Closing Deals with The Referral Lunch Technique

Everyday I hear people tell me that the best way to produce business is through referrals and I wholeheartedly agree. However, talk is cheap and the people that tell me this have no idea how to “work” a referral. Most will simply pick up the phone every now and than when times are tough or business is slow and ask past clients for a referral, or see where they are in terms of purchasing again. This is what I call a crap shoot approach and at best, may land you a new client every now and than, but in no way will make a significant impact on your income and client base. You see, you need to think outside the box and GIVE something in return for referrals. Too many people just ask, ask, ask with no incentive on the back end for the people that give them. If you want to triple your business and client base immediate for pennies on the dollar, simply employ what I call the “Referral Lunch”.

The process is rather simple and the rewards astronomical. You simply pick up the phone of a past client who you feel is in the market again for your product or service, and offer to take him to lunch and go over any new developments you want to show him. The catch is that he needs to bring 2 friends with him who may have an interest as well. Individuals that are qualified and in the market for what you have to offer. What you accomplish here is a meeting with 3-4 qualified prospects who will give you their undivided attention, and allow you to present in less formal atmosphere while at the same time allowing you to create emotion in person!


You see, EMOTION and RAPPORT sell, these are the two key ingredients to ANY sale and by presenting to the referrals in person rather than over the phone, you accomplish both…..quickly. Too many people simply ask for the referral than pick up the phone and call. What is this? How impersonal? How are you able to create any emotion or any rapport by a simple phone call? In most cases you can’t and the top producers understand this that is why they are top producers!

So next time you want to call a past client and ask for a referral DO IT, but do it right! Ask them to lunch so you can update them on your new product or service and get them to bring along two qualified referrals. Your cost in this is a lunch for four, with a return on investment that could pay dividends forever.

I know a financial planner who works to fill all 5 days a week with this type of referral plan and has the immense six figure income to show for it. Every morning he sets aside 25-30 minutes calling clients and setting as many lunches as he can for the next 10 business days. Once those are booked he books out 10 more days, with a goal of having a captive lunch audience every day of the week. He told me that his lunch tab is about $45-50 a pop or about $250 a week, but he closes a minimum 3 new deals a week generating himself a commission base of an extra $4,500!!!!! That’s $4,500 folks just for eating lunch and keeping his clients a breast on his new products and services. This is how you work referrals. This is how you utilize your existing client base!!

Immigrants And MILLIONAIRES

Here is a little known fact I learned while speaking overseas recently. A fact that a CEO from a European Bank conveyed to me and it really hit home. He told me that "in the United States, an immigrant coming to your country is 4X more likely to become a millionaire than those that were raised in it." And you know what? He is right. We have the "richest poor" in the world because those that are raised in this country have a sense of entitlement and never strive to reach maximum potential. Those that come here see the DREAM and KNOW they can realize it with massive hard work. So they attack and obtain it. The entitled ones? Wait for it to fall on their lap and the end up working for the millionaire.

Food for thought.

Back From Asia...The Expansion Continues

My recent Asian Tour turned out bigger and better than I had hoped. In addition to selling out another one of my events in Bangkok at The Landmark Hotel (courtesy of Amin Rais and his company AIM Inlines), I also spoke at His Majesty The Kings Conference on A Sufficient Economy at The Rembrandt Hotel, promoted by Asean Affairs Magazine. Made some new friends and just as importantly, some key contacts (I will have a major announcement on a JV in the coming weeks) and even more importantly, paved the way to bring The Ruthless Entrepreneur Show to Asia. This is not something that MIGHT happen....it is something that IS going to happen! More on that later as well.


SOCIAL MEDIA FEEDBACK

While the trip provided me with some incredible new business and joint ventures deals and in the process allowed me to meet some exciting entrepreneurs and investors, it also opened my eyes to how "players" on the international stage are currently conducting business in today's environment. Why do I say that? Well, because over the past 2 years we have seen this craze with Facebook, Twitter, MySpace, etc., here in the U.S. and everyone and their mother are trying to become experts on it. But for all the wrong reasons!!! Sure, there are entrepreneurs using it as a tool to promote their business but the problem is, is that they are becoming so addicted to these tools that is all they seem to use as a marketing tool. Why? Because they haven't got the resources ($$$) to take themselves to the next level (major media) and stay stuck in this quagmire with 99.5% of their competition. Folks....if you want your CUSTOMERS and PROSPECTS to take your business seriously...YOU need to take your business seriously. And trust me, unless you are gaining exposure in mainstream media (TV, Magazines, Radio, etc.) you will be part of the pack and treated like part of the pack and no different.



