The basis of Controlled Management is to provide a means of effective management by adopting different approaches in different situations with different people. Studying the approach and methods of great leaders in history, shows a variety of styles and proves the point. Compare for example, the styles of leadership displayed by say, Montgomery at El Alamein, Pope Jean-Paul II and the Roman Catholic Church or Bob Geldof and Live Aid. All three proved themselves effective leaders but in totally disparate situations and with very different groups of people. Controlled Management is a model, which provides guidance on the most effective management style to adopt in certain situations, with different types of people.

CM is a model, not a theory. The difference is that a theory attempts to explain why things happen, whereas a model is a pattern of events, which can be learnt and repeated.

There are four management styles: Directing, Coaching, Supporting and Delegating.

Each style is appropriate in certain circumstances and they can be illustrated as follows:

Directing – Low Supportive, High Directive.

Delegating – Low Supportive, Low Directive.

Coaching – High Supportive, Low Directive.

Supporting – High Supportive, High Directive.

CM is a way of describing and analysing leadership styles. It is a combination of directive and supportive behaviours.

Directive behaviour involves telling people what to do, how to do it, where to do it, when to do it and then closely supervising this performance.

Supportive behaviour involves listening to people, providing support and encouragement for their efforts and then facilitating their involvement in problem solving and decision-making.

Summary:

Top performing Sales Directors and Managers understand instinctively when a situation requires them to Direct, Coach, Support or Delegate but learning these skills takes time and practice and underpinning this advanced approach to management must be a range of core competencies.

Today’s News: Sales Gravy is one of the fastest growing sales communities on the net right now and my good friend Jeb Blount is just a bundle of energy and new ideas – so I have accepted his invitation to write a sales management blog every week, starting today, so be sure to check it out

Tomorrow: Spring has arrived early here in Paris, with temperatures hitting a heady 12C. Everyone is confused and not just the birds and bees - street cafes are packed and everyone is lapping up the warm sunshine. Me? Well, I think I have earned a w/e off and I have told the elves to take some time off too. As ever, wherever you are, have a great w/e but be sure to get back on Monday – JF 

The JF Guest Author Spot 

When something goes wrong (anywhere – in your office, at headquarters, in the national news, even around the dinner table reviewing your family’s day) have you ever heard (or said), “Well, what did you expect?” Usually that question is followed by a knowing glance, a wistful shaking of the head or an ironic laugh.

Yet when something goes right, people don’t ask the same question. Instead those successes typically are chalked up to hard work, or even to luck.

Is it possible that expectations (i.e. “what did you expect?”) play a role in only those things that go bad or less than desired?

I don’t think so.

At some level, we believe expectations matter, or we wouldn’t ask the question when things go badly.

In reality, we have known for a long time that expectations matter – consider this:

“Treat people as if they were what they ought to be, and you help them to become what they are capable of being.”

That was written by the German writer and scientist Johann Wolfgang von Goethe – a long time ago (he died in 1842). Why would we treat people in a certain way if we didn’t expect they could live up to it?

So let me ask you a question.

What do you expect . . .

. . . of your co-workers?
. . . of your team?
. . . of your customers?
. . . of your boss?
. . . of your relationships?
. . . of your family?
. . . of yourself?

Interestingly we always have expectations. Perhaps yours are generally positive, perhaps they are positive in some situations or with some people, or perhaps you keep your expectations low because “you don’t want to be disappointed” (if that the latter is the case, I’m guessing at some level you still are disappointed). Or, maybe your expectations are completely subconscious – you never give them a thought, one way or the other.

Once we believe, or are reminded, that expectations can play a powerful role in modifying the outcomes of events (even if that role is invisible), we can determine what we are going to do about it. So, it makes sense to be more conscious about our expectations so we can examine and modify them as desired.

I believe there are two steps in this process: choose your expectations and create a habit.

Make a Choice

Once your expectations are conscious, you have a choice to make. And that choice really comes down to answering the question “What do I really want?” and then creating an expectation mirroring that desire. Create the expectation and then think about it regularly. If you are noticing a small (or large) voice of doubt in your mind, you haven’t set the expectation clearly or firmly yet.

Remember you can expect great success, and still be happy or satisfied when the outcome isn’t perfect. Expectations alone (with our effort, action, etc.) aren’t a golden ticket or a guarantee, but everything else being equal, positive expectations will positively impact your outcome. So why not choose positive expectations?

Create a Habit

Perhaps your conscious (or subconscious) expectations have been low for a long time, or maybe you have never considered this as a choice before. Either way, when you make the choice to have positive conscious expectations once, you can then make that a new habit. Regularly consider a future event, small or large (how the meeting will go, whether the project will be a success, if your kids will get in before curfew), and set your expectations of that situation positively.

Create the habit of a positive expectancy and you will be surprised how quickly your results will change for the better.

This invisible, almost magical, process is real. Your expectations are already impacting your results. My challenge to you is to raise your level of expectations as a way to improve your results, satisfaction and happiness.

