care centres.

Besides, if she does a good job and word spreads… I’m positive it wouldn’t be a problem to work with the occasional non-entrepreneurial mum (or even… *gasp*… a dad).

It isn’t so much about the day to day reality of doing business – it’s about the story you are telling and the message it sends.

Let’s face it – occasionally some guys buy girl’s t-shirts (it’s actually a fringe fashion in some parts)… and women often buy small sized men’s clothes.

Let your prospect customers know who they are and why you’re right from them. Success only happens when you overcome the fears that prevent this.

What kind of message is your business sending?

Could you overcome your fear and target a more specific group of customers?

Let me know what you think – by leaving a comment (scroll down)

Cold calling tips and sales techniques leave most sales-people in the cold.

Most companies and biz owners would rather pretend cold calling doesn’t work than spend time calling freezing cold prospects.

Don’t let yourself (or your business) ignore these cold calling tips while your competitors are (secretly) using it as a bottomless goldmine…

BEST PART: The tips below literally make cold calling so comfortable, your grand mother could do it (and make loads of sales).

Cold Calling Tip #1 – Set Realistic Goals

I’m going to go ahead, be honest and level with you: The “real deal” freezing cold calling will not sell anything directly.

So many entrepreneurs (and wannabe sales-folk) set unrealistic cold calling goals – only to quit (prematurely) when they don’t work out.

Phoning total strangers and asking for credit card numbers is going to win you no friends (and the consolation prize is verbal abuse).

The cold calling “phone and ask for a sale” approach works in very few industries (I’d struggle to name three).

The realistic alternative is to incorporate cold calling as the first point of contact which feeds new prospects into your sales funnel.

When you set a realistic goal for your calling, then it’s easy to be successful. The feeling of achievement itself, for you and your sales reps, is gonna breed more success.

Here’s a couple of realistic, achievable and profitable cold calling goals:

100 “Permissions” to send info (via post or email) and follow up by phone call

If your product is top notch, you can hit this milestone in less than a week of part-time 8am-12pm calling. Try mailing out something remarkable (like a brochure in the shape of a giant tree – whatever) to ensure it gets opened. The recipient needs to notice it.

10 Sales appointments with qualified prospects

This works well in the B2B market and in industries like Insurance and Finance where cold calling for home appointments is appropriate. A masterful cold caller can convert around ten percent. Beginners can expect around five.

Just a single day of full time calling will net this result. I know Insurance guys who do it all on Sunday evening.

Cold Calling is for selling “the opportunity” to sell another day

These examples show that, when cold calling works really well, it is because it bags an opportunity to contact the prospect and sell to them.

There is a psychological reason this works so well…

People are conditioned to be immediately distrustful of anyone trying to pitch them. Any attempt to accelerate the sales process beyond the comfort zone of the prospect will be met with increased resistance and resentment. Don’t do it.

A couple of points of contact will give your prospects time to warm to you, your company and your pitch. Many effective cold-callers keep a database of numbers from 6 months (or a year ago) to continue “calling back”. Do this.

Cold Calling Tip #2 – You’ve got 3 seconds. No pressure

The crucial element of cold calling (where 95% of the wannabes get it wrong) is the first three seconds after saying hello.

Three seconds is the size of the “window-of-opportunity” you have to get your prospect interested. If they’re not curious after three seconds, it means they’ll dismiss you and your offer. Instead of listening, they’ll start thinking up objections and excuses to hang up the call.

How do you create Cold Call curiosity in under three seconds?

Have a legitimately exceptional product/service: Easier said than done, it really helps if your business is doing something so extraordinarily awesome that people can’t wait to hear more. This is a long term goal for some.

Offer a quick, easy and commitment-free next step: This could be asking for permission to keep talking, or even better, asking for permission to send a free sample.

Make the prospect feel special: If they feel like the 200th prospect you’ve spoken to that day, they’re not going to enjoy the call. In B2B cold-calling you can get immediate interest by mentioning vertical market competitors who you’ve “spoken to”… and explaining why you thought your prospect would be interested.

