Visit the Sage

Flex Those Networking Muscles

This morning I was asking a client in Chicago (John Usedom, president of Clever Returns, Inc., www.cleverreturns.com -- they build and manage customer loyalty programs for restaurants and other industries) about his efforts to get in shape. (We've been commiserating on this issue during the past year or so.)

In that conversation, I mentioned my lack of motivation for weight-lifting. You see, I'm a maniac when it comes to riding my bike, but I need to start lifting weights to create the body I want -- the body that will allow me to live the life I plan to live.

John's account of how he stays motivated not only impressed me, it made me wonder why the hell I hadn't thought of this angle myself. Talk about wearing blinders. I've been integrating sales with life since I started riding on sales calls with Dad at age 12, and this lightbulb stayed dark until now.

Here's what John had to say:

I don't know what your gym is like, but it is one of my only social outlets. I don't have a specific workout partner, but there are others I "work" with nearly every day.

How about this for a motivator that fits you really well? Becky [John's wife] and I go every morning from about 7 to 8:15. We arrive together and leave together but do not see or talk to each other the entire time we are there. (That was not the motivational part.)

I start by getting on a treadmill and speed-walking "hills" for 30 minutes. Then I go work on weights for a different muscle group each day. As I am not nearly the networker you are, it took me about a year to start talking with people more than just a "Hi." Now I've made friends and see these people every day.

I've met three restaurateurs, two restaurant vendors, three waiters or waitresses, about 20 realtors, 12 financial or mortgage people, several dancers, a postal worker, several technology salespeople, two air-traffic controllers, and a slew of others. (You'd probably know everyone including the janitor by now.)

Of all of these people, only three are true bodybuilders. The rest of them are anywhere from 35 to 55 years old; single, married or divorced; with or without kids; and with average bodies. All are there just to keep some semblance of shape and to feel good.

To me, being at the gym is better for doing business than being on any golf course. And the best part is that there are no pretenses or expectations -- relationships develop and take their own course.

You know the feeling you get on a good bike ride? Being in the gym gives me that feeling every day -- even on those occasional days when I don't necessarily want to be there. It is also a huge lift to my psyche, because I get human interaction with people across a broad range of industries.

For $50 a month -- it's worth every penny physically, mentally, socially and for business reasons.

Hey! If you're networking while you're on the treadmill can you deduct your membership as a marketing expense?

Gill E. Wagner, Sage of Selling
President of Honest Selling
Founder of the Yellow-Tie International Business Development Association

Should I Pay For Referrals?

This morning, a colleague asked me this question:

I know your beliefs in connecting people, but what do you think about a company to whom you have been freely giving referrals, who then comes back with a referral to you, but says "I need a cut of the revenue"?

From your experience, does the pay-for-referral system work, whether percentage or flat fee?

It's a situation many entrepreneurs will face, so I thought I'd share my response:

I have commission-based referral relationships with several companies, where I get paid small commissions on referrals, and bigger commissions if I actually close deals.

So the model works. And flat fees are fine, provided they are contingent on the referral resulting in actual business.

However, these relationships are negotiated in advance, not spur-of-the-moment.

In other words, if a colleague sent me a half-dozen referrals already, I would never try to get paid for reciprocal referrals until I've at least equaled the value already provided to me.

As to your specific situation, if I gave someone a bunch of referrals and he or she tried to get paid for giving one back to me, I'd respond with something like this:

Joe,

I'm happy to change our relationship from "I refer you and you refer me" to "we pay one another for referrals." Once we settle on the structure and percentages, let me know how much revenue you've generated from the referrals I've already sent your way. Specifically:

* Sally Smith
* Bob Busch
* Jim Jones
* Mary Morrison
* Charles Chesterton

Once you give me the number, I can either invoice you for my cut, or, you can provide me enough referrals to equal the value I've already provided to you. (Entirely up to you -- I'm open to either model.)

What type of commission structure did you have in mind?

Gill

Just put his or her feet to the fire and see what happens. But be prepared to sever the relationship if he or she is truly a self-centered ...

