Tuesday, December 28, 2010
Tuesday, December 21, 2010
Thursday, December 16, 2010
5 Secrets of Self-Made Millionaires
By Kristyn Kusek Lewis
They’re just like you. But with lots of money.
When you think “millionaire,” what image comes to mind? For many of us, it’s a flashy Wall Street banker type who flies a private jet, collects cars and lives the kind of decadent lifestyle that would make Donald Trump proud.
But many modern millionaires live in middle-class neighborhoods, work full-time and shop in discount stores like the rest of us. What motivates them isn’t material possessions but the choices that money can bring: “For the rich, it’s not about getting more stuff. It’s about having the freedom to make almost any decision you want,” says T. Harv Eker, author of Secrets of the Millionaire Mind. Wealth means you can send your child to any school or quit a job you don’t like.
According to the Spectrem Wealth Study, an annual survey of America’s wealthy, there are more people living the good life than ever before—the number of millionaires nearly doubled in the last decade. And the rich are getting richer. To make it onto the Forbes 400 list of the richest Americans, a mere billionaire no longer makes the cut. This year you needed a net worth of at least $1.3 billion.
If more people are getting richer than ever, why shouldn’t you be one of them? Here, five people who have at least a million dollars in liquid assets share the secrets that helped them get there.
1. Set your sights on where you’re going
Twenty years ago, Jeff Harris hardly seemed on the road to wealth. He was a college dropout who struggled to support his wife, DeAnn, and three kids, working as a grocery store clerk and at a junkyard where he melted scrap metal alongside convicts. “At times we were so broke that we washed our clothes in the bathtub because we couldn’t afford the Laundromat.” Now he’s a 49-year-old investment advisor and multimillionaire in York, South Carolina.
There was one big reason Jeff pulled ahead of the pack: He always knew he’d be rich. The reality is that 80 percent of Americans worth at least $5 million grew up in middle-class or lesser households, just like Jeff.
Wanting to be wealthy is a crucial first step. Says Eker, “The biggest obstacle to wealth is fear. People are afraid to think big, but if you think small, you’ll only achieve small things.”
It all started for Jeff when he met a stockbroker at a Christmas party. “Talking to him, it felt like discovering fire,” he says. “I started reading books about investing during my breaks at the grocery store, and I began putting $25 a month in a mutual fund.” Next he taught a class at a local community college on investing. His students became his first clients, which led to his investment practice. “There were lots of struggles,” says Jeff, “but what got me through it was believing with all my heart that I would succeed.”
2. Educate yourself
When Steve Maxwell graduated from college, he had an engineering degree and a high-tech job—but he couldn’t balance his checkbook. “I took one finance class in college but dropped it to go on a ski trip,” says the 45-year-old father of three, who lives in Windsor, Colorado. “I actually had to go to my bank and ask them to teach me how to read my statement.”
One of the biggest obstacles to making money is not understanding it: Thousands of us avoid investing because we just don’t get it. But to make money, you must be financially literate. “It bothered me that I didn’t understand this stuff,” says Steve, “so I read books and magazines about money management and investing, and I asked every financial whiz I knew to explain things to me.”
He and his wife started applying the lessons: They made a point to live below their means. They never bought on impulse, always negotiated better deals (on their cars, cable bills, furniture) and stayed in their home long after they could afford a more expensive one. They also put 20 percent of their annual salary into investments.
Within ten years, they were millionaires, and people were coming to Steve for advice. “Someone would say, ‘I need to refinance my house—what should I do?’ A lot of times, I wouldn’t know the answer, but I’d go find it and learn something in the process,” he says.
In 2003, Steve quit his job to become part owner of a company that holds personal finance seminars for employees of corporations like Wal-Mart. He also started going to real estate investment seminars, and it’s paid off: He now owns $30 million worth of investment properties, including apartment complexes, a shopping mall and a quarry.
“I was an engineer who never thought this life was possible, but all it truly takes is a little self-education,” says Steve. “You can do anything once you understand the basics.”
