If you’re in business, you want to make money. When you invest time or money into something, you expect to see a return on investment (ROI). In fact, the goal is to maximize that ROI. But your potential customers aren’t always eager to spend money with you. How can you set yourself apart from the competition, make potential customers or clients love you even before spending anything, and manage to turn them into buyers?

Easy. Give them something for free.

I tell freelancers this all the time. Give your knowledge away — not all of it mind you. Some people are just too protective. They figure they should charge for everything they have to offer. That’s silly though. Here’s why:

Why Freebies Lead to More Sales

When you give something away for free, you’re attracting leads. Will everyone convert into a paying customer? No. But the conversions can be just as high (if not higher than) other lead generation tactics like advertising. It can cost far less up front too (improving your ROI even more).

Think of freebies as a base for an up-sell. This happens quite often in publishing. For example, a free excerpt of a book might be given to magazine publishers (and therefore their readers). The idea is to suck them in and entice them to the buy the book. It’s true of information products online too. Let’s look at a hypothetical example.

Credit: Christian Ferrari (via Sxc.hu)

Let’s say you run an online consulting program or course on SEO. There are a lot of people giving SEO advice, and you need to set yourself apart if you want people to actually pay. You already have a decent selling point in that you run a highly successful SEO firm that regularly wipes the floor with the competition. But you need more.

You also know that not everyone can afford your comprehensive course (let’s say you’re charging $199 for a four week course). To bring in more revenue from those people, you decide to assemble some complementary information into an introductory e-book which you’ll sell for $27. Now you can reach people at the higher price point, but still monetize those in a lower-budget market.

Your e-book is setup to be a lead-in to the course. The intention is to convert some of those e-book buyers into course subscribers later on, after they’ve realized that A) you know what you’re talking about, B) your information is high quality and not just reiterating what they already know, and C) they like your style enough to want to pay more to learn more from you.

To get people to buy that e-book as a lead-in to your SEO course, you could then turn to freebies. Free stuff has a bigger potential of spreading virally via word of mouth than a paid product does (in most cases).

In this case let’s say you decide to release a shorter free report on SEO, and you make it available for download on your website. It will be much easier for you to drive leads to your site for a freebie than for that $199 course. You also convince prospects to take a closer look at your style and information without a commitment. They love that. (And if your website is monetized by ad revenue, you might even make money in the process that way as you drive traffic there for the freebie.)

Those free reports (or the opt-in list you build when people sign up to get that freebie) should then try to up-sell people to the e-book if they want to learn more beyond the report. Then those people who purchase the e-book will see further promotion for the course for “advanced” information on SEO. Do you see how up-selling works? It tends to work very well when you start with freebies as your base — more initial eyes as the word of mouth spreads.

You’ve seen an example of how giving away freebies can lead to more sales. But what kinds of freebies can you give away? You’re not limited to free reports (although they can be effective). Here are some ideas to get you started.

Business Freebie Ideas to Attract More Buyers

Consider using any of the following types of freebies to generate more business leads to drive to your paid products and services:

• E-books (how-to varieties work nicely)
• Reports covering an industry issue
• White papers (great if you’re targeting executive-level decision makers)
• Software
• Apps for Facebook, iPhone, etc.
• Blogs (free advice on those blogs)
• Forms or templates (including Web templates or blog themes)
• Promotional products (sticky notes, pens, keychains, bookmarks, etc.)
• Excerpts of a larger project (good for information products)
• Free consultations
• Free membership sites (for more exclusive information — lets you build an email list)
• Videos

You don’t have to use all of these freebie types. It can actually be best to focus on just one or two at a time (otherwise you’ll spread your promotional time and budget too thin). Here’s something else that’s important to keep in mind:

When you choose a business freebie to help you attract more customers and sales, make sure it’s worth the investment. For example, if your projections don’t show that you’ll earn a significant profit on all of those pens and keychains, skip them and try something else. Remember that they’re supposed to help you improve your bottom line, not hurt it.

Credit: Beth Kanter (via Flickr)

Figure out what types of freebies might attract the buyers you’re looking for, and see if it makes sense for you to invest some time or money up front to put together those freebies. The leads you’ll generate in the long run can make freebies well worth the investment. Don’t overlook them in your marketing mix just because there’s no immediate financial return. Business is a long-haul game.

