How to Mine Your Natural Market Never make another cold call again Get more referrals than you ever thought possible David W. Dassow How to Mine Your Natural Market Copyright © 2007 by David W. Dassow All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means without written permission of the author. Introduction This book contains powerful principles and steps to generating sales through mining your natural market (your base of contacts). Take the steps and develop your own referral generating machine. Make cold calling a thing of the past and door-knocking a distant memory. Working your referral base will lead to more leads than you can keep up with. You will never have to prospect outside of your natural market again and ultimately generate more business. Remember, I’m not you, and you’re not me. No one can speak like you, think like you, and sell like you. You are unique! Take the steps and principles I’ve outlined and make them unique to you. The key that separates really great sales folks with average sales folks is one thing. When you have completed this book you will have that one thing necessary to make 6 figures income selling. What is that one thing? Leads. He who generates the most leads wins. The Sales folks that can generate leads make the most money and are the top achievers. You still need to strive for excellence and need to be very good at making presentations, establishing rapport, closing, and working smarter. But, the only ingredient that you truly need to out-sell everyone you know and be the top achiever in your office is LEADS. The sales folks that generate the most leads make the most money. Period. It can be very expensive generating leads especially through ad publications, radio, and television. It is very time consuming going door-to-door and cold calling; and frustrating when you constantly hear “NO” and have the door slammed, and phone hung up. It is the warm and hot leads generated through referrals that offer the least amount of resistance. In fact, when you combine prospecting and presenting at the same time you have achieved the ultimate in efficiency. Once you have this referral program in place you’ll easily find yourself on auto-pilot. As you see yourself cruising on auto-pilot selling more than you ever thought possible you’ll easily and effortlessly find that 6th figure selling (see my book: How to Get Rich Selling and Stay That Way). You can do it all through this book. Please feel free to sign up for a free 14 email internet extension course to this book delivered to your email. Sign up for the course on my website for the latest updates to this book: www.HowToSellPreneed.com To your success! David Table of Contents Mine Your Natural Market ............................................................1 The Golden 50.................................................................................3 Contact Your Golden 50 ...............................................................5 Understanding Your Market..........................................................7 Follow-UP........................................................................................9 Attitude of "Referrals"..................................................................11 Define Your Niche .......................................................................13 Profile Your Market......................................................................15 Know When to Hold 'em, Know When to Fold 'em ..............16 Purge Your Files Every Now and Than ....................................17 Cancellations ..................................................................................19 You Are An Expert ......................................................................21 Network Inside Your Industry....................................................23 Be Really Good at Getting Referrals..........................................25 Always be Asking for Referrals...................................................27 Organize .........................................................................................29 How to Start...................................................................................31 Always be Cultivating ...................................................................33 Do You Know Anyone That Might be Interested...?..............35 Where is Your Base Haning Out? ..............................................37 Position Yourself as an Expert ...................................................39 Under Promise and Over-Deliver ..............................................41 What is Your Goal?...................................................................... 43 Just How Many Referrals are Out There?................................. 45 Get Referrals even if You Don't Get the Sale.......................... 47 More Referrals doesn't mean you can skip the key part ......... 49 Past Customers is not the way to get referrals ......................... 51 Measure the results of your referral program........................... 53 Your referrals are different.......................................................... 55 Follow-up with your natural market .......................................... 57 Plan of Action ............................................................................... 59 Some Concluding Thoughts ....................................................... 61 Recommended readings............................................................... 65 Other books, Products, and Services......................................... 67 Contact me .................................................................................... 69 Free Issues of Newsletter ....... Error! Bookmark not defined. Mine Your Natural Market The first step in mining your natural market is identifying who your natural market is. Joe Girard, a new-car salesman, was listed in the Guinness Book of World Records as the world’s greatest salesman. He wrote a book entitled; “How to Sell Anything to Anybody”, and in his book he wrote about the idea of 250. Joe initially got the idea that everyone knows at least 250 people that would attend their wedding or funeral after he attended a funeral. He asked the funeral director how he knew how many cards to print. He was told, that based on past experience, the average number of people who pay their respects is about 250. Shortly there after, he attended a wedding and asked the same question about attendance. The answer was the same. Joe then reasoned that this was very important information. If he had a bad day and turned off just one person, he could potentially damage 250 future sales. That’s a scary thought, but I believe it is true. So, how do you mine your natural market? The first step is to brainstorm names of individuals that you know. The individuals that you know are your “base of contacts”, your “backyard of referrals”, you’re “sphere of influence”. You begin through a brain storm session. Start on a blank sheet of paper and write name after name as it comes to you. After you have exhausted the names that are on the tip or your tongue