3. Passion pays off
In 1995, Jill Blashack Strahan and her husband were barely making ends meet. Like so many of us, Jill was eager to discover her purpose, so she splurged on a session with a life coach. “When I told her my goal was to make $30,000 a year, she said I was setting the bar too low. I needed to focus on my passion, not on the paycheck.”
Jill, who lives with her son in Alexandria, Minnesota, owned a gift basket company and earned just $15,000 a year. She noticed when she let potential buyers taste the food items, the baskets sold like crazy. Jill thought, Why not sell the food directly to customers in a fun setting?
With $6,000 in savings, a bank loan and a friend’s investment, Jill started packaging gourmet foods in a backyard shed and selling them at taste-testing parties. It wasn’t easy. “I remember sitting outside one day, thinking we were three months behind on our house payment, I had two employees I couldn’t pay, and I ought to get a real job. But then I thought, No, this is your dream. Recommit and get to work.”
She stuck with it, even after her husband died three years later. “I live by the law of abundance, meaning that even when there are challenges in life, I look for the win-win,” she says.
The positive attitude worked: Jill’s backyard company, Tastefully Simple, is now a direct-sales business, with $120 million in sales last year. And Jill was named one of the top 25 female business owners in North America by Fast Company magazine.
According to research by Thomas J. Stanley, author of The Millionaire Mind, over 80 percent of millionaires say they never would have been successful if their vocation wasn’t something they cared about.
4. Grow your money
Most of us know the never-ending cycle of living paycheck to paycheck. “The fastest way to get out of that pattern is to make extra money for the specific purpose of reinvesting in yourself,” says Loral Langemeier, author of The Millionaire Maker. In other words, earmark some money for the sole purpose of investing it in a place where it will grow dramatically—like a business or real estate.
There are endless ways to make extra money for investing—you just have to be willing to do the work. “Everyone has a marketable skill,” says Langemeier. “When I started out, I had a tutoring business, seeing clients in the morning before work and on my lunch break.”
A little moonlighting cash really can grow into a million. Twenty-five years ago, Rick Sikorski dreamed of owning a personal training business. “I rented a tiny studio where I charged $15 an hour,” he says. When money started trickling in, he squirreled it away instead of spending it, putting it all back into the business. Rick’s 400-square-foot studio is now Fitness Together, a franchise based in Highlands Ranch, Colorado, with more than 360 locations worldwide. And he’s worth over $40 million.
When extra money rolls in, it’s easy to think, Now I can buy that new TV. But if you want to get rich, you need to pay yourself first, by putting money where it will work hard for you—whether that’s in your retirement fund, a side business or investments like real estate.
5. No guts, no glory
Last summer, Dave Lindahl footed the bill for 18 relatives at a fancy mansion in the Adirondacks. One night, his dad looked out at the scenery and joked, “I can’t believe we used to call you the black sheep!”
At 29, Dave was broke, living in a small apartment near Boston and wondering what to do after ten years in a local rock band. “I looked around and thought, If I don’t do something, I’ll be stuck here forever.”
He started a landscape company, buying his equipment on credit. When business literally froze over that winter, a banker friend asked if he’d like to renovate a foreclosed home. “I’m a terrible carpenter, but I needed the money, so I went to some free seminars at Home Depot and figured it out as I went,” he says.
After a few more renovations, it occurred to him: Why not buy the homes and sell them for profit? He took a risk and bought his first property. Using the proceeds, he bought another, and another. Twelve years later, he owns apartment buildings, worth $143 million, in eight states.
The Biggest Secret? Stop spending.
Every millionaire we spoke to has one thing in common: Not a single one spends needlessly. Real estate investor Dave Lindahl drives a Ford Explorer and says his middle-class neighbors would be shocked to learn how much he’s worth. Fitness mogul Rick Sikorski can’t fathom why anyone would buy bottled water. Steve Maxwell, the finance teacher, looked at a $1.5 million home but decided to buy one for half the price because “a house with double the cost wouldn’t give me double the enjoyment.”
