Many salespeople believe that their particular industry doesn't encourage referrals and as a result don't ask. Typically, this myth evolves because people expect that referrals will just fall into their laps because they do a good job. When these referrals don't materialize, they assume that referrals are just not possible in their business.

Truthfully, there are very few industries where referrals just happen, so the rest of us have to work hard to get referrals. When salespeople help the referral process to move forward by being proactive, they often find that referrals are a great way to find new prospects.

Unfortunately, clients and associates are not actively looking to refer people to you. This may happen in some businesses, but only a few. The rest of us need to engage all the contacts that we have -- family, friends, business associates, clients, etc.

To do this, first describe your ideal prospect because often our clients and associates truly don't know what we are looking for. The second step is simple (but often overlooked). Ask them for referrals! There is no rule that states that salespeople can't ask clients and associates whether they know of anyone who might benefit from their product or service.

Of all the people within our spheres of influence, 20% will give us referrals without asking, 20% won't give a referral even if asked, and that leaves 60% of our contacts who will give a referral if we ask them for it! Try to target these people with a systematic way of gathering referrals and you'll be pleasantly surprised by how well referrals can work.

Make a referral list for yourself by writing down all those individuals who might have a good referral for you and set a goal for how many referrals you would like them to give to you (at least two). Once you have closed business from those referrals, branch off from that second group and set another goal for asking them for referrals.

If you continue this process of asking each group for more referrals, you will see how a handful of people can make a big number of prospects, and then how those prospects will lead to more prospects. The key is to start asking!

Most likely, your contacts won't remember to refer business to you unless a prospect asks them about your service or product. We all know this happens rarely in business. Instead, ask them who they know who might benefit from speaking with you. It never hurts to ask! And by asking consistently, we receive referrals consistently.

Sandler Systems, Inc. All rights reserved.

Is there anything you can do about your sales cycle? We will discover there are many patterns in the sales world. If we understand the patterns and what causes them, we have a chance to shorten the sales cycle.

Many salespeople believe that their sales cycle pattern is set, and it can't be sped up or done differently. They are convinced that, "It is what it is," so they follow the outline that has been laid out before them, convinced that they are powerless to change things. The reason that the sales cycle doesn't change is salespeople seldom try anything new or different to reduce the length of time it takes to close the deal. They guide the prospect through multiple meetings with many different people, followed by the process of making a formal proposal. The sales cycle can't get shorter if we don't look for ways to improve it. Many times the sales cycle can be changed if the salesperson makes an effort to change it. This doesn't mean that every sale (in every kind of industry) can be closed in only one or two calls. Some sales naturally take longer than others; however, with some effort and strategy every sales cycle can usually be shortened.

Sales cycles are rarely designed to be efficient. They tend to follow a structure that has been developed over time. One salesperson does what the others have done, which is based upon what has been done over and over. Try making an effort to identify where the sales cycle is becoming hung up. Ask yourself whether there is a way to eliminate the bottleneck, or at least help it along. (Chances are that you will identify several things being done that are not totally necessary.) Be sure to be realistic, though. A sales cycle that usually includes five meetings and a formal proposal, followed with an elaborate presentation to a committee, will not become a one-call close. Put some thought into it, and determine whether five meetings could become three or four. Decide what needs to happen to make that a reality. Find a few things that could happen better and work more efficiently, and that should make a big difference in how quickly you can progress through the sales cycle.

So how do you put your new strategy into action? You've already completed the most difficult part because you have developed a plan for what the sales cycle should look like. Now, the next step is to guide the prospect into following your plan. To accomplish this, you have to first make the prospect aware of the process. For example, if you want to see two people at once instead of meeting with each one separately, you need to let them know this in advance. You also have to be firm. Don't allow them to shift back and forth about who will be there. You are the expert. Guide them. Use the word "typically." This word sets the standard and presents the prospect with the norm. Most people are reluctant to go against the grain. If you present something as "what is typically done," prospects will generally agree This can enable you to guide them into a more efficient sales cycle, which in turn closes the deal sooner. If you make an effort to shorten your sales cycle by making a plan and sticking to it, "typically" you will be successful.
Sandler Systems, Inc. All rights reserved.

"Go for the NO"?

Is "No" a good or bad word in Sales? I used to hate the idea of anyone saying "No" to me. How could that happen? I would spend too much time trying to analyze why it happened and why they did not buy from me. Then I learned to change my mindset.

Years of selling the old fashion way didn't help, then I was taught that I have the right and obligation to say "No". Not only that, but it was up to me to get to "No" before the prospect. I realized I didn't know how. What does it mean to get to "No" before the prospect and how was that going to make me feel any better.

There are three steps to feeling good about getting a "No". The basic premise is that I have to determine if the prospect and I are a fit for each other. Only then can I feel good about walking away from a perceived opportunity. The first step is to determine if the prospect has a need for what I have to sell. Do they have problems that I can solve? But more importantly do they have a deep enough desire to pay me money to solve their problems.

The second step is to determine if they have the commitment in both time and money to solve their problems. Checking for budget is critical. Have you ever found that the prospect that is the most enthusiastic has the least amount of money? Take time to ask about budget.

Finally, understand how everyone makes decisions. Are they the sole decision maker or do they share in the process.

If your prospect has no pain, budget or are not the decision maker perhaps you can say "No" and feel good about it. Think of the benefits. You save time and have not written a proposal that will result in the dreaded words "I need to think it over."

Comfort Zones can be both good and bad. When they restrict growth they can be considered negative. Simple because you become less effective. Taking things for granted or taking the easy way out will take away your effectiveness. A sure sign that you are comfortable or face a slump, malaise, plateau is Procrastination.

So how do you know when you are procrastinating?
1. You use the same tactic all the time to avoid doing something or acting on something.
2. You don’t see change.
3. You are always waiting for something to happen.

Here are the negative effects of Procrastination.

a. There is no emotional growth.
b. Over adaptation – fear of going after own goals with the result being subvert your goals to others.
c. Prospects ask you to do something and you agree. You over adapt to help.
d. You become impulsive – which has nothing to do with decision making. The other danger is impulse has nothing to do with an intellectual process.

Next week, look for the danger signs. We will talk about how to break out of your comfort zone. Hint: (Be prepared to understand failure in a new light).

Is a Comfort Zone a good or bad thing?