By Michael Port

It’s very common to see service professions offering free sessions or services as a sales tactic in order to get clients. Does it work? Sometimes. Should you do it? Depends on who you ask. Some swear by it. Others have sworn off it. And yet, others still, swear every time they do it. Generally, I don’t recommend it. Think about it. How does it look to a potential client that you’re offering free sessions to anybody that happens to stumble across your website–in demand, successful and valuable or, sitting around with lots of time on your hands just trying to give your stuff away for free in hopes that someone will hire you? In my humble opinion, the latter.

Credibility is part perception. And, anyway, what happened to your Red Velvet Rope Policy? Sure, get on the phone with someone to see if they’d get passed your red velvet rope and give them an opportunity to fall in love with you at the same time but don’t set up a situation where a) they perceive that they’re supposed to get some big result from that one free session and if they don’t, they’re disappointed and don’t hire you and b) they see you as a low status service provider. With all due respect, do you think you can call my office and say, “I’d like to schedule a free hour-long session with Michael”? I would think not. So, why should I be able to call your office and get your time for free? I shouldn’t. Before you get your knickers in a knot, hold on, because it doesn’t mean that there isn’t a way to use this strategy—there is.

Here’s how I used free sessions to “close” 65% of new business during my first year in business. I included an offer for a 20-minute laser coaching session into my sales cycle–but only after someone had demonstrated that they were serious about learning from me. If someone downloaded my 7-part email mini-course (see why information products are important to the lead generation and conversion process?) I would send them the first two lessons during week one. Each lesson included two paragraphs of education followed by a detailed written exercise. Then, instead of starting off week two with lesson three, I would send a “congratulations and reward” email, offering praise and appreciation for the work they put into the first two lessons (all of this was automated). As a reward, I offered them a complimentary 20-minute telephone coaching session to address any questions they had about the material in the first two lessons. I called these phone sessions, Laser Coaching Sessions. However, in order to book the session, a number of criteria needed to be followed, which I spelled out in the “congratulations and reward” email:

• They had to schedule the session using my public calender. I made only a few spots available on Friday afternoons so that a waiting list developed quickly. This way I didn’t look like I was sitting around twiddling my thumbs, hoping someone would show up.
• If they missed the session or didn’t reschedule with 24 hours notice, they missed the opportunity and could not reschedule (again, all of this was automated).
• If they were more than a few minutes late to the phone session, I wouldn’t pick up.
• And, finally, within one week of the scheduled sessions, they had to send me an email with their responses to the exercises from the first two lessons. This helped because:
  • If they had not already, it got them to do the exercises. Getting clients to consume your work is as important as getting them to hire you.
  • By reviewing their written exercises, I knew what they needed before they dialed my number. It showed me what they were struggling with and how to help them. So, in just 20-minutes I could solve their problems and create an impressive result.

You might think that all these rules would put potential clients off. You’re trying to get clients not force them to jump through flaming hoops. But, you know what? Over 65% of the people who signed up for the free 20-minute session became clients. The other 35%, for the most part, truly couldn’t afford it. But I’ll tell you what, that other 35% generated even more business for me because they went out to their community and talked about me and the work I “gifted” them. Figure out a way to use this strategy in your sales cycle and you’ll get the opportunity to do something valuable, and free of charge, for your potential clients. You’ll enhance your reputation, build credibility, and book more business.

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By Michael Port

The Italians have La Dolce Vita, the French have Joie d’Vivre. What do Americans have? Happy Hour? Miller Time? We need help.

Good news. Help has arrived. New York Times bestselling author Michael Gelb (How to Think Like Leonardo Da Vinci) opens our eyes to the remarkable power of wine to tap into our creative potential as we deepen bonds with friends or co-workers. Seriously. I’m even encouraged to start drinking.

Wine Drinking for Inspired Thinking offers a “whole brain” approach to wine appreciation and enjoyment that is definitely unique.

Highly recommended.