In selling, one definition of an objection, is ‘a reason given by the prospective customer why they are not ready to buy your product or service.’ Your success as a professional salesperson will depend on your ability to anticipate and handle a prospect’s objections. No matter how perfect your presentation is, at some stage, your prospect may raise an objection …. and how you handle it will make or break the sales game.

• Anticipate Objections

Objections scare new salespersons because they are not sure they can find convincing arguments to overcome them. However, sales professionals have learned how to take the prospect’s objection and turn it around in order to close the sale.

As a sales professional, you will probably put a lot of time and effort into developing a winning presentation to ensure that your product or service is needed by the potential prospect. Yet no matter how persuasive your presentation may be, and no matter how convincingly you present your product or services, there will be objections and doubts.

An easy exercise for you to do before you make your presentation is to review it in detail. When you get to a point where you think there might be a customer objection, write it down on a separate sheet of paper. Continue doing this until you have reviewed the entire presentation. Once you have finished, give your presentation to a colleague, asking him to give you any objections that come to his mind. You might find other areas of objections to work on before giving your presentation to a prospect. When you think you have covered all possibilities where objections could originate, continue to work on the solutions. Practice your answers. You may not be able to come up with all of the answers to make your presentation ‘objection proof’, but you will surely have a command on the presentation and be ready with answers in case of an objection..

The ability to anticipate an objection is very important but not nearly as important as developing the skills to overcome the objections. No matter how hard you try to list every possible objection, there will still be the times when the prospect raises an objection that you never thought of.

• The Inner Working of an Objection

The term objection has an additional meaning. As used here, an objection refers to ‘any hindrance voiced by the prospect which prevents you from moving to the next step in your presentation or closing the sale.’ The key word here is ‘voiced.’

Usually a lack of understanding on the part of the prospect is the reason for the objection. But objections have a structure that can enable you to analyze them, determine the cause, minimize their occurrence and deal with them effectively. It is important to work with the prospect to understand the exact nature and extent of his objections. When you welcome objections, you communicate to the prospect that his needs are important and will be addressed accordingly. Examples of this approach are as follows:

- Mr. Ahmed, I understand what you’re saying. Another client asked me the same question. Here is how I worked with him to satisfy his concern …’

Or

- I am glad you mentioned that because it gives me the chance to show you how our product will solve that problem.’

There are five steps in dealing with objections:

1. Expect them and allow the prospect to express them freely.

2. Welcome them when they occur because they indicate an interest on the part of the prospect.

3. Affirm the objection by restating it in the form of a question to be answered, ‘So what you are saying is that the delivery schedule is a concern to you. Is it that bothers you?

4. Give complete answers to the objections. Use testimonials, past experiences or whatever relevant information you have.

5. When the prospect raises an observation that is perceived as a real drawback, present an compensating benefit such as, ‘Mr. Prospect, your concern about our delivery schedule, but we have transportation service to your area every second day. Your orders will be delivered on time.”

Never respond immediately to an objection. Very often prospect will continue talking to clarify his position or to offer more information. When this happens, wait for a few seconds and think about what he has said. Your pause shows a level of respect for what the prospect said.

One of the definitions of an objection is: ‘not ready to buy’; another is ‘any hindrance’. Look at objections as the prospect’s request for more information or justification. In order to close the sale, you must give him more information and explanation that he seeks. When you approach objections as requests for more information, your sale interview will move smoothly, you will handle objection effectively and you will move closer to a buying decision.

