Without a continuous influx of new clients and customers, every company will go out of business in relatively short order. This is axiomatic because of attrition. You can be the “best in the business” and, unless you replace them, all of your current customers will eventually go away for a myriad of reasons.

Invest in the surest investment of all – your own team!

Why do all the most successful firms – those with top market share – always use sharp, crisp, custom images and elegantly produced written and video content? Why do they pump money into all those creative services when customers just want great service and quality products? After all, beautifying your image doesn’t add any value to your end product but instead adds costs that your customers must ultimately pay for. Why not keep your marketing spending as lean as can be and just focus on better customer experiences?

The smart companies that lead their markets also show the most respect for their industries and represent them the best they can – both internally and publically.

Market leaders don’t skimp on the vital stuff such as how well they communicate. Good business communications do not include kid’s stuff graphic design, even if it’s your own kid’s! Your text must be written clearly and professionally, understood precisely at the first skim of your readers’ eyes. It must come from an experienced perspective. Going amateur on content is a big mistake for your brand and will hurt your selling efforts as well.

An industrial titan once remarked. “Trying to save money by cutting advertising is like trying to save time by stopping the clock.” Time marches on and so do your competitors who agree with this idea. You can go ahead and save some marketing money while the competition woos your prospects and customers away with innovative ideas, compelling value propositions and yes, really sharp looking promotions.

If you’re fighting upstream to gain market share or bigger clients, you can at least look as good as your best competitors with a little investment in the quality of your marketing communications. There’s more instant credibility given to the company or brand that invests in itself to sustain growth. This includes consistent professionalism in all of its communications: websites, social pages, brochures, packaging, brand-product design, email, print, signage… It all has to sing the same quality tune so your potential customers will feel more confident about giving you their business.

What’s the right budget that will give your company the marketing and business development lift it needs to stay competitive and gain market share?

According to a Google furnished statistic, “The U.S. Small Business Administration recommends spending 7 to 8 percent of your gross revenue for marketing and advertising if you’re doing less than $5 million a year in sales and your net profit margin — after all expenses — is in the 10 percent to 12 percent range.” That number is calculated from an average across a diverse range of business categories, so it’s too simple to assume that it would apply to your small or medium sized business. However, it may be an eye-opening benchmark number indicating that businesses need to spend a significant amount on marketing to keep revenues flowing.

Every business should calculate how much to budget for marketing based on the about of profit each customer brings in and how much of that it’s willing to spend to keep bringing in new ones.

AP Photo/Pat Wellenbach

Forbes offers a great piece on how various kinds of small businesses should calculate their budgets based on their own realities.

Most publically traded companies spend a lot more than 7 or 8 percent on marketing, and the total average for companies in the under $25 million segment is roughly 11 percent according to The CMO Survey published by World Market Watch.

Whatever size your business is and whatever industry you’re in, I hope this article provides you insight on the right budget range for your business. For example, let’s say you have a small business with $2 million in revenues, and you budget something like $50,000 a year for marketing. Can you now see that you’re potentially limiting your growth opportunities?

Most companies in the $2 million revenue range should be spending $150,000 or more annually on marketing. A $5 million company should be spending more than double that. Going in the reverse direction, a $250,000 a year business should budget $20,000 or more for marketing services. Do these figures sound reasonable? If not, it might be important for you to figure out how to tie your spending to sales in a way that covers the expense and continually fuels an effective marketing effort.

Is a limited budget limiting your growth and keeping you from getting better sales opportunities?

For the record, I currently invest the equivalent of about 15% of my business revenue in marketing and sales programs which include my website, blogging, email marketing, social media, networking and a little advertising. It’s been working for over 5 years now and my plan is to increase it next year in order to reach my goals.

If you’re in a competitive market and struggling to figure out how to grow without spending more on generating quality leads, you might need to think differently about what “competition” really means. Maybe you need to double or triple your marketing efforts just to get into the same arena with the top brands in your industry. This will give your competitors’ customers a chance get familiar with your name and consider you a good option when it’s time for them to make a change.

The post Great marketing is a top priority of leaders. appeared first on Chuck Sink Link.

Good chemistry can sometimes spread a blind over terms & conditions in a formal business contract that would otherwise be negotiated out. Mutual goodwill and good vibes all around bring out a CEO’s pen and the potentially onerous contract terms are overlooked for a prompt authorization signature. “Let’s just do this” is the consensus feeling among both teams.