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By Michael Port

My latest article for American Express’ OPEN Forum. Here’s a preview.

I had a meeting today with a guy who wanted to discuss a possible business collaboration. Basically, he had a pitch for me, and we spoke for about 20 minutes. I offered about five sentences, and he filled the rest of the time with puffery–for his idea, the people involved, and me. What’s puffery? It’s flattery and exaggerated praise, especially when used for promotional purposes. It’s my new favorite word. Pizza Hut is using it in their commercials to point out that the “better-tasting pizza” claims of the Papa John’s organization are no more than puffery. Apparently, Papa was forced to admit as much in a federal court. Yikes.

Continue reading the article at OPEN Forum.

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By Michael Port

Sometimes, when service providers get overbooked, they complain about it. Oh, how easily we forget what it was like when we were struggling our way up the ladder. Moreover, I’ve witnessed many a service provider resist raising prices, which might allow them to work with fewer clients, for fear of loosing business as this simple story will illustrate.

A have an acupuncturist that I see from time to time. He might be the best known acupuncturist in my town. He’s certainly the most experienced and has an overbooked practice because of it. Every time I see him he complains (in a nice way) that he’s overworked and can’t keep up with demand. He doesn’t want to change the model of his business, in that he still wants to see patients himself and doesn’t want to manage other acupuncturists, but he resists raising prices, nonetheless. So, every time I see him, I complain to him (in a nice way) that his prices are too low and, in fact, should be doubled. His answer is always the same, “But, Michael, if I double my rates, I’ll loose half my clients.” I’ll pause here to let that sink in. First of all, he won’t loose half his clients but even if he did, he’d still make the same money and have twice as much free time. More likely, he’ll lose just a few clients but make much more money because he doubled his prices.

If you do raise prices, it’s a good idea to let clients know why. There’s nothing wrong with saying that you’re fortunate to be in high demand and are raising your prices so that you can give more attention to your clients. Or, that certain expenses related to serving your clients have increased and you’re raising your prices accordingly. People like the truth. I’d prefer to be open and honest with my clients, running the risk of disappointing a few of them, then be manipulative or obtuse, running the risk of damaging my soul.  Just be sure to let them know what the new rates will be and when they go into effect. Give them reasonable notice and consider giving them lots of advance noticed so they can adjust to the changes. And, most importantly, remind them of the continuing benefits they’ll get from working with you.

On the flip side, you don’t always have to carry over all costs or eek out every bit of profit on every sale. Sometimes you can earn long-term marketing juice by taking one in the chin for the sake of your clients. My son’s favorite pizza place is an organic one called Jules Thin Crust Pizza. At one point last summer the price of cheese went down. Now, the average customer is not going to know this. I eat cheese but I don’t buy it in bulk. It would have been easy, and cheesy (sorry, couldn’t resist), for Jules to just pocket the extra profit from the savings. But no, instead, they put up a big sign announcing the cheap cheese and that they were lowering prices because of it. All summer, their busy season, no less, prices where reduced. I asked the owner, John, whether the cheese experiment cultured nicely or stunk up the place (sorry, again, couldn’t resist). He said it was a huge success as a day did not pass without a multitude of “thank you’s” being tossed his way. Now, John’s not the type to boast about sales but I’m pretty sure he saw more business because of his gastrointestinal stimulus package.

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By Michael Port

Check out this email my office received yesterday from a “radio station” that produces programming for American Airlines. At first, it appears to be a producer reaching out to me for a radio interview based on my work but right before he signes off notice how he slips in the word “cost.”

This is not the first time I’ve received direct outreach like this and I’m sure it won’t be the last. Also notice the use of the “confidentiality notice” at the very end of the email. Is this supposed to protect the sender from beging labeled a spammer? Because, it won’t work. You can’t put someone on a distribution/broadcast list and then claim it’s “privileged information.” This stuff makes my blood boil because it’s what gives salespeople a bad name.