The choice is yours.

Kevin Eikenberry is a leadership expert and the Chief Potential Officer of The Kevin Eikenberry Group, a learning consulting company that helps Clients reach their potential through a variety of training, consulting and speaking services. You can learn more about him and a special offer on his newest book, Remarkable Leadership: Unleashing Your Leadership Potential One Skill here

 Kevin is also a member of the Top Sales Experts team of course, and you can read more about him here

Today’s News: The key objective for The JF Consultancy was to provide me with a platform to launch a brand new range of unique and innovative solutions and services. In the longer term, we will be creating a world-wide partner network, but in the short term I am enjoying being very “hands-on” If you haven’t yet taken the opportunity to have a look round, please do so here 

Over at The Sales Community, Greg Stewart and his team have launched iQ Radio, and his guest this week is my buddy Colleen Francis, who shares her wisdom about 21st Century selling. You can listen in here

Tomorrow: I am going to be discussing the four management styles.

Recent studies have confirmed the obvious, that is to say that “fear of calling” in sales, can contribute to a significant proportion of lost sales revenues. One study that I read recently found that as many as 40 per cent of established salespeople experienced periods of “fear of calling” severe enough to threaten their future in sales.

Stemming the ever-increasing costs of the “fear of calling” syndrome cannot be addressed by training alone. It requires an experienced coach or mentor to work with each salesperson’s particular set of beliefs, so that they feel truly empowered to breakthrough their self-created mental barriers. One particular statistic in the following survey should give any salesperson suffering from “fear of calling”, renewed confidence

How Customers Regard Salespeople Survey:

Salespeople who do not bother to make appointments. 45%

Salespeople who know nothing about the customer’s business 60%

Salespeople who know little about their products and services 60%

Salespeople who call too often. 39%

Salespeople who don’t call often enough. 49%

Salespeople who do not have the authority to negotiate prices. 45%

Salespeople who do not ask for the order. 40%

Salespeople who are not properly or sufficiently organised. 55%

Most desirable quality customers want to see in salespeople? –Competence!

Customers Can Sense Fear:

We must remember that a salesperson’s state of mind is instantly transferred to their prospect or customer, which means that the challenge for organisations is to constantly create a highly resourceful state in their salespeople. This is extremely important, because when salespeople lack belief in themselves, their product or their service, they unconsciously transmit their attitude to prospects in a variety of subtle and sometimes overt ways.

The Slippery Slope:

Typically, salespeople who believe that if they had lower prices, they would win more deals, tend to attract more price objections. This in turn leaves them feeling scared or reluctant to talk to prospects about what they have to offer. Their downward spiral then becomes a self-fulfilling prophecy. Salespeople’s desire to succeed may be so dominated by a need to be liked, that they’ll avoid asking prospects for information that is needed to identify the prospects’ compelling reasons to buy. When this happens, closing becomes a real issue because salespeople, fearing rejection, perceive that asking for the order might cause a breakdown in the relationship with their prospect.

Summary: The Importance of Divine Intervention From Above:

Most Sales Directors grasp the concept of activity management, skills development and knowledge development. Intuitively, Sales Directors also understand the vital importance of the right mindset. Yet far too many feel powerless to help their salespeople turn their negative beliefs into positive ones. Those few Sales Directors who do tackle such negative beliefs and are able to change their salespeople’s self-limiting beliefs into empowering ones, have found an unbeatable path to success.

Today’s News: Over at Salesopedia today, the topic is objection handling and they have highlighted some great articles from amongst others, Lee Salz and Keith Rosen – you can check them out here

The more observant of you will have noticed a new banner in the left-hand column, which takes you straight to my new site – yep, The JF Consultancy is launched I will be discussing it in more detail tomorrow.

Tomorrow: On the JF Guest Author Spot, leadership guru and very good friend, Kevin Eikenberry makes a welcome return.

The JF Guest Author Spot

The first 30 minutes of the workday will set the tone for the entire day. For most people, the first half hour of the day consists of settling into the office routine by grabbing a cup of coffee, checking the internet, and, of course, chatting with others. Now, I will never be one to say we have to avoid coffee and/or socializing, but I will be the first to say it is advantageous to put these activities aside until later.

One of the ways that top-performing salespeople separate themselves from others is by effectively using the first 30 minutes of the day. It is highly beneficial to your productivity to know exactly what you are going to accomplish during this period. Therefore, you must determine the day before what you intend to do when you first arrive in the morning. For anyone in sales, this means one thing:  start the day by making a minimum of three sales calls before you do anything else.

To begin using this strategy, your objective today (and everyday in the future) should be to identify three people you want to call first thing tomorrow morning. There is no better way to start the day than by calling customers. If you are the type of person who arrives in the office early, your phone calls will wind up going straight to voicemail. Great!  In fact, using voicemail is an effective way to demonstrate to others that you are a hard working individual and you take your relationships seriously. For those of you who have a large number of clients, this is also a perfect way to personally reach out to them, while not having to wind up in a long, drawn-out telephone conversation.

