Prospecting Skills That Work – Clip #3

In this clip, from the upcoming sales training video Prospecting Skills That Work , Warren brings home a point about preparation and prospecting.

Video no longer available.

Overcoming Objections: Send Me Information

In this clip (DVD to be released mid-August 2007), Warren illustrates how to stay in control of the conversation while selling an appointment to a decision maker.

Video Missing.

The Illusion of Selling

One of the worst objections a salesperson can hear is: “Could you send me some information?” It’s not that you can’t turn that objection around; it’s just that you know the prospect has no intention of ever looking at it. Besides, even if they do look at it do you really think they’re going to fully understand it? And, if they have questions, do you think they’re going to run right to the phone and call you for the answers?

Let’s face it. All information gets shipped to the same address: 1 Garbage Can Drive!

But now, here’s the real issue; many salespeople love to send out information because when you send information you never have to actually hear the word, “No,” while appearing to be doing something. It’s called the illusion of selling. It’s the ability to do sales-like activities where you don’t actually have to ask someone to buy, thereby avoiding rejection.

There are many examples of this:

• Salespeople who visit the same clients all the time. I say “visit,” because that’s what they do. They don’t actually do any selling. They “Hang out.” It’s a great way of covering your ass, because you can fill out a report that shows you were seeing clients, thereby keeping your manager off your back.
• Email. What a great non-threatening way of keeping in touch with people without ever having to speak with them and risk the chance they might turn you down for business. I love email, but not as the be-all and end-all, but more as an add-on to actual client contact; such as phone calls and face to face visits.
• Paperwork. Salespeople love to complain about how much paperwork they have. The standard complaint is: “I’d love to sell more, but I have so much paperwork to do, I don’t have time to make the calls.” However, if you read between the lines the actual comment should be: “If I sit around doing paperwork, I’ll look busy without having to go out and get rejected.” Of course, the best way to eliminate paperwork is to stop selling. Soon there’ll be no paperwork, simply because there’ll be no customers.

The problem with the mediocre to poor salesperson is they will do anything to not have to sell. Here’s a great real-life example sent to me as a blog comment by Brad Trnavsky, a sales and management blogger:

“I had an outside rep that worked for me for about two months. He ignored every piece of advice I gave him and just walked around downtown passing out info packets and collecting business cards. Guess what; in two months he passed out hundreds of info packets and did not make one sale. It’s probably why he only lasted 2 months.

The bummer of it all is, the guy had skill, and could quote every sales book ever written. He was just too afraid to ASK for a sale.”

As you can see, participating in the illusion of selling can only take you so far; 2 months for the salesperson in the example above. This always amazes me because if these same salespeople put as much effort into selling as they do into the illusion of selling, they’d do a lot more business and make a lot more money.

There’s a huge difference between people who are “busy” vs. people who are actually getting things done. It’s great to be a hard worker, but it’s even better to be a smart worker. Even better yet, find someone who can combine both.

Developing and Finding Leads

I just received an interesting email from a reader. His name is Jonathan and he has a question about prospecting, a favorite subject of mine. More specifically it’s about developing and finding quality leads. He wrote:

Warren,

Good day. I purchased your “Don’t count the yes’s, count the No’s " audio program. I’ve listened to the audio often and I’m ready to begin making calls. Before I got your program I planned to call companies from the local yellow pages. After listening to your program, it appears that’s not the best way to do this. Can you tell me what’s the best way to get quality leads and do you recommend any companies? Thank you for any information you can give me.

Best Regards,

Jonathan

First of all, it’s not that I don’t recommend the Yellow Pages; it’s just that I consider it a last resort. The first thing you need to do when starting out your prospecting effort is to figure out who you want to call. Develop a client profile that specifically describes what types of clients and people you want to deal with.

For example:

• What kind of companies are you looking for (size, industries, maybe even location)?
• Who will be your contact person? A purchasing manager; VP level; Middle management. If you don’t know who you’re looking for, it’s going to be real hard to find them.

Cold calls are another last resort. But if you don’t have any clients, hot leads or referrals, you better start making some cold calls in order to develop your own hot leads and referrals.

When I first started my speaking business over 21 years ago, I was mostly conducting sales seminars, so my plan was to approach companies that were very sales oriented. Right off the bat, the first thing that came to my mind was the life insurance industry: an abundance of salespeople; new ones being hired every day; plus it was an industry that was not afraid to spend money on training.

So every Sunday, I picked up the New York Times and went to the help-wanted section and looked under “Sales Help Wanted.” I found numerous ads placed by local sales offices of large life insurance companies. Not only were they advertising for salespeople, but there was also a contact name (usually the sales manager) and a phone number.

First thing Monday morning, I would call, ask for the sales manager (the perfect contact person for me) and when asked by the receptionist, “What is this in reference to?” I would say, “The Sales Help Wanted ad in yesterday’s Times.”