• Three Big Factors

Objections that face salespeople the most are:

1. Skepticism
2. Misunderstanding
3. Stalling

The best way to handle objections is to appear as a knowledgeable, interested salesperson whose mission is to help the prospect achieve his objectives. Respond to objectives positively and respect the prospect’s actions as legitimate concerns. Let us discuss all these factors in details:

1. Skepticism

If the prospect seems skeptical about your presentation, your product / services or your ability to deliver, it could come from one of the following situations:

a. Promising too much. If you promise too much too soon or trivialize the uniqueness of the prospect’s situation you will surely lose him.

b. Failing to establish a rapport. You must listen and respond effectively. If the prospect thinks you are talking only in your terms, his interest in you will diminish rapidly. Learn to listen and respond effectively.

c. Not asking the right questions. Know enough about the prospect’s needs to be able to ask probing questions. Asking good questions is just as important as giving good answers.

d. Not fully answering questions. The prospect’s questions are real; do not think that they are ‘dumb questions’, and do not avoid a question because you think it is trivial. By not answering all questions, the prospect could think you are trying to conceal something.

e. Becoming defensive. If you appear to be defensive to an objection, you might antagonise the prospect. Always be open-minded, responsive and reply enthusiastically, not defensively.

f. Not Client-Centered. If you speak in general terms and do not address the specifics of the prospect’s objection, you have not given him the answer he is looking for.

g. Never be hasty. If you rush through your presentation or do not give enough consideration to the prospect’s concerns, you could make the prospect feel uneasy. Never linger on any one point, but do not give any quick answers either.

2. Misunderstanding

These objections fall into three categories:

a. Improper understanding of the need. A professional salesman has the ability to define and solve problems. By understanding the prospect’s situation, you are better able to offer the help or answers he needs. Take the time to get to the core facts and offer the solutions necessary to close the sale.

b. Inadequate goal definition. You have to know what the prospect’s goal is before you try to suggest a solution. If his main concern is to maximise monthly production and your product is a critical part in the production, speak in terms of providing the solution and help him to reach his goal.

c. Discuss benefits and not features. Provide specific examples of how the prospect will gain benefit from your product/service and your proposed solution to his objections. Do not give generalized answers to specific problems

3. Stalling

If the prospect seems to be stalling, the reason might be one of these:

a. He is not the decision maker. If this is the situation, find out who the decision maker is and ask to meet with that person. This can be done by asking the prospect himself or trying to gain the information from the receptionist. A simple question, such as: ‘ Mr. Basit, I deal in the office equipments. Can you please tell me who in your organization is in charge of specifying and buying office equipments?’.

b. He is not sold on your product. Ask probing questions to determine what the problem is. ‘Are you not sure about our pricing?’;’ Are you concerned about our ability to deliver?’ or ‘What it is that bothering you in making your decision?’

c. He wants to get other proposals. Find out what his criteria is in the proposals. Also, see if you can determine what kind of information he is looking for. Ask if the project is going to be awarded on a competitive bid basis only. Try to be the last bidder to present.

d. He is too busy to talk to you right now. Ask him what his schedule is and when you can return or call him back. Also, it might be good to find out if the project is a reality and not just a fire drill.

e. Product is not budgeted. An excellent chance for you to show him cost benefits and be willing to adjust your scope of work to fit his time frame. “You have told me that his project has not been budgeted for this quarter. However, I can see that you need our products. I have spoken to our financial people and we are willing to invoice you at the start of the next quarter if you agree to receive a shipment within ten days.”

• Unvoiced Objections

An obvious question you might ask is: ‘How can I handle those objections that have not been raised.’

If you anticipate concerns based on the information you have gathered about the prospect and have spent enough time on your sales presentation analyzing problem areas, you can get clues on this and develop strategies to handle these unvoiced objections.

Start a discussion when you feel these objections are present. You can start by asking the question, ‘Is there anything else you would like to ask me?’ or, ‘Are there any other questions I can answer for you?’ A professional salesman will keep on probing until all of such questions become clear.

Here are some examples of unvoiced objections:

1. You cannot possibly understand my business because it is unique.

Answer: Highlight your experience in the industry and how you have been able to help other clients in similar situations.

2. Why should I buy from your organisation?

Answer: Tell the prospect how you have helped other companies in the same industry, and be ready to show him testimonials.

3. There is no need for a change in suppliers?

Answer: Highlight cost advantages and other benefits of doing business with your organisation.

4. I already have a regular supplier?

Answer: With our sound knowledge of the industry and ability to help companies increase production and profits, we feel that we could be of benefit to you.

This will also give the prospect a new level of confidence in you because you were not avoiding any of his concerns. Whenever it appears that the prospect has an unvoiced objection, it is the time to probe for information. For example, ‘ Mr. Saeed, it appears that you have a question about what I just said; am I right in my understanding?’