They’re just like you. But with lots of money.
When you think “millionaire,” what image comes to mind? For many of us, it’s a flashy Wall Street banker type who flies a private jet, collects cars and lives the kind of decadent lifestyle that would make Donald Trump proud.
But many modern millionaires live in middle-class neighborhoods, work full-time and shop in discount stores like the rest of us. What motivates them isn’t material possessions but the choices that money can bring: “For the rich, it’s not about getting more stuff. It’s about having the freedom to make almost any decision you want,” says T. Harv Eker, author of Secrets of the Millionaire Mind. Wealth means you can send your child to any school or quit a job you don’t like.
According to the Spectrem Wealth Study, an annual survey of America’s wealthy, there are more people living the good life than ever before—the number of millionaires nearly doubled in the last decade. And the rich are getting richer. To make it onto the Forbes 400 list of the richest Americans, a mere billionaire no longer makes the cut. This year you needed a net worth of at least $1.3 billion.
istockphoto.com
1. Set your sights on where you’re going
Twenty years ago, Jeff Harris hardly seemed on the road to wealth. He was a college dropout who struggled to support his wife, DeAnn, and three kids, working as a grocery store clerk and at a junkyard where he melted scrap metal alongside convicts. “At times we were so broke that we washed our clothes in the bathtub because we couldn’t afford the Laundromat.” Now he’s a 49-year-old investment advisor and multimillionaire in York, South Carolina.
There was one big reason Jeff pulled ahead of the pack: He always knew he’d be rich. The reality is that 80 percent of Americans worth at least $5 million grew up in middle-class or lesser households, just like Jeff.
Wanting to be wealthy is a crucial first step. Says Eker, “The biggest obstacle to wealth is fear. People are afraid to think big, but if you think small, you’ll only achieve small things.”
It all started for Jeff when he met a stockbroker at a Christmas party. “Talking to him, it felt like discovering fire,” he says. “I started reading books about investing during my breaks at the grocery store, and I began putting $25 a month in a mutual fund.” Next he taught a class at a local community college on investing. His students became his first clients, which led to his investment practice. “There were lots of struggles,” says Jeff, “but what got me through it was believing with all my heart that I would succeed.”
2. Educate yourself
When Steve Maxwell graduated from college, he had an engineering degree and a high-tech job—but he couldn’t balance his checkbook. “I took one finance class in college but dropped it to go on a ski trip,” says the 45-year-old father of three, who lives in Windsor, Colorado. “I actually had to go to my bank and ask them to teach me how to read my statement.”
One of the biggest obstacles to making money is not understanding it: Thousands of us avoid investing because we just don’t get it. But to make money, you must be financially literate. “It bothered me that I didn’t understand this stuff,” says Steve, “so I read books and magazines about money management and investing, and I asked every financial whiz I knew to explain things to me.”
He and his wife started applying the lessons: They made a point to live below their means. They never bought on impulse, always negotiated better deals (on their cars, cable bills, furniture) and stayed in their home long after they could afford a more expensive one. They also put 20 percent of their annual salary into investments.
Within ten years, they were millionaires, and people were coming to Steve for advice. “Someone would say, ‘I need to refinance my house—what should I do?’ A lot of times, I wouldn’t know the answer, but I’d go find it and learn something in the process,” he says.
In 2003, Steve quit his job to become part owner of a company that holds personal finance seminars for employees of corporations like Wal-Mart. He also started going to real estate investment seminars, and it’s paid off: He now owns $30 million worth of investment properties, including apartment complexes, a shopping mall and a quarry.
“I was an engineer who never thought this life was possible, but all it truly takes is a little self-education,” says Steve. “You can do anything once you understand the basics.”
3. Passion pays off
In 1995, Jill Blashack Strahan and her husband were barely making ends meet. Like so many of us, Jill was eager to discover her purpose, so she splurged on a session with a life coach. “When I told her my goal was to make $30,000 a year, she said I was setting the bar too low. I needed to focus on my passion, not on the paycheck.”