UPDATE: I’m not saying that what this guy is offering is not going to get you business. It might (or might not) be a good marketing strategy to be on the sky radio program but that’s not germane to my point. I simply object to his kind of sales tactic.

______________________________________________________________________________

Time-Sensitive Material
Michael Port & Associates LLC
DeHart, Gayla S.

Hi Gayla,

My name is Steven James and I’m a producer for American Airlines “Business & Technology Report”.  Our talk program entertains millions of travelers each month.

I’d like to personally invite a spokesperson from your company to participate in a interview segment on our upcoming edition of “The Innovators” airing worldwide to 8.4 million throughout July and August 2010.

For participation details and cost, click http://www.skyradionet.net/aapromo.

Please contact me soon as space is limited.

Steven James
Producer
Sky Radio Network
5320 Laurel Canyon Boulevard
Valley Village, CA 91607
818-232-7069 Direct
818-301-2085 Fax
sj@skyradionet.net
www.skyradionet.com

Producers of the #1 Talk Shows in the Sky and on the Web

CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, copy, use, disclosure, or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message.  To be removed from our invitation list, reply to this email stating your intent or click the following link: Unsubscribe me from this list

______________________________________________________________________________

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By Michael Port

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By Michael Port

My latest article at American Express Open Forum on the 6 Keys to Creating Customer Connection.

“All sales start with a simple conversation. It may be a conversation between you and a potential client or customer, between one of your clients and a potential referral, or between one of your colleagues and a potential referral. An effective sales cycle is based on turning these simple conversations into relationships of trust with your potential clients over time. We know that people buy from those they like and trust, and you’ll begin to earn this trust when you’re able to answer the following key questions…

Read the complete article about how to create connection with customers.

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By Michael Port

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

— Thomas Jefferson,  3rd president of US (1743 – 1826)

Things that make you go, mmmmmm…..

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By Michael Port

I’ll be on MSNBC’s Your Business this Sunday at 7:30am ET. Yes, DVR would be a good option. Jean Chatzky did a great job filling in as host for the consumate JJ Ramberg. But, to be perfectly honest, I wasn’t crazy about the other guest. I didn’t find him particularly gracious as will be evident when you watch the episode.

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By Michael Port

Contributed by LeAnne Ozaine-Smith – The Money Guru and my parter at ProsperityForBigThinkers.com.

If you sat with your Investment Advisor and said, “I want an investment that gives me a 10% growth every year for the next 15 years,” they’re gonna tell you to adjust your expectations.

As an financial advisor, I’m all for the “where do I put my money” conversation. But here’s the deal, you can chase the perfect investment and still lose (vague memories of real estate bottom out, stock market in 2008, etc.).  There are rarely guarantees in investing and there is always risk of loss. If you’re looking for an unlimited growth opportunity, and you’re looking for an undervalued investment that can grow like a dandelion in June then here it is: it’s your business. Your business is the best, most undervalued investment you can find—which means that you can be looking for double digit ROI.

Want 10% ROI this year, next year, and every year? It starts with you understanding how to make money on your money.

1. Look for ways to reduce spending in your business by 5%. That means if you have a $50,000/year overhead, all you have to do is spend $200 less per month If you have a $12,000/year overhead that’s just $50 less per month… you can do it! By spending less, you’re keeping more of what you’re making. Which means your bottom line grows by 5% with a painless tweak.
2. Get Booked Solid and make a minimum of 5% more. If your total business income was $100,000 last year take on one more client or do one more project to bring in just $400 more a month. Or if your total business income was $25k, a little bump in income of $104/mo will grow your bottom line by 5%.

Remember, always be more concerned about the result you’re getting from what you spend to be in business, than you are your overhead. If you’re careful and purposeful with your business income, seeing 10% ROI is both realistic and attainable.

For more on how to earn more and spend less, check out ProsperityForBigThinkers.com and download, the Special Report: 5 Down and Dirty Ways To Overcome The Break-Even Trap.

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