• How to Handle Objections

The best way to handle objections is to anticipate them and to answer them before they are asked. However, for those objections that arise abruptly or instantly during the sales interview, there is a list of ‘ do’s and ‘don’ts’ that you should consider.

These are common sense ‘Do’s’:

1. Always maintain a positive attitude and be enthusiastic.

2. Always remember that objections are a natural and integral part of the sales process and should not be considered as a personal insult.

3. Always maintain good eye contact, even when under pressure.

4. Always listen attentively to an objection.

5. Always acknowledge the objection and then express your thoughts.

6. Always justify your viewpoints with testimonials, documentation and references.

And now, some very important ‘don’ts’:

1. Never knock down or degrade your competition. That takes the focus off of you and your company and you never want to do that.

2. Never say anything negative about your organisation.

3. Never say anything negative about your product or service.

4. Never tell the customer that they are wrong.

5. Never tell the customer that ‘you don’t understand.’

6. Never argue with any buyer.

7. Never lie to a customer. Long term relationships are built on trust and honesty. It is far better to say, ‘I don’t know, but I will find out the right answer and get back to you as soon as possible.’

8. Never be defensive; it is a negative approach to an objection.

9. Never lose your temperament with the customer.

10. Never let an objection go without an answer.

• Some Common Objections & Their Answers

Following is a list of some of the common objections. One simple exercise to try is, take three index cards and on each card write a common objection that you have received from prospects. For each objection, list several responses. Commit these to memory and practice your presentation.

1. Your price is too high. This is by far the most common objection and perhaps the most difficult to handle. Prices are determined diligently, and are not easily changed. You must go to a benefit-oriented solution to the objection or offer some add-on service to offset the difference in price.

When the prospect says: Your price is too high, you may use any of the following answers (customize them according to the situation)

• Compared to what? … How much do you think it should cost?

• Mr. Prospect, our quality / service is the best you can find in the market, and it means that you pay much less over the life of the product.

• Mr. Ahmed, our price is a bit higher than what other companies charge. However, we sell over 1 million units a year at the same price. We can’t sell so much if our buyers were not convinced that this is the best price.

2. I am not interested.

• Obviously you should not be interested until I show how our product can save you money and increase your profit.

• Mr. Niazi, 25 organisations have purchased this product during the last two weeks, and they all began by saying that they were not interested. But they bought because they found that our product would increase their productivity, save them money and solve some of their problems.

3. I will think it over.

• Mr. Sami, as a smart businessman you have made bigger decisions than this. What not make the decision right now and free your mind to think about the really big issues in your business?

• What exactly do you want to think about? …. Let us both think it over; sometimes two heads are better than one.

4. I don’t have the time to discuss that right now. This may be true, but only up to a certain point. It is a courtesy to respect your prospect’s busy schedule, however, it is reasonable to ask when he will have time to discuss the situation.

5. We don’t have the need right now. The obvious answer is: May I leave some literature with you and contact you later on?

6. My manager has to approve this. One way to avoid this objection is to be sure you are dealing with the right person, the decision maker. Not having done this, the natural response could be: All right; when will you be talking to your manager, please?

7. I already have a supplier for that product / service. Your job here is to convince the prospect that even though he has a supplier, you think you can do a better job and make him hear your presentation.

8. Your product doesn’t meet our specifications. Ask the prospect where you are lacking. Once you have that information, you can then customize your presentation and address the objection accordingly.

9. How long has your company been in business?. If your company has a proven track record, present it for the prospect’s review. Show him testimonials, brochures and printed material in the form of articles or press releases. It will establish your credibility.

See how many other answers you can develop to handle these common objections. Chances are that, as a salesperson, you will not close every deal. Some will fall by the wayside. You have no real control over that. However, you can minimise those situations by preparing yourself in advance. Develop a persuasive presentation; know it very well; practice it in front of others; be open-minded in identifying the potential objections and then go out in front of the prospect and give it your best shot.

You will win some sales and you will lose some sales; so, just remember this little equation developed by the noted American sales trainer Bob Ruth:
SWL + SW = SW
meaning, Some will like you; some won’t like you; so what?