go to your telephone directory. From there it’s time to tap directory of organizations you belong to such as church, rotary, network, civic, and chamber of commerce. Once all the lists have been exhausted it’s time to call in help; a spouse or significant other, friends, relatives, and acquaintances. Not to 250 yet? There’s a game you can play to get the remaining names out of your head and onto paper. The exercise works like this. Imagine you are at a party. As you mingle among the guests think about who you are observing in the room: ¾ ¾ ¾ ¾ ¾ ¾ How are the people grouped? What are the characteristics of each group? Which group would you be more comfortable with? Are there bankers, CPA’s, financial analysts? People who are engineers, teachers, economists? People who are blue collar, work with computers, neighbors? Finally, imagine that you were going into business for yourself. Who would you want on your board of directors? Who would you council with for advice? Who would be your partners? If you were searching for business contacts, who would they be? If you needed an attorney, banker, and accountant; who would they be? Step one is to get that list of 200 (couples only count as one name). Sign up for a free supplement course to this book. Sign up information on page 69. By the way, if you have not lived in your present area at least five years, check out my book: “How to Develop a Natural Referral Market in 6 Months or Less”. 2 The Golden 50 It is absolutely critical that you get that list of 250 names. The next step is to whittle the 200 names down to your GOLDEN 50. I repeat, do not cheat. Start with your list of 250 names before you begin to whittle down to your top 50 names. These are the names of the people you will start contacting to generate referrals. Everyone has influence over friends and family. Some of us have more influence than others. For example, you might have an enormous amount of influence over your children. That is, if they are younger than teens. But, I digress, as that’s another story all together. The people you are close to tend to be the people you have more influence over. Another example would be a recent purchase you had. If it was a terrific purchase and the product/service was all that you expected and more who you would share that information with, the people close to you? This goes both ways. If you were dissatisfied with a purchase who would you share that information with as well? It is really important to stay in touch with your spheres of influence and I suggest doing that at least once a quarter. I’ve heard of some that will stay in contact monthly. Developing your referral base has a few side benefits including getting your name known as a “Cemeterian” or pre-need funeral, whatever it is you call. The more well known you are the more likely you will be the first one contacted when your base of contacts needs your product/service. When whittling down the 250 the goal is to get the top 50 that you know well, have influence over, feel comfortable meeting with, and can practice your presentation on. The golden 50 are the key people you will contact to launch your referral based marketing program. 4 Contact Your Golden 50 This should be one of the easiest things for you to do. Contact the Golden 50 via mail, phone, email, or in person. If you are just starting out in the business or relatively new in the business I recommend a letter to your Golden 50, outlining your new career and a request to meet. When you meet with your Golden 50 remember it is for the sole purpose of making a presentation. Be sure and leave your couple with something of value; a personal planning guide or something else as a “thank you” for meeting. There are several areas during your presentation where you can and will get referrals. It is imperative that you approach your presentation from the standpoint of getting referrals, not selling. Make it a rule of thumb as you meet your “natural market” to generate referrals, not sales. Further, practice your presentation with the additional goal of finding those areas where you can get more referrals during your presentation. I would shoot for a minimum of 5 referrals from each presentation. Some will net you more, but 5 is your minimum. Those 5 referrals are the individuals/couples you will meet with to present and sell. By the way, you should continue to get at least 5 referrals every time you make a new presentation. That way if you do not sell your couple you will still have had a very productive meeting. Never wait until the end of the presentation to seek out referrals. Always get referrals before and during your presentation. The presentation has numerous opportunities to get referrals. For more information on making a great presentation go to www.HowToSellPreNeed.com and sign up for my Gold Coaching Program and get more info on How to Make a Quality Presentation Every Time. 6 Understanding Your Market The Golden 50 is only the beginning of understanding your market. It is time to start to analyze the commonality inside that 50. First and foremost, the referrals you generate off your Golden 50 will be individuals that have many of the same characteristics. What you will begin to discover is that even though you are meeting with 50 individuals that you have something in common with they will refer you additional individuals that probably have more in common with themselves than you. The more you narrow and focus on the unique characteristics of the Golden 50, and who they are referring to you, the better you will communicate with them, understand them, and persuade them to purchase from you. Follow-Up Not only are you following up with your Golden 50 you are also following up with the referrals they are referring. You have two weeks or less to contact these folks. Anymore time than that creates problems for you. It is necessary to have a system in place to follow-up. When I first got into the business I used a 3 x 5 card system. I called it the $5 dollar system to manage my 6 figure income. I no longer use the system even though I still use 3 x 5 cards for different things to this day. I use a computer program now to manage my referrals and leads. I also have delegated the job of managing those dates and times I need to contact my referrals. For simplicity purposes I’ll describe the 3 x 5 card system if you are still in the stone-age (not using a PDA or computer). All you need is a box to house your 3 x 5 cards, a set of tabs from 1 – 31, and a set of tabs with all 12 months. Note the information about your contact onto your 3 x 5 card and place it behind the number and month you will be contacting your referral. After you make contact note what the outcome was and place it in your box under the future time you will be contacting them. This system is great and served me well for years. It is not as functional as it used to be. I can put pages and pages of notes under my contact in the computer. The computer can also sort referrals in different ways including who referred them originally, all the contact info, dates, updates, and anything else