Top Secrets of Marketing & Sales

David Blaise
  • 4.4 (11)
  • Marketing
  • Updated Biweekly

The Top Secrets of Marketing & Sales podcast provides tips on how to increase sales, improve profit margins and grow your business. Each week, we address issues related to important topics like targeting your ideal prospects, fine-tuning your messaging, attracting the clients you need, monetizing social media, the MVPs of Marketing and Sales and much more. From mindset to marketing and prospecting to podcasting, the Top Secrets podcast helps B2B and B2C entrepreneurs, professionals and salespeople get more of the customers and clients they need so they can do more of the work they love.

  1. 3d ago

    Turning Your Million-Dollar Ideas into Cash

    Million-dollar ideas don’t always create million-dollar results. Only focused implementation can do that. I remember the day that I got a phone call from a client who said, “Hey, we hit a million dollars in sales for this year. I’m really excited.” It’s a huge thing, because when you’re looking to grow like that — when you’re talking about multiplying your revenue in a relatively short period of time — there are very specific things that have to happen. Most people don’t know what those things are, and even if they do know what those things are, they don’t take action on them consistently enough to make it happen. David: Hi, and welcome to the podcast. In today’s episode, co host Jay McFarland and I will be discussing million dollar ideas. Welcome back, Jay. Jay: Hey, thank you, David. I have to tell you, this is a running joke in my home that I constantly have million dollar ideas. But I never do anything about it. And so I’ll have them.And then years later, my wife’s like, you told me about that, you know, five years ago, why don’t you do something about it? And I’m like, I don’t know. David: Yeah. And you’re not alone. I do the same thing. I think pretty much anyone I know who’s been involved in business in any capacity has had ideas. And then they see that somebody else did it later. And they’re like, “Oh man, I thought of that years ago.” And it’s like, yeah, well, unfortunately, as you indicated, thinking about it does not actually get it done. But it’s a fun topic because since we all pretty much have had them, we all have million dollar ideas, the question becomes. What are you doing with it? Or are you doing anything with it? And as I was thinking back on this in preparation for this podcast, it occurred to me that of the million dollar ideas that I might’ve had, and who knows, the ones that you don’t pursue, you have no idea what they’re worth, especially if nobody else then comes along and turns it into a billion dollar idea, but it occurred to me that I only took action on a few of them, and the ones that I took action on actually yielded some really good results. And the thing about a million dollar idea is… There’s a time component that really plays an important part in that, right? You could say, all right, my million dollar idea is to make $25,000 a year from the time I’m 25 until the time I’m 65. So if you multiply $25,000 by 40 years, it’s a million bucks, right? But if you’re earning $25,000 a year and it costs you $35,000 a year to live, then that plan is not going to work for you. But it is a plan. It’s an idea. It’s a million dollar idea. And so as we’re thinking about things that can actually get us from where we are to where we want to be. It’s a good idea to consider that. All right. Well, what’s the likelihood of generating revenue from this and how much on an ongoing basis so I can have an idea of where it’s going to take me? Jay: Yeah, it’s such a great point. I think for me, the fear of putting myself out there is one of the reasons why I haven’t pursued. And I’ve taken, some of them were good enough. I’ve taken a little stabs at them and I want to be successful by just stabbing at them and not really diving in a hundred percent. And it’s not until I said, “okay, I’m all in.” It wasn’t the idea that was bad. It was my desire to actually put any work and effort. I’ve just, I’ve always said, I want to have a company where all I do is come up with ideas and sell them. I don’t want to have to actually put the effort into, working on them. Why can’t I just earn the money from the idea? David: Right. Yeah. It’d be great if it worked that way, but somebody has to do the work that actually generates the revenue. But when I think about million dollar ideas, particularly as it relates to business. If somebody’s doing $250,000 a year in their business in four years, that became a million dollar idea. Now, again, if that’s your gross sales, it doesn’t mean that you’re making that much, right? It doesn’t mean that you’re pocketing that much, but it counts. It’s a million dollar idea, and then the question really becomes. Is my million dollar idea a million dollars in a lifetime? Is it a million dollars over 10 years? Over five years? Over a year? Is it a million dollars a month? Is it a million dollars a week? A million dollars a day? Because different businesses generate different amounts of money. I don’t know what Amazon is generating, how quickly it generates a million bucks, but it’s probably a lot faster than a million a day. It could be down to the minutes and seconds, probably is. Jay: Yeah, I really think a lot of what you’re talking about is your expectation, right? you’re just saying, I want to have this idea to make money, that to me really kind of feels misguided. And to be honest with you, a million dollars does not sound like that much money anymore, right? So it’s more a matter of, I think defining better what the idea is and what you want it to achieve. Are you looking for financial freedom to where you can travel and buy nice cars? Are you just looking to pay your bills? I think putting some better definition on it is more important than using this word million dollar and somehow that’s a sign that you’ve been successful. Cause as you said, you may be making millions a year in gross sales, but you could be losing as much, if not more. So, yeah, you have to be a little bit more specific than that. David: I remember when my daughter was young, we were talking about the idea of a million dollars at one point. And I said, well, think about this. Let’s say you make a million dollars. You’re able to save a million dollars and you’ve got a million dollars. You’ve got exactly a million dollars in the bank. And so you go out to celebrate and you go have lunch at McDonald’s and you spend $12. Now you’re no longer a millionaire. Right? Because you spent your twelve bucks. Whatever it is. And, I don’t know, just the idea of these money benchmarks being some form of accomplishment, I think is a little misguided. Jay: Yeah. David: And generally it’s misguided by people who look at it as a goal, think that it’s something to aspire for, and then if and when you get there, it’s like, oh, okay, now what? You know, now you go for more, right? And no matter what your number is, even if you’re Warren Buffett and you’re a multi billionaire, probably another extra billion or two never hurts. Jay: Yeah, I agree. For me, I kind of think about how I determine success in business. I have steps, like you said, benchmarks. So my first benchmark is, can I just pay my bills? Right? Can I feed my family, pay my car payment, keep the electricity on? If I can pay my bills, I’ve achieved a level of success because I don’t have to go out and have somebody else tell me how to do my job all day for an hourly wage. So that’s goal number one. Can I pay my bills with my business year round? Then I start saying, well, can I still make the money I’m making, but do less or spend less to make it? So maybe I only have to go into this business three days a week, and then two days a week I can be with my family or I can be tinkering, you know, with my car in the garage or something like that. So I start to look at it more in terms of time than I do in terms of actual dollar amounts. David: Yeah, the time component is huge and also consistency I think is huge. I had a client who signed up for our Total Market Domination course a couple of years ago. She was doing about $250,000 in sales at the time. She wanted to get to a million dollars. And so we went over the specific steps that she would need to take to do that. And she was a great implementer. She was able to do it. And I remember the day that I got a phone call from her and she said, “Hey, we hit a million dollars in sales for this year. I’m really excited.” Jay: Yeah. David: It’s a huge thing because when you’re looking to grow like that, when you’re talking about multiplying your revenue in a relatively short period of time, there are very specific things that have to happen. Most people don’t know what those things are, and even if they do know what those things are, they don’t take action on them consistently enough to make it happen. So for those who are looking to get to benchmarks like that, if you have a million dollar idea, if you know in your bones that this thing is likely to generate that amount of money, but you’re not quite sure how to get there, then we really ought to have a conversation. Jay: Yeah, and again, we talked about scary things and the fear of the unknown in our Halloween podcast. That’s what’s so hard, and one thing I keep telling people is, you don’t have to reinvent the wheel. This is not the beginning of time . There are so many people out there who have done this and duplicated this over and over again. And often times, just coming up with a unique idea, that’s one of the toughest parts of the battle. Then if you can access and not be afraid to talk to people, see people like yourself, who have done this over and over again, and who have helped other people achieve it, if you can get rid of a lot of the unknown, and then just implement your idea, how much better is that going to be for you? David: Exactly. And so much of it just boils down to focus. It’s about what are the few things, what are the fewest steps I can take, the fewest number of activities that I can engage in to get me to my goals. And a lot of times it’s a lot simpler than people think. But they’re so distracted with all these different things they think they have to do that they end up missing the boat. And it goes back to your point earlier where, “hey, wouldn’t it be great if I could do less things, do fewer things, and stil

  2. Jul 28

    Are You Afraid of Being a Pest in Sales?

