At the end of every month, salespeople around the globe complain that their prospects led them on and didn't deliver. Doug F., one of my former bosses used to say this to me all the time.  "Buyers are liars".

While I believe that he didn't mean to accuse all of our clients of being malicious liars, he did mean to say that our prospects may not be giving us all the information that would help us sell the product.

Another former boss, Mike H. believes that salespeople just don't ask the right questions, which is why on the last day of the month, we feel mislead by our prospects...he has a point.

There are many reasons why a prospect would mislead a salesperson.

1.  Some people don't like to say no to you:  Throughout the sales process, the
prospect likes you.  They respect you.  They feel bad saying no.  

For example, I have had prospects who say maybe all the time.  They really don't mean it.  What they are trying to say is "Mike, I really like you, but I am not going to buy your product.  I will, however, say maybe, so you don't feel so bad.  One day, you will give up thinking that I tried my hardest"

I do this all the time too.  I don't want to break it to the furniture salesman who spent a ton of time with me showing me all the couches in his store.  Instead of telling him that I will go elsewhere because the price is cheaper, I tell him that I will call him next week.

How to avoid?

• Always offer a way out:  Tell the prospect that he shouldn't be shy about saying no.  I typically tell people that "unless I get a no, I will
  continue calling.  I can't take a hint."
• If the prospect tells you to call in a week, ask "What is going to change in a week?".  This usually gets the prospect to explain what their process is....or it gets them to re-evaluate the push off.

2.  The buyer has no authority to purchase:  This happens often.  The person that you have been presenting to has no authority to pull the trigger...but they have never told you this.  Sometimes, all it takes is the right questions in the beginning. Questions like

• Are there any other people who need to be involved in this
  process?
• Are you an officer in the company authorized to sign an agreement? The reason I ask is that we just had an instance where the person signing our agreement wasn't authorized, and it caused some headaches. 

3.  The prospect has no money in the budget for your product:  The prospect was very excited to see your product and really believes that it can make a difference.  The reason they cannot pull the trigger is that they don't have money to purchase.

Since you probably don't have a say in how much money the prospect has in their budget, you can help by being clear from the beginning of the costs associated with the purchase.  I have heard many salespeople give general costs of the service at the beginning of the process, only to give a firm price at the end that surprises the buyer.  The buyer doesn't want to seem cheap, and therefore plays as if they are moving forward, when they are in fact not interested. They will find some excuse to not buy, and it won't be the price.

Be clear on the price, show the value of the product and ask for the business.

In Conclusion:  All of this can be solved with an upfront contract.  

An upfront contract allows you to set the ground rules and expectations...see the video below

Everyone has a different upfront contract discussions...but the best ones have an easy out.  My easy out goes like this.

"Billy, if at any time, you feel like we aren't going to do a deal, will you do me a favor and let me know?  The last thing I want to do is bother you and have you avoid picking up the phone.  You can call me or even email me if you like...Does that sound fair?"

I remind them often that they have the right to say no to me.  That way, nobody feels like they don't have to avoid phone calls, and otherwise be nervous.

I also add that if we don't end up doing business "we will all carry on with our lives...we will all survive". That gets a few chuckles and lightens the mood.

Have a great day, a great weekend, and a great August! 

If you found this helpful, please copy the url link above and share it on your favorite social network.

Thanks

​Mike

One of my friends posted this on Facebook today.

If you are in sales, your LinkedIn profile is important.  Probably the most important tool in your toolbox.

Tom (a guy I work with) walked in my office the other day, telling me that he doesn’t do much on LinkedIn.  It just doesn’t get him much business.

After looking at his profile, I understand why.

• Tom has been with us for 3 months, and his Linkedin profile doesn’t reflect this.  It still has his old job on there....One he hasn't had for a long time.
• Tom has very few contacts who he is connected to on LinkedIn.  Tom knows a lot of people.  If he would just connect with them on LinkedIn  he could actually drum up business with people without doing a thing.
• Tom's profile on LinkedIn looks like he isn't open for business.  LinkedIn has become a welcome sign on the internet.  
  
• LinkedIn is not Facebook.  Not even close.  LinkedIn is the business classifieds.  

I tell everyone this.  LinkedIn is the most important place to be if you are a salesman.  It is at the top of the list when someone Googles your first name.  It is your business card on the web.