• Introduction

Qualifying leads and prospects plays a very significant role in selling. Without a solid prospect list, it will be difficult to build a sales territory. Finding the potential prospects is one of the most critical phases of a salesperson’s work. If a salesperson is not vigilant, he will lose the potential customers to aggressive competitors. Sales prospecting has been compared to panning for gold. Just as a prospector digs for the gold, using his pick and pan, the sales prospector must also look for qualified prospects using his sales tools.

According to an authentic survey, out of every 100 prospects, there are probably ten who are qualified to purchase. Of those ten, there are probably only three who have the immediate need to buy. How do you find those three buyers? That is how the sales process starts.

Jack Staubach, in his book ‘Sell Like a Pro’ tells the story of a salesperson who worked for a business magazine in a major city. Each week the editorial staff covered a specific market segment in their Sunday edition; that is, one week they focused on insurance companies; next week they covered banks; third week they would cover the computer industry, etc. The salesperson, knowing the editorial schedule, contacted all of the computer organisations two months before the start of each editorial segment and sold the advantages of paid advertising in the computer edition of the magazine. The magazine, in a way did prospecting for him. However, it was the salesperson who went out to qualify those leads and found out who in the computer market was interested to advertise in the magazine.

Another effective prospector was the printing salesman who sold customized letterheads, business cards, pads, catalogues and brochures. He offered good printing capabilities at competitive prices. He quickly found out that he had a tough competition with other printing organisations, some of which had been in the marketplace for a long time and were quite reputed. Undaunted, he decided to identify new businesses since they would have the need for his services, and he would be able to avoid the competition. For his prospect list, he checked the local chamber of commerce office and sought out the listing of new businesses that had recently been registered. He was the first salesperson to contact them, bringing with him many suggestions on how they could get quality printing at competitive rates. Every single prospect became a strong potential customer for him. With his innovative prospecting method, he found out a lot of new potential buyers and six out of ten bought his printing services.

• The Plan

To be successful in sales, you must have a plan to reach those prospects who are qualified to buy from you. This plan includes these important steps:

1. Finding the Buyers
2. Qualifying the Prospects
3. Finding the Leads

1. Finding the Buyers

Finding the right prospects is the key to successful selling. There are a number of ways to get the required leads. These techniques have been tested and proven by a lot of salespeople.

• Referrals. Successful salespeople know the value of a prospect who has been referred by an existing client who is satisfied with your product or services. This prospect is easier to sell than a new lead that knows very little about your organisation. Qualifying this prospect should be much easier than a lead obtained from a cold call.

There is a skill in obtaining a referral. Asking the traditional question, ‘Do you know anyone who can use my product/services?’ does not always work. What you are doing is asking your client to make a judgment as to whether he knows someone who is ready to buy your product or service or not. In many cases, it may not be possible for him to know. A better way of getting new leads is by asking if he belongs to any professional organization, social clubs, community association etc. If the client is in an office building with other offices, ask if he knows anyone else in the building. The logic behind this technique is very simple; most of us surround ourselves with individuals who have similar interests, needs, preferences and pastimes. By asking for referrals in this way, your client only has to give you names and not make any judgments.

The best time to ask for referrals is immediately after the sale is made. At this point the customer’s enthusiasm, satisfaction and confidence in you is at the highest point. Because referrals are so important in selling, staying in contact with old clients is essential. Call them from time to time to see how they are doing; stop in to see them occasionally; send them birthday or seasonal greeting card and let them know you always remember them.

• Networking. This is a method whereby you become your own center of influence. You ask your friends, relatives, neighbors, associates, lawyers, auto mechanic, religious leaders, athletes, influential personalities etc., and get from them names of the potential buyers for your product or services. You never know where the next lead or prospect will come from. Smart salespeople maximize their contacts through networking by joining social organizations that bring them in close contacts with the potential buyers. These salespeople increase their exposure in these organizations by becoming active members. Whatever you do, wherever you go, be sure your business cards are readily available.

