Contents
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Tips and Advice
10 Commandments of Prospecting
The Three Traits of all Super Sales
Professionals
Is e-Learning Right for your Organization?

Between You and Me
How will the World Wide Web Effect Sales Professionals
'You Know the Difference Between Aa Wish and a Goal

Under the Rock
Collecting the Money Owed You
Strategies for Collecting Commissions

Tips And Advice

The 10 Commmandments of Prospecting
by Permission of Paul S. Goldner
www.redhotsales.com

Prospecting can be much like going to the health club. It's something that you know is good for you and will produce excellent and predictable results, yet is something that most sales people always seem to avoid. The Ten Commandments of Prospecting is a proven success formula for prospecting and selling success. The Ten Commandments of Prospecting are:

Commandment I: Make an appointment with yourself for one hour each day to prospect.
Prospecting, like anything else, requires discipline. Prospecting can always be put off until a later day when the circumstances will be better. I can assure you that the time to prospect will never be exactly right. Make an appointment with yourself each day to prospect.

Commandment II: Make as many calls as possible.
Before prospecting, you should always take the time to properly define your target market. If you do this, you will only call the best prospects in the market. If you only call the best prospects in the market, every call will be a quality call since we will only call those prospects who are most likely to buy large quantities of our product or service. Make as many calls as possible during the hour. Since every call is a quality call, more is always preferred to less.

Commandment III: Make your calls brief.
The objective of the prospecting call is to get the appointment. You cannot sell a complex product or service over the phone and you certainly don't want to get into a debate of some sort. Your prospecting call should last approximately two to three minutes and should be focused on introducing yourself, your product, briefly understanding the prospects needs so that you can provide them with a very good reason to spend some of their valuable time with you, and most importantly, getting the appointment.

Commandment IV: Be prepared with a list of names before you call.
Not being prepared with a list of names will force you to devote much, if not all of your prospecting hour, to finding the names you need. You will have been busy, you will feel as though you worked hard, but you will have made no calls. I recommend having at least a one month supply of names on hand at all times.

Commandment V: Work without interruption.
I recommend that you not take calls and not entertain meetings during your prospecting time. Take full advantage of the prospecting learning curve. As with any repetitive task, the more often you repeat the task during a contiguous block of time, the better you become. Prospecting is no exception to the rule. Your second call will be better than your first, your third better than you second, and so on. In sports, they call this getting in the groove. You will find that your prospecting technique actually improves over the course of your prospecting hour.

Commandment VI: Consider prospecting during off peak hours when conventional prospecting times don't work.
Conventional cold calling hours are between 9:00 AM and 5:00 PM. Set aside one hour each day during this period to prospect. When conventional cold calling hours are not working for you, consider switching or supplementing your prospecting time by prospecting during off peak hours. Some of your best work will be done between 8:00 AM and 9:00 AM, between 12:00 PM and 1:00 PM, and between 5:00 PM and 6:30 PM.

Commandment VII: Vary your call times.
We are all creatures of habit. So are your prospects. In all likelihood, they are attending the same meeting each Monday at 10:00 AM. If you cannot get through at this time, learn from your lack of success and call this particular prospect at other times during the day or, on other days. You'll be amazed at the results. If you are wondering just how you might track your calls, let alone your call times, look towards our next commandment, Commandment VIII.

Commandment VIII: Be organized.
I use a computerized contact management system. I strongly suggest that you use a computerized system as well. The contact management system you choose should allow you to record a follow up call three years from tomorrow with no more difficulty than it would be to record one for tomorrow.

Commandment IX: See the end before you begin.
Steven Covey, in his book, "The Seven Habits of Highly Successful People" tells us to see the end before you begin. Dr. Covey is, in effect, telling us to establish a goal and then develop a plan to work towards that goal. This sage advice works well in prospecting and business development. Your goal is to get the appointment and your plan, your cold call script, should be designed to achieve your goal. 

Commandment X: Don't stop.
Persistence is one of the key virtues in selling success. I have often read that most sales are made after the fifth call and most sales people quit after the first.