Jill, who lives with her son in Alexandria, Minnesota, owned a gift basket company and earned just $15,000 a year. She noticed when she let potential buyers taste the food items, the baskets sold like crazy. Jill thought, Why not sell the food directly to customers in a fun setting?
With $6,000 in savings, a bank loan and a friend’s investment, Jill started packaging gourmet foods in a backyard shed and selling them at taste-testing parties. It wasn’t easy. “I remember sitting outside one day, thinking we were three months behind on our house payment, I had two employees I couldn’t pay, and I ought to get a real job. But then I thought, No, this is your dream. Recommit and get to work.”
She stuck with it, even after her husband died three years later. “I live by the law of abundance, meaning that even when there are challenges in life, I look for the win-win,” she says.
The positive attitude worked: Jill’s backyard company, Tastefully Simple, is now a direct-sales business, with $120 million in sales last year. And Jill was named one of the top 25 female business owners in North America by Fast Company magazine.
According to research by Thomas J. Stanley, author of The Millionaire Mind, over 80 percent of millionaires say they never would have been successful if their vocation wasn’t something they cared about.
4. Grow your money
Most of us know the never-ending cycle of living paycheck to paycheck. “The fastest way to get out of that pattern is to make extra money for the specific purpose of reinvesting in yourself,” says Loral Langemeier, author of The Millionaire Maker. In other words, earmark some money for the sole purpose of investing it in a place where it will grow dramatically—like a business or real estate.
There are endless ways to make extra money for investing—you just have to be willing to do the work. “Everyone has a marketable skill,” says Langemeier. “When I started out, I had a tutoring business, seeing clients in the morning before work and on my lunch break.”
A little moonlighting cash really can grow into a million. Twenty-five years ago, Rick Sikorski dreamed of owning a personal training business. “I rented a tiny studio where I charged $15 an hour,” he says. When money started trickling in, he squirreled it away instead of spending it, putting it all back into the business. Rick’s 400-square-foot studio is now Fitness Together, a franchise based in Highlands Ranch, Colorado, with more than 360 locations worldwide. And he’s worth over $40 million.
When extra money rolls in, it’s easy to think, Now I can buy that new TV. But if you want to get rich, you need to pay yourself first, by putting money where it will work hard for you—whether that’s in your retirement fund, a side business or investments like real estate.
5. No guts, no glory
Last summer, Dave Lindahl footed the bill for 18 relatives at a fancy mansion in the Adirondacks. One night, his dad looked out at the scenery and joked, “I can’t believe we used to call you the black sheep!”
At 29, Dave was broke, living in a small apartment near Boston and wondering what to do after ten years in a local rock band. “I looked around and thought, If I don’t do something, I’ll be stuck here forever.”
He started a landscape company, buying his equipment on credit. When business literally froze over that winter, a banker friend asked if he’d like to renovate a foreclosed home. “I’m a terrible carpenter, but I needed the money, so I went to some free seminars at Home Depot and figured it out as I went,” he says.
After a few more renovations, it occurred to him: Why not buy the homes and sell them for profit? He took a risk and bought his first property. Using the proceeds, he bought another, and another. Twelve years later, he owns apartment buildings, worth $143 million, in eight states.
The Biggest Secret? Stop spending.
Every millionaire we spoke to has one thing in common: Not a single one spends needlessly. Real estate investor Dave Lindahl drives a Ford Explorer and says his middle-class neighbors would be shocked to learn how much he’s worth. Fitness mogul Rick Sikorski can’t fathom why anyone would buy bottled water. Steve Maxwell, the finance teacher, looked at a $1.5 million home but decided to buy one for half the price because “a house with double the cost wouldn’t give me double the enjoyment.”
Tuesday, December 14, 2010
Tuesday, December 7, 2010
What Agents Can Do To Reduce E&O Exposure
Number 1: Document
By far, the most common claim is simply an allegation of failure to place coverage. The most reliable way to prevent these is written documentation that says, "This is what I offered you, my customer, and this is what you accepted."