pertinent. This is a powerful system as long as you follow-up. Sign up for the follow-up extension course to this book at www.HowToMineYourNaturalMarket.com 10 Attitude of "Referrals" Years ago I worked for a company that did not do any advertising what-so-ever. All of the new business was generated through referrals. There were no commercials on television, no print advertising in the newspaper, no magazine advertising, radio advertising, no nothing but referrals. Many of the techniques in this book are based on the principles I lived by while working at that company. It was, to say the least, an “attitude” of referrals. I lived it, breathed it, and worked it. I never considered any other way of doing business except through referrals. An “attitude” of referrals is what you incorporate into what you are doing. It is absolutely the best way to go. It’s word of mouth advertising. Working from couple to couple, referred to referred, one couple at a time. It forces you to drop all other forms of marketing and focus on one thing. It’s also a lot cheaper than advertising. It’s more personal. It’s the way people do business. And in this age of internet, blogs, and other forms of media, it is becoming the most cost effective way to do business. Define Your Niche Word of mouth marketing requires you to niche yourself. What is your niche? I work at a Jewish Cemetery in Phoenix, Arizona. My niche is a small segment of the population. My niche market requires me to understand the culture and nuances of my market. I have advantages to my niche market I also have disadvantages. Understanding you market helps you define your market. The more you write down characteristics of your market the more you understand it. The more you understand your niche market the better you will communicate with your niche market. The better you communicate with your niche market the easier it is to persuade them to purchase your product/service Profile Your Market In my book; “How to make a Quality Presentation Every Time”, I talk about the profile section of the presentation and why it’s important. The profile section is the perfect starting point to generating your first referral during your presentation. Go through your presentation looking for opportunities to get referrals. The goal is to meet with your initial Golden 50 practice your presentation, collect referrals that you can meet with later. The MARKET PROFILE will help you to identify characteristics about your niche market and also is a perfect place to get referrals. Below are a few areas to cover when profiling your market: ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ Age group Children (living at home, in college, out of college) Planning they have done (will, trust, attorney) Area of town they live (do they own or rent) Relatives in the area Experience pre-planning Experience making arrangements Cultural attitudes about pre-planning Does family use credit cards, cash, checks Lower income, middle income, upper income Husband and wife work (or one spouse) Income Retired/working Know when to hold 'em, know when to fold 'em If your prospect does not want to see you, it’s probably a bust. It’s your call. Sometimes I’ll mention that things have a way of changing and ask if I can contact them in 6 months. If the answer is yes, ok, I’ll keep the prospect in my system. As you continue through these steps you will discover that it is not worth saving or coveting leads. The more leads you generate the more quickly you’ll want to “present to” and or “toast” the leads that are not interested. There is a point in time when you tear the card up (or hit the delete button) and move on. I had a former sales manager once tell me; a lead’s a lead until they buy or they die. Well, as Kenny Rogers sang; know when to walk away, know when to run. 16 Purge Your Files Every Now and Than There are only so many leads you can massage, manage and otherwise keep up with. The life a referral is short. Two weeks tops unless you’ve been in contact and still negotiating a date and time to meet. I wouldn’t keep much more than 250 active leads in your system. That’s a little better than four weeks in duration assuming you are phoning 15 a day. When you first launch your referral program you might want to dial 25 times a day to set appointments but you’ll soon realize that there are only so many hours in a day and many of these referrals will want to meet with you at the same times. Another consideration is what your goal for sales is. If it is a sale a day you’ll figure out soon enough how many appointments you need a day to get a sale. And how many calls it takes you to generate those appointments will determine how many leads a day you want to work. When you are up and running you should be contacting 25 referrals a day. Of those 25 referrals you’ll get in touch with 8 and get 5 appointments (plus carry-over appointments). Your numbers will vary some what. Better than half of my appointments kept. The rule of thumb is half of your appointments will cancel for a variety of reasons. The shorter you book out your appointments the more likely they will keep. If you schedule 6 appointments a day and half cancel you’ll make three presentations a day and sell one with a 35% close rate. If you have the worst closing rate in the world you’ll sell one in three presentations. My closing rate was 60% if the presentation was in their home, 85% if it was at the cemetery 18 Cancellations I’ve worked with a lot of sales associates over the years and one of the biggest problems was “depression” when appointments canceled. Admittedly, it took me a long time to get over cancellations. But, I have gotten over it and you should too. It just doesn’t bother me anymore when people “no show”, or “call in” and say they can’t make it. I can tell you that I have had as many as 8 appointments scheduled in one day (I don’t do that anymore!) and had every one of them cancel or no show. I’ve also had 7 appointments scheduled on more than one occasion and every one of them held (I will never do that again!). Seven is my record. I have no intention of ever breaking or matching it again. People have things going on in their life. Some times they have to cancel appointments. Some times they are habitual at canceling appointments. When you have plenty of people to meet with one appointment won’t break you or bother you. I’ve been stiffed on appointments, stood-up on appointments, lied to on appointments, hem-hawed on appointments, told to get lost on appointments, and had people who had no intention of ever showing up play games with me on appointments. Get over it and move on. You wouldn’t want to meet with people that are jerks anyway. They’re doing you a favor by not showing up. I give them one excuse and that’s it. If they aren’t apologetic for not showing I don’t re-book the appointment and move on. You should move on as well. There are plenty of people that are willing and grateful to meet with you. Keep asking for referrals and you will have more people to meet with than you can keep up with and don’t worry about the cancellations whether