Gill E. Wagner, Sage of Selling
President of Honest Selling
Founder of the Yellow-Tie International Business Development Association

Dogs And Prospects

I've always been naturally good with dogs. Not Dog Whisperer good, but good none the less. In fact, when Cindy and I first began dating, it was her family poodle, Schnooky, that sealed the deal for me with Cindy's heart. (Seems I was the only guy Cindy ever dated who Schnooky trusted, and Cindy figured if Schnooky trusted me, maybe she could too.)

Shopping for a stocking stuffer this year, Cindy stumbled across "Cesar's Way: The Natural, Everyday Guide to Understanding and Correcting Common Dog Problems." Knowing my love of dogs and my admiration for the way Cesar handles them, she bought me a copy.

First of all, this book is a must-read for anyone who owns a dog, provided he or she is willing to let go of  human ego and the un-dog-like need to humanize the pet. The simple, undeniable fact, is that a dog will be happiest when it is allowed to be a dog, treated like a dog and related to like a dog, and a miserable, neurotic wreck if its owner insists on turning it into a four-legged human. For example, did you know that your dog will actually be happier if it must earn its food? For millions of years, dogs did not eat until after they hunted, and caught, their prey. Then, after they gorged themselves on the kill, they played, then rested.

The very notion of having to earn a meal is instinctive, yet almost every dog in America is denied this thrill every time a bowl of food is "lovingly" placed. Want a happier dog? Want to demonstrate true love for your pet? From this moment on, feed not only your dog's belly, but its desire to earn its meal by making it sit and stay until calm before you place the bowl. (Yes, even that simple act of obeying its "pack leader's" command and submitting to that control will help create a more well-balanced, happy dog.)

Second, this book is an absolute must-read for anyone who sells to corporate executives, because virtually every concept Cesar explains is a direct metaphor for sales in corporate America.

Take "energy" for example. In the book, Cesar explains how a dog can immediately sense the energy of any person it encounters. He then discusses how the wrong energy will create fear, hostility and a wide range of other negative emotional responses, but the right energy -- calm-assertive energy -- will trigger almost any dog to assume a calm-submissive role. (It's millions of years of dog-pack dynamics that makes this behavior instinctive.)

Buy the book and read it cover-to-cover. Then, the next time you're heading on a sales call, imagine yourself as the alpha dog entering the pack. Become the calm, assertive leader the pack wants to follow, and enter the room knowing that you're in charge.

Worst-case scenario, you'll share the leadership role with the top executive in the room, and virtually eliminate the pack's ability to influence his or her thinking.

Best-case scenario you'll own the room completely.

Gill E. Wagner, Sage of Selling
President of Honest Selling
Founder of the Yellow-Tie International Business Development Association

Silver-Bullet Secret (Part Two)

In one of our May 2006 visits, I asked people to answer the question "What is the silver-bullet secret to becoming a sales rainmaker?" Following are the many responses I received:

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Be the best you can be.

Rudyard Kipling once wrote: "I have six faithful serving men, who taught me all I know. Their names are: What, Where, When, How, Why and Who?"

Tell the truth all the time.

I believe that if all other factors are equal, good diagnostic skills can separate me from the others who merely "puke" out features and benefits.

Be totally honest at all times!

"I promise it will get done?" ... and then following through on the promise, of course.

Can I be useful to you?

Be there, 100%, with your client.

Find out what the customer wants.

There is no silver bullet ... but lots of salespeople constantly look and wish for one. Activity = Results. Period. End of story.

Always do what you say ... Give from your heart ... Honesty, Integrity, Compassion, Empathy, Connection, Truth

1. Always do more that what is expected.
2. Give value first.
3. Nobody cares how much you know, till they know how much you care.
4. Practice Emerson's Law of Compensation ... Give freely and totally to those who are counting on you and everything else will take care of itself.
5. You have to fail in order to succeed. Otherwise you don't really know if the success was from inspiration or just a happy accident setting you up for bigger failures down the road.
6. It's okay to fail, it just teaches you one way that you know doesn't work.
7. Thomas Edison didn't give up after 10,000 failures...Never give up on a dream.
8. If two people want to do business together, they won't let the details get in the way.

Help people look good and succeed.