Have an eloquent, concise scripted three second intro: You’d think this would be obvious, but so many businesses and sales reps fail to recognise the importance of a fluid introduction. DO NOT SKIP THIS STEP

A good three second intro that adheres to these principals would look like this:

“Hi <Prospect>! I’m calling for ACME gardening co. We’re doing a crazy promotion in your street by expertly mowing people’s lawns for free. If you’re interested, I just need to get a preferred date and time for your free mow.”

Regardless of how realistic it would be to mow lawns for free, do you see the cold calling principals in action here?

P.S. Secret cold calling tricks

I won’t lie – I added a few extra secret strategies into the example above. Let me know if you spotted them by leaving a comment below…

Smart entrepreneurs know the value of landing that “big fish” client or customer. Check out the business networking tips cheat sheet here…

Business networking is the only proven strategy for reeling in that big fish. Networking is the 80/20 principal in action – just a tiny bit of time invested can generate 80% of your business!

The reason? The clients really worth having will never beat down your door to meet you and probably won’t respond to your advertising either.

If you’re in retail or there is no such thing as a “big-fish” customer in your industry, then you could use the following tips for establishing relationships with the best suppliers or strategic partners.

Business Networking Tip #1: Introduction Magic

Do not underestimate the power of a live testimonial – generated, of course, by an introduction from a mutual friend. Better yet, get introduced by a raving fan customer.

You may need to coach your “introducer” to announce you to the “big fish” like this:

Introducer: “Hey Big Fish! I wouldn’t normally interrupt but I just saw my buddy at this event and I absolutely had to introduce the two of you”

If the big fish trusts and respects your introducer, then you just got their interest and attention in 5 seconds flat!

Business Networking Tip #2: Calm down and play it smart

The over-eager, rapid-fire card dispenser  wins no friends. In fact, it’s kind of embarrassing just to watch.

About once a month, I stand above my rubbish bin (trash can) and sort through the inevitable pile of business cards.

Each card gets a half-second glance while by brain searches for recognition. About 90% end up as recycling.

Being a smart player in the networking game means waiting for the ideal moment to approach your “big fish”. Striking at that right moment means you’ll have a chance to chat and create a lasting impression.

Believe it or not, it is this “impression” – not the design of your business card, that will ensure you make it into the Rolo-dex.

Business Networking Tip #3: Trying to sell will murder your chances

People do not attend networking events to be solicited by each person in the room. As desperate as you may be to kick off a relationship with this important person, resist all temptation to blurt out your pitch!

Instead, learn to ask questions that uncover problems or issues that the person (or their business) faces. You can then position yourself as the potential solution to one (or many) of those problems….

… Take their card and leave them with the expectation that you’ll be in touch shortly to deliver the problem solving pitch.

Questions to uncover problems could include:

“What do you do?…… I see! How is your business approaching this “recession” thing?”

“What big changes in your industry do you see coming up in the next 6 months?”

… and the cheeky option when you have enough rapport:

“What is going on in your business that you’d rather be here at this event, than in the office?”

Business Networking Tip #4: The biggest mistake

If someone does hand over their card to you, do not interpret this an invitation to phone them. Certainly, never ever phone their mobile.

By phoning, you risk destroying the fragile relationship by coming on too strong and/or presenting an inconvenience they never wanted or asked for.

Email is the best bet. You can increase the chances of your message getting opened and read by telling them you’ll be sending it.

A really cool tactic is to drop off custom, beautifully printed material (with a personal note) to their company receptionist. The receptionist will pass on the papers and mention the fact that, unusually, you actually turned up to it drop off. Typically, the “big-fish” person will then invite you back for a meeting.

Business Networking Tip #5: Introduce others

Remember, networking isn’t always about you. You’ll quickly develop a reputation as a trustworthy and useful contact when you regularly introduce people who have great value to share.

Doing this requires you to get over any scarcity fears that you have. There is plenty of business to go around and helping out others isn’t going to harm you (quite the opposite!). If you struggle with this concept, you shouldn’t be attempting to network at all.