they warn you or not. 20 You Are an Expert You are an expert! You know more about your product/service than the common man on the street. Most people have a vague notion about selling your product/service or worse yet, an opinion based on a comment their Uncle Bob made one day. If you want advice on how to do something go to an expert. If you want to know how to sell cemetery property go to an expert. Who is the expert? The person in your office that outsells (by miles) everyone else day in and day out is the expert. It might be your supervisor it might not be your supervisor. If you want to be an expert on anything mentor with an expert, read books on the subject, go to seminars, conferences, watch DVDs, listen to CDs, join your industry association both local and national, and talk to the folks that are doing it day in and day out. In the mean time you are the expert when it comes to your prospects no matter how long you’ve been in the business. Having said that never guess the answer to a question asked. Tell your prospect that you’ll find out the answer. Never ever tell somebody something you are not absolutely certain is true. An expert either knows the answer or how to get the answer. You are that expert. Network inside Your Industry By now you’ve probably noticed I haven’t mentioned anything about “networking”. The only time you should network is if you do not have a “natural base” of referrals. You should develop a name for yourself inside your industry. It helps to get published, write articles for your industry magazine or newsletter. The more people that have heard of you, or know your name inside your industry, the better off you’ll be in the long run. It adds a lot of credibility even if your prospects do not know it. You may never be a celebrity but it is an honor to be mentioned in your industry or even win an award. Local newspapers are always looking for industry experts to comment on different news items. Build your contact base inside your industry. You never know when you might need that contact. And, by the way, that means you need to be willing to help your industry contact. It goes both ways. Be Really Good at Getting Referrals Make it a point to get really good at generating referrals. Have a systematic system of getting referrals at different points of your presentation. One of the worst slumps I was ever in was a two week period when I did 9 presentations (not including numerous cancellations of appointments) and did not make a sale. I still got referrals from all of those “NO’s”. Many of those presentations lasted 10 minutes tops. In my book, “how to make a quality presentation ever time”, I talk about the four commitments necessary to get the sale. The first commitment is the “cemetery” commitment. That is, asking the prospect if they would use ABC cemetery. During my two week slump some of those prospects had relatives buried in another cemetery in town. If you don’t get the cemetery commitment (funeral home commitment) it’s time to go home. But when you go home go home with referrals. When I left the presentation, I took my referrals with me. Most sales associates work referrals backwards. They somehow think that they have to get the sale before they can get referrals. Usually, after they get the check they ask: “do you know anyone that would be interested in buying from me?” I usually have at least one referral within one minute of sitting down with my couple. You get it right after you establish rapport and as you roll into the profile section. The process goes like this: ¾ Establish rapport ¾ Profile section ¾ Presentation ¾ 4 Commitments ¾ Close There are opportunities for referrals in each step of the process. I recommend practicing your presentation with your “natural market” to find those areas to gain referrals and always go after those referrals early in your presentation. Prospecting and presenting at the same time is very efficient and kills two birds with one stone. It’s a beautiful thing! 26 Always be Asking for Referrals As you stay in contact with your referral base, be sure to continually ask or remind them about referrals. Make it a part of you just like it is to tell everyone what it is you do for a living. I get calls from people I know through out the year that have a relative, friend, co-worker, that either had a death, or it’s close, or they expressed an interest in pre-planning. The only reason I get the calls is because my base of contacts knows what I do. Just by staying in touch with your natural market is an easy way to ask for referrals without asking. Eventually, when people see you they will immediately think and associate your profession with you at the same time. There is an attitude about asking for referrals and getting them. It’s a lot easier to ask without directly asking. During the presentation I talk about banking. Do you know your banker? If they do, you got a name and a referral. It’s that easy. There are plenty of opportunities to ask for referrals throughout your presentation. Go through your presentation and identify those areas to ask and practice your presentation with your natural market. Organize It is imperative that you be organized in your following up. Maintain your referred referrals in a systematic way. I used a 3x5 card system for years. I maintained all the information about my referral including where I got it and stored it in a 3x5 box with monthly tabs and days of the month. I would place the 3x5 card behind the appropriate month and day. Each time I spoke or attempted to contact that referral I would note it and re-file the card in the appropriate place. Now I recommend a software program to do the same thing. These data base software programs allow you to message and manage your leads with lots of information and categorized just about anyway you could dream of. It is beyond important that you be organized and follow-up with your leads and your referrers. I send lots of notes. You should also. Get organized. How to Start Referrals need to be apart of you. Later, I’ll talk about a “referral attitude” to help you integrate what you’re learning. First, you need a place to start. For the purpose and effectiveness of this book I’m assuming a few things. You’ve lived in your area for 5 or more years (if not, look for my book, “How to develop a natural market in 6 months or less”). If you are just starting out, that’s ok, and if you have been in the business a long time that’s ok as well. The advantage to just starting out is you do not have to eliminate any bad habits. You don’t have any habits yet. Operating off referrals will be even easier because it’s the only way you’ve ever operated. Finally, once you have developed your referral base, contacted them, and met with them I want you to practice your presentation on your natural market. You may sell to your referral base, but there are two main reasons for meeting your natural market. One; generate referrals, and two; practice your presentation (and especially the different places during your presentation to get those referrals). If you have been in the business a while