In addition to beginning the workday more productively, you will also find yourself warmed up to make additional phone calls throughout the day. This will help you overcome a very common problem among anyone in sales:  the initial reluctance to make the first call of the day. Many studies have shown that people waste on average 15 minutes each day just getting ready to make that first call. It is ironic to think that you will have made three phone calls in the time it takes the average salesperson to even start making theirs.

An additional benefit of this plan will come when you begin applying this same principle to the first 15 minutes after returning from lunch. Use that time to make three prospecting calls. Again, you will find yourself becoming productive faster and you will be less likely to find yourself at the end of the day looking back to realize that you did not make the phone calls you needed to.

By establishing these habits, you will increase the number of phone calls you make every day from utilizing time that, in the past, was unproductive. Make it part of your routine at the end of each day to identify both the three people you intend to contact the next morning and the three you’ll contact after lunch. Do not fall into the trap of thinking you’ll come up with the names the next day because the chances of you actually contacting those people will fall dramatically.

   Mark Hunter, “The Sales Hunter”, is a motivational sales speaker and industry expert who addresses thousands each year on how to increase their sales profitability.  For more information on his sales training or to receive a free weekly sales tip via email, contact “The Sales Hunter” at www.TheSalesHunter.com.

Mark is also a recent addition to the Top Sales Experts team and you can read more about him here

Today’s News: I enjoy developing new process tools and I also enjoy discovering other people’s creations, particularly if they are useful and accurate. So yesterday, I was pleased to receive a message from my very good friend from “down under” Kevin Dwyer of Change Factory advising that he has just launched a brand new initiative The Sales Pipeline with a very sophisticated sales pipeline calculator. If you sign up for his newsletter, you can claim the Excel - based tool for free, just go here

Tomorrow: In a recent survey I read called “How Customers Regard Salespeople” an amazing 49% said that sales professionals they deal with don’t call often enough!

So why is call reluctance so prevalent? What causes it and how can it be overcome? For the answers to these questions and to read the rest of the survey, join me tomorrow.

The “Sales Funnel” concept has been around for a few years but I took it and tailored it to meet the needs of my own teams very effectively. Essentially, it is designed to assist salespeople in managing their sales time more effectively, subsequently translating that time into real money. It is also a time-management tool, which will help them to accomplish the following essential selling tasks:

- Collating their numerous sales objectives into three categories or levels of the Sales Funnel.

- Monitoring each sales objectives progress as it moves from one level into the next.

- Setting priorities for working on the objectives in each level of the Funnel to ensure they do not neglect any one of the three.

- Dedicating time to the objectives in each level of the Funnel in a way that is appropriate to their specific situation.

- Forecasting future income, based on how their objectives are moving through the three levels of the Funnel.

Sales Funnel is conceptually divided into three distinct parts or levels, which correspond to the three different types of selling work we must do in equal measure, if we are to avoid the dreaded “Peak & Trough” syndrome, otherwise known as “Feast Or Famine.” 

To enable salespeople to utilise the Funnel concept efficiently they must first sort their sales objectives into these three levels:

- Above the Funnel – Prospect & qualify.

- In the Funnel – Cover the bases.

- Best Few – Close the order.

Above the Funnel:

The pre-requisite is that they have data that suggests a fit between their products & the prospects needs, all of this type of work requires qualifying.

In The Funnel:

The pre-requisite here is that all the opportunities have been qualified and at least one buying influencer has been met. They then need to “cover the bases” i.e. identify all the buying influencers and ensure each one is contacted by the person best qualified to do so.

It is important that the salesperson understands the response mode of each buyer, identifies the results each buyer needs in order “to win” and ensures they understand that the proposal will serve his/her individual criteria.

Finally, at this stage of the cycle, they need to continually re-assess the sales picture and eliminate areas of perceived weakness within their bid using the principle of capitalising on their strengths.

Best Few:

Logically, the pre-requisite here is that they have all but eliminated luck & uncertainty as factors in the final buying decision. -this can of course be subjective!

The tasks involved are end-tasks, like overcoming last minute objections, agreeing terms and conditions and signing orders etc.

As sales professionals they must be able to do all three kinds of work, but obviously they will have several possible orders that they are working on at the same time. Since they will all be at different stages of completion, they will not be doing the same kind of work on all of them at the same time.

By following this system they could potentially reduce the normal sales cycle by 50%

Using Sales Funnel over time, helps to plan time required ahead of time.The eventual objective in utilising the Sales Funnel concept is to be able to move the various sales opportunities down the Funnel at a steady and predictable rate. This in turn will mean that income and achievement level is steady and predictable.

To achieve this, there is a need to work on two interrelated tasks:

- Setting appropriate priorities for the three kinds of selling work which need to be done.