Your profile should:

• Have a Photo:  Have a professional photo of you, taken wearing a suit.  Pictures of you with your dog, wife, child, boat, motorcycle are not encouraged on LinkedIn.  This isn’t Facebook.  This is the biggest mistake that I see on LinkedIn.  And ladies, no bikini shots, unless you sell bikinis.  I shouldn’t have to type this.
  
• Job Title:  Your job title should be all encompassing.  It should include your title, as well as your profession.  Add your phone number to the end, so that people can easily call you.  Mine is

Senior Sales Director /// Solution Sales /// Author /// 248-233-0792

• Summary:  Your summary is a summary about you.  This should come from your resume.  Years ago, I had my resume done by a professional, Deb James (ohioresgal@aol.com).  I refer business to her all the time because she can sell me better than I can.
  


• Experience:  I have every position listed here, including every promotion that I have had.  I also put all the awards and honors that I have received.
  


• Education:  Put all relevant degrees in LinkedIn.  Refrain from including your high school diploma, as this isn’t really a draw.  If this is your highest level, leave the education part blank.  There is nothing wrong with not going to college.  I know very successful people who didn’t go to college.   
  

• Recommendations and Endorsements (R&Es):  Give glowing recommendations to people that you do business with.  I typically write specific, unique paragraphs detailing the person that I am writing about.  When you do that, you get three benefits.  You should also ask your close contacts to give you recommendations.  In your request, you should ask them to make it unique to their experiences with you.

1. You do something nice for someone who you like working with or do business with.
   
2. Typically, 75% of the people that you R&E will return the favor.  Their R&Es will build your profile up.
   
3. Whenever you give an R&E, it actually makes you look good.  People who aren’t connected with you will see that you said something nice about someone else.  I have had a number of people click on my profile after reading one of my recommendations.
   

• Pay for the premium version of LinkedIn.  The premium version allows you to see who looked at your profile. 
  
• Join groups that relate to your business.
  
• Post articles of relevance on your news feed, but make sure to refrain from posting advertisements for your service as articles.  You can even post this blog post on your LinkedIn...I won't complain.
  

It is the end of the month...

Salespeople tend to get desperate at the end of the month.  This is not a good plan.

So here is the problem.  I told them in my initial inquiry that I would be looking for a vehicle towards the end of September.  This is 2 months away, but I want to start the process now...and I didn't want to be pressured into making a decision in July.

SALES IS A LONG TERM THING, so when a prospect pushes back that you are laying too much pressure on, you should lay off.  If you respect your  prospects, you will get the business.

If someone wants to buy from you, they will...and it won't take 9 emails to get them to buy.

A new week and a new month have begun.  If you are like most salespeople, the optimism is flowing and you are excited with the possibilities of kicking butt in July.

Chances are, you haven't sold anything this month, and the month is a week old.

Get your butt moving.  NOW!

1. First Monday of the month in my office is "cold call day":  5-10 new meetings should be your goal....Make special note that these meetings should be with companies that are not currently in your pipeline.  Best bet is to call companies that either said no 6 months ago, or ones that you lost touch with.  
2. Call anyone that you thought you had a deal with last couple of months, but didn't pan out.
3. Call the big elephants who were in your business plan from January.   
4. Monday is your day.  TAKE IT! 

This morning I had a philosophical conversation regarding activity that leads to sales.

I was told that the more sales activity that you have, the more deals that will close. In some cases, I believe this to be true.  I know for a fact that if you don't have enough meetings your pipeline will be devoid of enough deals to complete your month successfully.

I have also seen this theory fall flat on it's face.  I have seen a ton of salespeople who meet with a lot of people, but fail to close any of the deals.  This happens for many reasons.

So when I was told the theory of more activity leads to more deals, I disagreed.

So aside form low activity levels (too few phone calls, too few meetings) what would be some more relevant metrics that a sales organization could focus on?

1. Substantive Meetings:  A key to my success as a salesman is to schedule meetings with the right people at the right companies. 