Naturally, I was connected to the Sales Manager. Once on the phone I would say, “I’m not looking for a job, but since you are hiring all these new salespeople, you’re going to need someone to train them. Let me tell you about my services.” I would get the appointment and, very often close the deal to train their agents.

But here’s the best part! Every one of those sales managers knew other sales managers in other offices and it was real easy to pick up at least 3 or 4 referrals every time I did a session.

Once you get the ball rolling, and, of course, deliver a good product or service, cold calling becomes less of a factor in developing new business. as you now have a hot new source of referrals.

To learn more about how to get tons of referrals, read these past articles:

Referrals: The Lifeblood of Sales Part I
Referrals: The Lifeblood of Sales Part II
Winning Referrals

28 Objections

One of the great things about blogging are the comments and the emails I get from so many business professionals, salespeople and sales managers. A great example is David Moore from the UK, who regularly leaves his insights here.

However, sometimes you come across a comment where you can’t help but do a double take. This comment is so long, I cannot post it here, so you’ll have to click this link: comment from Savio.

Savio wants me to turn around 28 objections for him! Unfortunately, Savio’s problems run much deeper than his inability to overcome objections. What he’ll seriously have to start overcoming are his own perceptions because apparently he see’s himself failing in every aspect of his business (See Yourself Successful).

In the very first paragraph he writes:

“I feel that my relatives and friends will reject me for being a life insurance agent as they are more successful and earning lots more money than what I am earning. In fact some of them have already rejected me and disapprove of me for being a life insurance agent. I am worried what other people will think and say about me.”

Right away this tells me that Savio does not believe in what he is doing, otherwise he wouldn’t be worried about what other people think. Plus, it’s obvious he does not believe in his product (see Belief).

There is nothing wrong with being a life insurance agent. Ask any family who has lost a loved one, and was still able to maintain their lifestyle; provide for a spouse or children’s education; or, not have to sell the house and downsize; all because of financial help from a life insurance company.

And I have a rule that applies here! It is impossible to help those who expect a commitment from others to be much greater than their commitment to themselves.

Winning Referrals

I just received the following email from Ira, who is a property and casualty insurance agent. He has a very interesting question about referrals and since this is such a big topic among salespeople and business owners, I thought I would share my reply with you:

Warren,

I just found your site via your BusinessWeek interview, and I really enjoy your content.

I wanted to ask you a question regarding referrals. About a year ago, I got into the commercial insurance industry. I provide small to mid-size companies General Liability coverage, commercial vehicle, property insurance, etc. I am very fortunate in that I am quite often able to lower their costs without sacrificing coverage and am able to provide outstanding service to my clients.

My question is: how do I get these guys to understand that I really am trying to build my business with referrals and have them give me some names, intros, etc, without them feeling like they are putting another sales guy onto them? I feel like if I can save someone 40+%, they should be willing to help me out by giving me some guys to contact.

What are your thoughts?

My first thought is that Ira is hurting himself mainly because of his perceptions (sales sterotypes). Ira is not only providing a valuable service to these business owners, but in his own words states, “I am quite often able to lower their costs without sacrificing coverage and am able to provide outstanding service to my clients.”

Anyone who can do that is not selling; they’re helping, which is what successful salespeople do. A salesperson like Ira who saves clients money while delivering quality service is not another sales guy out there bothering people.

Good salespeople who deliver lower costs, asset protection and quality service are the kind of people clients and prospects WANT to see. This makes it Ira’s obligation to get referrals. Rather than “putting another sales guy on them,” don’t you think Ira’s clients would love to refer him to fellow business associates knowing that if he does the same for them, it wil help their businesses?

I think the issue Ira has is quite common. He’s afraid to ask for referrals. He shouldn’t be, especially since he does such good work for his clients. But while Ira states, “they should be willing to help me out by giving me some guys to contact,” the first rule of referrals is: "You have to ASK!" In referrals and in life, if you don’t ask, you don’t get. You cannot sit around and wait for something to happen; you have to MAKE it happen.

Here’s what Ira should do:

• Make a courtesy call to each one of his clients.
• Ask each one of these clients for three names. When asking for referrals always ask for a specific amount. Don’t use open ended questions like, “Do you happen to know anyone who might be able to use my service?” That’s the kind of question that usually gets you a big fat NO!
• When speaking to his clients, Ira needs them to agree with him that they are more than satisfied with everything he’s done for them and then ask them if they know three other business owners, they are friendly with, who they feel could benefit, much like they are, from his services.

People know and hang out with others who are just like them. In Ira’s case, his clients are business owners. I guarantee each one of them knows other business owners.

Referrals are the life-blood of a successful business. A prospect who has been referred by a satisfied client is more likely to buy and more likely to become a long term repeat client.

So remember the three rules of referrals:

1. ASK!
2. ASK for a specific number
3. ASK the kind of questions that can be answered. (Could you give me the names of three business owners you know who might benefit from this service?)

Links to past articles on winning referrals:

• Blog: Referrals: The Lifeblood of Sales: Part I
• Blog: Referrals: The Lifeblood of Sales: Part II