Never close the deal. Signing the contract means opening a relationship. Make sure the customer knows that you think so, and that you will continue to be there as a problem solving helper.

Don't try to sell them anything.

My silver bullet is honesty.

Find out what they want first.

The silver bullet secret to becoming a sales rainmaker is: consistent persistence. I once read, "A mediocre sales process executed consistently will trump a fantastic sales process done inconsistently."

Be the best of best in asking questions but more importantly, be the best listener.

Would I buy from me?

I think one of the most important things in being successful in sales, is by "putting yourself in the other person's shoes" - that way your perspective becomes understanding and providing what's best for the individual or company, rather than being about what's in it for you.

Listen twice as much as you talk.

Providing the most valuable method of solving the client's problem.

A neutral attitude during the initial sales process. In other words not worrying about making a sale now.

Help them solve the problem they have.

The secret is that there is no secret.

People buy for their own reasons.

Make 100 cold calls per day?

I am paid in direct proportion to the size of problems I help people solve.

Attitude and never give up.

You can if you think you can!

I shall never lie to you!

Belief that you will get the sale, that you have what the other person needs. Being sincere (honest).

Giving people what they want!

Guess 1: Learning from improvement.
Guess 2: Use the law of averages to your advantage.

Putting the right effort in the right place.

See it through to the end.

Honesty, Integrity, Product knowledge, Good communication, Being the early bird are the silver-bullet in becoming a sales rainmaker.

People decide emotionally then use logic to rationalize the decision.

Bring Value that makes his life easier.

Never give up ... don't make the decision for your customer that they wont buy what you're selling. ASK!

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My Dad's advice, on the other hand, was "Work much harder than everyone else." (It ain't sexy, but it's got teeth.)

--
Gill E. Wagner, Sage of Selling
President of Honest Selling
Founder of the Yellow-Tie International Business Development Association

The Best Education Most Never Get

Lately, I've been feeling like I stopped learning, because I simply haven't had the time to read as much as I want to read. What with growing Yellow-Tie, building the Honest Selling team and doing client work, my calendar has been so full it seemed that my personal education and growth has really stalled.

Yesterday I learned just how silly I am for feeling this way. You see ...

I'm a natural "Sammy Schmoozer" type -- always comfortable in a crowd, never shy about shaking hands and getting to know people. So a key part of my marketing effort has always been to shoot for the following every week:

• Attend three networking functions (association meetings, business openings, ground breakings, after hours functions, etc.).
• Have at least 10 one-on-one conversations (typically over coffee) with the people I meet, with the only goals being to get to know one another and find ways to be useful to each other.
• During these conversations, learn enough about my coffee partner to find three ways I can be useful to him or her. (If they reciprocate, fine, if not, fine.)

This type of marketing affords me the opportunity to build upwards of 500 new business relationships per year, all of which strengthen my personal brand, my credibility and my ability to impact my local business community.

Over the years, however, a great many people have told me I was nuts for doing this much schmoozing. But two days ago, I realized how incredibly educational those conversations have been.

For example, I am currently working on a sales audit for a company with a 30-person team. These audits always start with tons of interviews, so I can diagnose problems and begin the process of generating ideas for solutions. Last week, I completed the interviews with this client so its issues are top-of-mind for me right now.

Two days ago, I had the great pleasure of getting to know James Mittler a bit better in one of these one-on-one chats. He and I have been bumping into one another at networking events for years, but this is the first time we've managed a "be useful" conversation. During our talk, while asking Jim about his business (he's a compensation expert), I found myself framing every question in terms of my client's issues. As a result, three things happened:

1. I was able to learn exactly what Jim did, because his answers to my questions were specific to solving real-world problems.
2. I walked out of that one-hour conversation with three ideas that I can use to immediately impact my client's bottom line.
3. I learned more about compensation in that one hour than I've learned from every book I've ever read on the subject, because Jim condensed his own experiences into bottom-line thoughts.

Turns out, the vast majority of everything great I know about business I learned by taking the time to meet with anyone, anywhere, any time and learn from the people I meet.

Dad always told me that that the person who owns every hand I shake has something to teach me and that I should learn it. Looks like Dad was right again.