    Jay: I’m not lying when I tell you that I struggle with this idea that I’m being a pest in sales. So I think it’ll help my sales, I think it’ll help my daily attitude towards what I do. David: Well, I’ll tell you something, Jay, many of the most conscientious human beings feel this way. I mean, if you’re one of those sales guys who, “Hey, everybody loves me,” you’re not even going to think of that. It’s never even going to occur to you. So the people who are most likely to struggle with this are people who just want to help. They’re there to provide a service. Jay: Yeah. David: They don’t want to be a pest. And so really, most of the people who feel this way are the ones who are least likely to be a pest because they’re not arrogant to begin with. David: Hi, and welcome to the podcast in today’s episode, co-host Jay McFarland, and I’ll be discussing the topic of how to avoid being a pest in sales. Welcome back, Jay. Jay: Oh, thank you for having me, Dave. This is a real problem for me. I always feel like a pest in sales, whether it’s an email, whether it’s a text, I always feel like they don’t want to hear from me. And. it’s been an ongoing problem. I’ll just be honest with you when it comes time, okay? I got to sit down and reach out to people. I’m like, oh, do they really want to hear from me? Am I going to bug them? How do I get over that? David: Yeah, it’s a great question. A number of years ago, I was doing a speaking presentation and Mary Lou Retton, the gymnast, was also speaking at the same event, and she told this story. It was just so great. I don’t know if somebody asked the question, but it came up in her presentation where people were saying to her, when she was doing her routine, the person who went on before her did a really, really good routine. And so at that point, the pressure would really be on her to deliver a flawless performance if she wanted to be able to get the score that she needed. Jay: Mm-hmm. David: And so the question was how do you deal with that when this person delivers a great performance and you have to go on next? Don’t you feel nervous after that? And her response, I’ll never forget it. And this was easily 10 or 12 years ago this happened. Jay: Yeah. David: Her response was, “you know, I watched her performance and it was great. And I looked at it and I thought to myself, wait till they get a load of me!” Jay: Mmmm. David: And I was like, “wow, how much does that apply in sales?” Jay: Yeah, David: I mean, I think it applies every bit as much in sales as it does in gymnastics. If you go in with the idea of, oh, that person’s better than I am, or they’re not going to like me, or they’re going to think that I’m annoying, or I’m rude, or I’m obnoxious, or I’m a pest, or whatever. If you go in with that mindset, then what you are likely to say, the way that you’re likely to position yourself, all of those things are going to reflect that. But if you’re able to go into a situation with the idea of “wait ’til they get a load of me,” or at least “I have something valuable to offer.” Now, any salesperson who doesn’t feel like they have something valuable to offer should be either in another line of work or selling a different line of product. Right? Jay: Yeah. David: You need to be able to feel good about what it is that you’re selling. And if you know that what you’re selling is, ideally, better than the competition. If you know that you’re going to deliver better than your competition, you know that you’re going to be more responsive, you’re going to be more concerned, you’re going to be more caring. If you know all those things, then you owe it to the client to convey all that. And if you don’t convey it to them, then you’re doing them more harm than good, and you’re doing yourself and them more harm than good. So, If you look at it from the standpoint of, “I’m here to provide a solution, I’m here to help,” then it’s a lot easier to not start thinking of yourself as a pest and just recognize that if you’re there to help, it’s very difficult to be a pest. Jay: Yeah, I’m not a pest. I’m a value. And I’m trying to pass that value on. It’s really interesting because, you know, I do these initial consultations and I’m going to toot my own horn. I am incredible at building that first relationship. But in that first relationship, it’s them learning. We don’t talk about costs a lot or anything like that. And then we schedule a second follow up, and that’s where we get into the other things. And it’s the second follow-up where I’m like, oh, now we’re going to talk about money. Now I’m going to turn into a pest. Now I’m going to do that. And I can see how what you’re talking about is, “no, I got them excited in the first meeting, and so why would they think I’m a PEs in in the second meeting?” And, and furthermore, maybe I should just get to the money in the first meeting and do it when I’ve got them excited initially. David: Well, yeah, that’s a great point. Because if they are excited and if they’re ready to move forward, then scheduling another call and having time pass in between and they get distracted, it’s probably giving opportunities for them to fall out of the process. So, Jay: mm-hmm. David: I think you just asked and answer a great question for yourself. Jay: Yeah. David: But if you think of a pest, I mean, I think of something like a mosquito, right? A mosquito is a well recognized pest. And it’s buzzing around you and it wants something from you. It wants blood, right? And so it’s trying to get to you so that it can take something from you and not give you anything except maybe a bump of your skin, right? Which is not pleasant. So, If you’re not doing those things, then you’re really not a pest. And when you are creating value in your communication, when you’re creating value in the relationship, there’s nothing pesty at all about that. If you’re talking to somebody about the products and services you offer and they’re interested, even if they’re not like really excited about it, if they’re like, “oh, okay, that sounds interesting. I’m open to this…” Jay: Yeah. David: And then you provide them the information on, okay, here’s how much it will cost. Here’s how it’s going to work. Then at that point they get to evaluate, does this make sense for me? Can I justify the cost of that for what it is that you’re offering? If the answer is yes, you’re going to be doing business together. If the answer is no, if they tell you that, if they say, well, listen, this isn’t for me, that’s not in my budget, and if you can’t come up with another solution, then at that point the conversation is over. The person is disqualified and you move on. The times where we’re most likely to feel like a pest is when we’re talking to somebody and they start ghosting us. Jay: Hmm. David: And when that happens, when they start ghosting us, then we feel like we have to follow up because they asked for information from us, right? Jay: Right. Right. David: They wanted to know stuff. They seemed interested. They said they were interested. Now I’m supposed to follow up on a certain day at a certain time, and they’re not taking calls and they’re not returning calls and all that sort of thing. At that point, if you are following up, you’re not being a pest. You are attempting to deliver what it is that they asked you for. It’s like if you called and ordered a pizza and I’m the pizza delivery boy, and I come to your house and I know you’re in there and I’m ringing the bell and you’re not answering it. Jay: Yeah. David: Well, am I a pest because I’m trying to deliver the pizza you ordered? I think the answer is no. And it’s the same thing here. If you’re trying to provide them with information they requested, if you’re trying to follow up because they said they have a particular in-hands date on an order and they’re not responding to you, then at that point, what you’re doing is not being a pest. What’s happening is that they are being rude. They are being discourteous. Right? They are wasting your time and wasting their time. They’re also creating frustration because you’re frustrated because you can’t reach them. They’re probably frustrated because they might see you calling and they’re like, “I don’t want to take this call.” So they’re creating unnecessary anxiety by doing those things. Jay: Mm-hmm. David: So I put out a post on social media the other day talking about my feelings about people who ghost. And they’re not good. I don’t remember exactly what I posted. It’s up there on social media. I’ll share it below this video. But when we are in a situation where people have an interest, express an interest, we’re having a decent conversation, then as long as you’re acting with integrity to try to get them what they said they wanted from you, I don’t think there’s anything pesty about that. Jay: No, I, think that’s a great perspective and you’ve helped me as I’ve got calls coming up after this podcast that I need to do, and I think I’m going to approach them with a little bit different perspective. And also, if somebody is ghosting you, they are systems now, right? I put them in a drip program and so they’re still going to hear from me automatically. I don’t have to do anything about it. And. If the time comes around where they realize again that they need me, well, I’m still in their face a little bit and they’ll come around and I don’t have to worry about it until then. David: Right. And so when we think about the topic to avoid being a pest, I mean, essentially if you are focused on them, you’re focused on helping them, you’re focused on getting them the answers th

