The Death of Personal Marketing ?

Let's make a math problem out of this question.

I tend to use the rule of $1000.

Which is to say: That I need to find out what it takes to make $1000 per week at what I'm doing.

Let's say for example that I sell mutual funds. Let's also say that when I sell funds I splt the commission with the house 50/50.

Let's guess that the gross commission to the house is 3% on the funds, which means that I make 1.5%. The math shows me I have to bring in $66.6K of new money for me to make my $1000 that week.

Now, we multiply the $1000 x 52 weeks per year and what do we get? A measley $52K for the year. I spend 50% of that on what it costs me to book that business and now I have $25K for the wife and kiddies.

I'm a member of the chamber of commerce which gives me two networking events per week. On Monday I'm at the Ambassador meeting and on Thursday I'm at a ribbon cutting for a new business. I also belong to a franchised networking group, so on Wednesdays I'm at breakfast with 20 or 30 other folks like myself.

On Monday at the Chamber Ambassador meeting I'm with most of the same people week in and week out, so the chances of creating a new client from that experience is next to nil. Same way with the franchised networking group on Wednesday.

If I do these same activities over and over I'm confirming what Albert Einstein said, which is, "The definition of insanity is to do the same thing over and over and expect different results".

To grow my business I need to break out of the mold. To do that means I have to change strangers into customers. Not just a few, but a lot of them, and in short order.

I have to get my message through all of the other noise out there, which means I have to market, market, market, and then do some more marketing. I have to play with the rules as their handed out, but in the same breath I have to bring home the bacon.

Chuck

It's the same in my business - talk to more people.

MitchM

Networking is a topic worth discussing in another thread - but I will say that networking for me is about developing supportive relationships and expanding my sphere of influence.

My limited observation is that the higher the sales income the less time is spent on networking and conversly the lower the sales income the more time is spent on networking - of course there are exceptions to everything.

MitchM

Quote:

Originally Posted by MitchM

My limited observation is that the higher the sales income the less time is spent on networking and conversly the lower the sales income the more time is spent on networking - of course there are exceptions to everything.

You mentioned BNI and Chuck mentioned the Chamber of Commerce so it's probable that my interpretation of networking isn't the same as others. Networking for me isn't about lead swapping. Networking for me is about developing supportive relationships and expanding my sphere of influence.

"You mentioned BNI and Chuck mentioned the Chamber of Commerce so it's probable that my interpretation of networking isn't the same as others. Networking for me isn't about lead swapping. Networking for me is about developing supportive relationships and expanding my sphere of influence." -- Liberty

I believe all of the above is what many average income earners do while high income earners - over $200,000 yearly give or take some thousands of dollars - don't.

Obviously exceptions exist because of personal abilities and specific sales niches.

MitchM

Quote:

Originally Posted by Liberty

You mentioned BNI and Chuck mentioned the Chamber of Commerce so it's probable that my interpretation of networking isn't the same as others. Networking for me isn't about lead swapping. Networking for me is about developing supportive relationships and expanding my sphere of influence.

I agree, Liberty.

Also, in my experience, groups like the Chamber of Commerce are overflowing with members looking for leads (many are salespeople or entrepreneurs in the early stages of their careers or businesses), not filled with people who are potential customers (for most of us). If a salesperson is going to join an organization where the main purpose is advancing their business, it would be wise to join a group that has a large number of potential customers, not just a large number of other salespeople looking for leads.

BNI - Business Networking International franchise, is the same. A few do well - everyone needs a handy man who does great work, cleans up, and charges "reasonable" but competitive rates. Same for an auto mechanic. Same for someone who can sae you money on auto insurance with a good company.

But house painters - in a down economy especially - hair cutters, remodelers, builders - I could go on - I've seen them all join and quit with little to negative to show for their efforts.

The personal marketing I do is making a direct sale - obviously in network marketing you seek people who will also become direct sellers and so on. I've tried and have known many who believed they could do well on line flop flop flop. The exception is a little international business we've generated using SKYPE for contacts.

So in my limited experience of eleven years with our company direct selling - personal marketing - is a face-to-face ear-to-ear activity alive and well.

There are some who would say network marketing/multi level marketing is not true direct sales - I disagree. I sold a kit of weight loss products last week.

Anyway, this thread has lots of twists and turns - that's mine.

The best to everyone.

MitchM

Quote:

Originally Posted by Sales Pro 1000

In reading Mr. McCord's article I'm thinking that if I were to feel the same way he does then I'd better not even get out of bed in the morning. He's touting that the glass is half empty, not half full.

Chuck

Why in the world would I want to stay in bed? You’re the one reading negatives into this. I think this is the most exciting time in history to be in sales. The challenges are great and getting greater all the time. The strategies and concepts must change to meet those challenges. But the potential is also greater than ever.

Many have given some great advice such as to focus on the prospect’s needs, not the salesperson’s. To get connected. Etc. Those are great things to do. The problem is you gotta have someone to talk to.

As has been pointed out, hanging at BNI and the chamber isn’t going to do it. Sending unsolicited emails isn’t going to it. There are certainly more effective ways of finding prospects than spending hours on the phone setting up 2 appointments—where one is a no show.

I don’t see this as alarmist, defeatist, or depressing. I see it as an incredible opportunity to make more than ever before. Do I expect a large number of salespeople to hurt? Yes. But that’s simply because they refuse to change or don't see a need to change as the selling environment changes. Those that learn to capitalize on changes will create great sales businesses for themselves.

A recent non-scientific survey by my company showed some of the inefficiencies of the way salespeople market. This survey was a small sampling of random consumers—150 individual consumers and 75 businesses across the US. By no means am I claiming this to be a scientific study.

On average, they receive 11 cold call solicitations a week. Less than 8% will accept a cold call of any kind. Only 2% have acted on a cold call in the last year (business is, by the way, more likely than individuals to respond to cold calling).
On average, they receive over 87 pieces of direct mail a week (direct mail was from both individual salespeople and companies--and companies receive far more than individuals). Less than 12% read any direct mail solicitation. Less than 6% have acted on any direct mail piece in the last year.
Only one of those surveyed has ever called a number off of a sign on a street corner
About 30% of the business respondents have been approached at an event of some kind by a salesperson trying to establish contact. Less than 5% have purchased based on any contact met at an event (does not include requested information at a booth at a show or convention)
Of the 75 business consumers, only 4% have read any of the fliers faxed to their office in the last year with none purchasing a product or service from an unknown vendor or salesperson

Even if you assume that the respondents to this unscientific study are only half as responsive as the average consumer (highly unlikely they are that far off the norm), then only 4% of consumers will respond to any cold calling; only 12% will respond to any direct mail; and only 10% of business contacts through networking will ever buy a product or service from anyone. Even by doubling the numbers from the survey, it’s pretty slim pickins.

Is it any wonder the average salesperson’s hourly income is only $23.30 or about $48,100 annually? This average income does not include retail store salespeople. There are other studies that show the average sales income in the low to high 30’s, but these studies include retail store salespeople, bringing the average down by 10 to 15,000 a year. This average income has been inching up annually for the last several years. The average should begin heading down again. Partly because we’re heading into a recession which will make selling tougher, but also as time goes on, more and more salespeople will find themselves selling a commodity.

The skill level that works today might not work as well in the future. One personal marketing strategy is cold calling. The days of cold calling anyone and everyone are mostly behind us. The bar has been raised. This raising of the bar doesn't affect salespeople who have been operating at a high skill level nearly as much as the amateurs who were doing it wrong from the start.

The Death of Personal Marketing ?

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