(Back to my meetings in Asia this past month) Over the last 30 days while conducting my seminars in Thailand and meeting on various business deals, I had the pleasure of meeting a couple billionaires, media magnates, Hollywood actors, major TV and movie producers, bank CEO's, royalty, government Ambassadors and top entrepreneurs from around the globe. More than 95% of them had no interest in Twitter and Facebook, as they were too busy working on REAL PROJECTS and REAL DEALS and the tools they were using to market their projects and ideas currently were much more effective then Social Media. These were VERY, VERY successful entrepreneurs making big money on a global scale. So when I consulted with a few of them on effective sales and marketing strategies for their business, they were pleasantly surprised that I didn't talk about all that "bullshit social media crap" that has become so pervasive in the U.S. Especially the idiots on YouTube talking into a $10 camera giving advice on how to make money. Ridiculous.

THINK ABOUT IT?

• Would you hire a 400lb slob with love handles as a fitness trainer?


• Would you hire a financial advisor so broke that he drives a 1981 rusted Impala?

Then how you can expect your prospects to hire YOU when all you use is FREE social media vehicles to market your business? How credible is that?

Bottom line folks. Social Media is fun, can serve a purpose in marketing but if that is ALL you are using as your marketing foundation and want to be taken seriously AND make money long term........ Your %*^%^&) screwed! Get off your butt and begin to find ways to get your message on the national and international stage via REAL MARKETING VEHICLES like TV, radio, magazines, etc. You want to be taken seriously and be credible in the eyes of your prospects? Than begin taking your marketing seriously. If not they will continue to look at you as some hack without the resources to "play the game" and in the process let you know this through a non-ringing phone.

Asian Business Show appearance

Was invited to appear on Asia's version of CNBC on October 28th in downtown Bangkok (what a massive and beautiful city!) to discuss branding and marketing. I was on there with one of Thailand's top brand strategist and unfortunately the show's question and answer dialogue between her and the hosts were done in Thai, so I could not really rebut. And the Q&A between myself and the hosts was done in English and Thai, so it made for an interesting interview, but put me at a disadvantage when it came to feeding off her answers if I felt they were wrong.

In any event I stuck with what I believe is the CORE of all marketing and that is that before you develop any ad pieces or marketing campaigns you must FIRST ask yourself this question;

"Why would anyone do business with me" and than from their mold your entire marketing plan around the answer to that question. I told the millions of viewers that if you do that, you will SUCCEED! Period.


Look, promoting a brand is fine but let's be honest; will you prospect remember your logo two weeks later when they see it? Will they be able to remember what it stood for? What your product or service was? NO! So to spend enormous amounts of money and time on promoting your "brand" is an exercise in futility....initially. Get the MESSAGE out FIRST, make sure you can answer the question the prospect will ask themselves before they even consider doing business with you and that is... "What's In It For Me?" THEN you can slowly begin building the brand. But, develop your marketing message first and foremost and you will have laid the foundation for entrepreneurial success.

A Sale is ALWAYS Made!

FOOD FOR THOUGHT



A Sale Is ALWAYS Made: Either they will sell YOU on why they don't want to buy your piece of %#$& product.... or YOU will sell THEM on why they will die without it. Either way, the meeting ends with smiles on both faces..... or middle fingers waving in the air.



Make sure you leave with a big ^%$#^$ smile!!!!

The Power of Leverage in Getting Credible Partners

The Power of Leverage

All through our selling life we have heard the phrase, “It’s not WHAT you know, Its WHO you know”. We have heard it time and again from disgruntled colleagues who lost a sale, or heard it coming out of our own mouths to explain a deal we just couldn’t close.