Giving First

This past week, out of the goodness of his heart, Matthew Homan, of LexThink, spent almost three hours with me explaining the differences between posting articles in a blog and posting them in HTML format. With his guidance I was able to initiate my blog, redirect the sageofselling.com URL (so I could change blog providers some day without losing my links), build the transition plan from HTML articles to blog entries, and get this past year'sarticles and book reviews converted (including setting their actual creation dates).

Never once did Matt ask, "What's in it for me?" Never once did he make me feel like a techno-weenie. Never once did he allow himself to be interrupted by a phone call or e-mail from someone "more important."

I've been involved in sales and selling for 34 (ugh) years. And while I've known many who also practice the "give first" model of relationship-building, I've encountered very few who live and breathe this philosophy -- who have it ingrained in their very souls.

It may be Matt's energy and creativity that turns his retreats into blow-your-doors-off experiences, but it's his attitude that will make him truly rich.

Thank you for your generosity, Matthew. It will never be forgotten.

Gill

Chain Of Events

"Giving first is a way of life, not a strategy. The best results come when you do it without worrying, wondering or even caring how it will benefit you."

That was my response at the March 14 Yellow-Tie Drinks & Handshakes event when an attendee asked me, "How can you afford to give so much of your time to a nonprofit trade association?"

Upon reflection the next day, however, I came to realize that, while my response definitely contained the right attitude, it did not actually help my new acquaintance decide to give first.

Shame on me for not giving first to him, by humbly answering his sincere question.

The St. Louis Small Business Expo was held on March 21, despite the late-season snowstorm that snarled traffic and scared off many a registered attendee. I was one of the many visitors who attended anyway, because I was on a mission to atone for my arrogance of the prior week.

Give first. Give only. Don't care what's in it for me.

And to make sure I stayed true to that goal, I attended the expo as the president of Yellow-Tie, not as a sales consultant.

Armed with pen and pad, I entered the seven-hour expo with the goal of finding someone to buy what every single vendor (there were 130) was selling. (The best goals are always lofty.)

To accomplish my goal, I had to learn three very specific things from every company with a booth:

• What did they sell?
• Who buys what they sell?
• What do they need to buy right now that someone else with a booth might sell?

During the next seven hours, I had what I must say was the most fun I've ever experienced at an expo, because the moment I told the vendors I was there to find buyers for them, every one enthusiastically engaged.

The downside was that my conversations lasted so long, I got to know only 43 people. The upside is that I got to know 43 people, and I started this wonderful chain of events.

March 14 (at the expo):

• I introduced a CPA with a computer virus to two gentlemen who specialized in small-office computer repair.
• I sent a trade-show booth expert who needed a CPA to the woman above (who needed her computer fixed).
• I connected a business consultant who speaks on business challenges with the CEO of a janitorial service -- the CEO also happened to be the president of a building service contractors association that was looking for speakers.
• I introduced a banker who provides merchant services to a website developer who wanted to start accepting credit cards.
• And I helped a telephony consultant find a company that could supply bottled spring water to his place of business.

Since that day at the expo, three of the people with whom I shook hands have met with me over coffee to simply chat about business and figure out how we could be of use to each other. Another two have corresponded by phone, and one more has traded a dozen e-mails. Among this group, I managed to connect three additional buyers with three additional sellers -- including helping a client of mine by finding her a specialized banking resource.

Yesterday, in preparation for this Visit the Sage tip, I contacted all the people I could reach and asked them how much business they had done or proposed -- if any -- as a result of the connections made.

All told, $42,000 worth of business has been proposed and $8,500 has closed, all as a direct result of my deciding to give first.

And today, you can add $3,500 to the closed total above, because one of the people I chatted with at the expo hired me to be her sales coach.

Who knows what tomorrow will bring? I sure don't. But I do know tomorrow holds far more promise than it would if I had stayed in bed that snowy morning two weeks ago.

How can I afford to devote so much time to a nonprofit trade association?

How can I afford not to?

Make Two Connections: With your participation, Yellow-Tie will continue this chain of events by doing this exact same thing for you. Simply tell the Yellow-Tie board of directors what you sell, who buys it and what you need to buy, and they'll do their very best to make two connections for you.