  3. Jul 21

    How to Get Better Sales Leads (without Burning Time or Wasting Money)

    Want to get better sales leads? It starts with tracking what works. David: Hi, and welcome to the podcast. In today’s episode, co-host Jay McFarland and I will discuss the topic of where are your best leads coming from? Welcome back, Jay. Jay: Thank you. And I’m just going to answer the question. I don’t know. (laughing) I’m just… David: Short podcast. Thanks for listening. Jay: Yeah, I’m just going to say it straight up. I mean, I do have some systems. We do try and use Google Analytics and things like that, and that helps a little bit. But I’ve never done a deep dive yet on this is the source, this is the well or the font of where my best leads have come from. So I’m looking forward to this discussion. David: This is really a good one to look at and to dive into a bit, because I’ve always maintained that if you don’t know where your best leads are coming from, then you don’t know where to go to get more of them, and when you are able to identify it, everything else gets a whole lot easier because now you can go fishing in the same ponds, rather than just trying to put stuff out to anyone and everyone, which is very expensive to do. You can really tune in and focus in on what people are doing, where they’re coming from, how they’re hearing about you so that you can go find more of them. In addition to… well, a number of the businesses that I’ve been involved in over the years, one of them was a retail mail order catalog business that I owned. And in a business like that, it’s absolutely critical to know where your best leads are coming from. Jay: Mm-hmm. David: We would run magazine ads and we would get people out of different magazines. We had ads running on television that were designed to get leads for our catalog business. And every single one of the ads we ran had some sort of mechanism to let us know where they were coming from. If it was calling an 800 number, we had one primary 800 number, but we would give them an extension to ask for. So we’d say, call this 800 number extension 214. Right? And 214 meant that it was coming from this particular TV station or whatever. If they were seeing something online, there would be specific links that they would click through that would tell us where it was coming from. If it was a magazine ad, it was a similar kind of thing on the back of the magazine, it would say, call this number, dial this extension, or go to this web address, and there would be a slash with a suffix on the url.. Jay: Mm-hmm. David: And that would tell us where it came from. And when people would call in, one of the first things that our people were required to ask them is, “where did you hear about us?” And there was a box there that they would fill out. Where did you hear about us? Oh, I saw your ad on such and such a magazine, or, I saw your ad on such and such a TV station. And so we would have the data that the computer said based on what they came in and said, and then we would also have the data corresponding with whatever the person said. So I was pretty pathological about it, and to this day I’m still very pathological about determining where leads come from. Even now when, you know, at the end of this podcast, when you say, how do people find out more? And I give out a link that link tracks back to the podcast, it lets me know that the people who register on that link, Came from the podcast. And if they’re coming from some other ad, then it’s going to have a different code and that sort of thing. So it’s not that hard to do when you discipline yourself to do it. And most people don’t do that until and unless they realize how much it is actually worth to you when you do that right. Jay: Yeah, absolutely. And in today’s world, honestly, there is no excuse. It is so easy. There is so much data out there. If you want to target a specific group, you can target that group. And that’s kind of the process, right? You’re going to send out a link for this podcast, you’ll know who you get back. You’ll know age groups and those types of things. And then you’ll be like, well, let’s adjust it this way, or let’s adjust it that way. I mean, never in our history has there been such an easy way to say, I want this age group who’s interested in this type of thing. Then you can target that group. And then based upon that new batch of information you can target in even more. I know we all kind of complain that we’re being tracked everywhere we go, but at the same time, we’re all asking for it. We’re subscribing to newsletters, we’re hitting the like button. We’re feeding all of that information. So it becomes this circle, right? And I think it’s incredible personally. And if I am going to get sent an ad, I want it to apply to me. When I get something that I’m like, there’s no way that this is something that I would ever consider. I almost get angry. Like, come on, get your algorithms together here. David: Yeah. And what you’re talking about is probably a level or two above what I’m even talking about. Jay: Mm-hmm. David: I’m talking about simple things that most small or medium sized businesses can integrate into their own business, just so they have an idea of where the people who are paying them money are largely coming from. And I don’t mean every site they’ve visited over the past 20 years. Jay: Sure, sure. David: I mean, where did they hear from us most recently? Did they hear about us from the podcast? Did they hear about us from an email broadcast that went out through an email broadcast platform? If so, which one? If there is some sort of ad, which ad did they click on? There are some ads that we run on some websites where there’s an ad at the top of the page, there’s an ad on the side of the page. The ads say different things. We track those separately so we know which message and which ad. Does the top position get more of a response? Does the side position get more of a response? Because that tells us where to focus our attention on getting more people. And a lot of it, in the early stages especially, is just about seeing where the people are basically coming from. But then when you see who’s actually buying, that narrows it down even more. Jay: Yes. David: Because you may be getting more leads from one source than another, but you find out that the leads from that source aren’t converting. Jay: Yes. David: At which point you can stop advertising there and put your money behind the ads that work. Jay: Yeah, absolutely. And when I mentioned how easy it is today, I even mean for small businesses. I mean, we started a small business and I don’t know anything about pay per click or, you know, anything like that. But I looked on Fiverr, you know, the website, Fiverr and Upwork, and I found somebody who said, I’ll do this for you for a month for 30 bucks and I’m like, it’s 30 bucks. I’ll try it out. We did the $30 and the results were dramatic. So we’re like, wait a minute, if we do 30, let’s do 60. Now we’ve got this guy we spend about maybe 250 a month with him, and we get constant leads that convert from him. I don’t know how he’s doing it and I don’t need to know how he’s doing it. Right? Now I can spend my time focusing on those leads. The other thing he’ll do is come back and say, okay, you’ve got a lot of people who are landing on your checkout page, but they’re not converting. So we’re like, “oh, wait a minute, what’s going on?” Is it the language we’re using? Is it the pictures we’re using? Are we not conveying the message? These things can be done for relatively cheap nowadays, and so even if you’re at the smallest point, I would definitely try some of those things. David: Yeah, it’s simple enough to be able to at least get an idea of where most people are coming from to be able to go back and get more. And obviously, we’re talking quite a bit about online, but there are a lot of offline sources. If you do networking, you go to networking functions, you may find that one networking function does much better than another. You may find that you go to one particular networking function and you don’t get any leads from it. You go back again and again and again, and you’re not getting leads. Everybody’s just schmoozing. That happens a lot in business. Jay: Yeah. David: Particularly in B2B. Well, B2C as well. So in those situations you can make determinations if you’re keeping track of it. But very many small businesses in particular will just go out, go to some sort of networking function or go to something that’s supposed to generate business, and they use that as an excuse like, “I’m doing something.” But if you go out to something like that and you’re not going out there with the idea of coming back with leads that you can follow up on, it’s really just a waste of time. So there’s a focus aspect to this. There’s an online versus offline aspect to this. But ultimately what it boils down to is the subject of this podcast. Where are your best leads coming from? Jay: Yeah. David: Where can I go to find more? Jay: Yeah, and I see this a lot and I’ve been a victim of it. Movement for the sake of movement. You know? I’m doing something, I’m going to these networking events. Going to these shows. Placing these ads. So when is it going to start working? Movement for the sake of movement is of no value. Right? There has to be some intent. It has to be trackable. It has to be adjustable. And I think it’s so easy to fall into that trap of “I’m doing something!” And so, where’s the result? David: Yeah, it reminds me of that Zig Ziglar quote, “Don’t look for your ship to come in if you haven’t sent one out.” Jay: Yeah. David: And very often we’re trying to do things that are generating results. We talked about goal setting in a previous podcast, and a