Number 2: Use Coverage Checklists
They can range from fairly short and simple to a very detailed one that walks through certain types of coverage that could be appropriate for a certain type of operation.
Number 3: Stay Educated
Every state association offers E&O classes. Those are great and are offered all the time. Another great resource is the IJ Academy.
Number 4: Read, Read, Read
Identify the sources of info you really truly need and focus your time on these.
Number 5: Have an Agency E&O Audit
It is done by an outside auditor and agents may be able to obtain a discount on their E&O premiums.
Prospecting Tips
Turn warm leads into hot appointments with these suggestions.
By Randy S. SchusterI have been in this business a little over 10 years, and I still phone prospects every week. Actually, it is an appointment on my calendar that is noncancelable. My assistants know they are not allowed to remove this mandatory appointment from my calendar or move it to another part of the week without checking with me first.
My calendar is completely booked for the next 12 months with prospect phone time. I begin the calls every Wednesday at 9 a.m. It only takes about an hour, and I like to get it done early so I can move on to other things.
I would like to emphasize that in addition to these calls, I make sure to see new prospects every week. I also still maintain a calendar of 12 to 15 client appointments per week. I also make sure that my calendar is
MY CALENDAR IS COMPLETELY BOOKED FOR THE NEXT 12 MONTHS WITH PROSPECT PHONE TIME. |
at least half full two weeks out. This means that seven to eight appointments are already scheduled, and that three weeks out I have at least three to four appointments scheduled.
Even after 10 years, I still hate making these prospecting calls, but I have learned a number of techniques to make the process easier and more efficient.
When I receive a referral from a client, I routinely ask him to contact the prospect for me to tell him a little bit about me and to expect my call. I always start out with: “Mr. Prospect, (Referrer) said you are a (great guy, good tennis player, very good friend, etc.) and that we should get together.” Let me give you some examples of what I mean.
A very, very cold call
A few years ago, I was having lunch with a client the day after the Super Bowl and he said to me, “Randy, at 11:30 last night, after the game, I went out snowmobiling.” To put this in perspective, it was 20 degrees, and it had snowed about five or six inches. So I said to my client, “What, are you nuts?” Then he added that he had gone with someone who was on my target prospect list. I took the opportunity to ask my client if he would refer this friend to me and, of course, he said he would be glad to.
A few years ago, I was having lunch with a client the day after the Super Bowl and he said to me, “Randy, at 11:30 last night, after the game, I went out snowmobiling.” To put this in perspective, it was 20 degrees, and it had snowed about five or six inches. So I said to my client, “What, are you nuts?” Then he added that he had gone with someone who was on my target prospect list. I took the opportunity to ask my client if he would refer this friend to me and, of course, he said he would be glad to.
When I called the prospect, the conversation went something like this: “Hi Jeff. I was having lunch with Steve the other day, and he told me you guys went snowmobiling after the Super Bowl. As I recall, there was about five inches of snow on the ground and it was about 20 degrees. Are you guys nuts?” This evoked a laugh and I continued, “Steve also said that we should meet.” Jeff immediately said yes, and only at that point did I say, “My name is Randy Schuster, and when can we meet?” This phone call later turned into business.
A six-year delay
Dan had been on my target list for six years. In fact, he didn’t realize it, but I had called him three times before: once as a cold call and the other times from referrals that didn’t end up going anywhere. This time I waited for the right referral—from a very close friend of his—before I called. I made sure I followed through with my client about the referral. I called him on his cell phone, and he happened to be at the beach in South Carolina. He said he would call Dan immediately and tell him to expect my call. A few minutes later when I called the prospect I said, “Dan, isn’t it great that our mutual friend took the time to contact you while he was on the beach during his vacation?” This also evoked a laugh; then I asked for the appointment, and Dan is now a client.