• Trading Leads. An excellent method of prospecting is to set up a system whereby you are able to trade leads with other salespeople who sell in the same market as you do. Perhaps a printing salesperson who sees thirty people a week might be an excellent source for getting new prospects. Another example would be the person who sells vacuum cleaners would be a valuable source of leads for salespersons who sells appliances. By analyzing who your prospects are, you can list all the other products or services they might need. After this list is complete, you can then try to set up a trading network between you and other salespeople.

• Lists. Smart salespeople know the value of lists of businesses and people in their day-to-day prospecting. These lists are readily available through local chamber of commerce, newspaper, professional organizations, trade associations, export promotion bureau, social clubs etc.

• Business Directories. There are certain directories that list businesses by industry. Take time to learn how to effectively use these sources, and it will pay great dividends for you in time and money. The following list of directories can provide you with valuable leads:

- Trade Directories. These are directories that allow you to prospect in a specific industry. These trade-wise directories list all the important details about a particular organization. They include company size, type of business, sales volume and key persons with titles. Jamal’s Yellow Pages is an excellent example of a trade-wise directory.

- Specialized Directories. There are directories that list individuals according to profession. For example, the Lahore Bar Association Directory lists attorneys; Pakistan Medical Association Directory lists doctors in the Punjab province.

It would be virtually impossible to list all of the sources that you can go to. There is an enormous amount of resource material available that can be invaluable to the salesperson who is willing to seek it out. Business and Industrial directories can guide you in finding the sales leads.

• Prospecting by Telephone. The telephone is a very helping sales tool. It enables salespeople to prospect not only in their own city but around the country also. A lot of salespeople do not take the advantage of the telephone. Successful salespeople know that telephone is an effective tool in seeking and reaching prospects. There are some basics in using the telephone as a sales lead generator. When using the telephone, be conscious of how you sound and the words that you use. A prospect you are calling for the first time only has your voice and does not have the advantage of seeing you, your product, brochures or other sales aids. So, if he hears a voice that is low, boring, monotonous, or has poor diction, he most likely will cut the conversation short.

Sound enthusiastic when speaking to a prospect. Enunciate clearly and choose your words carefully trying to paint a clear mental picture of opportunity to your prospect. This is a time for you to get to know the prospect; therefore, nake sure to keep his interest on the telephone.

- For telephone prospecting to be effective, you must have a set time each day when you will make your calls. If you are not disciplined in your telemarketing, it will become a hit-or-miss situation for you and will be a waste of time for you.

- The important thing is to get the name of the right person for you to contact as well as the secretary’s name. When calling back, it is sometimes helpful to get through to the person you want to speak to by having the secretary’s name. For example, ‘ Hello Sara, is Mr. Ali in?’ This gives the impression that you know the secretary as well as Mr. Ali. In some cases, even though she does not recognize your voice, she will put through, not admitting that she forgot who you are. This might give you an edge in getting to Mr. Ali.

• Canvassing. Canvassing can be an effective tool in prospecting for leads. This technique is best used when you are finished with a sales call and you are in an office building with time before your next scheduled appointment. Walk into other offices that you think can use what you are selling and introduce yourself. You might get an opportunity to speak with a prospect. At least, you can find out who the prospect is, leave your business card and let him know that you will follow up with a telephone call.

• Direct Mail. Another way of getting and qualifying leads is to use the mail for sending brochures, letters or samples with a note attached stating that you will be calling for an appointment. The negative side to this approach is that people in business often call it ‘ junk mail.’ However, here is how you can make yourself different from others:

- Hand write the name and address of the prospect on the envelope. Successful salespeople often hand write a personal letter on plain paper without a letterhead. This method will at least get the prospect to read the first few lines to find out who you are. If you are smart in your approach, you will get him to read the entire letter and not dismiss it as another piece of junk mail.

- To be successful, you must follow-up your direct mail campaign with a phone call. This will increase your chances of getting an appointment and will serve as a vital part of your prospect qualification process. If you get the appointment, there may be a need for your product. Remember that direct mail should be used to supplement your prospecting method and should never be used as a stand alone method to gain new leads.