 

The Three Traits of all Super Sales Professionals
by Pauls S. Goldner
www.redhotsales.com

Selling success does not happen by accident. Over the years I have had the pleasure to work with and observe a number of super sales professionals. While they all had their own style and way of doing things, they all had three things in common.

BE PROACTIVE
First, all super sales professionals are proactive in the creation of their own success. Steven Covey, in his successful book, First Things First, talks about one’s circle of influence and one’s circle of concern. Your circle of influence is all those things that you are aware of in your life that you can impact or change. Your circle of concern, on the other hand, are all those things that you are aware of in your life that you cannot impact or change.

This is a key point for the sales professional. In sales, there are a number of external factors that can impact your success; the economy, the political climate, your company’s policies and procedure, and so on. Unsuccessful sales people tend to get bogged down in their circle of concern; all those things that we are aware of that we cannot change.

Successful sales people, on the other hand, focus most of their effort on their circle of influence. I have learned through experience and observation that there is always something you can be doing to move a sale forward. These things are all within your circle of influence and this book was written from the perspective of your circle of influence. Remember, if you wish to be successful, you must be proactive in the creation of your own success.

THINK STRATEGICALLY
Second, all successful sales professionals are strategic thinkers. By strategic thinking, I mean that they are always looking for new ways to penetrate their accounts and prospects, they are always looking for new ways to grow and develop their relationships and they are always looking for new ways to make their customers more successful.

Recently, I read a story about a sales professional who lost a major account where he was generating about $250,000 in annual business volume. He was obviously upset over the loss and tried very hard to regain the business. His efforts were without success.

If you read the story carefully, what you would have learned was that the sales person as trying to penetrate account using old ideas. He went back to the same people he had always worked with and presented them with the same ideas. They saw no reason to change.

Finally, he started working with a person that he had never worked with before, a manager assigned with the task of moving the company into a new marketplace. They had no experience in the new market and the sales person saw the manager struggling over his decisions. When the sales person began to question the new manager, he learned that the manager was moving into a market that the sales person had worked in on a prior job. While the sales person had no opportunity to make a sale, he was able to help the manger with some of his decisions. In the sales persons own words, he noted "how the company began to perceive him differently as a result of the process".

To me, successful sales people differentiate themselves on the quality of their ideas, and our sales person had done just that. He went on to describe how the company began to view him differently, on the basis of the quality of his ideas. The company began to request other information of the sales person, all in areas where he had no opportunity to make a sale. Yet he helped anyway.

Eventually, the company started to buy again. In fact, the sales person was not only able to regain the account. He was able to grow it as well. His one time $250,000 per year account was now generating in excess of $1,000,000 in sales. The key to success, in this instance, was strategic thinking.

The key learning point of this story is that there are always a number of ways to approach an account. If you think strategically, you will use your creative imagination to develop new and innovative approaches to developing your customer relationships. If you think in a linear manner, you will only see one way to approach and develop a relationship. I think that you would agree that strategic thinking will greatly improve our chances of success in the sales cycle.

BE CUSTOMER FOCUSED
The third key to success in sales is that you have a strong customer focus. I once read a book by Dr. Norman Vincent Peale, the author of The Power of Positive Thinking, that best defines customer focus.

The book was called Stay Alive All of Your Life and relayed the story of a small town furniture store owner. The store owner’ business was not doing well and the store owner was on the verge of going out of business. As you might expect, the store owner was quite distraught and went to Dr. Peale for consolation and advice. In turning to Dr. Peale, the store owner told the story of a woman who would come by his store every day to look at a chair in his window. Since he needed money, the woman only added to his frustration. The store owner could not understand why the woman would not come into his store to buy. Here’s what Dr. Peale had to say:

Think first of helping Mrs. X. And to do that you must first get to know her and her family; study her needs. Do not think so much about putting her money in your pocket as putting your chair, which she needs, into her home. Do this with all of your customers . Think of them as people needing your goods instead of yourself needing their money. Find ways of helping them overcome their difficulties, and you will overcome your own in so doing.Dr. Peale’s advice can be used as a beacon of light for all consultative or customer-focused sales professionals. Plainly stated, Dr. Peale tells us to learn about our customers, study their needs and solve their problems. If we do this successfully, we will, in turn, be successful. Never have truer words be spoken.