Dan had been on my target list for six years. In fact, he didn’t realize it, but I had called him three times before: once as a cold call and the other times from referrals that didn’t end up going anywhere. This time I waited for the right referral—from a very close friend of his—before I called. I made sure I followed through with my client about the referral. I called him on his cell phone, and he happened to be at the beach in South Carolina. He said he would call Dan immediately and tell him to expect my call. A few minutes later when I called the prospect I said, “Dan, isn’t it great that our mutual friend took the time to contact you while he was on the beach during his vacation?” This also evoked a laugh; then I asked for the appointment, and Dan is now a client.
Water-cooler connection
A client related to me that he had been at his office sharing with his peers the fact that he had just returned from his attorney’s office to execute a new will with his financial advisor. One of his colleagues overheard him and said, “I’ve got to meet that guy.”
A client related to me that he had been at his office sharing with his peers the fact that he had just returned from his attorney’s office to execute a new will with his financial advisor. One of his colleagues overheard him and said, “I’ve got to meet that guy.”
When I called my client’s colleague, I introduced myself as the guy who took his friend to the attorney’s office. He immediately knew who I was, and made an appointment with me. Now he’s a client as well.
The point of these examples is get to know something about the prospect and his relationship with the referrer—let them bond. When I speak with a prospect, I always say something about him and the referrer before introducing myself. That way he is thinking good thoughts about his friend and is less likely to be on the defensive when dealing with me. This has greatly improved my ratio of converting referred prospects into appointments.
Monday, December 6, 2010
How to Cold Call a Big Customer
Terrified by the thought of making a cold call? Does the thought of ringing a Fortune 500 firm and asking a high-profile executive for some face time give you goose bumps? There's good cause to be anxious about cold calling. Large corporations are cautious, hierarchical, and difficult to penetrate, says Wendy Weiss, a New York City-based sales coach and the author of Cold Calling for Women: Opening Doors and Closing Sales.
"You don't want to wing it when you're trying to introduce yourself to an executive at a Fortune 500 company," she says. "You're bound to hit a dead end, often in the form of a hang-up or a 'Don't call us again.'"
On the other hand, such firms have extensive resources, and, if you sell them effectively, can become some of your most lucrative customers. So, how do you ask sales prospects — in this case highly visible companies — to pony up? Here are some tips on how to pitch to the big guys, and how to turn those cold calls into sales.
How to Cold Call a Big Customer: Narrow Your Search
"All prospects are not created equal," says Weiss. "I see a lot of business owners really spinning their wheels and chasing after inappropriate customers. It's easier to talk to somebody who actually uses the type of thing you're selling."
Narrow your search by figuring out who would make an ideal customer. Weiss recommends selecting prospects whose traits match those of your current clients. You can even examine your competitors and their customers to get an idea of who you should be calling.
Use social networks such as LinkedIn to generate leads and to search for contacts at companies, adds Weiss. She also recommends Jigsaw, a free web directory of business cards that maintains a database of more than 20 million company and contact records.
The advantage of targeting a large firm is that there is a wealth of information available to help you hone in on its needs. "There's a lot more data out there on big companies," says Stephanie Hackney, chief brander at Branding Masters in Austin. "You can find statistics, news stories, SEC filings, 10K forms — it's just much easier to research this type of customer."
Impress a prospect with your knowledge of the company and, more importantly, its concerns and problems, and they'll be more receptive to speaking with you.
How to Cold Call a Big Customer: Practice, Practice, Practice
Ringing a manager at a large firm is probably the most daunting cold call you'll ever make. The only way to overcome fear is to craft a script, and to practice it until you feel confident about approaching a prospect.
"How are you going to introduce yourself? How are you going to ask for what you want? How are you going to respond if they say, 'I'm too busy,' or 'I have a vendor, or 'Call me next week,' says Weiss. "Those are all things to think about when you're writing a script."