Well it is true in some cases, that who you know can be much more powerful than what you know in landing a large deal, but I can tell you that when you start to sell at the CEO level, it is a lot rarer than you think.

I have found consistently, with the CEO’s and decision makers I have sat with and interviewed, that the people they did business with was based more on rapport and credibility, than anything else. They told me that the first thing they would look for when considering doing business with a certain salesperson was, “Do I like him/her?” The second thing they considered was the credibility of the salesperson and that of the company. “Who were their clients and were they people I knew and respected, and LASTLY did the company have a good reputation in what it sold?” Price and terms were always important but rapport and credibility, generally, were the key areas of the CEO’s concern, not WHO that salesperson knew or congregated with.

Now you are probably saying, “that’s great Mark, but to GET the appointment with the decision maker it is still WHO you know that gets you in the door, rather than WHAT you know. So what does an entrepreneur do when they don’t know anyone that is close enough to the decision maker to help in getting them the appointment?”


That’s a good question and one that I have heard a thousand times…literally, and my answer is this; it is easier than you think. You see, the decision-maker you are trying to see is in contact with the same people you are in contact with everyday, OR people that you could easily come in contact with if you wanted. These people are what I would call Leverage Points, areas that if used properly, could help leverage your ability to get in the door of the person you are trying to see, which I will illustrate below.


True Story: A few years back, in 2000 to be exact, I was putting together a proposal to build a $30 million boutique hotel in a rapidly expanding southeastern city in what was undoubtedly their most upscale part of town. I had a strong architect with impeccable credentials, an amazing location, a great concept and some available equity financing, but still needed a strong management partner with a reputable name, and the ability to secure debt financing for the project. I had one company in mind that fit all the credentials I was looking for but for some reason, I could not get through to the decision maker. I found myself stuck at the vice president level and wasting an inordinate amount time making presentations to people who had virtually no decision making power. The project was awesome with great potential, but at the age of 32 and no real experience in hotel development, I was not taking serious enough to move up the ladder. I had hit a roadblock in my attempt to get in front of the decision maker and what I needed now was rapport, credibility and a leverage point that could get me through.

So I got to thinking, WHO is my prospect in touch with daily or on a regular basis that has the credibility and rapport to get me through to see him. I knew that everyone else (my competitors, etc) would be using the “front door” so to speak, trying to sweet talk the receptionist or assistant in hopes of getting an appointment and if I took that route, I would be just another number. While the receptionist and/or assistant are leverage points in this example, the amount of credibility they bring to the table when proposing a business idea to their boss is limited. The boss knows and understands that they are hounded every day from people wanting a portion of their time, so they take any recommendations that may come from this leverage point very lightly. What I needed was a leverage point that had credibility from a business standpoint and a name that I could drop that would open up the decision-makers ears. The two leverage points that hit me square in the face were his accountant and attorney. So I decided on the attorney, due to the fact they would be more inclined to help in the hopes of getting some business from it, and for all intents and purposes it was a glamorous project and was sure to conjure up extensive media interest and prestige, both of which attorney’s love.

Well, I called the attorney’s office and made an appointment (thankfully the first meeting was complimentary as I was not about to pay $350.00 per hour) for the next day, stating that I wanted to talk to him, and him only, about a project I was looking to develop.

When I arrived for the meeting he took me into his spacious, corner office overlooking the city and had me sit in the big, leather chair facing his desk. As he went to close the door I quickly scanned the room for any items that I could spot which may help to build common ground for a conversation, but I found none initially.

Attorney: So, what can I help you with?

ME: Well, I am in the midst of planning a boutique hotel………(and I went into all the information behind it).

Attorney: Wow, that’s a great part of town, great location. What will the name be? Is it going to have a flag (a major chain behind it)?

ME: No name yet. And no, there will be no flag but we will have a central reservation system that caters to boutique hotels. We are very excited.

Attorney: So where can I help?

ME: Well, I wanted to speak with you about possibly handling the legal work and secondly, if you have a name or two that might have an interest on the hotel management side. I was told you represented some strong, local companies with this specialty of hotel management.