- Allocating limited selling time so that the three kinds of work always get completed on a consistent basis. The simple rule of thumb is: “Every time you close something, prospect or qualify something else”

Finally, Let Us Not Forget Good Old Villfredo Pareto And His 80/20 Rule:

The sales that a salesperson completes today were made possible only by activities performed in the past. Equally, it’s what they do today that will create their future sales results. Because there is a time delay between activities and results, salespeople have an opportunity to improve their sales results by undertaking sales productivity planning and implementing an effective prospecting system. Generally, since 80% of sales are generated from 20% of customers, 80% of salespeople’s time should be focused on those 20%.

Today’s News:

My good friend, the sassy Kim Duke (aka Sales Divas) has been in innovation mode and come up with a brand new idea – if you are a female entrepreneur, you can read all about it here

Just a nudge – there are a brand new set of nominated articles over at Top 10 Sales Articles

Tomorrow: My guest is the “Sales Hunter,” Mark Hunter with some excellent tips as usual.

The increasingly intense competitive challenges of the world economy challenge everyone, everywhere, to adapt in order to prosper under new rules. In the old economy, hierarchies pitted labour against management, with workers paid wages depending on their skills, but that is eroding as the rate of change accelerates.

Hierarchies are being replaced by networks; labour and management are uniting into teams; wages are coming in new mixtures of options, incentives and ownership; fixed jobs melt into fluid careers.

As business changes, so do the traits needed to survive, let alone excel. All these transitions put increased value on emotional intelligence. Competitive pressures put a new value on people who are self-motivated, show initiative, have the inner drive for outdoing themselves, and are optimistic enough to take reversals and setbacks in their stride. The ever-pressing need to serve customers and clients well and to work smoothly and creatively with an ever more diverse range of people makes the ability to empathise all the more essential.

At the same time, the meltdown of old hierarchies increases the importance of traditional people skills such as building bonds, influence and collaboration. And that is as true for employers as it is for employees. The task of the leader draws on a wide range of personal skills.

Research has shown that emotional competence makes the crucial difference between mediocre leaders and the best. Indeed, emotional competence makes up about two thirds of the ingredients of star performance in general, but for outstanding leaders emotional competencies – as opposed to technical or cognitive cues – make up 80 to 100% of those listed by companies as crucial for success.

Star performers show significantly greater strengths in a range of emotional competencies, such as the skills of persuasion, team leadership, political awareness, self-confidence, and achievement drive. Empathy, one of the key elements of emotional intelligence, is central to good management; it is difficult to have a positive impact on others without first sensing how they feel and understanding their position. People who are poor at reading emotional cues and inept at social interactions are very poor at influencing others in the workplace.

Today’s News: Dr Randy Pausch, a professor who is dying of cancer, gives his last lecture. This uplifting and inspirational video, which has been viewed more than a million times, is a must see. You can view it here, it is very, very moving and I am grateful to my good friend Jeb Blount of Sales Gravy, for bringing it to my attention.

Tomorrow: Ahead of the launch, we are putting the finishing touches to The JF Consultancy site – it’s looking good, but I will let you decide for yourselves next Tuesday Wherever you are, as ever, have a great w/e – JF

The JF Guest Author Spot

I teach a lot of different revenue generation strategies in my global travels, and I can tell you when done right referrals are the most powerful tool in the sales arsenal.  My challenge to you is to wake-up and recognize that if you don’t have a systematic referral program in place you are missing out on one of the simplest, lowest cost, ways to generate a massive in-flow of high quality customers for your business.

Why are Referrals so Powerful?

Referrals are the lifeblood of sales; they are more powerful than any advertisement you might run because referrals are founded in trust.

Referrals are powerful is because they create unequaled credibility from a trusted third party, a friend that’s experienced the benefits of doing business with you.  Referrals are even more powerful when they come from someone they know has successfully done business with you.  Why? Because when a referral comes from someone they trust there is no higher way to position the benefits you bring than to help a friend.

You can believe what your friend says about the person being referred as opposed to hearing a “corporate commercial” from a salesperson whose sole purpose is to make money from you.  Do you see the difference?

Referrals have an innate value as they are given freely as a reward for the high quality of service rendered.  A referral is the most compelling sales advertisement on earth. 

Best of all, because you served your customer with integrity you’re able to get referrals for absolutely nothing.

Research shows the how valuable referrals are – Paul and Sarah Edwards, authors of “Getting Business to Come to You” suggest that up to 45% of most service businesses are chosen by customers based on the recommendations of others.  A Dun and Bradstreet survey uncovered that referrals are one of the two most popular marketing methods for any business to make sales, the other one is advertising.  However, referrals consistently out-pulled advertising as to the quality and value of a new customer relationship.

One important note to consider is that referrals increase the life-time value of your customer who has referred someone to you; the referrer becomes more loyal to you and your business because once they have endorsed you, psychologically they become more loyal to you and your business. 

Many sales people and small business owners assume that referrals will happen by themselves if you give good service.  This belief if false and has no grounding in reality.  If you are not deliberate and proactive in developing referrals, the chances of you receiving as many referrals as you want are very unlikely.