  4. Jul 14

    Grow the Value of Your Business: Make it Worth More

    To grow the value of your business, consider this. If your business burns down, you’ve got whatever… desks, furniture and things like that. That stuff’s all insured. You should be able to come back from that okay. But if your book of business burns down, right? If you still have all this overhead, but you don’t have that book of business anymore, you are really in trouble. Because if you have desks, and furniture, and technology but you don’t have the ability to sell to the people that you need to sell to, what’s that really worth? All of that is just overhead. David: Hi, and welcome to the podcast. In today’s episode, co-host Jay McFarland, and I will be discussing building the value of your business. Welcome back Jay. Jay: Hey, I’m so glad to be here, David. Once again, you hit me with another term, Do I really know what the value of my business is? And value has such a different meaning for so many, right? Value could be. Well, it gives me free time. I hate my business, but it gives me free time. So it’s of great value. Or it’s of great value because I have all these shiny toys, you know, those types of things. So I think value could be very different for different people. David: Yeah, it absolutely can. Particularly when we’re thinking about business owners versus salespeople. When I think about business value, I mean what is it worth to someone else if they wanted to buy it from you. For a business owner, what would someone actually pay for the business? For a salesperson, what is your book of business worth? If you’re building something up and somebody wanted to buy your book of business, what would that be worth? That’s what I was thinking of in terms of value. But you touched on a lot of other great points regarding the term. Jay: Yeah, like I said, there’s so many other things. I’ve talked to people who have said, yeah, I’m thinking about selling my business. And I ask them, well, what’s it worth? They often look at me like I have no idea whatsoever. In fact, I was working for Kinko’s way back when, when they wanted to sell. And they wanted to go public first, and the SEC came in and said, you don’t know what you own. You don’t know what you owe. You don’t know anything about your business. And you have the worst paperwork system we’ve ever seen in our lives. You’re not going public. And so they went and found a private buyer, which was FedEx, who went and bought FedEx Kinko’s. So just in how you manage your business can affect the value of that business. David: Yeah, absolutely. And for a lot of people, the value of their business isn’t going to be FedEx Kinko’s worthy, very likely. Jay: Yeah. David: But still, it’s good to know. And, for some it might be worth more than that. But for most people, particularly small to medium sized businesses, when they’re looking to sell, they really don’t have any idea of what the business is worth or what it could be worth to someone else. And in different industries, there are different metrics and multipliers that people use. They say, okay, well, we’re going to take a multiple of your net value. In other words, what is, bottom line, after owner’s compensation and things like that. They have a number of different metrics that people use. But in a lot of cases, that’s what it boils down to. What’s it likely to be worth to someone else? Glen Holt was a professional in the promotional products industry for a long time. He was one of my mentors in the early days. I remember him saying that when people are looking to buy a business, what they’re really paying for is the likelihood of future business. Because the only way I want to spend a dime on a business is if I know it’s going to generate a high multiple of that over a period of time. Whether it’s two years or five years, or seven years or ten years, whatever that multiple ends up being. At some point I know that I’m going to be able to recoup my investment and make more going forward. Jay: Yeah, exactly. Maybe you envision running this business forever and then you hand it off to your kids and their kids. But a lot of parents find out their kids don’t want the business. So it’s not easy to offload it that way. But I like the idea of even if you’re never considering running your business, things happen. Right? Medical things happen. Emergencies happen. You may find yourself someday saying, “I don’t want to sell. But I have to sell because of my circumstances.” So I think always running your business in a way that if you had to sell, you’d have your numbers in line. You’ve built your value, you have a clientele. I think that may be just a good mindset. David: Yeah. It’s also a good mindset if you think about the fact that some people don’t want to sell their businesses. That’s perfectly fine. But the thing that you have to realize is that if you don’t sell your business, then who bought it? You did, right? Jay: Yeah, yeah, yeah. David: You bought it with your time, your energy, your effort, all the hours that you put into it. So it’s good to be able to say, “okay, I know what I’ve put into this.” If you even get a value of what it might be worth to someone else, you can say, “would I be willing to pay that for this business?” Right? Or the amount of time and energy and effort that I put in, would I want it to be worth more than that? So I think it’s a good metric to know from our own standpoint in terms of what’s the business worth or what’s the book of business worth to someone else. But also how am I doing in terms of what I was hoping to build when I started out? Jay: Yeah, that’s a good question. What were you expecting to build and where are you now and what more can you do? I think there’s also some sticker shock when you think your business is worth one thing and someone comes in and says, “oh, I think it’s worth half that.” You’re like, “wait a minute, this is my baby! I built this thing. It has to be worth more than that.” David: Right, but there are metrics that you can use to make those determinations. And chances are, if you go to sell your business, somebody’s going to tell you they think it’s worth less than you do. But that’s where you have to make a determination as well and say, “okay, well look, if you were to buy this business, in three and a half years, you would be able to get your money back even if you just maintain it,” right? So, and if they say, “well, I only want to pay, you know, a year’s worth,” then you can say, “all right, well we probably don’t have a fit here,” or whatever. But as long as you’ve got the metrics to back it up, to say, okay, we’re doing this amount of sales after our costs, we’re doing this amount. If you take out what the owner’s being compensated, then this is what you would have left at the end of each year. And then you use that as some sort of multiple to say. Is it two years? Is it three years? Three and a half, five, seven, whatever you can get. Now, there are some companies, particularly in the tech space, and particularly if they’re recurring revenue companies, that they can sell for high multiples of what they’re bringing in each year. It just depends on what people feel that it’s worth and also, what they think they’ll be able to do with it. Because if somebody has a book of business and they’re selling whatever, a quarter million, half a million dollars a year, I’m talking about a salesperson and they want to retire. If they were to sell their book of business to someone else, and that person was going to look at it and say, well, I think I can probably maintain that for a certain number of years. Then they would value it based on that. If they looked at it and said, I think I can do twice what this guy’s doing with this book of business, then they might value it higher. Jay: Mm-hmm. David: So a lot of it has to do with the person that you are looking to potentially sell to as well. Jay: Yeah, absolutely. And I also think just some of the more simpler things like staffing, you know, who’s running the place when you’re not there? What does the place look like? Is the equipment updated? Because, you know, that’s what I’m thinking. Am I going to have to come in here and update all of this equipment? Will I have ongoing capital costs? Am I going to have all of these things? You may think you’re saving a dollar now, but if you do have to sell, it’s really going to hurt yourself in the long run. David: Yeah, and we didn’t even really talk about things like that because it depends on the kind of business that you have. Jay: Mm-hmm. David: If you’ve got a lot of overhead, if you’ve got furniture, fixtures, real estate, all those types of things, those are all going to play into it. I was really thinking more in terms of small businesses or a book of business that a salesperson has, where it’s primarily their book of business that they’re selling. Because in those situations, when people buy businesses too, they very often prefer to do an asset sale. They only want to buy assets of the business so that if there were any potential issues with the business before, if somebody was going to try to sue the business or whatever, that wouldn’t potentially come with a sale. So they’d say, “I just want to buy certain assets. I want to buy your customer base. Maybe I want to buy certain furniture and fixtures. I want to take along certain employees.” So they can sort of cherry pick the things that they want to buy from the business. But I don’t want to get too much into the weeds on this. I think for anyone who has been considering the idea of, okay, what is my business or my book of business worth? What do I need to look at? And so some of it would be to say, okay, what type of clients do I have? Do I have a base of high valu