it is even more important to practice generating referrals during your presentation. Once you have done your presentation many times it can be difficult to make changes. Make sure you practice your presentation with the sole goal of generating referrals. Don’t worry so much about selling your initial natural market (your referral base). Focus on selling the folks your natural market refers you to. Always be Cultivating Always be increasing your base of contacts. Everywhere you go, whether purposefully hunting for new Contacts or just out and about, there are New Contacts waiting to be met. The goal is to get the other person’s business card (not necessarily give your business card). It is critical to establish a connection with your New Contact. Ask your contact two questions and always allow time for them to answer. If you must talk about your business give a soundbyte of what you do and focus on your contact’s business. “What made you (or how did you) get into that business?” “Do you enjoy it?” After you have met your new contact send out a short note and mention something that was said during the conversation. Make sure it is something your contact said, not you. From that point on include them in all of your mailings (including a hand written note from you). You will need to meet with your contact several more times. Once again, it is always to learn more about what it is that they do. Always be cultivating your contacts, new and old. Stay in touch with your contacts. Do You Know Anyone That Might be Interested...? Here are a few things never to do when working your referral base. Never ever ask: Do you know anyone who might be interested….? Always assume your referrals will refer other individuals to you. It should be a part of your thinking. It is the way you do business. It is the way you should expect to do business. How many times have you ever awkwardly asked, “do you know anyone that might be interested in…? If you’ve done this, and we all probably have, you naturally got the response, “um, I can’t think of anyone off the top of my head.” First and foremost understand that you never want to use the word kNOw in a sentence. Whenever the brain here’s a negative it will automatically here the negative and do exactly what you say. Here’s the example: “Do you NO anyone that might be interested in pre-planning?” The person on the receiving end will automatically think “NO” one. That is no one will come to mind. It’s similar to making a statement encouraging someone NOT to forget something. “Don’t forget your coffee.” The brain has a tough time with negatives and typically will forget. Your brain actually hears: “don’t FORGET YOUR COFFEE”. I’ve asked it this way, “If something happened to you today, God forbid you died, who would be the first person in your empty home that would begin the process of taking care of these arrangements?” Answers can range from a close relative, friend, co-worker, and neighbor. You’ve just picked up a referral no matter what the answer. 36 Where is Your Base Hanging Out? There are similarities between groups of your natural market. One similarity that seems to always get overlooked is where they hang out. As you segment your 250 Program into groups there will be similarities inside of these groups. One is where they hang out. For example, maybe they are all CPA’s. If that is the case there must be a CPA industry organization that they are attached too. That is the group to join to network within a segment of your natural market. The more you break down your 250 contacts the more likely that you will find some commonalities. These commonalities could be chamber of commerce membership, Rotary clubs, and industry groups. Whatever the commonalities note them. There will be future areas you could network inside different organizations. Position Yourself as an Expert First, you are an expert at what you do. You may think you have a long way to go to truly being an expert and that is probably true. But, to the general public you are an expert. Always present yourself as an expert. People need to make an association in their mind about you and your product. You must be known as the “grim reaper”. Just kidding! But, you get the point. People need to see you and immediately think: cemetery, funeral home, and solving their problem. I had a guy once say to his friend, “here comes’ the grim reaper.” The guy was referring to me. My instant reply was, “you look good I’m not rushing you.” They both laughed and I continued. “You might want to see me now and have fun solving your problem. Because, certainly, the next time you see me you won’t be having near as much fun. Let’s face it, this will be the most fun you’ll ever have meeting with me now.” My point? These folks know what I do for a living. I now make it fun to pre-plan funeral/cemetery arrangements. It’s the best possible memory to take care of this as a couple as opposed to alone wondering what he/she would have wanted. Find opportunities to become even more known in your industry. Look for opportunities to publish a weekly article in your local newspaper, industry magazine, and or other local publication in your neighborhood. All of this ties into your niche’, marketing yourself as an expert, always be learning, and having one or two one-liners or comebacks when people joke with you. You are an expert! 40 Under Promise and Over-Deliver When people refer business to you they actually expect you to perform even better than the experience the referrer had with you. Every time an individual refers a friend, relative, or neighbor to you it is their integrity that is on the line. You have got to over-deliver what ever you are promising. It’s critical! I don’t care if you lose money on the transaction, spend more time than normal, are busy, it doesn’t matter. Go above and beyond and don’t tell anyone what you had to do to deliver. Don’t brag about over-delivering! Just do it. What is Your Goal? This question relates to numbers. Once you’ve sat down to list your 250 names, narrowed those to the Golden 50 (the Golden 50 are the individuals you know the best, have the most in common with and usually have other connections), identified unique characteristics of your market, contacted your referral base, met with your referral base, garnered leads from your referral base, now what? I had a former sales manager who used to say that if you contact 15 people a day you’ll get into see at least 3 and make no less than one sale. Now it’s time to quantify what you are going to do with your referral base and how you are going to go about managing your data base of names. The reason I settled on the Golden 50 (top sphere of influence you have) is from personal experience. There are only so many phone calls, meetings, and presentations you can do in a day. 50 was the perfect amount to contact 15 a day. My experience was that I would get hold of one in three people. That meant I would talk to 5 out of 15 attempts. With appointment reschedules six appointments a day is the maximum I would make. I would schedule appointments throughout the day, in between