Attorney: Absolutely! First, we would welcome the chance to work with you on the legal side and we can get together later this week on exactly what the scope will be, the costs, etc. It is something that I would not be able to pinpoint in this meeting, but after I get more information from you and your group I will have a better idea. Also, you need to speak with John Smith (this was my prospect, all though not his real name for the sake of this example) at XYZ Hotel Group, this is right up their alley and they would be perfect!

ME: Yes, I thought so too and called them initially, but with something of this magnitude we did not feel comfortable just speaking with his underlings. There is too much at stake as you can see.

Attorney: Oh, of course. Tell you what, I will give him a shout and we can set up a meeting. In the meantime give him a call and introduce yourself and tell him I told you to call him. If his receptionist has any questions, have her call me, I’ll take care of it. I am confident John will love this project.


Needless to say I called John as soon as I got the chance that day and you know what? I GOT THROUGH! I was able to name drop honestly, utilizing a powerful leverage point that had credibility and rapport at the highest level. We ended up setting the meeting and 14 days later they signed on as our management partner and guaranteed 70% of the loan, or $21 million! 10 months later I sold out my portion and made a tidy profit. All it took to realize my goal was to find someone who had the leverage to get me through. If I had stuck with what everyone else was doing, trying to go through the “front door” and cozy up to the receptionist, this deal probably never would have gotten off the ground and if it did, not for quite some time.


Important Note:

You really need to think for a moment what it is you sell. Is it a large product/service with a long sales cycle and a minimum amount of prospects? If it is, you cannot just dive in and hope for the best, as there is too much at stake and very little room for error.

You need to take the time and PLAN carefully on whom the decision-maker is, WHY they would be interested in meeting with you, what the barriers to entry may be and than jot down a list of various leverage points you can use. You see, if you continually attack the most common entry point, the gatekeeper, you will wear out your welcome at some point and only make it harder to get through in the future. But by utilizing leverage points, you INCREASE your chances AND you will have an almost limitless supply with which to work with, thus not having to worry about wearing out your welcome. If one leverage point does not work out, try another, than another, until soon you are standing in front of the person you want to see.

Think about it, if your prospect continues to hear your name from people he/she respects and trusts, what do you think the odds are they will take your call in the immediate future? The odds are very, very good I might say. If you really take the time and learn how to use leverage points, you will make more money in sales than you ever dreamed of. I know I say that a lot on this book, but it is true. The information in this book could be worth millions of dollars to you if you apply what I say and have the persistence and desire to make it happen.


Leverage as a Tool

If you really think about it, the only way to make any real money in all aspects of business is through the use of leverage. In real estate, investors can use little or no money to control large portions of property. Shrewd negotiators can use leverage with respect to gaining time and/or concessions and top salespeople can use information they have gathered about competitors as leverage when negotiating price or terms with customers. Leverage is a powerful, powerful tool and can make you extremely wealthy if applied properly. Especially in prospecting new business.

Note:

Utilizing leverage in prospecting for major clients requires you to use the efforts of others when your own efforts have been exhausted. Remember that when selling at the CEO level, you need to avoid the Pack Mentality and focus your time and energy in a way that will get you in front of the decision-maker with the least effort. Using leverage points is an excellent avenue to do just that.

I hope you got an idea of what I mean by leverage points and how you can use them in your sales career. Constantly banging your head against the front door of entry is simply an exercise in futility. Sit down and really think of people your prospect knows and how you can build some connection to them, and than devise a game plan on how to leverage this relationship in a way that is able to get you in front of the person you need to see. Trust me, you will be amazed at the leverage points available to you if you just sit down and put some time and energy into it. It will end up paying you dividends you never thought possible, and propelling your sales career quicker and farther than you ever dreamed of. My leverage points got me financing in the amount of $21 million and made me a small fortune, think what it can do for you.


Do’s and Don’ts of Leverage Points


DON’T waste too much time initially trying to gain the assistant or receptionist as a leverage point. You and about a hundred other people are trying to do the same thing.

DON’T rely too much on voice mail. A lot of CEO’s have two separate mailboxes with their voice on them, and the receptionist will send you to the one she sees fit. One is heard by the CEO directly, the other by the assistant. So while you may THINK that the CEO is listening to your message, in most cases it is the assistant and you will be screened accordingly.