• Special promotions. A good place to get prospects is at trade shows and exhibitions. These are usually industry-sponsored and potential prospects attend them. They give best opportunities to follow-up the prospects you meet, face- to-face at the show. Consumer shows are different. These are not usually industry-sponsored and are usually open to the public. They can be auto shows, home- improvement shows, book fair etc. However, if you are selling a product or service that is consumer-oriented, these shows will be the best place to meet prospects. They draw a lot of people and where there are people, there are prospects. Pick the ones that will benefit you best.

• Newspapers can be used for prospecting. They give you very valuable information about people and their companies. They report on who has been hired, promoted and who is moving into the area. They also run employment ads that might mean the company is expanding.

• Employee turnover. If a salesperson leaves your company, the prospect list he leaves behind might be a helpful tool for your prospecting effort. Ask the sales manager if you can go through the list and contact those prospects who may be helpful to you. If the prospect you call from this list tells you that they were not happy with the company, product or service, you can tell him that is the reason you have been given the account so that you could provide him with the best service possible.

• Old customers. Most product and services have a life cycle and it is your job to determine when your prospect will be in the market again. If you sell products with a predictable life cycle such as automobiles or air travel, you can build up an active client base and periodically you have another group of prospects. If the product or service you sell has a long life cycle or is one-time sale, you can become the client’s sole supplier by keeping in touch with him. When other people ask him where they can get a particular item or service, it will be you he remembers. If there have been any improvemnts on the product or service, inform your customers. You might get them to upgrade. They are already qualified buyers and it is human nature to want the newest and the best, especially if the new product can save them money and time.

• Testimonials can benefit many promotional activities including the use of brochures, direct mail, ads, press releases. A testimonial is a statement by a satisfied client sppreciating you and your services. A typical testimonial might state: “Thanks for the excellent job you did on our sales training program. It was creatively executed and after just one month, we have realized an 18% increase in sales across the board. I thank you, my sales people and our president thanks you.” Some people believe that the best testimonial is one that has not been solicited. This occurs when a satisfied client writes a letter thanking you for a job well done, with no prompting on your part.

2. Qualifying the Prospects

To be successful in prospecting you must first identify or qualify your prospects. One way is to ask yourself where you can find the maximum number of qualified prospects in the minimum period of time. Your answer should guide you to the right direction. For example, the person who must use a cleaning agent for dentures is someone who wears dentures. One obvious source for this market would be the dentists in your area. If you are interested in brand loyalty, give samples of your product to the dentists who in turn will give them to their patients who are your prospects. The fact that the dentist is giving the samples out adds to the credibility of your product. Detail salespeople for pharmaceutical firms have been doing this for years.

To be successful in qualifying prospects, you have to ask yourself a number of questions. The salesperson who asks enough right questions of the right people in the right places will always have plenty of qualified prospects. The first three qualifying questions: Who?, Where? Why? will show you how to find quality prospects.

“What?” is designed to help you target your presentation and
“When?” can save you time and maximize your energies in the qualification process.
Finally, the “How?” questions. They are perhaps the most crucial of all the questions because many of their answers will evolve from the other five questions. Here are the questions:

1. Who? A few excellent “who” questions you might consider using in order to convert “suspects” into highly qualified prospects are:

- Who has the most obvious need for your products or services?

- Who are the ideal prospects? Don’t limit yourself to existing customers. Describe in detail on a piece of paper who your ideal prospects are.

- Who has the money to buy your products or services immediately?

- Who has the most urgent need to buy your products?

- Who has influence on the prospects you are able to identify?

2. Where? By asking enough “where” questions, you should be able to qualify prospects beyond your current client list.

- Where do your ideal prospects live, work, socialize, worship or play?

- Where can you find useful mailing lists of people who fit your ideal prospect profile?

- Where can you find directories from which you can form your own lists?

- Where could you go to contact new prospects?

3. Why? By using the “why” questions, you can set up priorities so as not to waste your time in qualifying prospects.

- Why would the prospect be likely to buy your product or service?

- Why would the prospect resist buying your product or service?

- Why might this time be good (or bad) to approach the prospect?

- Why would this person be likely to set up an appointment with you?

4. What? These questions, if properly used can boost your qualifying average.

- What will the prospect find most beneficial about your product or service?

- What information could you present, or what questions could you ask would most likely get the prospect to talk about his needs?

- What more do you need to know about the prospect?

- What information should you gather about the prospect before you meet with him?