If your clients know that you are a great networker and have benefitted from referrals that you’ve provided, then you’ll get many more useful referrals from them. Everyone wins.

Summing it up:

Business Networking isn’t as easy as many people think. Firing out business cards indiscriminately without introductions is going to do more damage than good.

The simple recipe of getting introductions, waiting for the right moment, solving problems, polite follow-up and giving back will result in the biggest and best business opportunities available… best of all, it’s low cost and hardly takes any time!

Why do so many people say they’re interested in becoming “successful” entrepreneurs and do nothing about it?

How many folks are committed to financial freedom, yet consistently offer up twenty-seven reasons they haven’t “got-it-together” yet?

I’m sick of it and it’s time to have a rant.

Read on to find out what holds these wannabes back and what you can do to get results FAST…

I was having dinner with a great friend and client of mine last week, when these questions came up during conversation.

Like a responding to a super-market checkout operator who asks “how’s your day?”… I dismissed the questions with a standard, out-of-the-box answer.

Why do so few people achieve real success? Simple: Only a very tiny group get their head in the place that creates big success.

But like a super-market operator who follows you home and spies through your windows, the question continued to prey on my mind.

Making money

I’ve witnessed the simple recipe for biz success – actioned by total amateurs to produce astounding piles of cash (in record time). Sometimes, the folks driving all the money-making are also rewarded with freedom and control over their time as well!

So what is the simple formula – that most people need in order to quit making excuses and make money?

1. Get ignorant

2. Find a strategy that works

3. Mindlessly copy it

First off, embracing your inner idiot is important. Give up the notions that you have about how to be successful.

I’m sorry, but if they were valid, correct or useful ideas then you’d already be a millionaire right?!

The harsh truth: All those ideas you’ve got – and the reasons why you can’t action them – are just an advanced form of excuse making.

Get ignorant by admitting you’ve got everything to learn. The knowledge you currently possess has produced the results you’re enjoying today… right?

It’s time to learn something new – start by realising you don’t already know it all.

Finding a strategy that works happens when you realise you’re ignorant.

You’ve cut through the bull$&%# and you’re not making excuses. Now you have to find someone who has done what you’re wanting to do.

In Neuro Linguistic Programming (an entire field devoted to this process of “copying for success”) there are libraries full of books on how to copy genius strategies – no matter what industry or weird field they’re from.

Mindlessly copying the experts is something 99% of the wanna-bes miss.

Many believe their years of intellectualising and non-action give them a license to “do things differently” yet get the same results as the millionaire guru who they’re copying.

I see this all the time with businesses with proven cold-calling marketing strategies.

Franchise owners freak out about making the calls and convince themselves that since they’re so special, they’ll be successful super-stars without ever picking up a phone.

Again, I call bull$%#*

There is a reason Richard Branson, Robert Kiyosaki and Donald Trump have become ultra tycoons – thinking you can do it different and somehow “better” is at best, woefully ignorant.

In Rich Dad Poor Dad, Kiyosaki talks about his background.

This guy spent years working for Xerox developing “sales skills” and learning how to consistently perform, despite being outside his comfort zone.

Why then do so many dreaming entrepreneurs think they can launch their idea into a big business without any sales and marketing experience?

Ultimately, it’s a tough learning curve building your own business.

Any one else who tells you otherwise is either lying, or trying to sell you something.

Quit making excuses and follow the simple formula.

It’s worked for hundreds of people (who are now probably lying on a beach somewhere) and it sure beats sitting around trying to think of reasons to explain why you’re not producing results.

Rant over.

My internet activity has taken a back seat in the last few days.

Unfortunately, this happens from time to time – due to the reality of “real world” business.

The cool thing is, real world busy-ness usually means there are some big profits around the corner.

Why?

It is still enormously easier to make money as an entrepreneur in the “real world”. If you’re struggling, then use these three tactics to bring in more profits:

1. Find a new reason to have a chat with your customers and their friends/colleagues

This could be anything from a new mail or email campaign… or simply phoning them up for a chat. The “excuse” for the “point of contact” is simple – you’ve just made a “development” that you think they need to know about.