Conclusion
It should come as no surprise to you that sales is a tough profession. However, sales is also a rewarding profession. My wife is very quick to remind me that too often we look at actors and actresses when they receive their Academy Awards and forget what it took for them to be successful. To me, success lies in the journey, not in the destination. Be Proactive. Think Strategically. Be Customer Focused

 

 

Is e-Learning Right for your Organization?

Paul   Goldner / RedHotSales

 

In case your are not familiar with the term e-Learning, it means "training over the Internet". Believe it or not, the Internet is perfectly suited for a whole host of training applications. There are a number of options available to you today, and a whole lot more being developed as this article is being written.

What types of e-Learning applications are available now?

Generally, e-Learning applications fall into three general categories; text based applications, audio based applications and video based applications.

Text based applications allows you to read information about a particular skill over the Internet. The big benefit here is that it is quite easy to access and there will generally be few, if any technical difficulties. A text-based application will allow you to review information in either a text-based format or a PowerPoint based format. And, you’ll have the opportunity to move at your own speed through the training program. On the downside, text based applications may not be as engaging as either audio-based applications or video-based applications. Again, the big advantage to this form of learning is that it is available 24/7 and there are limited costs to distribute or administer the program.

The next generation of e-Learning applications are audio-based applications. Here, you have the ability to listen to a training program over the Internet in much the same way as you would an audiocassette program. The strengths of an audio-based application are again ease of implementation on the end user side and limited costs in terms of distribution and maintenance. The downside of an audio application is that it may be more convenient to listen to the program in a conventional manner (i.e.: an audiocassette player).

I believe that e-Learning applications really get exciting when we move into the realm of video based learning systems delivered over the Internet. Here, you have the opportunity to view a full motion video in a streamed format over the Internet.

In case you are not familiar with video streaming, I want to point out that you do not have to download the video file in order to view it. Streaming means that you can view the program over the Internet in much the same way as you do when watching television or watching a taped program on your VCR.

The strength of video based e-Learning is that it is the most engaging form of learning over the Internet. This is in addition to the ease of distribution and administration of the program. On the downside, there may be some technical issues on your end in terms of getting the video application up and running. Issues such as a corporate firewall and optimizing either your Real Player or Media Player may require technical assistance on your end.

Is e-Learning here to stay?

With all of the issues associated with e-Learning, you may be wondering if e-Learning is a viable application. I believe strongly that it is. Peter Drucker, the famed management consultant, predicted that adult education over the Internet might be our greatest growth industry (Forbes, May 2000). Selling Power Magazine (May 2000) predicts that over half of the $65 billion North American training market will be delivered over the Internet within the next three years!

e-Learning is here to stay because it brings so many value-based advantages to the learner.

• First, e-Learning is typically very cost effective. If you compare the cost of an e-Solution to a comparable instructor led solution, the results will be dramatic.
• Second, e-Learning eliminates the time and expense of traveling to a program. You can view an e-Learning application from the comfort of your home, your office, or, while on a business trip in your hotel room! I predict that e-Learning technology will some day allow you to take training using a wireless device on an airplane or on a hand held device anywhere in the world. Image waiting in a reception area for your customer to come out to greet you and taking a fifteen-minute segment of a sales training program.
• Third, e-Learning is just in time. With e-Learning, you can get your training exactly when you need it. You no longer have to wait until you have the time to attend a training program and then find one that is available.
• Fourth, e-Learning is can be extremely focused. If developed properly, an e-Learning application should give you the ability to focus on one, very specific aspect of your skill set. I call this "Laser Training". For example, suppose you were a sales person and wanted to improve your objection handling skills. With an appropriate e-Learning application, you should not have to sit through the entire sales training program in order to learn one new skill. Rather, you could go directly to the program or module of interest and start your learning there.
• Fifth, e-Learning is repeatable. Since your e-Learning application will reside on the Internet, it will be available 24/7, anywhere in the world. Simply, go to the Internet and continue your personal development process.