Still, Weiss cautions against sounding too artificial or rehearsed. Keep the jargon to a minimum and stick to a fluid, friendly, and conversational style. Write your script in the way that you speak, she says, and leave room for improvisation. Try talking into a tape recorder and playing it back to see how you sound and what you need to improve.
"Prospects at large organizations are similar to prospects at small organizations in that they're human beings," says Weiss. "You're looking to make a human connection."
How to Cold Call a Big Customer: How to Handle Gatekeepers
Large companies are also more hierarchical, and you could face many "gatekeepers," — executive assistants, associates or secretaries — who screen calls made to the decision maker.
Don't treat them as less valuable contacts, and don't shy away from telling them who you are and what you're trying to accomplish, says Hackney. "It's very important that you express to them what it is you're offering and why it's important to their boss, because many times they're making a decision about whether or not your message gets passed through to their boss."
Weiss, however, recommends a different approach. Though you should always be polite, "you want to act like the peer of the person you're calling, not being the peer of the gatekeeper," she says.
"There's this myth about spending a lot of time courting gatekeepers, but I like to think about how Donald Trump would do it. He would probably say to the gatekeeper, 'This is Donald Trump, is she there?' It's really that simple — it exudes confidence and authority, and it often saves a lot of time."
How to Cold Call a Big Customer: It's Not About You
"It's not about what you do, it's about how you help your customers," says Weiss, adding that entrepreneurs often spend too much time talking about themselves while pitching a customer.
Instead, keep your introduction short and switch gears quickly to explain what you can do for the company. Sweeten the pitch by offering testimonials from existing clients. Tell a brief, compelling story of how you solved a problem for another company. "I call it a mini-case study," says Weiss. "It's something that tells the prospect that you are credible."
How to Cold Call a Big Customer: Deflecting Excuses to Get You Off the Phone
Decision makers at large corporations are busy and often have limited patience for unsolicited sales calls.
"They're doing something else, the phone rings and they've been interrupted, they pick up the phone and you say hello," says Weiss. "What you're prospect is thinking is 'Who are you and what do you want?'"
Here are some common excuses prospects use to cut a phone call short, and how you can navigate past them:
• "Not now. I'm too busy." Be respectful of a prospect's time. Politely ask them when you can call back, or even suggest a few dates and times. "Most of the time they'll tell you," says Weiss.
• "We already have a vendor." That doesn't mean you should give up on the prospect, but you shouldn't aggressively try to unseat the competition either. "If you start telling them how bad that vendor is, essentially what you're doing is telling the prospect they made a mistake," says Weiss. "That doesn't usually blow over well." Instead, prepare to differentiate yourself by researching competing firms and finding out what their weaknesses are. "Let's say you have fabulous customer service and your competition is known for not answering their phone," adds Weiss. "Tell the prospect that they will always get a live person on the phone when they call. You're explaining how you're different without having to say, 'The competition is terrible.'"
Finally, be persistent. The goal of the initial call is not to close the deal, says Weiss, but rather to establish a relationship that could lead to a sale down the road.
"You don't want to wing it when you're trying to introduce yourself to an executive at a Fortune 500 company," she says. "You're bound to hit a dead end, often in the form of a hang-up or a 'Don't call us again.'"
On the other hand, such firms have extensive resources, and, if you sell them effectively, can become some of your most lucrative customers. So, how do you ask sales prospects — in this case highly visible companies — to pony up? Here are some tips on how to pitch to the big guys, and how to turn those cold calls into sales.
How to Cold Call a Big Customer: Narrow Your Search
"All prospects are not created equal," says Weiss. "I see a lot of business owners really spinning their wheels and chasing after inappropriate customers. It's easier to talk to somebody who actually uses the type of thing you're selling."
Narrow your search by figuring out who would make an ideal customer. Weiss recommends selecting prospects whose traits match those of your current clients. You can even examine your competitors and their customers to get an idea of who you should be calling.
Use social networks such as LinkedIn to generate leads and to search for contacts at companies, adds Weiss. She also recommends Jigsaw, a free web directory of business cards that maintains a database of more than 20 million company and contact records.