- What is the single biggest problem the prospect has?

5. When? This question is about timing. Do not try to set up an appointment for your convenience.

- When is the best time to contact a prospect ? An important hint, if he is a busy executive, is never on a Monday morning!

- When is the most productive time from the prospect’s viewpoint?

- When is the prospect most likely to give you the time you need?

- When should you contact the prospect again if your first efforts were not successful?

6. How? You will not be able to ask many meaningful “How?” questions if you have not fully explored the other five.

- How can you be sure that you are doing a good enough job of follow-up prospecting? (Look at the Who? questions again.)

- How can you use your prospecting time more productively? (The “Where?” questions can help you here.)

- How can you sharpen your prospecting and qualifying skills? (Hint: Search for creative ways to put your products and services to good use. Look at the “Why?” questions.)

- How can you best approach your prospects? (“Think about the “What?” questions – What will they want to hear?)

- How can you make more time for meaningful prospecting and qualifying the leads you generate? (The “When?” questions will give you a good indication of effective time management.)

3. Finding the Leads

A salesperson without leads or people to talk to is like a fish out of water. Neither can survive very long. Yet, a common problem among salespeople is a lack of sufficient leads. The million dollar question in selling is “where do the leads come from?” There are four ways to get qualified leads.

• Although rare, your product or service may be so good that it virtually sells itself. This very often happens when your company sells a one-of-a-kind product that becomes popular in which case your job of getting prospects becomes easier.

• The company you are working for has a program that will produce leads through media, direct mail or print advertising. (National or international companies like Encyclopedia Britannica is a good example of company produced leads.) The salesperson still has to qualify the buyers, but the leads are there.

• A third way to get leads is through your network of friends and colleagues. Some industries base a portion of their sales projections on the tendency that new salesmen will sell to many people they know. These companies constantly hire based on this trend. These companies also know that many salespeople will fail once they exhaust this circle of possibilities.

• The last way is getting leads on your own. This separates the achievers from the under-achievers. Street smart salespeople learn not to count on the first three sources of acquiring leads. They have learned that they themselves are the greatest source for their own leads. The rest of this section will focus on where to look to find your own leads.

After you find people who need or want to buy your product or service, then you must establish that the prospect has the authority to buy and the ability to pay. This is possibly the most important point in prospecting and qualifying, and it cannot be stressed enough. It makes no sense at all to waste time on anyone who might want what you are selling but has neither the authority to buy or the money to pay for what you are selling. So four steps in qualifying a lead or prospect are:

• Finding the people who need or want your product or service.

• Establishing that the prospect has the ability to pay for your product or service.

• Making sure that the prospect has the authority to make the purchase.

• Determining approachability. In order for a prospect to buy from you, he must be accessible to you. For example, The Prime Minister of Pakistan might be a good prospect for a new line of health-care products but if you cannot reach him, you cannot sell to him.

The End Result

The end result for any salesperson is getting the prospect to buy what is being sold. If the prospect has the need, the authority to buy and the money to do so, they are good prospects. You can find good prospects in many of the ways outlined in this module. However, it will take the time and effort on your part to be successful.

Don’t cut down on your chances by relying on one method of prospecting. Go out and make it happen for yourself by employing every method possible. Also, be creative and perfect your own method of prospecting. A man who was selling vacation property once set up a booth at a Flea Market. The booth had photographs of vacant land and on the counter of the booth he had a pile of dirt with a small “For Sale” sign in the dirt. His colleagues thought he was crazy. But when he started to sell vacation lots at a very brisk rate, they soon followed suit and set up booths of their own at other Flea Markets.

Self-Evaluation

Following questions are designed to stimulate your thinking as an effective prospector. Read these questions and answer them sincerely. Study your answers and improve your success in sales:

1. What percentage of your day is devoted to prospecting?

2. What methods do you use to prospect for new customers?

3. What method or methods generate the most prospects for you?

4. Do you depend on one method only? If yes, Why?

5. What method do you think could be more effective with your product or service?

6. What is the life cycle of your product or service?

7. Have you been successful in getting prospects from your clients ? If not, why not?

8. Have you developed a well-scripted telephone presentation? If not, why not?