Remember your best customers are ready and willing to give you referrals – You just need to show them how. Give them a blueprint on how they can help you.

Let me take a moment to discuss the difference between Word of Mouth Advertising and Referrals.  Word of Mouth advertising happens casually when one of your customers or friends mentions you or your business in a conversation. It’s not intentional or planned and is not something you can depend on to generate a predicable revenue stream.

A referral system is a systematic process that captures qualified prospects through your trusted relationships with clients, associates and friends.

A ‘system’ by its definition is a process that produces predictable, measurable results.  A system like the ones I design can be controlled and ramped up to provide all the referrals you can handle very quickly. Every business benefits from word of mouth advertising… but don’t mistake the random nature of word-of-mouth advertising with developing a systematic, predicable system for referral prospecting.

So what’s the secret to getting all the referrals you can handle?  My answer is simple, ‘You just ask for them.’  Logic dictates that you have to ask for a referral in order to get a referral but it’s the fear of asking that impedes many of you from moving forward. 
One reason for the fear is that you are unsure about the perception of value you consistently bring to your clients.  There are a number of reasons for this, and too many to go into here.  Just know that you must become comfortable with asking and overcome the battle you are having with fear because the person you’re asking for the referral can sense the fear, and will be less likely to give you a referral when you are unsure yourself.

Here’s The Good News – People Want to Give Your Referrals! 

Shift your belief from one of receiving to one of giving.  If you truly believe that it will be helping them when you ask them to give you a referral your fear will quickly fade.  Most people want to give back to those who have helped them, and your customers are no different and want to give you referrals.  It makes them feel good that they found someone they had a good experience with and human nature dictates that they will want to share you with their friends.

This positions the referrer as a hero when they give their friends the gift of great service from you, and the person who referred you will feel as though he was able to do his friends a great favor.

When you ask for a referral, after treating the person honorably, you are actually doing them a special favor by letting them refer you.

The Blueprint for How to Ask for a Referral

Has someone ever asked you for a referral?  Did it go something like this: ‘Hi Joe, do you know anyone who could benefit from my services?‘  Joe starts to ponder your question and eventually says, ‘Well, not off the top of my head, but I’ll keep thinking about it…’

This is how 97% of all referral questions are asked and in reality fail.  You might as well not have ever asked the question.
Rarely, if ever will you get a positive response.  Why? Because you didn’t ask the right question in the right way. The phrase ‘know anyone who…‘ is too broad for people to think about and isolate a good referral for you.

People need a specific frame of reference to help them narrow down the playing field of potential referral candidates.  Imagine that you are talking to one of your customers who’s pleased the service you are delivering.

You ask them, ‘You’re a member of the Association for Corporate Growth in Dallas right? They respond, ‘Yes, I am.’ You ask, ‘Do you go to their meetings on a regular basis?‘  ‘Yes, most of the time.’ they reply. ‘Is there anyone in your ACG Chapter that you believe could benefit from my ______ (fill in the blank) services?  Maybe one or two people you’ve known in the group who are Vice Presidents of _______ (fill in the blank)?‘

Did you see the difference?  You gave a narrow frame of reference from which to draw from.  It allowed the person you’re asking to SEE the potential referral candidate in their mind.  This may limit the number of potential people that they might know, but it is far more effective than opening up the ocean of people that they can never identify for you without a reference point.

By being specific with your request, it will also stay in their mind long after you’ve asked it because they visualized your services with much greater intensity.  This will ‘lock-in’ you in the top-of-mind with the individual.

I know one very successful insurance sales person who loves to hunt and knows all the top hunting lodges in America. All of his referral questions are centered on Hunting Lodges because he knows that anyone who can afford to be a member of certain lodges needs his Estate Planning services.

Referrals come from two primary sources – your current customers (people who have done business with you) and non-customers (prominent people) within your target customer group.  You should have an active referral system to secure business from both types of people.

Your customers could be the most enthusiastic about giving you referrals because they have experienced you, your product and your service.  But, when done right you can get more referrals from non-customers than existing customers who have never used your service.

Start developing a system today for obtaining referrals first from your customers and second from non-customers who are Centers of Influence in your market.

In order to quickly ramp-up a Customer Referral Program, recognize that receiving referrals from customers starts giving the kind of great service that creates loyal customers for life.

Perhaps the simplest way to harvest referrals from your customers is to send them a simple well-written letter asking them for their help.  I have an example of this type of letter as a resource in my Trust Cycle Selling Marketing System.

Your best referrers are your customers.  These are the people who have had a positive experience with you and can vouch first hand for your service and products. However, there are many other people and organizations that you must include in your referral prospecting system –

The second set of people are individuals who know and network with many other important and influential people.  These people are often known as, ‘Centers of Influence.’  Centers of Influence can multiply your marketing efforts ten-fold if you approach and position your request properly. They can easily turn your marketing efforts from one-to-one to one-to-many.  Centers of Influence are the heavy hitters that can have a profound multiplying effect on your business.