The advantage of targeting a large firm is that there is a wealth of information available to help you hone in on its needs. "There's a lot more data out there on big companies," says Stephanie Hackney, chief brander at Branding Masters in Austin. "You can find statistics, news stories, SEC filings, 10K forms — it's just much easier to research this type of customer."
Impress a prospect with your knowledge of the company and, more importantly, its concerns and problems, and they'll be more receptive to speaking with you.
How to Cold Call a Big Customer: Practice, Practice, Practice
Ringing a manager at a large firm is probably the most daunting cold call you'll ever make. The only way to overcome fear is to craft a script, and to practice it until you feel confident about approaching a prospect.
"How are you going to introduce yourself? How are you going to ask for what you want? How are you going to respond if they say, 'I'm too busy,' or 'I have a vendor, or 'Call me next week,' says Weiss. "Those are all things to think about when you're writing a script."
Still, Weiss cautions against sounding too artificial or rehearsed. Keep the jargon to a minimum and stick to a fluid, friendly, and conversational style. Write your script in the way that you speak, she says, and leave room for improvisation. Try talking into a tape recorder and playing it back to see how you sound and what you need to improve.
"Prospects at large organizations are similar to prospects at small organizations in that they're human beings," says Weiss. "You're looking to make a human connection."
How to Cold Call a Big Customer: How to Handle Gatekeepers
Large companies are also more hierarchical, and you could face many "gatekeepers," — executive assistants, associates or secretaries — who screen calls made to the decision maker.
Don't treat them as less valuable contacts, and don't shy away from telling them who you are and what you're trying to accomplish, says Hackney. "It's very important that you express to them what it is you're offering and why it's important to their boss, because many times they're making a decision about whether or not your message gets passed through to their boss."
Weiss, however, recommends a different approach. Though you should always be polite, "you want to act like the peer of the person you're calling, not being the peer of the gatekeeper," she says.
"There's this myth about spending a lot of time courting gatekeepers, but I like to think about how Donald Trump would do it. He would probably say to the gatekeeper, 'This is Donald Trump, is she there?' It's really that simple — it exudes confidence and authority, and it often saves a lot of time."
How to Cold Call a Big Customer: It's Not About You
"It's not about what you do, it's about how you help your customers," says Weiss, adding that entrepreneurs often spend too much time talking about themselves while pitching a customer.
Instead, keep your introduction short and switch gears quickly to explain what you can do for the company. Sweeten the pitch by offering testimonials from existing clients. Tell a brief, compelling story of how you solved a problem for another company. "I call it a mini-case study," says Weiss. "It's something that tells the prospect that you are credible."
How to Cold Call a Big Customer: Deflecting Excuses to Get You Off the Phone
Decision makers at large corporations are busy and often have limited patience for unsolicited sales calls.
"They're doing something else, the phone rings and they've been interrupted, they pick up the phone and you say hello," says Weiss. "What you're prospect is thinking is 'Who are you and what do you want?'"
Here are some common excuses prospects use to cut a phone call short, and how you can navigate past them:
• "Not now. I'm too busy." Be respectful of a prospect's time. Politely ask them when you can call back, or even suggest a few dates and times. "Most of the time they'll tell you," says Weiss.
• "We already have a vendor." That doesn't mean you should give up on the prospect, but you shouldn't aggressively try to unseat the competition either. "If you start telling them how bad that vendor is, essentially what you're doing is telling the prospect they made a mistake," says Weiss. "That doesn't usually blow over well." Instead, prepare to differentiate yourself by researching competing firms and finding out what their weaknesses are. "Let's say you have fabulous customer service and your competition is known for not answering their phone," adds Weiss. "Tell the prospect that they will always get a live person on the phone when they call. You're explaining how you're different without having to say, 'The competition is terrible.'"
Finally, be persistent. The goal of the initial call is not to close the deal, says Weiss, but rather to establish a relationship that could lead to a sale down the road.
Wednesday, December 1, 2010
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