In the world of consulting, this tactic is worth thousands. I regularly use it to meet new people connected to my existing clients.

The phone call goes like this:

“Hey client! How’s things?

I know you weren’t expecting to hear from me for a while, but I’ve just had something come up that I wanted to talk to you about first.

I’m developing a new sales programme and I need some real world expertise… I was hoping I could schedule a coffee with the Sales Manager in your business and pick his brain.

In return for the favour, I thought it’d be cool to do a psychological assessment of the Sales Teams core capabilities and strategies… all for free, as a thank you.

Do you think it’d be appropriate for me to give him a call? What was his number?”

… and just like that, I meet a new potential client. By doing a bit of stuff for free, I’ll have the opportunity to sell them something else.

2. Ask for testimonials

Some people think this is weird – because asking for a testimonial usually signifies the END of a customer relationship.

WRONG!

Giving a testimonial is the thing that happens right before you get some juicy referrals.

While you’re asking your client all about what they loved and didn’t like, you can start to get a clear picture of the kind of people they believe your product is perfect for.

Then ask them if they know any other people like that. Start writing down numbers, business names or emails!

3. Do research and give people cool facts

So you’ve got some spare time.

Why not go on an enormous google mission and put together a “swipe file” of hot resources that will help your customers?

If you’re in the business of helping businesses, this article could be in that swipe file.

If you’re in the cafe business, find a really cool article about how coffee is made and email it out to all the people on your database. (you’ve got a database right?!)

People love information – so long as it is relevant and they’ve given you permission to contact them.

This is just another little trick that makes you look good, while keeping you “top of mind” with your customers.

Difficult to measure, but my experience is that this technique can result in a instant 10% increase in referrals.

Hope these help – if you’re struggling to apply these tactics to your unique industry/niche/business then speak up in the comment section below for some tailored advice!

This psychological (but simple) sales technique is being used by some of the world’s top entrepreneurs, including a bunch of personal development and internet marketing gurus.

Fear of being let down, disappointed or ripped off is the biggest roadblock to any successful sale.  This technique literally eliminates “prospect fear” by building a very unique kind of trust.

The strategy is unique because not too many marketers, salespeople or entrepreneurs are using it yet. They will be soon.

Hear it here first…

If we look back at marketing and sales strategies that have produced mega-huge results, a certain style of selling starts to become obvious:

Total confidence

As entrepreneurs, we want people to believe that our products and services are going to give them what they want and need… solutions to their problem.

We need them to be totally certain that this will be the case – so the obvious way to do that, is to sell with our best foot forward.

Irresistable offers, Iron-Clad Guarantees, Risk Reversal and gushing Testimonials are all fantastic techniques to make your offer look like something unbelievably-freakin’-incredible.

Here’s the problem

Consumers have wised up. Potential buyers out there are getting street smart… and now more than ever, there are thousands of these “incredible” deals out there -  all competing for attention.

When everyone offers  a “100% guarantee” the impact is lost.

As consumers, we assume there are con-artists out there (which there are) so we guess (rightly so) that those con-men are offering 100% money-back guarantees… since, after all, everyone else is doing it. The result? 100% guarantee alone means nothing, because we know con-artists use ‘em.

What can you do about it?

To be successful in business, your primary offer… whatever it is you do… has to cut through the thousands of other “amazing” offers and be unique and believable.

The good news is this: You can be believable, build rapport with your prospects and easily get attention by doing one simple thing…

Admit your flaws.

Not personal flaws… I’m talking product/service flaws.

If you tell your prospect what is wrong with your product, what you’re working on improving and specifically, who this is never going to be right for… an incredible thing happens.

You sound human.

You feel Believable.

You stick out from the crowd.

It takes guts because most business owners would rather eat off their arm than admit flaws… simply for fear of all the business they’ll turn away.

And to be honest, admitting flaws will turn away some prospects – this is a good thing, because the people who become uninterested are the ones who would have big problems with those flaws!

It’s kind of logical, isn’t it.