  5. Jun 30

    Get Responses: Create High-Value Communication

    To get responses, create high-value communication. When you’re doing this, obviously, you’re not actually telling your customer “I’m here to create value in our communication.” You’re just doing it: Adding value in the conversation. You’re thinking about, “what can I say when I reach out to this person the next time to make this communication more interesting, more beneficial?” By doing that, you’re going to create that in their brains and they’re not even going to know why or how it’s happening. David: Hi, and welcome to the podcast. In today’s episode, co-host Jay McFarland, and I will discuss how to get responses by creating high value communications. Welcome back, Jay. Jay: Hey, David, once again, great to be here with you as we talk again about a topic that I know in my business career, we probably haven’t had this conversation a lot. Communication is just something that happens. And it may depend on whether you’re old school or new school. Old school, we’re just making phone calls and picking up the phone. That’s high value communication. If it’s new school, we’re texting and emailing. And that’s the extent of the thought process. David: Yeah, and I think the adjective here, the high value part of it may be what we’re bringing to the discussion today. Because you’re right, communication in business is expected. It comes with the job. Mm-hmm. And we’re always going to be communicating. But the fact of the matter is that particularly now, as people are more and more likely to skip over communication, if they don’t like what you’re saying or if they don’t feel like it’s worthwhile to them, it becomes more important for us to ask ourselves “am I creating value in this conversation?” Am I creating value in this email, this text, this phone call, this podcast, right? Because if we’re not communicating value in the discussion, then we’re doing our listeners a disservice. We’re doing whoever it is that we’re calling a disservice. Whoever we’re emailing, we’re doing them all a big disservice. So, If we consider the idea that we need to be engaged in high value communication as much as possible, it will very likely change what we’re saying at any given time. Jay: Yeah, such a great point. I think that most people now are engaging these new technologies that make the communication part automatic, right? Like drip campaigns, newsletters, automatic texting or whatever. So that part of the equation is fairly easy to implement. But then the real question, as you’re bringing up, is if I’m not providing value in that communication, I am training the customer or the potential customer to block me out. Because that’s the other thing that’s so easy. It’s so easy to automatically communicate. But on the other end, it is so easy for me when I hit delete in my messages. It says, do you want to block this sender? And that’s it. It’s done. It’s over. So that’s why you want to focus on that word value. David: Yeah, and particularly now when people are using AI to help generate communications. And my belief is that’s going to cause a lot of communications to start looking like other communications. Mm-hmm. And everybody’s going to be saying pretty much the same things. But if you are operating with the intent of creating value in the communication that’s going to be a component that you might be adding that other people aren’t going to be adding into their algorithm, whether it’s with AI or whether it’s what they’re doing themselves. And you also raised a great point, which is the idea of if you’re not doing this, you are training people essentially to ignore you. And wow, that’s not what we want to train people to do. Jay: Right. my email service now, I use Mac right at the top now, they put the unsubscribe button, like that’s the first thing I see. So it is so easy, and I just think about it. There are newsletters that I keep, that I allow to keep coming, and there are those that I unsubscribe to immediately. And I kind of do this thing where I, okay, I’ll scan down quick. And I’m looking for value for me. Because I have a time to value, you know, ratio. So I’m looking, is this something, is there anything in here that this person’s sending me that I really care about? And if I get one or two and the answer is no, they’re done. That’s it. You’ll never get through to me again. David: Right. And when you think about it, particularly with something like email, but it also applies to texts or whatever, When you’re looking through your inbox, you’re going to see two things. You’re going to see who it’s from, and you’re going to see the subject line. Mm-hmm. What is it that they’re trying to communicate? So sometimes people will look at your name and they’ll say, “oh, it’s from Jay. I’m going to open this.” They don’t even care what the subject line is. Yeah. But if you don’t have that sort of relationship, they’re going to say, “okay, it’s from Jay. What does he want?” Right? And then they might go to the subject line and say, “does this subject line interest me enough to open this?” And if the answer is yes, then it will get opened. But that combination is going to be huge. And if you’re not thinking in terms of adding value in your communication, then you’re very likely not going to have any value mentioned in your subject line, and you’re going to dramatically reduce the likelihood that it’s going to get opened. Jay: Yeah, I agree. So we’re kind of talking about the drip campaigns or the ongoing attempts to kind of get in and remind them about us. That’s one part of communication. But I also think it’s important to assess the value of the regular ongoing communication that is happening. Like when somebody calls in, are they getting a phone tree? When somebody on your staff or you talk to somebody, is somebody going to hang up the phone and say, and we’ve all had this happen. I hang up the phone and I go, well, that was a big fat waste of time, right? And so clearly I didn’t have a high value conversation with the person who I was talking to. David: Yeah, exactly, and I think we’ve all been in that situation where we’ve either been on the receiving end of it or we’ve been on the ascending side of it, where we just feel like, “oh wow, I clearly didn’t create enough value in this communication.” If they’re ignoring us, if they’re ghosting us, there’s always a reason for it. Now that reason is not always us. maybe it’s not your communication. Maybe you’re doing everything right and this person just has different things going on, or they’re afraid to say no, whatever that is. We’re never going to completely get around that. But if you recognize the fact that most people are going to be looking for “what’s in it for me? What’s the benefit to me in pursuing this conversation?” Then we can change what we’re doing. And the really great point that you raised there is, yeah, we’re not just talking about drip campaigns, we are talking about every single bit of communication that you put out. And that’s sort of what we led off with, is that you need to create high value communication in everything. Telephone calls, voice messages when you’re leaving a voicemail message. A lot of people don’t get calls back when they leave a voicemail message. And some of the reason for that is very likely the fact that there may not be enough value created in the message that is being left. If the message is, “Hey, give me a call back,” and I don’t know why I should, because I don’t know how that will benefit me, then the likelihood of me calling back is dramatically reduced. But if I recognize that I need to dangle some sort of carrot there. Why should they want to contact me back? Why should they want to return the call? And if I can add some value in there, give me a call back so I can, dot dot dot. What is it? What can you do that would be beneficial to them? Because if you say that in the communication, they’ll be a lot more likely to reply. Jay: Yeah. I think today it’s so funny how we respond to things. When I get an email that I don’t feel like had value or that I didn’t ask for. I feel invaded. I feel like somebody has come into my house and forced their will upon me. And when I get a text, it’s even worse. We judge these communications so aggressively and one of the other things that jumps into my mind that is so important about high value communication, one of the things I hate is when I call and whoever I’m calling goes right into the sales pitch, like right away. We don’t want to misinterpret value as the minute I get on the phone with them, I’m going to tell you what my value is to them. My preference is that they spend some time getting to know me so that they can properly explain to me how their product or service fits into my situation. If they’re just going to start cramming stuff down my throat, the minute we start talking, I’m going to be gone pretty quick. David: Yeah, and that’s an excellent distinction. Because there’s the value that we will create if and when we do business together, right? If I’m trying to sell you something, there should be value created if we’re doing business together, right? Otherwise, there’s no purpose in that happening. But I’m talking about the value that has to happen to even have that conversation. When you dive right into “here’s who I am and here’s what I sell,” they don’t understand the value at that point, right? Because the value has to come, to some extent, from the relationship that we are establishing in that call. And so to the extent that we’re going to lead off with value in that call or in that communication, we need to do it in a way where they get the value upfront and it can