           
First, I like to identify which company can get the most benefit from my products.  My goal is not to find a new vertical to sell in to, but to find companies that are similar to my client base.  If 60% of my prospects are commercial real estate appraisers, then I would like to put my effort in to selling the remaining CRE appraisers.  I don't try to sell to a whole new segment.  Another tactic is to see who my competitor is selling to.  Chances are that my competition has already sold a need to these people, and I can come in and show how my product is better.  Meeting with the wrong type of companies can skew your metrics and provide you with an inaccurate sense of security.  You get lots of meetings, but few sales.

Second, I identify the correct person within an organization to speak with.  I will initially go to the top of the food chain at an organization.  I have seen many salespeople go after the lowest person in the organization in order to get buy in.  I found that tactic to be a waste of time.   I like to find out who the final decision maker is for my product.  I will do everything I can to meet and talk to the decision maker.  There is little benefit in speaking with someone who cannot say yes.  Years ago, we had a guy in our office who would schedule meetings with underlings.  He would present our wares, and then expect the value proposition to be sold up the ladder by the non decision maker.  Sometimes it worked, but most of the time it didn't.  Sure, this guy had a ton of meetings, but he never really got any answers why they didn't buy.  Nobody can sell your product to management better than you.


TO BE CONTINUED...

Pictured here is a place called Hope Island.  There really is a place called Hope Island.

I have been stuck here many times...especially during close week.

Picture this.  You have spoken at times with a prospect during a given month.  You have found some needs, identified some pain, you even asked some pertinent questions.  You think you are pretty close to the sale.

Your boss asks you on Monday, June 23rd whether this deal is closing.  You answer in the affirmative.  "It's going to close," you exclaim.  While the prospect never really told you that it is, you sure hope so.  

The one question that you didn't ask is whether they are moving forward with the deal.  While this is the most important question you may ask in the process, it is that hardest one to ask.

So sometimes, EVEN THE BEST SALESPERSON will sit on Hope Island, waiting for the contract.  The Hope Island that I ave sat on isn't the sunny one pictured above, but a cold replica, full of despair, desperation and worry.

How to avoid Hope Island:

1. When I was young and single, there was a desperation that I had that drove the women away.  Desperation also drives prospects away.  The best way out of this is to have many options.  Fill your pipeline so that you don't have to rely on one deal to get you there.
   
2. Ask the question!  Throughout the process, always state your end goal and discuss what the prospect's end goal is as well.  "So it looks like you are going to make your decision within 2 weeks.  Do you thin that if you move forward that it would be a June decision?"
3. Sometimes it doesn't feel right to come off as a salesman.   I say, embrace it.  Say something like "While I love showing my product to people, and I love discussing what my prospect's needs are, in the end I am a salesman, and my management judges me 12 times a year.  Do you think this is something that we can wrap up this month?"
4. Forecast your month accordingly.  If you haven't spoken with a client, or haven't gotten them the requisite paperwork to sign by the 15th of a given month, should that be in your forecast?  My boss always says, "Hope is not a strategy"

Today, I received a gift.

A prospect who I have spoken with in the past finally came in.

Back in December, I spoke with a gentleman about my services.  I presented him an agreement, and while he was interested, it wasn't the right time.  In December, you probably did the same thing, right? 

December is notorious for trying to get that end of the year deal in.  You throw some stuff out there and hope that something will happen.  Sometimes it does, but the majority of the time, it doesn't.  It just isn't the right time.

DO YOURSELF A FAVOR NOW:  Go through your list of prospecting calls from December, and reach back with a call.  6 months has gone by and a lot has changed.

June/July are notorious for these types of deals.

1. You should always keep track of your prospecting calls and the answers they gave you at the time.  Use that to your advantage.
2. You should always keep a large pipeline full of everyone who has said no to you.  For example, I have many clients who were prospects for 8-10 years.  Sometimes the planets must align in order for a deal to get done.  Be there when it happens.
3. If someone gives you the response that the time isn't right, write them a handwritten note along with your business card.  Tell them that one day, you envision them buying from you, and you look forward to that day.
4. Like the prospector above, you must have a large stream (pool of prospects) in order to catch those golden nuggets.   When you speak with a prospect who says no, ask them when you should follow up, and then mark it in your calendar.

Last night, I was watching a Simpson's episode with my wonderful son, Matthew.

The image to your left came up, and it got me thinking.

The Status Quo is pretty powerful.  So powerful that you will not sell to your client if the status quo is working.