 

What to look for in an e-Learning provider.

Because e-Learning is a high growth industry, you must select your e-Learning providers very carefully. First, you should make certain that the e-Learning content is already proven in an instructor led environment. Taking a poor program and placing on the Internet will not improve the effectiveness of the program.

Second, you should make certain that your e-Learning provider also offers conventional, instructor led training programs. I believe that e-Learning is part of the overall training mix and will be more effective if integrated into a well developed training plan.

Third, you should make certain that the programming placed on the Internet was developed specifically for the Internet. In its early stages, there will be a "rush to content" with e-Learning providers taking conventional programs and placing them on the Internet without considering both the advantages and the pitfalls of this type of training vehicle.

Fourth, you should consider the depth and breadth of the learning options. Yes, e-Learning is really cool but at the end of the day, you must still get a Return on Investment from your training dollar.

What are the technical requirements for video based e-Learning?

Believe it or not, the technical requirements for video based e-Learning are limited. All you really need is a Pentium class computer, a 28K or greater Internet connection, and a current version of the Real Player or Microsoft Media Player. A current version of the Real Player can be downloaded for free from www.real.com. The Microsoft media player comes with Windows.

A word of caution is recommended at this point. At slower Internet connection speeds (28.8KBS and 56KBS), the quality of the video program will be variable. Do not expect an image quality similar to what you see on the TV screen. However, at higher connection speeds (T1, T3, cable modems, DSL, etc.) your video quality will be quite good. Further, Internet connection speeds are getting faster, not slower, so the video quality that you receive today will only get better.

What are the training issues associated with e-Learning?

Unfortunately, e-Learning does come with a few training issues. Foremost among these issues is the ability to monitor compliance with the program. In other words, did the learner actually participate in the program or did they let it run while doing the laundry?

I believe that this issue can be addressed with a number of conventional training mechanisms including pre and post testing, the ability and requirement to interact with the program in the form of individual and group exercises, the ability to ask questions and when designing the program, the ability to make it as engaging as possible.

The bottom line is that e-Learning will not be without implementation issues. However, when you consider the benefits of e-Learning, they far overshadow any implementation issues that may arise.

Is live, instructor led training still important?

Of course it is. I believe that live instructor led training will be important for most training applications. Remember that learning and training is a process, not an event and the best training strategy is to develop a comprehensive approach to your learning that includes both instructor led and self directed options.

May 2000 be a RED HOT year for you!

Paul S. Goldner is a noted author, entrepreneur and professional speaker. He is the author of Red Hot Cold Call Selling, Prospecting Techniques That Pay Off! (AMACOM, 1995) and Red Hot Customers, How to Get Them, How to Keep Them! (Chandler House Press, 1999). Paul’s company, the Sales & Performance Group, is the developer of REDHOTSALESTV™, a market leading e-Learning application. Paul can be reached at ( 914-232-HOT2(4682), ) 914-232-4845, 8 Paul@REDHOTSALES.COM and WWW.REDHOTSALES.COM.

 

Between You and Me

How will the World Wide Web Effect Sales Reps?

To find the answer to this question, you can read two very enlightening books. THE DIGITAL ESTATE by Chuck Martin and BUSINESS @ THE SPEED OF THOUGHT by Bill Gates. Or you can get the shorthand here..

Any rep who thinks he can outrun the Internet needs to start looking for a job, because he won’t be in business for long. Here’s why.

The Internet is all about bringing people together. That’s it, plain and simple. It makes it easier for people ( your clients) to get information and services from other people (your suppliers). Every day retailers all over the world are finding it more and more convenient to deal directly with manufacturers via the web. On suppliers’ sites they can find up-to-date catalogues, pricing and specials. They can register complaints and get quick response. They can place accurate orders based on known current inventory on many suppliers’ sites.. And the suppliers aren’t snoozing as they move quickly to streamline the processes involved in customer service. The suppliers are working hard to draw in the customers.. With all this going on,   where do you think you will stand? Many reps can look forward to being "disintermediated".