  6. Jun 23

    The Follow-Up Mistake That Costs Sales

    The follow-up mistake that costs sales (and kills communication) is a lack of sequencing. If I’ve got a sequence in place that says, all right, when I get a lead from a networking function, I’m going to initially, either same day or next morning, send out this email message, which essentially says, “it was great meeting you at the networking function. Nice having a chance to talk.” Then, you include something in that email to elicit a response. Some will initiate a dialogue, some of them won’t. So from that point, if you don’t hear back, you could have another one that goes out a couple of days later saying, “Hey, never heard back you on this, but something else occurred to me that I didn’t mention…” and then you add something else to the conversation that could potentially be of interest to them. So you’re not just hitting them with “call me, call me, call me, call me.” You’re actually creating value in the communication, which is particularly key when you’re doing sequencing like that. David: Hi, and welcome to the podcast. In today’s episode, co-host Jay McFarland and I will be discussing the topic of sequencing your communication. Welcome back, Jay. Jay: Hey, David. Great to be with you again. I really love that we dive into these things that can have such an impact on your daily business. Oftentimes people will focus on the large things, not understanding that sometimes the smallest tweaks can make all the difference. David: Yeah, and things like this really are kind of diving deep. And many times I know other people in podcasts or in stuff that’s actually going out to the public, they’ll just keep it all high level and not really get into too much. I think we’ve done a reasonably good job over the years of diving a little deeper and getting into things in a little bit more detail. Because it’s important for people who watch this or listen to this to recognize that there are a lot of aspects to all of this. And we touched on this in the previous episode. We were talking about sort of the high level goals, we were talking about the high level concepts versus the nitty gritty of what do I have to do on a day-to-day basis. And this really gets more into the idea of the nitty gritty. But sequencing is something that I don’t hear many people talk about in business. And I think it’s a real game changer for people in the sense that when you get this and you start implementing it, it changes the way that you interact with your prospects and clients to make what you are doing better and more appealing than what your competition is probably doing. Jay: Yeah, such a great point. And back to the idea of focusing on the smaller stuff. I’m weird. I call myself lazy because I want to avoid steps and reduce steps, but in the name of that laziness, I will spend weeks trying to create a system, whether it’s a software system or a planning system or something, just knowing that over the long run, it’s going to have such a dramatic impact. And I can be lazy about that thing after that. And I focus. I mean, if I can reduce one little step, I’ll spend weeks trying to figure out how to do that. David: Yeah. But that’s smart. I don’t think that’s lazy. I think it’s far lazier to just go into each situation, not knowing what’s going to happen, not knowing how to respond to the common objections you get, not knowing how to create a system that will allow you to bring clients through the door like clockwork. And when you do that, you’re basically going into work every day with no idea of what’s going to happen. So I think that’s really lazy and really sloppy and I don’t think what you described is lazy at all. Jay: Well, I don’t, you know, I think you’re probably right, but it is something that drives my wife crazy and it’s really bad. Like when we go grocery shopping, I have a route, and that route has a very specific design. It’s based upon how the groceries are going to end up on the conveyor belt. And that’s important because that determines on how they will go into the bags, because I want the bread on top and all of those things on top. So I have this all planned and thought out from years of experience. It brings me joy, David, it’s, it’s a little, probably obsessive compulsive, but that’s the way I am. David: That’s funny and she still lets you come along. That’s amazing. But it’s a great example though, because when you think about that, and there are two schools of thought when it comes to outcomes, right? You described a more outcome driven approach. And it reminds me of the expression, the road is better than the inn, if you’ve heard that one. Jay: Mm-hmm. David: And I remember hearing that years ago and thinking, no, I kind of like the inn, right? I like, where are we going? Let’s get there. Mission accomplished. Onto the next thing. But there are people who just enjoy the experience. Shopping is a great example of that. I have never been a good shopper. Jay: Mm-hmm. At least before online shopping. I was a terrible shopper. As a kid. My mom would drag me around to different stores and she could just look at stuff for hours. I got bored three minutes in. As a kid, I could go to the toy section and I could look around for a few minutes, maybe see something I liked or whatever. Then I’m done. Right? And people are just wired differently in that regard. But I think if we really get down to the core of it, and we start thinking in terms of creating the systems and processes that will allow you to get results in your business, and tying it again back to our main topic, sequencing your communication, what this will allow you to do is to leapfrog your competition. Because you won’t have to think about each step of it. And it really ties to what you were saying about, you know your process in a store. Well, imagine that in business. Imagine a situation where you create a sequence of communications to send out to the prospects that you want to convert, in a specific order, in a specific sequence, at a specific timeframe. You can automate that as well. And design it to accomplish a result Too often in business because we’re sort of focused all over the place, we’re here, we’re there, we’re everywhere. We think in terms of sending a message out to a prospect and waiting for them to reply. And when they don’t reply. We become confused and annoyed. It’s like, why didn’t they reply? I sent you an email. Why didn’t you reply? And it’s cause that’s not the way the world works anymore. Right? I sent you an email. Yeah, it’d be nice if it were like tennis, where you bat it across the other person bats it across, and you bat it across and you have a nice volley going. That happens sometimes, but more often than not, it’s not happening. And if you’re depending on getting that volley hit back to you right away, you’re setting yourself up for failure. Where instead, if you recognize, you may have to send it across the net 3, 4, 5, 7, 10 times before it gets lobbed back, you’ll be prepared. And if you prep that in advance, you are so far ahead of what your competition is doing. It’s just not even funny. Jay: Yeah, I, have this situation going on right now where somebody has sent me an email inviting me to do something. I don’t know who this person is. I’ve never heard from them, and then I don’t respond. And then like four days later, I get an email that says, Hey, you didn’t respond. And I’m like, Well, that should tell you all you need to know. And then I got another one. I’ve sent you two emails and you haven’t responded. This person is sequencing, but they’re doing it in a horrific way. I mean, by the third email, I’m like, who do you think you are? That you can sit here and demand a response from me? And I don’t even know who you are. The whole thing has soured me. I am never going to call them back based upon that type of sequencing. David: Right. And if that’s the type of sequencing we’re talking about, then yeah, don’t do that. That is not what I’m talking about. It’s interesting you should mention that because over the past several months I have received so many messages from people, pitching guests for this very podcast where they’re saying, Hey, I think you should interview this person who’s talking about this thing, and let me know if that’s of interest to you. You know, I’ve listened to your podcast. I think he’d be a great fit. And most of the time I get, you know, pretty much the same pitch for different speakers. So I’m on some kind of list and I normally ignore them. But they’ve got sequences set up where it’s the second one. Hey, just bumping this up to the top of your inbox again, you know, do you want to consider so-and-so for the podcast? And so finally, I just put together the response that I’m sending to people, which is to say, if you listen to this podcast, you would recognize that we are not an “interview of the week kind of thing.” You know, there are two of us who do this. Jay: Yeah. David: If we were a podcast that had a lot of people on and we were interviewing what you said would make sense, and I don’t get into all that much detail. But they’re basically not pitching the right thing to the right person. And so in those situations, yeah, sequencing is not a great idea. But when you’ve got somebody who is engaged or would like to be engaged and you want to find out whether or not they’re on board with you, when it’s done right… And that ties into the MVPs, the messaging, you know, is the messaging going to be good? Which combination of marketing vehicles you’re using to reach them, and who are the people you’re reaching? If you’ve got those three things in sync, then sequencing is going to work extremely well for you. Jay: So let’s talk a little bit more about.