Be unique by admitting you’re not perfect: Make it clear that there is a “small catch” (those two words are magic for building rapport).

My iron clad GUARANTEE to you: If you make your product’s flaws an obvious part of your sales and marketing, you’ll get more and more quality customers. Both you and them will end up happier.

There is a small catch: You have to throw yourself and your business at this 100% – there’s no half-way job on being honest about oneself and one’s business.

Got a question? Use the comment section below to get detailed and specific advice.

I’ve recently found myself frustrated to the point of tearing hair out, by clients of mine who believe that generating more word-of-mouth, referral sales is the answer to all their bottom-line problems.

I’ve got to admit, the logic is appealing:

If you (Mr business owner/sales person) could only find a couple of friends within your social network who want what you’ve got, you can meet up with ‘em… sell it to ‘em and you’ll be on easy street!

The problem is, this principal is absolute bull$*%@…. and in the real world, it seldom works.

The reason sales people and biz owners are attracted to this method is that it enables them to feel a little more comfortable about the selling process.

By phoning up old friends or ex-colleagues to schedule a coffee and tell them all about “what I’m up to these days” you’re actually side-stepping around any real selling.

You’ll get a major kick (and a dose of warm fuzzy satisfaction) out of the short term success of setting “appointments”.

Problem is, when you go along to the appointment you’ll discover that your “networks” are filled with people who are keen for a coffee and a catchup… often just as an excuse to get out of the office.

Ready for the harsh truth? They don’t want to buy anything.

A lot of sales-reps use this strategy to keep their schedule bursting with appointments – it really helps them look productive.

Want to know the worst part? By engaging in this type of pseudo-sales networking, you actually risk damaging valuable personal relationships with some of your great contacts.

When you phone up to ask for a coffee date, your buddies don’t expect to be sold… any attempt at doing so is only going to lower the temperature on their lead status (and your personal relationship).

Nevertheless, biz owners and sales people are out there doing this everyday. More often than not, they’re also getting frustrated about their results…. which would be inconsistent at best or (more likely) dismally poor.

Don’t get me wrong…

I believe in networking. I’m positive that word-of-mouth is the most powerful form of advertising in existence!

What I’m really trying to say is that, in order to be succesful, our understanding of how networking works needs to change.

The Facts:

1. The only good-quality referrals (i.e. that make you money) come from people who have already bought something from you

2. Having coffee with the friends of your existing clients/customers is infinitely more profitable, professional and ethically enjoyable than subjecting your real friends to untimely, inappropriate soft-selling.

3. Referred business should be calling you. If you have to chase them up and harass them for a coffee date, then you’re doing something wrong and it isn’t a real referral.

It’s all true – successfully getting your head around numbers 1 through 3 is what sales (and to some extent business) success is all about.

I welcome your feedback, questions or examples-to-the-contrary in the comments section below…

Very simple post today (because you should still all be formulating responses to YESTERDAY’s competition post).

In order for people to buy your product or service, they need to have a super-important piece of psychological criteria:

They need to know the reason they’ll tell their friends and family that they purchased your thing.

Think about all the purchases you’ve made in the last 12 months (outside of groceries and utilities). How many times have you found yourself explaining the reasons why you made your purchase choice?

Examples:

You order a muffin with your coffee (even thought you’re on a diet)… why? Because there is a deal on and it’s only a dollar extra.

You come home from the art gallery with an original piece you’re not sure your partner will like… why? Because you met the artist and couldn’t help buying something after the conversation.

You plan to buy a car for $25,000 but end up getting one for $39,000… why? Because the salesman educates you about paying more for turbo-diesel because it saves you money in the end.

Thing is, all these reasons aren’t really true. You buy a muffin because it looks tasty, the painting because you appreciate the meaning and the car because once you drove it you knew it was for you!

Everything else is just psychological ammunition that good sales-people give you… so you can go home and justify your purchase.

It’s very difficult to sell anything to anyone without providing this ammunition. Unfortunately very few customers are smart enough to ask for it.

Get wise – incorporate a reason “for friends and family” in your pitch.