A person savvy in generating new business will spend the majority of his referral prospecting time with the 20% within their Centers of Influence that produce 80% of their results.

Centers of Influence should be ranked by their ability to help you.  Your Top Tier Centers of Influence are people that are directly related in some way to decision makers within your industry or profession.  Top Tier Centers of Influence have a connection to your industry because they are aligned with others you wish to reach either in business or socially.  Referrals coming from your Top Tier Centers of Influence can be very powerful to your business in many ways.

Your goal with Top Tier referral givers is to be the first person “Top of Mind” when someone asks them about purchasing a _______ (fill in the blank).  With this in mind, you should sit down with the people inside of your company and come up with ideas about how to be the first person that a Top Tier referrer thinks about. Next, develop a list of who those Top Tier Centers of Influence are.

You could consider sponsoring networking events or social gatherings for your Centers of Influence. [Note: Do not allow your competitors to attend.]  Have a good cross section of attendees. You might hold several of these events / parties throughout the year so that you can invite several different potential referrers from the same industry.

Add each Top Tier referrer to your newsletter list so you can continue to “touch” them and maintain your Top of Mind Advantage.  Be sure to give them helpful information that they can use to make their _______ (fill in the blank) go up or ______ (fill in the blank) costs go down.  Give them _______ (fill in the blank) advice and information on new developments in your industry in which they should be aware.

Invite them to an all-expense paid _________ (fill in the blank) association luncheon that has a great speaker.  Rent a limo to pick them up, serve them wine or fine drinks, and treat them like stars.

Purchase a book on _______ (fill in the blank) about their business and give it to them as a free gift.  They will thank you for your interest in wanting to help them grow their business.

If they are a potentially a big referrer, you should send them a year round gift that they will receive every month from Harry and David (www.HarryandDavid.com). This will keep you in their minds all year long.

Place them on an automated schedule to send a birthday card to them, their wife and their kids, send them an anniversary card, and cards for the holidays.  I use “www.RevenueWarriorCards.com” to help me stay in touch with my Centers of Influence.

Arm your Top Tier Centers of Influence with the _______ tools (fill in the blank) to help them to help their customers (and your prospects). You may consider giving your Top Tier Centers of Influence a supply of Special Reports that you have developed that are specifically designed to help them with the challenges they are facing.

Another idea is to purchase a best-selling book-on-tape that you think they might be interested in and give it to them as a gift to let them know you were thinking about them.  Information products about that teach your Center of Influence how to grow their business are always welcome and will let them know that you are interested in helping them grow their business.

Tier 2 Centers of Influence are people whom you come in contact with on a regular basis in your personal life but aren’t connected to your industry. These are trusted influential people who come in contact with a large number of other people and could easily act as a business conduit for you.

They too can multiply your marketing efforts – Your Tier 2 Centers of Influence include but are not limited to the following:  Neighbors, Friends, Clergy, Business owners, Corporate business executives, Accountants, Financial planners, Lawyers, Etc.
Your Tier 2 Centers of Influence are people that may have no idea what it is that you do.  So you need to take the time to clearly explain to them not only what it is you do but the importance of referrals for your business.

Go one step farther by inviting them to after-hours socials. Tell them stories about some results that your customer’s have experienced as a result of your product or service.  Get them excited about what you do.  Get to know what they do by asking them questions.  Now each of you can get excited when you give valuable referrals, which in turn will be transferred to the new prospect.

The Power of Cross-Promotions is perhaps the single most powerful referral program. Let me explain. A cross-promotion uses endorsements from other well-respected people. It’s a simple idea where an associate sends an endorsement letter about you and your product or service to their customer list and you, in turn, do the same to your customer list. It’s a win-win.

The reason endorsement letters are so powerful is because people will buy from people they know and respect. How many times have you asked a personal friend, ‘Do you know a good place to buy __________?‘  Or ‘Do you know a good ____________ that I can go to see about getting _____________?‘

It is important to understand that we listen to people we trust, that’s the power of referrals.  People in authority positions can easily use their influence to help you win business just by recommending you within their inner circle.

In closing I’d like to remind you of something Zig Ziglar, the famous sales trainer once said, ‘You can get everything in life you want if you just help enough other people get what they want.’  This is so true!  Thanks Zig.

Establishing a referral program with your customers and other influential people is absolutely critical. Start today, and don’t make the mistake so many sales and business people make by not having a systematic program in place to capture referrals. They confuse word of mouth advertising with a referral system and, and tragically lose millions of dollars each year by overlooking the single most effective marketing available for a sales people and business.

Don’t make the same mistake!  Create a Referral System for your Top Tier and Tier 2 Centers of Influence.   Take the time necessary to develop your networking skills and hone your referral program today and start receiving an endless stream of high quality customers to your business. It’s money in the bank!

   To learn more about how to create your own successful Referral-based marketing system; you’re invited to visit http://www.joeheller.com and learn more about “Trust Cycle selling”.

Editor’s note: Joe Heller can be reached at (713) 927-4494 or Info [AT] JoeHeller.com.