"Disintermediated" means being taken out of the middle. Replaced by more efficient methods.

Who will be replaced? For one, reps whose primary allegiance lies with the supplier. If you have the attitude that you work for the company getting business from accounts, you will be replaced because the company’s web site can do that faster and easier and cheaper than you.

The reps who make it will be those who are smart enough to become "value added" middlemen. This means primarily that you have to work for your customers .. helping them deal with the company. It means that you have to find a way to give customers a reason to go to you for service.. It means that you have to have a 24/7 web presence where your customers can get your specialized information any time they want at the speed of light. It means that they must feel that you work for them.. and not the company..

If you aren’t embracing the web right now, you need readjust your thinking.. The Internet will have profound effects on the way you do business in the next 5 –10 years..

 

‘You know the difference between a wish and a goal?

A wish is like “vaporware” (software that doesn’t work)  A wish rarely if ever comes true.  A wish is like “Gaw! It would be like so cool to win megabucks, Dude!.. Then I could get some bitchin’ stuff.  Hey, someone pass me a beer!” A wish is spoken and forgotten - great hype, no substance.

A goal is a program that produces. It motivates. Once established, it bears down on you like a Mac truck. A goal is something you set out to achieve. A goal can address anything you want to have, be, or do in the short, long or medium range.

People stumble on to  some goals in their lives, other wise no one would ever get anywhere. But more often than not, most of life is left up to chance. People rarely set goals that lift them up and forward.

On the other hand a few people succeed wildly and guide their lives on a fascinating voyage of experiences, achievements and financial successes. There is one difference between the movers and shakers and the average ones. The achievers know how to set goals. 

Do you?

What is the first and most important step? C’mon. Tell me.

Not knowing the first step is what keeps many people from getting beyond the “wish” stage.  If you don’t know the first step, you can’t go anywhere. A  dramatic example of a first step is that of a hang glider pilot standing at the top of a mountain ready to take off. He wants to fly. He has checked his glider out and the conditions are good. He holds the glider over his head and faces the precipice ... but he goes nowhere. He is not lifted into the air. He doesn’t float like a dandelion seed. He remains a prisoner of gravity. Why?

Because he hasn’t put the first foot forward to start his take-off run.

When he finally does step forward he is committed and focused. Each step is less and less individual as he pelts toward the edge. Suddenly the noise and pounding are replaced by a “swoosh”! and the goal of flight is realized. Cool!

Writing a goal down is the only possible first step in setting a goal.

Why write down a goal? For one, it makes it more real. It organizes your thoughts on it. Writing a goal down helps figure out how to get past problems before they occur. The simple act of writing has a way of adding power to your thinking.It gets things started in a real way.

Get out a piece of paper and make a space for these elements.

1)      What you want to have do, be, achieve, etc. (The Goal)

2)      What reaching the goal will do for you.  (dig down deep for this – why do you ache for it?)

3)      Anticipation of any obstacles to reaching the goal.

4)      Solutions for overcoming obstacles.

5)      A date of completion. 

This way of taking the first step really works. It will empower you and set forces in motion that seem to work for you even when you aren’t thinking about your goal. I can’t tell you the things it has helped me ... ‘Matter of fact, I wrote up a thing about getting  a new car and put a picture of the car I wanted near my desk. and it’s sitting outside my sliding door as of yesterday. It’s cool!

You know what? You don’t have to take my word for it. I'm just your favorite malcontent. Every work on success covers the material in detail. They state uncategorically that the top producers in our society regularly write down their goals. If you want to make a critical difference in the way things are going (or not going) in your life .. what have you got to lose? Do it!  Write ‘em down. You may be surprised how different things are when you turn wishes into goals.

"Under The Rock"

"Sales reps are often hesitant to ask their companies for money that has been earned, is unpaid and is overdue. This is bad business for several reasons.

Collecting Commissions Owed You

(Part I of a document by Stephen Sack that will be presented in its entirety in Homeofficeprofessional.com)

"Probably the most significant reason you should be paid on time is the fact that you need the money to meet your own current obligations. Because of fixed monthly business costs, severe cash flow problems can squeeze reps who are lax in the collection area.