DON’T ask your leverage point directly if they can help you set an appointment with the prospect, but rather ask their advice on how you should go about approaching a potential client such as “Mr. Smith” (their contact and your prospect). You would ask in such a way that they would feel compelled to help you get through to the prospect, or at a minimum, offer to give a recommendation on your behalf. You are appealing to their ego and with this approach, 9 times out 10 they will want to help if only to impress you.

DON’T ask a leverage point more than twice for help. If you ask too many times they may just make the call on your behalf just to get it over with, and with about as much energy and excitement as a funeral procession. You want the leverage point to WANT to make the call, so that the prospect can HEAR or SEE the excitement in their voice and WANT to see you, and for no other reason than that.

DON’T promise a leverage point any favors for their help that you cannot deliver on. If you do, this will end up causing you much more trouble than it is worth.

DO follow up immediately to ensure a leverage point is going to do what they say they are going to do. I have seen far too many people sit back for months waiting for the introduction to no avail. The so-called leverage point would claim they knew so and so when they have no capabilities whatsoever. This can be a huge time waster, so make sure they are not blowing smoke or trying to impress you.


(To hire Mark McClure, one of the Top 5 Sales and Marketing Speakers in the World, for your next event or to speak to your companies sales force, email us info@markmcclurelive.com. )

Asian Conference

The Asian Conference on a Sufficient Economy went off without a hitch. What a crowd; from a Countess of Royalty in Germany to a Japanese Ambassador, to CEO's of two of Europes banks and everyone in between.

Gave a 15 minute speech on how money is the root of any economy, and for money to be created by any economy the TRUE catalyst is SALES.....and thus governments need to nurture this component (the entrepreneur and business community) more than any other sector, for sales is the lifeblood of ANY economy!

Got a great reception from the audience. Signed some copies of the Asean Affairs Magazine I was featured in for members of the audience, posed for pictures, signed some autographs than chatted up some of the other panelists. VERY interesting.

Spoke at length with former WBC Lightweight Champion and Hollywood actor Gary Stretch ("Alexander", "The World Trade Center" among others). Came from an orphanage out of the U.K and rose to where he is today. Lived with Mickey Rourke for some time, and when Mickey was down, trained him in boxing. Got him 10 fights where Rourke was able to make about $20 million, gain credibility and get back into the film game. Loved talking to Gary, because as a rapid boxing fan myself and not too many people to share my passion with, it was great to talk about fighters past and present, his expert take on Mayweather, Pacquio and others, who he fought, the crowds, etc. And hearing an inside scoop on Rourke was great as well.

Met David Lloyd (brother was married to tennis great Chris Evert), billionaire developer, owner of a huge chain of health clubs, former pro tennis player and overall great guy out of the U.K. Building 24 homes on a cliff in Phuket, overlooking the ocean. The smallest home is 10,000 square feet, but they average 20,000 and the minimum price is $6 million. Visited the site....breath taking! He also shared with us an art piece from a friend of his. GET THIS......his friend scuptures objects on the edge of a needle, using spider web as his mold. You have to look through binoculars to see the object and it is amazing. We saw one yesterday of a man, sitting on a horse with his sword drawn!!!! If you look at the tip of the of the needle you see a little spec, after you look through the binoculars you see it clearly. How does he do it? His friend gets his heart beat down to 40 beats per minute, and in between beats, he constructs the piece with the spider web material. Been on Oprah, Letterman, etc. The most amazing thing I have EVER seen or heard about in my life.

Met some other amazing people but the man of the hour was Swarup Roy, founder and CEO of Asean Affairs Magazine. This guy's passion and expertise of business and finance in Asia is mind boggling and now with his partnership with some of the major players in the European Union business community, the Asean Affairs brand is expanding.

We are meeting this week to put together a deal/colloboration on growing the Ruthless Entrepreneur Show brand into Asia and Europe using his media clout, and myself bringing Asean Affairs to the U.S. using my media access here (which is now significant!). BIG THINGS AHEAD FOR BOTH US. 2010 is going to be a HUGE year.