The question comes down to who are your prospects? That is a very simple question to answer. Your prospects are everyone you come in contact with. To narrow your prospect down to people who are interested you need leads.
Narrowing down leads can be very simple. Leads are your "warm market" and your "cold market. These are both people you know and those you have never met. Some like to label leads into many categories but these two are what I'll discuss.
People You Know:
Your warm market is made up of those people you know. They could be your closest friends or just some one you see at a local shop. Most companies will tell you the first place to start marketing is with your warm market because there is a trust factor and they are more prone to listen.
Making a list of your warm market leads will be easy at first because it is people you know very well and can easily remember. But you need to brainstorm to come up with the names or descriptions of all the people you come in contact with.
The list could easily be in the hundreds although off the top of your head you may not have realized you knew that many people. Remember, your warm market list is an absolute must and the more complete it is will mean more people you can easily talk to.
Your warm market is the one you hold closest to your heart because it is people you know. You have a new business that has potential to create a terrific income for you and those who come in under you. Your family and friends need to be the very first ones you contact for that reason.
Cold Market:
Eventually your 'Warm market" list will wear out and you'll have to come up with new prospects. Although your warm list is the best place to start, you certainly can not stop there if you plan on growing a significant Home Based Business. The next set of leads I'm going to look at is your "Cold Market" prospects.
Although you may be scared to death of approaching strangers with your business you know it is something you must do to grow your business. The only problem you have is where do you get the names for your list?
Searching the internet will provide you with many places who sell leads. These leads can be fresh or better said "real time" and can cost as much as $4.50 per lead or they can be "aged" leads and cost as little as .49 cents per name.
Lead quality is what you need to look at when deciding what you want to pay. Older leads come with some inherent problems. First they may have stopped looking for a home business because they no longer have the need. Secondly they may have signed on with a company when they first started looking and lastly they in all probability have been called by several reps before you got their number.
Hundreds Of leads For A Low Cost:
The number one mistake most marketers make with the high volume cheap leads is to send them directly to their main sales page on the web or hit them up with your longest sales pitch. Usually hoping 1 in 100 will respond. Unfortunately it doesn't work that way most of the time.
I've paid for as many as 20,000 leads thinking the $40.00 I spent was a bargain, I was sure I would get 10 - 15 sales. I sent them right to one of my direct sales pages, not even one person even attempted to sign up. When I looked at my web site statistics most of these leads only stayed a few seconds and they were forever gone.
Most of the high volume leads like these are people who through some web site clicked a link that dropped them in on my site totally unaware of where they were headed. Needless to say they did not stay long. They simply were not interested in a Home Based Business.
After learning the hard way these people would not buy from me directly and were not interested in my offer I came up with another plan. Every one likes getting things for free. So I created a short simple web page that could be read in just a few seconds and gave away a freebie of some sort. This freebie related to what I was offering so it created a link. By giving their names and email addresses I was able to build an email list who I could market my business to.
When using low cost high volume leads or aged telephone leads you simply need to come up with something that is quick and easy that will open the door for your next call or email.
Fresh High Cost Leads:
The more you pay the more you get is true with these leads. Most often they have been captured through a landing page promoting a specific type of opportunity. These can cost as much as $12.00 a lead. But, these leads are primed and you want to be ready to give them your best sales pitch and to spend some time with them. They are not the best for the inexperienced because of the cost.
The more you pay for a lead the more information they should come with. Leads that run around the $4.00 mark should have the leads name, email address, and phone number. When you are paying $8.00 to $12.00 per lead they will usually come with a lot more information, including but not limited to, the amount of money they have to invest, the amount of time they have to invest, how much money they want to make, how much time they can invest to make the money they want and more.
It would be a waste to simply put this type of lead in a email marketing campaign or a news letter. Because they are actively searching for a specific type of opportunity they need to be contacted as a soon as you have their information. Waiting could and probably will mean a waste of time and money. Many want to start their new business as soon as they can and it's a good chance some one else has beat you to them if you wait and they are in another program.
Many just want a little more detail about your offer. Out of 20 names I might sell to 2-3 of them and may not recover the cost of my purchase. While I may not recover the entire cost of these leads immediately I certainly am with residuals, bonuses and team building. Adding people to my team doesn't hurt my ego a bit either.
Every type of lead you can get has a specific purpose and a specific way they can be effectively used. Family and friends cost only a little bit of time and can be your most valuable resource. Low cost high volume and high cost specific leads are both very valuable and require a time and money investment. If you have a specific plan on how you want to use them they can both be very worth while in building your business.
New Business Development Process
If you're thinking of becoming an Independent Consultant, one question that might be weighing on your mind is how to get your first few clients and land your first few assignments. After all, you're not in business until you can start successfully closing consulting job deals. If you're new to consulting and haven't yet landed your first big project, you may be in the process of trying out various marketing methods to try to generate some leads. But what happens when you finally get that first big lead? Many new consultants end up getting so involved in the process of marketing themselves and landing their first assignment that they didn't think about what their next step would be when they finally received an inquiry.