For example, I saw an awesome looking brand new Cadillac the other day.  I loved it.  It has everything that I want in a car.  The only problem is that I have a 3 year old Cadillac in my driveway.  it runs, it looks nice and more importantly it costs me less money than a new one.  Sure, I want the new one, but the status quo is going to win every time.

Let's say that my car starts to wear down.  The tires need replacing, it doesn't run as well as it used to, and I see a rust spot forming near the drivers door. 

The status quo is now looking less advantageous.

Many times, I go out to a prospect's office and discuss their needs.  We seemingly come up with many reasons why their current process isn't working well enough.  I dig deep into their pain points in order to figure out what is broken and what I can do to fix it.  Many times, we as salespeople fall short.  We just don't probe deep enough. 

We don't dig and stir enough to get to the things that aren't working at all.  We miss the point that the only thing that is going to drag your prospect away from the status quo is pain.

Which brings me back to this blog post

To make the sale, you must battle the status quo, you must find those rust spots...you must find a reason for your prospect to need to make that switch

• Open Ended Questions:  You must ask these questions n order to get to your prospect's pain
• You must also ask probing questions.  Questions like "So if you continue to spend 45% of your time researching the market, what kind of effect will that have on your bottom line?"
• Don't try to close the deal until you have dug deep enough to unseat the status quo.
• I once heard some crazy statistic that you must be 150% better than the status quo to get someone to change.  Not sure where this number came from, and I am sure that it is made up...But the point remains that you must be a whole heck of a lot better solution than the one you are trying to unseat in order to win.

For a copy of my bestselling book,
CLICK HERE

Before embarking on negotiations, it is always wise to do your research.  You should always know what your competition is offering to your clients.

This point became clear during one of my interactions in the last week.  Everything in the process was going smooth until we got to the point where I ventured into unchartered territory.  My naivety was in full force, and I lost the deal.  Not knowing the ins and outs may have hurt me in the short term.

You can never be too prepared, and you can never be too cautious.  If you feel that the person at the other side of the table has an upper hand in the negotiations, you may want to bring along a more senior member of your team.

So there are many lessons of the day here. 

1. Know your stuff before you start talking turkey: That should be a given...but sometimes an old dog like me should heed that advice
2. Email is a very bad communicator when negotiating:  Too many things get misconstrued while emailing.  Unfortunately, once that "send" button is pressed, you lose your negotiating power. You are much better off discussing things over the phone
3. You learn more from defeat than you do from success.
4. Learn the word "Next".  There are few mistakes that are fatal...And there are always other avenues you can take.

TO ENTER JUNE'S CONTEST, CLICK HERE!
 

Today, I saw a license plate as I was pulling out of my office parking lot, and it gave me a thought.

No Pain, No Sale.

Sure, what this guy probably meant was No Pain, No Gain: A popular saying amongst people who work out in the gym.

No Pain, No Sale means something different.

When I go out on a sales call, I dig deep to find my prospect's pain.  What is bothering them about their process?  What is holding them back from achieving their goals?.  What is keeping them awake at night?  I am looking for their pain, and then, like a knight in shining armor, I will swoop in and fix the pain.  I will show them the "3 Wows", 3 things that my product does that can alleviate their ills so much that they say "wow!"  If I can do that correctly, I can earn the sale. 

If there is no pain, then I cannot possibly sell my product or service to them.

1. Before discussing yourself and your company, discuss their needs.  Try not it make it an inquisition, but make it a discussion. 
2. Ask insightful questions like "What do you find is the toughest part of your sales process" or "When you are looking to hire new sales talent, do you find that you get too many unqualified applicants?".  Follow up with questions like "If you spend that much time spinning your wheels with unqualified candidates, do you feel that this inhibits you from getting new business?"  Use silence to have them go deeper into the thought.
3. During this discussion phase, find three things that your company or service can do to alleviate their pain better than any other solution.  Keep track of these.
4. When discussing your product in the next step, be sure to address those pain points while discussing your solution.  Use phrases like "One of my current clients was having similar difficulties as you, and now finds that this feature has really changed his business for the better"
5. Always be conversational.  Too many times, I hear salespeople run through their questions like a list.  Nobody wants to be questioned. 
6. My favorite question is "You have seen our product before...why aren't you a current client?"  That elicits a great response, and a way for me to address an honest objection.