Another point to consider is the fact that when you fail to receive your money on time you are literally financing your company’s operation, particularly in times with high interest rates.

And, the longer you wait, the greater the chance you face the possibility of trying to collect from a troubled or bankrupt company. When companies are having financial difficulties they frequently fall behind on their commission and payroll obligations. If you are told that the reason you haven’t been paid on time is because the company’s business is seasonal, this may be true. However, all too often "cash flow" problems are another way of saying that the company is going broke, or at least suffering from cash tightness.

You can avoid these problems by insisting on being paid on a fixed, dependable date and enforcing it. Sales reps in many industries receive their commission checks by the tenth of the month following shipment.. The following contract clause illustrates how to do this:

"The company shall furnish rep with a copy of all invoices and orders covering any goods shipped into the Rep’s territory, or sold to customers therein, and to furnish Rep with a statement on the tenth (10^th) day of each month covering the amount of sales for the prior month, and the amount of commissions due Rep. The amount due the Rep shall be payable at the time the statement is rendered."

Avoid agreeing "as a matter of policy" not to be paid until your company receives the money in hand for the orders you obtained. This is to avoid the all to frequent problem of finding yourself involved in a bitter dispute with your company over their collections procedures.."

 

II

Strategies for Collecting Commissions

By Stephen Mitchell Sack

Part of
COLLECTING MONEY OWED YOU

The methods of improving collection totals and speed are not fundamentally different from collections in other kinds of businesses.

In collecting what’s due in most closely–held businesses, says Donald Ercole of Arthur Young, the burning cash management issue is " the lag time between the due date on the invoice and when the check is really dropped in the mailbox."

But excellent results in collection is far from just a matter of calling the factory and demanding, or begging, for the bucks.

Good collections are solidly based in a strong, businesslike relationship backed by efficient "enforcement" procedures.

Ercole says that collections are part of the larger relationship with your principals, You must balance precariously between keeping them happy and getting paid. To balance right,. He advises that you must:

1. Take care not to unduly damage relationships which you has taken years to build. After all, continuing relationships with your manufacturers are important to the long term health of your company.
2. Since your principals have something you want, you must avoid offending them and thus delaying payment even more.
3. But, you made a business deal with them. You held up your end of the deal by selling their goods, It’s now up to them to pay you .

It starts with a good understanding by both sides of the rules. You should make your collection policies clear to them. It’s important to map this out when negotiating with a new principal—and it is still possible even if difficult, to re-negotiate it with old principals. It is best if fair, businesslike rules are clearly set forth in your rep-principal agreement, and in writing.

These agreements should detail when commissions are due, percentages and all of the other factors that can come up.

Once policies are set, and mutually agreed to and hopefully plugged into your written contracts, you’ve got to enforce them. It is easy for principals to become lax, lazy or forgetful with it comes to parting with cash. Their controllers would rather hang on to your money..

Ercole advises quick action when payments are overdue. He suggests calling every delinquent (supplier) two days after any payment is past due and a statement of past due invoice had been sent out.

To handle calls effectively, you will need a current list of principals who owe you past due commissions, the names of the contact persons with their addresses and phone numbers, a listing of the commissions past due and the facts on the manufacturers’ last payments to you. Have all necessary backup paperwork ready so that you can answer any questions that crop up.

The calls are intended to find out why the payments are late and when you can expect them. They are also meant to show that you are carefully monitoring commission payments and that you know the facts. It also sends the message t6hat cash is important to you and you are very businesslike about collecting whatever is due you .

If you get a future date of payment, call again two days after that date. Push the whole procedure along.

Of course, there will be some failures that will force you into tougher action, or to knuckle under and let them pay at their own pace. But keep in mind, that this collection procedure begins with setting up the right relationship with the principals, then taking firm business like action to follow through. If you are doing your job, you should make sure they do theirs. "

By permission of
Stephen Mitchell Sack P.A.
Specialists in Rep - Supplier Relationships
(212) 702-9000