(c) 2002-2007 Heller Research International, All rights reserved Worldwide.

Today’s News: Today is officially “Link To Me Day” and I have set aside time to develop more links with appropriate, like-minded people on all the sites that I have been persuaded to join over the past twelve months. In fact, I am going to set time aside every month, because networking is one of my favourite activities and I so enjoy making  contact with interesting people. To give you some idea of my diligence, I have a spreadsheet, which details all the facts about my personal network of friends and acquaintances. I try to make contact with them at least once every month to see how I can help them.

So, here’s your opportunity to link with me: If you are a member of Linkedin, My Space, YouTube, Facebook, Pownce or any other well known networking site, do please look me up and invite me to link.

Oh, and don’t forget my two favourite “sales specific” networking locations – Sales Gravy and Accountmaven - the latter is by invitation only, but if you follow this link you can sign up as my guest.

If you would simply like to link to this blog, all you have to do is leave me a comment on any post.

Tomorrow: “Old Ways Of Doing Business No Longer Works” – so what does?

First of all, my sincerest apologies to all of you who arrived here today, eagerly anticipating a fantastic, fresh posting, only to be confronted by my very first log from way back in October 2006.

We discovered a gremlin of the worst possible kind and it has taken the elves all day to re-enter all the data and of course chase the little blighter out. Normal service is resumed……… now for today’s post.  

Typically, the more confident we feel, and the better we are prepared, the more successful will be the outcome of our negotiations.

Personal power comes from many sources. To build up and increase our confidence as negotiators we need to step back and analyse the sources of our personal power and compare them with those of the people with whom we are negotiating.

Power is not absolute. In most negotiating relationships the power balance moves with time as the negotiation progresses.

Here are just a few examples of sources of power:

Information Power:
Information power comes from having knowledge that will influence the outcome of the negotiation. Planning and research can increase our information power, as can asking the right questions before we reach the bargaining phase of the negotiation.

Reward Power:
Reward power comes from having the ability to reward the other party in the negotiation. It could be the power a buyer has to place an order for goods and services or the power a salesperson has to give good service and solve problems.

Coercive Power:
Coercive power is the power to punish. This is seen most commonly in the buyer- seller relationship, but can be a feature of other types of negotiation.

Situation Power:
Situation power is the power that comes from being in the right place at the right time. A customer is desperate to place an order and you are the only source of supply in the short term. Having an effective network and keeping in touch with what is happening can increase your situation power.

Expertise Power:
Expertise power comes from having a particular skill which you can apply and which can influence the outcome of the negotiation. Improving negotiation skills helps you win better deals. Other areas of expertise could also help the outcome of the negotiation.

And Finally – Referent Power:
Referent power comes from being consistent over time. If people see you as having a clear, consistent strategy as a negotiator, you will increase your referent power. Having standards that you stick to and being consistent will help to increase your referent power. In the eighties, Margaret Thatcher wasn’t universally popular, but was respected by many for being consistent in her views and behaviour. In the end she failed because her approach was too rigid and she was unable to adapt to changing circumstances.

Today’s News: Fellow Top Sales Expert, Mark Hunter is giving away 200 sales hunting tips for FREE and you can download the PDF here He also writes an excellent daily blog – check it out here

Tomorrow: On the JF Guest Author Spot “The Revenue Warrior” – Joe Heller makes a very welcome return.

The JF Guest Author Spot

A nasty little insecurity habit I see in many business owners and sales people is their fear of losing a deal.

So how does this habit show up?

It’s simple.

You have a customer/potential customer who asks for a proposal from you.  You provide the proposal, quote your rate and then something happens that honestly makes you quiver with fear.

It is when the customer says…

“Company X said they could do the same thing for cheaper. Can you match their rate?”

And in a heart beat you say “Yes – I can.” – and you proceed to drop your rates as quickly as if you were holding a hot potato!

You Just Failed The Squeeze Test

Listen.

Do you know WHY customers buy on price?

They don’t see any noticeable DIFFERENCE between you and your competitor. So they start squeezing your proposal and the competitor’s proposal just like they were standing in the grocery store and picking oranges.

This is also reinforced when you drop your prices after “being squeezed”.  In fact, they feel that you “false advertised to them.”

You basically have told your customer that:

• your initial proposal was a rip-off
• you’re desperate for their business
• you aren’t to be trusted in the future

So What Should You Do In This Type Of Situation?

Easy.

Don’t put yourself in a position to be “juiced.”

1. Understand the hot buttons of what your customer is looking for and establish their budget AHEAD of time if possible. (Don’t be bringing in the Package A, B or C plan – that’s for wimps.)
2. Position your company with something unique to your services that will actually MEAN something to your customer.
3. If you know your rates are fair – then don’t fold like a taco when faced with the “price squeeze.”

In negotiation – it isn’t about one party getting everything and the other party feeling cheated.  A successful negotiation is where both parties feel satisfied.