  7. Jun 16

    How to Achieve Your Goals: A Practical System for Success

    Wondering how to achieve your goals? Well, achieving goals is quite different than just setting them. So while the first step may be to set the goals you really want, then we have to prioritize our actions from high to low. What is the most important thing that I need to do in order to get there? Because generally, you can come up with a dozen or a hundred different things that you’re going to need to do to achieve your goals. But there’s probably one to three things on there that are going to be more important than the other 97. David: Hi, and welcome to the podcast. In today’s episode, co-host Jay McFarland and I will discuss how to achieve your goals. Welcome back, Jay. Jay: Hey, so glad to be here, David, and once again, I’m looking forward to this discussion. We hear people talk about goals all the time, and I know for me it’s something that I struggle with because what will happen is I’ll set those goals. I really haven’t defined how I’m going to get there, and then when I don’t achieve them, it becomes something that deflates me. So I think for a lot of people, goal setting can work against them. David: I think it can too, because I believe there is a lot of focus on goal setting, and it’s something that we do, particularly at the beginning of a new year. A lot of people focus on their new year resolutions, which are their goals. And while there’s been a lot written about goal setting, the importance of goal setting, writing things down, reviewing it regularly, having your affirmations and things like that. All of those things are certainly helpful, but they don’t actually, directly connect to the idea of how to achieve your goals. And that’s why I wanted to title this the way that I did, because setting your goals has been done to death, but how do you achieve your goals? I think it’s interesting to explore that aspect of this topic. Jay: Well, yeah. And one of the things that frustrates me is, when people talk about goal setting, they tend to assume that everybody’s the same. Oh, just follow this and you’re great. It’s like, I read The Seven Habits of Highly Successful People and what was never mentioned or considered in that was, it was also seven habits for highly organized people already. You had already achieved a level where all you had to do was put these things in place and you’re good. You can achieve your goals. Well, what about me? I wasn’t raised with systems and those kind of things, so what about me? I didn’t feel like there was any place that I could implement that. David: Yeah. And that is very common. I mean, I think everyone probably deals with that because unfortunately, when you’re writing a book that’s going to be on a shelf for a long period of time, you have to include things that are essentially timeless. And The Seven Habits of Highly Effective People, I mean, it’s such a great book. It’s a very inspirational read. But when you’ve got rules, like “Be Proactive,” that’s a big, broad rule, right? And in many cases you can be proactive, but what does that mean? It gets down to the nitty gritty. We’ve talked in the past about Michael Gerber, the author of The E-Myth. I love that book. The E-Myth, The E-Myth Revisited. I read the original copy a long, long time ago, and I just loved it, because this was all about processes. And that book talked primarily about the fact that you have to have processes. But then what are those processes, right? Because that’s the part that people like you and I need. It’s like, what are the processes? How do I do that? How do I make that happen? And so much of my career has been focused on that. How do I turn this great recommendation, “be proactive,” you know? Jay: Yeah. David: “Work on your business, not just in your business.” How do I take broad statements like that? To some extent, they become platitudes, and how do I turn that into something that is actionable? Because that is the only way you can ever achieve your goals. You have to be able to convert those great ideas into actionable tasks. Jay: Yeah, such a key point. I think for me, what I found is I have to break it down enough to where I can feel that feeling of success instead of failure. Right? So it’s got to be minute enough to where I can say, okay, I did it. I accomplished something. And it could be something very simple. But that motivates me to the next step. I find if they’re too big, then I’m setting myself up for disappointment. David: Absolutely. But I think anyone who reads any sort of self-help material or business material, if you can take what they’re giving you and then just ask yourself right away, “how do I apply this right now to my business?” Again, Seven Habits, “begin with the end in mind.” Jay: Right. David: I mean, you could find that in a fortune cookie, couldn’t you? It’s brilliant advice, but it’s like, oh, hey, yeah, that’s really great. Now, again, in fairness, because it’s an excellent book… Jay: Yes. David: And he goes into a lot of detail about some different ways that you can do that. But in some sense it has to be general. And that’s why, if you’re able to ask yourself that question, “how do I apply this right now?” It’s going to get you a lot closer to being able to achieve your goals. Because now it’s not about concepts, it’s about you: Your activities, your focus, and what your next step is. Jay: Yeah, so let’s get into a little bit more detail. I’ve asked myself, “how do I accomplish this now?” Is that a list you would write down or how would you recommend people proceed from that point? David: Well, yeah, I think what I would generally want to start with is thinking in terms of resources. What are you going to need to achieve your goals? Okay. because once I’ve written down the goal… say my goal is X amount of dollars in sales by the end of the year. My goal is to sell X number of customers by a certain date. Whatever your thing is, now you’ve got the goal. All right. Well, as I said, the goal is kind of the easy part. Now we need to think in terms of, okay, what are the resources? What are you going to need in order to be able to achieve your goal? Can I do it by myself? Am I going to have to hire additional staff? Hopefully you’re not. But you need to know upfront. Because if you don’t take the time to consider the resources that are needed, versus the resources at your disposal, then you won’t even know if you’re taking actions that are not going to allow you to get to your goal. But if you take the time to think upfront, okay, what are the resources I’m going to need? Who am I going to need? Right? It’s not just about the things. It’s also about the people. Am I going to need additional help with this? And if so, what kind of people am I going to need? There’s an excellent book called Who Not How, by Dan Sullivan and Dr. Ben Hardy. It talks about the fact that when we’re looking to get things done, a lot of times we think in terms of “how am I going to do this?” When in fact we’re often better served by saying, “who can help me with this, who can help me get this done?” And that goes back to the resources. If you have a clear idea of what you’re going to need and who you’re going to need, then it’s going to be a lot easier to achieve your goals. And then ultimately, how much am I going to need? How much am I going to need in terms of resources, in terms of money, in terms of people, in terms of time? Time is always one of those resources that you need to evaluate upfront, and if you don’t do that, you’re never going to get beyond the fortune cookie aspect of what it is we’re talking about here. Jay: Yeah, you’ve kind of brought up negative emotions with me because it reminds me, I grew up in the restaurant business. And before I became an area manager and a regional manager, I remember my area manager coming in every year and we’d have to set sales goals. And so first of all, it was a complete shot in the dark. It was based upon air. Right? Just how much do you want to increase your sales? And second of all, there was never any instruction on how you’re going to do this. And so, how do you do it as a restaurant? I’m not in control of the marketing budget because it was a chain. So what am I going to do? Nobody ever said, well, you can increase your sales by doing A, B, C, and D. They just came in and set this arbitrary goal, and at the end of the year I was beat up because I didn’t reach that goal. And I’m like, this just becomes a bludgeon that creates disappointment. David: Right, because the focus there is on the what. Jay: Yes. David: What is it that I want to accomplish? Just like we’re talking about with goals. This is the goal. Okay. The goal is established very early on. But then every day, every hour preceding that, you need to ask yourself, am I on track? And that’s going to go back to, first of all, do you have a plan in place? Because if you don’t have a plan to achieve your goals, then it’s not going to happen. But then beyond the plan, do I have the resources? Do I have them in place? Am I firing on all thrusters? Jay: Mm-hmm. David: Are we doing the things that we need to do in order to accomplish it? And then also just adapting, recognizing that, let’s say you establish your goals today, you lay out a plan today, and you’re starting on it tomorrow. Well, as soon as you start it, it’s like that old quote, I don’t know if it was Colin Powell, some military general talked about the fact that “no battle plan survives contact with the enemy.” Jay: Yes. David: And it’s the same thing with a goal in business. It’s not going to survive contact with prospects and clients. You set your goal in terms of what you want to reach, but every day you’re going to be taking actions, some of whi