--
Gill E. Wagner, Sage of Selling
President of Honest Selling
Founder of the Yellow-Tie International Business Development Association

Silver-Bullet Secret

"People buy from people they trust ... period ... end of story."

Or is it?

The concept seems simple enough. Be honest and worthy of trust. Be respectful of the people to whom you sell. Treat them as you would want to be treated. Do all those things, and they'll buy from you.

Just a second. I trust my accountant with my taxes, but would I trust him with my wife? And is he really any more trustworthy than all the other accountants I could hire?

Hmmm. Perhaps it's just not that simple after all.

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"People buy from people they like ... period ... end of story."

Or is it?

This is another simple concept, right? Would you buy from someone you thought was creepy? I certainly wouldn't. So if I'm the person they like, they'll buy from me. Great! I'm so glad to have found my silver-bullet answer.

But wait. Am I the only likable salesperson they'll meet? What if they like someone else too? What if they like someone else more?

Damn! It's not that simple either.

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"The most important thing about selling is to be the first person in the door ... period ... end of story."

Or is it?

Hundreds, perhaps thousands, of sales consultants, trainers and coaches advise you to do whatever it takes to be the first person in front of the prospect, because, in their opinion, that gives you the opportunity to eliminate the competition by closing the deal on the spot.

Of course, most buyers are savvy enough to check several options before signing on the dotted line. And in complex sales with multiple sales appointments, how can you be first every time?

Trickier than it appears, I guess.

--

"The most important thing about selling is to be the last person on the prospect's calendar ... period ... end of story."

Or is it?

Fact is, there are as many sales consultants, trainers and coaches advising you to be last as there are advising you to be first. But what if the gal who got in first closes the deal before you have the chance to shake the prospect's hand? And then there's the complex sales issue all over again.

I guess the only simplicity here is don't be the salesperson in the middle. (Or is there some crazy sales consultant advising that too?)

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"As a professional salesperson, you must have a detailed, intimate knowledge of your products and services in order to sell them ... period ... end of story."

Or is it?

I have personally witnessed prospects cringe as knowledge vomit landed on their shoes. And unfortunately, it was my much younger and greener self who was doing the word puking as I tried desperately to impress them on how well I knew my stuff.

And even after I learned to use my ears more than my mouth, fully understanding the intricacies of my product or service didn't seem to make selling any easier.

So intimate product knowledge must not be the answer either.

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"Professional salespeople can close deals without having to know every detail of what they sell ... period ... end of story."

Or is it?

Lots of sales consultants say this too. I've said it myself, in fact.

Yet last month I test-drove a Chevy SSR. I'd put the salesman in his mid 50s, and he told me he had been selling cars for 30 years. Yet I watched as he stumbled to find the hood latch and work the radio dials as we were examining the car. And he didn't even know the horsepower of the SSR's Corvette engine.

I actually liked and basically trusted the guy, but was totally unimpressed with his level of product knowledge, and it made me not want to buy from him.

So knowing little is not better than knowing a lot.

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Clearly being trusted isn't the silver bullet, and neither is being liked. Obviously being first or last won't ensure a deal. And product knowledge, or the lack thereof, isn't the deciding factor either.

So what is the sales silver bullet? What is the difference between rainmakers and everyone else? What are the secrets that make these special salespeople so incredibly successful? What can you do this year, this month, this week or this very moment to be like them, and to generate the same kind of sales volume they produce?

What is the silver-bullet secret to becoming a sales rainmaker?

UPDATE TO POST: When I originally posted this message in May 2006, I asked people to tell me their short answers to the above question. Here is what they said.

--
Gill E. Wagner, Sage of Selling
President of Honest Selling
Founder of the Yellow-Tie International Business Development Association

Rudeness

Why is it that an obvious transgression will elicit quick forgiveness from some people, while the slightest misunderstanding will evoke a violent reaction from others?

This past weekend I was backing out of my driveway, when I suddenly caught a glimpse of my neighbor's red Toyota Camry as it exited my blind spot. Not that I was moving at breakneck speed or anything, but the reflex reaction of slamming my brake still made my car jerk as I came to a sudden stop about five feet short of his bumper.