appointments, during no-shows, and reschedules. Scheduling 6 appointments a day with a 50% no-show will give you a maximum of 3 kept appointments. A one in three close rate gives you one sale a day. I’ve had days that every single appointment cancelled and I’ve had days where they’ve all kept. My experience is that the shorter the time you schedule an appointment the higher the likelihood of it keeping. If you schedule appointments a month out, expect it to cancel. If you schedule appointments for the same or next day expect it to keep. Your daily routine: 9 9 9 9 Contact _____ amount of referrals Schedule ______ amount of appointments Assume 50% no-show on appointments Do more phoning between appointments or during noshows 9 Make at least 3 presentations a day 9 Make at least 1 sale a day 44 Just How Many Referrals are Out There? Earlier I spoke about everyone knowing about 250 people to invite to a funeral or wedding. I also mentioned that as you whittle down your 250 to the Golden 50, your starting point, you will have more than enough referrers to get you started. Obviously, if you blow it with your Golden 50 you’ve still got 200 names left. The reality is that you use your Golden 50 to both present and generate referrals. The reason I say to practice your presentation is because you must re-learn your presentation from the stand-point of getting referrals. Also, you aren’t as much interested in selling your natural market as you are generating referrals from your referral base. After you have worked on your referral base you need to tweak your presentation to find those areas where you can ask for referrals without asking. I gave an earlier example about asking who would be the first person in their empty home to help in arrangements. There are other spots where you can get referrals. Do they have a banker? Do they have an Accountant, Lawyer, Doctor, or other professionals that they know? Is there a neighbor nearby that they call on for help or socialize with? There are numerous ways and places during your presentation to ask without asking for referrals. Get those names! To answer the question about how many referrals are available, 12,500 possible on the Golden 50 number. It would be very difficult to meet with 12,500 people in one year. Probably impossible! In addition, there are the referrals from all the referred folks off your 12, 500 number. Realistically you will not get 250 referrals from every couple you meet. You will, however, get 3 – 12 from every couple. If you make 3 presentations a day you will find that you can barely keep up with all those people. The key is to think of it in terms of 3 presentations. 3 – 12 new referrals from each presentation, equals 9 – 36 referrals every day. In a very short amount of time you will have a difficult time keeping up with all of those leads. That’s why I encourage you to be willing to toast leads that are not interested, give you a hard time, or stand you up with appointments. The secret to getting more referrals than you could ever meet with is to ask without asking. It’s all in getting the names of these folks out of your prospects. That’s why you must go through your presentation looking for opportunities to get a name here and a name there. It adds up quickly. 46 Get Referrals even if you don't get the Sale The mindset is that each and every presentation will result in referrals whether there is a sale or not. It must be an attitude of “Referrals”. That is the only way you develop your business. People that meet you through referrals will automatically think that that is the way you do business. That is why it is critical that you practice your presentation on your natural market. Use your Golden 50 to practice your presentation with the express goal of garnering referrals. It’s the referrals you generate off your Golden 50 that you will go after the sale (as well as more referrals). It is the number one goal for meeting with your prospects. Number one is to generate referrals number two is to acquire business. Any time you prospect and present at the same time will save hours and hours of time. It is very efficient. Always prospect and present at the same time. Get referrals even if you don’t get the sale. It will be the most efficient time you will ever spend prospecting and selling. More Referrals doesn't mean you can skip the key part I’ve had people ask me about past customers. I tell them the same thing. Don’t short circuit a simple system. Generate referrals off your “Natural Market” (your base of contacts), practice your presentation on your natural market with the goal of generating referrals. You’ve still got to do a quality presentation each time every time you meet with your referred prospect. If you can’t make a quality presentation you will not make money and not help people with their problem. You must be very good at presenting. Period. If you were wondering why I keep saying to practice on your natural market now you know; they know you, they are forgiving, they don’t know the script you are using, you are the expert, and no one will know you made a mistake in the presentation unless you tell them. And, it gives you so many opportunities to ask for referrals. Past Customers is not the way to get referrals I’ve had people ask me about past customers. I tell them the same thing. Don’t short circuit a simple system. Generate referrals off your “Natural Market” (your base of contacts), practice your presentation on your natural market with the goal of generating referrals. In the cemetery/funeral pre-need business it is a myth to think that you can all-of-a-sudden ask for referrals from past customers. I’ll tell you why. First and foremost most (if not all) of your business probably came from other forms of marketing, walk-intraffic, and at-need arrangements, it’s safe to bet that hardly any of them came from referrals. In other words, most people get a referral here and a referral there but don’t have a program of getting referrals. How you got your past customers is how they assume you get all of your customers. Your customers have a mind-set. Usually, it is in relation to how they heard about you and or your business. Once you have a customer it is difficult to get referrals from them. They’ll wonder why you all-of-a-sudden are calling them for referrals. This goes for prospects that you are currently working on for an appointment or presented too with a no-buy result. The easiest and fastest way to more business than you can possibly keep up with is to have a program of generating referrals. And, the best way to get those referrals is through your natural market. Take the referrals your natural market gives you and present and prospect to those referrals at the same time. It kills two birds with one stone. Prospect and make your presen- tation all at the same time to individuals you were referred too. Your referrals will assume that that is the way you get your business (through referrals). People assume that the way they met you is the way you do business. They will expect to provide you with names just like the individual that provided their name. Ask for referrals throughout your presentation without asking and never use the word “know” when asking. 