  8. Jun 9

    Increase Revenue with Upselling and Cross-Selling

    If you want to increase revenue, upselling and cross-selling can help. So what’s the difference? Upselling means selling a better or a higher priced version of the thing that they’re looking at. Whereas cross-selling is making a recommendation of something that’s compatible. David: Hi, and welcome to the podcast. In today’s episode, co-host Jay McFarland and I will be discussing the topic of upselling and cross-selling. Are you doing it? Welcome back, Jay Jay: Yeah, hey, thank you, David. Listen, have these bad memories when I was a kid and I was working in a fast food place and the manager was always pressing me, “ask them if they want a Coke, ask them if they want fries.” And I got to a point where it’s hard to upsell and I think this has grown into my adulthood. You know, I just barely got the sale and now I’m asking them for more. It’s not an easy thing to do for people. David: You know, it’s interesting you should mention the fast food example because it’s the perfect example. It’s the one that everyone can relate to. “You want fries with that?” Jay: Yeah. David: Or the shortened version that you hear a lot of times, “want fries with that,” as the four word upsell. And it works extremely successfully for people in that sort of industry. Because it makes sense. Somebody’s coming in, they’re ordering whatever, a burger or something, or they’re ordering a burger and a drink, “want fries with that” makes perfect sense. And some percentage of time they’re going to say yes. And whether that is 1% of the time or 80% of the time, it’s probably maybe 30 to 60% of the time, I would guess, they’re going to say yes. Because it’s like, “oh, all right, sure. Why not? I’m already here.” Jay: Yeah. David: And you hit on a great point, which is that we can feel funny about upselling, if we feel like the purpose is to simply get more money out of a person. If it feels like it’s completely one-sided, if it feels like it’s manipulative, then we’re not going to want to do it. So I personally believe that the times that we should upsell and cross-sell are the times when we truly believe that we have an additional solution that is going to be better for them. Now, in the fast food example, are french fries better for you on top of the Coke and the hamburger? Jay: Yes! David: Probably not from a, health level, but certainly from a satisfaction level, yeah, it’s better. People are likely to want that. But in business, if you’re selling something, and somebody comes to you and they have something very specific they want to buy, and you have something that would be complimentary to that, or something that would go with that really well and would increase the value to the buyer, then you kind of owe it to them to at least ask them if they’re interested in that. Jay: Mm, I love that. I love that idea that if you are feeling uncomfortable, maybe you should ask yourself why. And how do you feel about your product? Are you really providing a value to them or are you just trying to sell something and get a paycheck, right? And I think we all have to ask that question about our own careers and what we’re doing and what we’re selling. But, you know, if you can just feel great that what you’re providing them is going to improve their situation, then you’re just passionate about what you’re doing and that’s going to come through. David: Yeah. So when you are talking to somebody like that, if you’ve got something that is actually going to be a benefit to them, if it’s going to help them, then it’s a lot easier to do it. So that really just boils down to motives. What is the motive? And unfortunately, I think sometimes managers, like in the situation you described in the fast food restaurant, the manager says, “just do this. Ask them if they want this. Push it, push it, push it. Sell, sell, sell.” When instead, if the manager had said to you, Hey, listen, when people come in here, they’re hungry. They want something good. You know, they’ve ordered this, they’ve ordered that other thing, so they might want it and maybe they didn’t think of it. You might want to suggest that. Maybe they want dessert, maybe they want an apple pie at the end, right? Jay: Mm-hmm. David: Apple pie. I’m saying yes to an apple pie, right? And if you don’t ask, you don’t get, and it’s very easy for them to say no. Now, there are situations, and I’ve heard it referred to, particularly in online situations, where there are online upsells where you buy something and then it asks you if you want to buy this and you want to buy that and you want to buy this. Yeah, I’ve heard people refer to that as upsell hell. Now, if you get somebody involved in that, then that’s not good. But if you make a recommendation that makes sense for them, then I think there’s absolutely nothing wrong with that. Jay: Yeah, absolutely. I also have heard this, you know, back to the fast food example, when the person who’s embarrassed to do it, they say, my manager wants me to ask you if you, and I’m like, oh, that’s just the worst situation. But I think, you know, I’ve also had like servers say, ” you should try this because it’s really good.” David: Yeah. Jay: And that’s different, right? That doesn’t sound like an upsell. That doesn’t feel like an upsell. So how you go about it, and are you passionate about it? Do you really believe that? David: Right. Jay: That makes all the difference. David: When my son was traveling, he was in Italy with some of his friends and they went out for dinner one night and they went into this restaurant and the waiter was very happy to see them. Americans there to spend money, and the waiter came over to take for order and one of the guys ordered chicken and he said, “no, no, no, no. You don’t want the chicken. It’s terrible here, get the steak,” right? Now there’s an example of an upsell, I guess. Jay: Yeah, David: Upsold them from the chicken to the steak. The steak was a lot more expensive. Was the chicken there really terrible? I have no idea. But he presented it in a way that made them think, all right, I’ll get the steak. And it was entertaining, too. So I think there are ways of engaging in this type of behavior where if it’s not manipulative, and it actually gets them a better result than you might as well do it. You know, another thing I think that people should consider is that when it comes to upsells and cross cells, it’s not something that always just has to take place at the immediate point of purchase. I mean, obviously that’s a great time to do it, but if someone buys something from you… in the promotional products industry, I mean the, examples are kind of easy. Somebody buys t-shirts or sweatshirts, “want caps with that,” right? Would be the equivalent of french fries. And you can ask and they can say yes or they can say no, whatever it is. But if you don’t do it at the point of sale, you could contact them back maybe a few weeks, a month later. Hey, I just wanted to let you know we just got this new product in. I think it would go perfectly with those shirts you got. Would you be interested in having a look at that? Right? And that’s an example of an upsell or a cross-sell that could take place later. So it’s not like, If you didn’t do it the first time, you can never do it again. There are plenty of opportunities to do that throughout the sales cycle. Jay: Yeah, I agree. And the other thing, I’ve seen some research and it’s something that I’ve implemented that has helped me get over the upsell thing, is that research that I’ve seen shows that the time when people are most willing to spend more with you is when they just spent with you. And that seems counterintuitive, right? Like, I just got this money out of you. You just spent money and you’re willing to spend more. That doesn’t feel exactly right. David: Yeah, but again, if you go back to the fast food example, it does make perfect sense. I’m getting this and I’m getting that. Do I want this too? Yeah, sure, why not? So there is that aspect of it. Now, outside the fast food example, it might not be quite as obvious and there might not be as much of a connection. But once again, I think if we get beyond the idea of selling product, and we get more into the idea of satisfying the customer, what is the customer looking to get from this experience? So in a promotional products example, am I looking to buy shirts? Not so much. I’m looking to buy awareness of my business. Maybe I’m looking to have people wear this thing and have people see it and recognize my business. Perhaps I’m looking for a sense of affinity, that the people who wear it feel good about my company. So there are very deep things that I could be looking for in this purchase. And so if I’m able to connect my additional recommendations, my upsells and my cross cells to those types of things, the things that motivated them to want to do it in the first place, then they’re going to be a lot more likely to say yes. But they’re also going to be a lot more likely to appreciate the fact that you thought about what they actually want and you’re trying to deliver it to them. Jay: Yeah, and then you’re avoiding that salesperson feeling and you’re more like a consultant, as we’ve talked about so many times in these podcasts. I think the other thing that you have to remember, just from a pure business standpoint, we talk about customer acquisition costs a lot, and if you can upsell somebody, That’s product on top of your initial acquisition cost. And then if you can cross-sell them, take your existing lead database and cross-sell them into other products, that by far is a better way to do business than constantly having to find new customers and always paying that cost to get those new custom

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The Top Secrets of Marketing & Sales podcast provides tips on how to increase sales, improve profit margins and grow your business. Each week, we address issues related to important topics like targeting your ideal prospects, fine-tuning your messaging, attracting the clients you need, monetizing social media, the MVPs of Marketing and Sales and much more. From mindset to marketing and prospecting to podcasting, the Top Secrets podcast helps B2B and B2C entrepreneurs, professionals and salespeople get more of the customers and clients they need so they can do more of the work they love.

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  • Creator
    David Blaise
  • Years Active
    2005 - 2026
  • Episodes
    299
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    Clean
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    Copyright © David Blaise, Blaise Drake & Company, Inc. | TopSecrets.com | 463414
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    Top Secrets of Marketing & Sales

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