If you drop your rates to win the deal – you will actually feel resentful of your customer as your profit margins have been slashed.  This isn’t exactly going to give you the warm fuzzies – and you will end up providing “less than” customer service and product. (you know what I’m talking about here!)

If the deal is worth negotiating over – then make sure your customer “gives up something” in order to receive that discounted rate. 

You also have one last choice (which happens to be my favorite). I stick with my rate (which I know is fair), I advise them of why my rate is higher than my competitor and how I can solve their problem in a UNIQUE way. 

And then?

I also show them that I am willing to walk away.  Remember in the world of selling – this shows confidence, honesty and that you have a backbone. (instead of a wishbone!)

So there.

    Kim Duke, The Sales Diva, provides savvy, sassy sales training for women small biz owners and entrepreneurs. Kim works with clients internationally, showing them The Sales Diva secrets to success! Sign up for her saucy and smart FREE e-zine and receive her FREE Bonus Report “The 5 Biggest Sales Mistakes Women Make” at www.salesdivas.com

Kim is also a member of the Top Sales Experts team and you can read more about her here

Today’s News: My good friend Paul McCord’s latest book, “SuperStar Selling: 12 Keys to Becoming a Sales SuperStar“, has just hit Amazon as a pre-release offering.  As a matter of fact, the posting is so new they still don’t have a picture of the cover of the book up; they don’t have a page count (251 pages); and they don’t have the “search inside” feature up and working (they are so far behind on this feature it usually takes months to get it up and running).  The book should be in stock for delivery by the end of February or very early March.

Nevertheless, the book can be ordered now.  They won’t charge your credit card until the book is actually in stock and ready to ship.  The best part is that if you order as a pre-release offering, you’ll get a 5% discount. Then when the book is in stock, if they are offering a discount off cover price ($16.95), you’ll get the discounted price PLUS the extra 5%

Over at Salesopedia, this week’s highlighted topic is sales process and they are showcasing the work of some excellent authors, plus me – you can read them all here

Tomorrow: Thoughts about confidence and successful negotiating.

These are troubled times for workers – it seems that no one is guaranteed a job anywhere any more. The creeping sense that no one’s job is safe, even as the companies they work for are thriving, means the spread of fear, apprehension and confusion. An attitude of self-interest is, understandably, growing more common for employees confronting downsizing and other changes that make them feel their organisation is no longer loyal to them. This sense of betrayal or distrust erodes allegiance and encourages cynicism. And once lost, trust – and the commitment that stems from it – is hard to rebuild. If employees are not treated fairly and respectfully, no organisation will gain their emotional allegiance. Sensing others’ development needs and bolstering their abilities is emerging as second only to team leadership among superior managers.

For sales managers, developing others’ abilities is even more important – indeed, it’s the emotional competence most frequently found among those at the top of the field. This is a person-to-person art, and the effectiveness of counselling hinges on empathy and the ability to focus on our own feelings and share them.

Research suggests the best ‘coaches’ show a genuine personal interest in those they guide, and have empathy for and an understanding of their employees. Trust is crucial – when there is little trust in the coach, advice goes unheeded. This also happens when the coach is impersonal and cold, or the relationship seems too one-sided or self-serving. Coaches who show respect, trustworthiness and empathy are the best. One way to encourage people to perform better is to let others take the lead in setting their own goals rather than dictating the terms and manner of their development. This communicates the belief that employees have the capacity to be the pilot of their own destiny.

Another technique is to point to the problems without offering a solution: this implies the employees can find the solution themselves. And people hunger for feedback, yet too many managers, supervisors and executives are inept at giving it or are simply disinclined to provide any. Virtually everyone who has a superior is part of at least one vertical ‘couple’ in the workplace; every boss forms such a bond with each subordinate. Such vertical couples are a basic unit of organisational life.

Therein lies the blessing or the curse: This interdependence ties a subordinate and superior together in a way that can become highly charged. If both do well emotionally – if they form a relationship of trust and rapport, understanding and inspired effort – their performance will shine. But if things go emotionally awry, the relationship can become a nightmare and their performance a series of minor and major disasters. While vertical couples have the entire emotional overlay that power and compliance bring to a relationship, peer couples – our relationships with co-workers – have a parallel emotional component, something akin to the pleasures, jealousies and rivalries of siblings.

If there is anywhere emotional intelligence needs to enter an organisation, it is at this most basic level. Building collaborative and fruitful relationships begins with the couples we are a part of at work. Bringing emotional intelligence to a working relationship can pitch it towards the evolving, creative, mutually engaging end of the continuum; failing to do so heightens the risk of a downward drift towards rigidity, stalemate and failure.

Today’s News: Over on Top 10 Sales Articles, we have our first monthly winner of the year, and what an excellent article it is. “Sales Techniques for the New Year: Asking Your Customers Tough Questions” written by Paul Cherry and you can find it on The Sideroad here

Tomorrow: On The JF Guest Author Spot is little Miss Dynamite, Sales Diva, Kim Duke – expect something special!