52 Measure the results of your referral program Keep up with the program. The first measurement is writing down 250 names. Second, narrow down to the top 50 (Golden 50) and arrange to meet with your base of referrals (Your Natural Market) always noting the similarities in your market. As you meet with your Golden 50 you will find your average amount of referrals gathered from each meeting. Measure your average number of referrals off your referrals; 3 – 12 referrals per each presentation. Some can do better. You’ll find as you measure and note your results you will develop averages for everything; leads, conversions, and new sales. Keep track of your referral program. As you track the program it will become obvious where you need improvement. Seek out the improvement through mentors, books, CD’s, DVD’s, seminars, conferences. Your referrals are different A former sales manager of mine used to say; “the masses are predictable, individuals are not.” The more you niche your referrals the easier it is to communicate. You have to be adaptable, firmly flexible. You have to communicate to your prospect in away they want to be communicated with. Earlier I talked about how you need to niche your market as much as possible. Understanding your natural market and further understanding your natural market’s referrals will go a long way toward helping you sell that group. Hopefully now you understand why I suggest your Golden 50 to go after. Those 50 will have a lot in common. They will refer like-minded people to you. As you continue to operate off referred referrals you will find that your niche becomes tighter helping you develop better penetration tactics to capture that niche. Referrals are individuals and individuals are unique. Referrals like to be spoken to the way they are comfortable. Listen very carefully to the language your referral is using. That language is within their comfort zone. That language is the language you will need to use. A good rule of thumb is to talk 20% of the time while your prospect/referral is talking 80% of the time. Be a facilitator, a guide, and realize that your referrals are different. Treat those referrals like they are gold. Treat your referrals like they are your whole business. Referrals are your whole business. The better you appreciate your referrals, the better you treat your referrals the better your business will operate and the more sales you will make. 56 Follow-up with your natural market Anytime you meet with a referral always send a note to the referrer. Thank the referrer. Maybe even do something nice for the referrer. Your referrers can continue to refer prospects to you. Everyone knows 250 people. When you sit down with your Natural Market they are not going to give you 250 names of individuals to meet with in one setting. Thank your referrer for the referral. It’s a great way to stay in touch with your Golden 50 and keep the referral opportunities going. Your ability to handle referrals from your natural market is a reflection on you and the referrer. Take good care of your referrals. Treat them like your mom. Promise little and deliver a lot. Each time you are referred a prospect that individual wants to know that you are treating that prospect well. Never assume anything with your referred prospects. Treat everyone the same. Don’t assume that the individual that referred somehow sold your prospect before you met with them. Assume nothing and treat everyone the same. Don’t assume you have weeks and weeks to follow-up with either your natural market or your referral. Deal with it in a week or less. That’s why it’s important to work through your leads and toast the one’s that are not interested while working the ones that are in a relatively short amount of time. I give it a week, maybe two. If you cannot get in touch by the end of the second week let your referrer know you tried. Move on to the next one. The shelf-life is short for follow-up. Keep up with your leads. Follow-up with your referrals it is critical to your success. 58 Plan of Action Take all the above steps and put them into action now. Don’t wait for another second to pass you by. Begin now to change your whole approach to generating leads because that is what will separate you from the rest. That is how you generate 6 figures a year in income. There is an accompanying publication to this book. It’s called: “The Natural Market Workbook.” If you need an extra boost and some pre-printed forms of all the steps than order the book on line at: www.HowToSellPreNeed.com I talked about time-lines earlier; phoning 25 referrals a day, for example. I also gave you some general numbers of 3 – 12 referrals from each presentation. And, I gave you a target of 6 appointments a day with the recommendation of setting appointments sooner rather than later. I also gave an example of a 33% close rate and the fact that you would have to make 3 presentations a day to get 1 sale. I further suggested phoning in between appointments or during no-show appointments to be efficient with your time. Take all of the steps I’ve outlined in this book and put them to work in a Plan of Action that will focus you on where to go next. I can’t make you do it. I can tell you that I’ve done it and it has worked for me. You have to dig deep inside and find what motivates you to get up and get going in the morning. If it’s “I owe, I owe, it’s off to work I go” than find a bumper sticker, and stick it to your mirror. What ever makes you go, go, and do your Action Plan now. It starts and ends with you. There are no excuses. You are the responsible one. You are the one that has to answer for not doing it. You know your reward. It is the money you make for helping satisfy the customers that you meet. Begin your Plan of Action now. 60 Some Concluding Thoughts Selling is a life long profession of always learning and always improving. Marketing your Natural Market is a big aspect of selling. If you want success take a look at the top producers in your industry. They all have one thing in common. Sales folks that generate the most leads make the most money. Sales folks that are the best at making quality presentations do very, very well. Sales folks that can close do very, very well. Sales folks that have developed a lead generation program are the most successful. Sales folks that can generate those referrals consistently are the top achievers. But, it is the Sales person that gets the most leads that wins all of the battles. Sure, when you combine presentations and closes you will do very well. But it is the Sales person that consistently brings in more and more leads that is by far the best at what he/she does. It’s the Sales people that focus (or should) most of their time seeking out prospects that do the best. Many of these Sales folks believe that they should work harder and longer than everyone else to succeed. Not true. It is the Sales folks that work smarter, not necessarily harder; it is the Sales folks that are productive