Halfway into the street, I sheepishly shrugged my shoulders in a "Sorry I'm so stupid" attempt at an apology. The apology was not only immediately understood and accepted by my grinning neighbor, but was followed by a friendly "Go ahead, I don't mind waiting" wave.

Three hours later and 20 miles away, on an absolutely gorgeous spring day, I arrived simultaneously with a fellow driver at a four-way stop, with no other cars in sight. I was on his left and turning left, indicated by the blink, blink, blink of my signal. He was on my right and turning right, prudently flashing his intent as well.

In other words, I surmised that if we proceeded in cautious chorus, we could continue on our merry ways without impeding each other's progress in the least. So, with windows down and breezes wafting, we simultaneously began our intersection dance.

That's when I learned that my road companion was an expert on stop-sign etiquette. As we advanced, I received a violently delivered, expletive-enriched education on Missouri's rules of the road -- the driver on the right goes first when two vehicles arrive at an intersection simultaneously.

And to ensure that his knowledge was fully transferred, my benefactor offered his tutoring in "sign language" as well.

Having learned from childhood never to receive a gift without giving something of equal or greater value in return, I listened to my companion's rantings, and then offered an equally valuable and enthusiastic lesson through his open window on how difficult it is to see someone else's turn signal when you're concentrating on dialing your cell phone.

And that's when my neighbor and I recognized each other.

Good ol' Dad taught me that every pain is accompanied by a lesson, if you'll simply take the time to look for and learn what that pain can teach.

My first thought as I analyzed the lesson of this painfully embarrassing encounter was "Be nice, Gill. You never know when you'll meet someone you know on the road."

And that's when the real lesson hit me -- I wasn't embarrassed at having behaved so badly to a fellow human being; I was embarrassed at having behaved so badly to someone I knew.

How sad a commentary is that? Aren't we all neighbors, after all? And shouldn't I know that already?

Lesson learned the hard way, I'm afraid.

--
Gill E. Wagner, Sage of Selling
President of Honest Selling
Founder of the Yellow-Tie International Business Development Association

Can I Be Useful?

One of the reasons I absolutely love sales training, coaching, etc., is that I get free training from my clients every day. (Well, actually, they pay me, and I learn from them, so it's even better than free.)

Take yesterday, for example.

I was working with two executives and two salespeople at Access US. The purpose of the meeting was to help with a salesperson (let's call him "Sam") the company just hired -- to get him ready to start dialing the phone, which included guiding him on his opening script for the phone calls.

The basic plan was quite simple: The executives assigned Sam 98 small customers. And his task was to do the following:

1. Spend about five minutes looking at a customer's billing records and website (i.e., try to learn something timely about the customer's business).
2. Call the customer.
3. Introduce himself.
4. Tell the customer something along the lines of "I'm new at Access US, and I've been assigned to your account."
5. Mention the current services being provided, such as "I understand that you're currently hosting your website with us."
6. Incorporate the current information into the conversation: "I just visited your website and noticed you're trying to find some new truck drivers."
7. Ask how he could help.
8. If the customer engaged, say anything along the lines of "I'd like to meet you and learn more about your business. Can I buy you a cup of coffee sometime soon?"

While Sam understood the basic concept, we could tell that a live example would bring it home, so Vic Mattision, the president of Access US, picked up the phone, dialed one of the 98 customers, introduced himself, and said, "I'm calling to see whether I can be useful to you."

I've been selling and teaching sales for pushing 30 years now, and I've never heard "How can I help?" phrased so eloquently:

"I'm calling to see whether I can be useful to you."

I've had people get hostile when I asked whether I could help, but I can't imagine anyone getting hostile if I ask whether I can be useful.

And I don't know about you, but this is exactly the kind of Internet service provider and web-development company I want (not to mention attorney, accountant, phone company, printing company, etc.).

And more importantly, it's the kind of professional I want to be. So ...

... Can I be useful to you?

--
Gill E. Wagner, Sage of Selling
President of Honest Selling
Founder of the Yellow-Tie International Business Development Association