Know who you are talking to. If you take a live phone call inquiry, you won't have much of a choice but to think on your feet and try to google your new lead while you talk. But if you get a lead through a voicemail message or email, take a few moments before you respond to research the company. Is your contact a gatekeeper, or are you speaking directly with the decision maker? If you have the opportunity before you have a live conversation, find out whatever you can about the person you're going to be speaking with and his or her role within the company.
Research the company and their competition. As a consultant, you're ultimately trying to help your client improve something about their business, and this often involves competing with similar businesses. Do your homework and find out what their competitors are doing in the areas that you'll be helping them. This will help you identify trends in the industry and may even help you uncover a missing consumer need that you can help your client fill. You also want to research your client. Find out what's been said about them recently in the news, interview some of their staff if possible, and if it applies, and research their website, their history, and their executives. Knowing your client inside and out allows you the best possible chance of meeting their needs.
Start by asking open-ended questions. Open-ended questions get the dialogue flowing and require your client to give you more than a simple one-word answer. You want them to share as much information as possible, because you want to identify a need that you can fill. Don't assume you understand their challenges or what they are looking for. Find out how they found out about you, what services they're interested in, why they need your help, and what they're looking for in a consultant. Before ending this initial conversation, set a firm follow-up date when you'll meet or talk again.
Determine who has the decision making power, and make sure you can get in front of that person. If you aren't careful and tuned in, you might be about to waste your efforts selling to someone who doesn't have the decision making power to hire you – and then be reliant on that person selling you to their boss. Identify from the beginning who will be making the decisions, and focus the proposal process on them.
Identify the benefits your services will offer. Using your research findings and the information you gathered from your client during your intake interview, match the benefits of your services to the needs of your client. Benefits are different from features. A feature is an aspect of your business or your services, such as the fact that you offer search engine optimization services. A benefit is what it means to your client, in this case, improved search engine rankings.
Create a winning proposal. Put all this information in writing in a professional format. Discuss the background of your client, identify their problems, and outline how your services are going to solve each of their problems. Don't forget to include cost information, using value-based propositions, and any legal information that is necessary, such as ownership of written materials. While you should include features, or what services you are providing, be sure to focus on the benefits that your clients will receive, or how you will help them obtain their objectives. Also remember that while it's good to use a standard, professional looking template for your proposal, always triple check to make sure that all the boiler plate text you are using is relevant for the project at hand. And more than anything, ensure you have correctly spelled the name of your new client!
Present your proposal in person, if possible. If you and your client are geographically distant, try to review your proposal with them live over the phone. This will reduce the possibility of them misinterpreting something in your proposal, and makes you aware of any potentially confusing areas that you can clarify in writing prior to getting a signed contract. Being as clear and concise as possible in all written communications and contracts reduces your liability. Before ending this call, ask for the business, and if your client is not able to commit to using your services on the spot, set a firm follow-up date. Many times, a client will have to get a final approval from a higher-up or a finance manager before signing on an independent contractor. Setting a firm follow-up date makes your next call predictable; Your client expects your call, so you don't appear like a pushy salesperson.
Always leave the door open for a potential business relationship. If your client says no, try to find out what the deciding factors were, and ask if you can follow up with them in a few months. Just because your client cannot or chooses not to use your services at this time, doesn't mean that there will never come a time when they might need or want what you have to offer. Be sure to leave yourself an in that allows you to communicate with your potential client periodically, just to remind them that you're there if they need you, even if it just means adding them to your mailing list. And be sure to capture any valuable feedback you can glean from the experience – there may be areas where you were not competitive, or did not have specific skills to offer, that may have made all the difference. Knowing what cost you the business can help you improve your offerings in the future.
Get the deal in writing. If you do win the business, make sure you write up the deal with a solid contract, and get it signed before the good feelings fade. Don't rely on their generic contract – it will be on terms favorable to them. When you're setting up your business, work with a legal advisor to create your own contracts that are favorable to you, while still being fair. Cover yourself by making sure the terms for delivery of services and payment are clear. You can also consider running the contract through an intermediary, such as a portable employer of record, which can create an advantageous buffer between you and your client. As with anything, it's a good idea to explore all your options and take the road that has the best deal for you.
Following these steps will help you have a plan to close deals effectively. Having a solid plan of approach means you will always know what your next step should be, and leaves little room for you to leave potential business on the table because you failed to follow up effectively. This is particularly helpful for new consultants, who may get excited at the possibility of landing that first client, and fail to follow up after submitting a proposal out of fear of rejection. Few clients will refuse to allow you to follow up with them periodically, so by following the above method, you will rarely get a full rejection.
Both Stephen Meyer & Angela Stringfellow are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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