with their time, not the ones that spend all of their time in the office playing cards. The Sales folks that are the most efficient, work the smartest, and have a lead generation program in place (and actually working the program) that do the best and make the most money. It’s about the leads. He who gets the most wins! Use the program I’ve outlined in this book and kill two birds with one stone by prospecting and presenting at the same time. It is very efficient, requires less time, and is the smartest way you can succeed by generating more leads than anyone in your industry. It is a great time to be in pre-need sales. Not many people can hack it. They give up to early thinking that no one can do it. It is so important to find a mentor, look for a successful pre-need seller, and be good at getting referrals. Generating lots of leads will cover-up a multitude of your problems. Any weakness you have in presenting, closing, what-ever, can be over come by having lots of people to see. Even if you have the worst closing rate in the nation you will easily over-come it through a great lead generation program. Now, I’m suggesting that you strive to improve in all areas of selling. But, if there is one thing that you can do that will get you immediate results it is to prospect. And the easiest way to prospect is to go after your natural market and work it. Your natural market is the best asset you have. Work you asset! It will catapult you to the top. Nothing beats being a top achiever. There’s nothing holding you back. Go for it and please send me your success stories. I’d love to hear them fax me at (602)532-7875. Finally, to receive a follow-up series on this book fax me at (602)532-7875 for the complimentary extension to this book. It’s free and you’ll receive 14 emails over seven weeks that will answer the most common questions and give you words of inspiration to push, prod, and keep you going. Encouragement is always exciting. Combine your encouragement with a mentor and you will be able to put the ingredients necessary together to launch your program of referrals. 62 Now, as Nike would say, “Just Do It”. 63 Recommended readings First and foremost, you must read lots and lots of books on sales, marketing, and your specific industry. Second, you must always be learning about your industry. If you think you know it all you’re in for some big trouble. Attend seminars, conferences, listen to CD’s, watch DVD’s, and find a mentor who will take an interest in you. Learn from your mentor. Counsel with your supervisor and peers (make sure you council with sales associates that are very successful). Never ever take advice from people that have not done it! If you want to be rich, hang out with rich people, if you wan to be poor hang out with poor people. Attitudes are contagious. If you hang with negative, victim, woe-is-me folks, it will rub off on you; garbage in garbage out. Focus instead on that attitude of gratitude for what you have and what you are about to have. No B.S. Direct Marketing by Dan Kennedy How to Mine Your Natural Market by David Dassow Succeeding by John T. Reed 30 Simple Ways to Make and Achieve Goals by David Dassow Goals! How to Get Everything You Want-Faster than You Ever Thought Possible by Brian Tracy 50 Ways to Get Rich and Stay Rich Selling by David Dassow Only the Best on Leadership by Larry Winget and others How to Develop a Natural Referral Market in 6 Months or Less by David Dassow Micro Branding by T. Scott Gross How to Sell Cemetery Property and Pre-Need Funerals by David Dassow 66 Other books, Products, and Services The workbook for “Mining Your Natural Markets” This book is a perfect companion piece to “How Mine Your Natural Market.” It has the layout of specifics of how to brainstorm the names of your contacts, categorizing those names, tips on capturing those market segments and a follow-up system. How to Develop a Natural Referral Market in 6 Months or Less If you haven’t lived in your area for five years or more this book will get you started on your way to a base of referrals you can use over and over again. This book is a must before you get, “How to generate more referrals than you every thought possible.” 30 Simple Ways to Make and Achieve Goals There have been numerous surveys that have all said the same thing: If you develop goals you will achieve your goals, but, how to do it? What is the best way to make and achieve your goals? This book will explain how to do it easily and effortlessly. Coming soon: Home Study Course on How to Sell Cemetery Property Before the Need. The course covers all the information, CD’s, and manual to get you started in the business. For more information check out: www.HowToSellPreNeed.com How to Sell Cemetery Property and Pre-Need Funerals Finally, a book that covers the cemetery/funeral industry from a sales perspective that was written in this century and uses today’s techniques. How do you sell cemetery property today, in the 2000s? Why do some people sell lots and lots while others barely get by? This “how to” explains it all. Contact me To help you get full value from this book, there is a collection of FREE EXTRA RESOURCES waiting for you at: www.HowToSell PreNeed.com Free E-Mail Course…extension of this book – enroll today! Check out FREE articles on Pre-Need Sales: www.HowToSellPreNeed.com Contact me via fax at: (602)532-7875 ………………………... About the Author David is the General Manager/Sales Manager for Mt. Sinai Cemetery in Phoenix, Arizona. He has sold pre-need cemetery and Pre-need funerals throughout the Valley of the Sun. He has sold everything from Cremation Garden products, to family estates, to private estates, mausoleum, ground burial, and the applicable funeral merchandise/services as well. “I’ve sold in 80% cremation markets and 80% traditional ground burial markets, low-end, middle, and high-end sales. To coin a phrase a former sales manager of mine used to say; “the masses are predictable, individuals are not.” It’s not about the money, it never is. It’s not about the competition, it never is. It is about fulfilling a need. Rich or poor, it’s what’s important to your family that matters. It doesn’t matter what you think (the sales associate) it only matters what your couple/individual/group of prospects thinks. Period. Exclamation point! Focus on your prospects and you will make lots and lots of money. Focus on what’s important to your prospects and you will make even more money. Make the presentation totally about your family/couple/individual and you will make tons of money. Your goal should be six figure income year in and year out. You can and should focus on learning selling skills, practicing, and working through referrals to generate more leads than you can possibly keep up with. And as you find yourself succeeding and achieving your goals drop me a line, email, note in the mail, with your success stories. I love to hear success stories. Go to my website: www.HowToSellPreneed.com often for a variety of information; books, CD’s, Home Study Courses, and free articles.
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