The length of the honeymoon period can vary but it usually has something to do with a transition of focus – from newness to the anticipated results of the new product/service. When things are working well and money is being made, the contract is irrelevant and forgotten. When product or service performance fails to meet expectations, that piece of paper is pulled and reviewed. Then those onerous terms begin to glare.

If poor performance continues, the client executives begin to think about ways to end the relationship early and learn from the experience. Goodwill may still remain at this point but a serious discussion must ensue. The vendor’s terms include stiff financial penalties for the client to pull out before the end date. Essentially, the client is required to pay good money and receive nothing, only because both parties could not anticipate or recognize a no-fit situation. Some companies try to protect themselves with contracts that assure they will receive every last penny, even if paid reluctantly under strict contract enforcement.

Onerous contact terms are often in the form of financial penalties for early termination. They can also be in the form of “technological handcuffs;” purposefully making it costly and tedious to make a change. Large home security companies and other technology based firms are known for this. It may work out for them in the short to medium term but eventually people will migrate to suppliers who perform well and allow them to pay as they go.

While contracts are necessary to formalize business relationships and set terms of agreement, there needs to be a fair and non-burdensome escape route for both parties. My opinion is that companies attempting to protect profitability through enforcement rather than value performance are aware of their own potential deficiencies and may be hiding them.

If you’re a client willing to pay good money for products & services, the implied contract of value for payment is what’s important. The last thing you want is a resentment stemming from being locked into bad deal.

Here’s the kicker. Customers very often come back to the “old girlfriend” (or boyfriend) after checking out the “bar scene” of the marketplace and finding it wanting. Make sure your last date ended on an amicable note! In business, we can still be friends while seeing other people.

The post Don’t fall for contract lock. appeared first on Chuck Sink Link.

This post is updated from one year ago and it is more relevant today than ever.

I will need several business services and products to continue growing my business and many of them I don’t need now, or can’t afford yet. That’s why I want you to keep in touch so I won’t forget you.

One of the most common mantras you will hear in business is “Timing is everything.”  I agree. Trying to persuade a prospective customer that he needs your product before he needs your product will annoy him. Just as bothersome is attempting to “educate” your prospect about his “pain” when he doesn’t feel any. If, however, there is a pain point in his business and your product or service will solve it, then by all means take some time to discuss your solution. If you get a “think it over” response, you probably won’t make a sale… until maybe year or two from now. I’m sure you plan on still being around then.

A careful sense of timing – to each individual customer – is critical when planning a direct marketing message or making a sales call.

You may say, “yeah, but how can you possibly live inside every potential customer’s world and know when the time is right?” In traditional business development, a good CRM (customer relationship management) program like Salesforce or ACT works well. So, that’s one way to use good timing but there’s a better way:  It’s all the time!

Junk goes in the trash but the good stuff is opened.

First, identify your target audience by vertical industry lists or by networking and prospecting so you know they have a need for your service or product. Develop your database of names, addresses, phone numbers and EMAIL ADDRESSES. Furthermore, connect with as many as possible on LinkedIn and Facebook. Follow them on Twitter. Then get to work being a sought-after specialist to each one of your prospects.

Why are Google and Apple the most successful companies in the world right now? Because they are genius at what they do and how they communicate it. They remainrelevant and communicate value all the time. There are much smaller examples including local restaurants, law firms, IT companies, you name it.

You need to get busy demonstrating your genius to all of the prospects in your database.  Be a collector and generator of valuable content – expertise and ideas that make people say “Hmm… or WOW!  Yes, it’s hard but you can do it. If I can do it, you can do it too, maybe better!

This isn’t about about you but rather the people in your target audience. My closest concrete example of how this works is what you’re reading right now. Every week different people tell me the same thing: “I get so much junk email and delete it but I always save and read your newsletter.” The Chuck Sink Link generates more quality leads – soon to be clients – than any other sales or marketing activity I’ve ever practiced in 25 years. To all of you: Many thanks!

The examples of how this works are sprinkled throughout your life.

Think about the emails you opt-in to and the supplier companies you follow. What about the exceptional sales reps that stand out from the crowd and whom you like hearing from?

There are plenty of great marketers who know how to put value in front of their audience on a regular, appropriately frequent basis so they are top-of-mind at all times for their products & services. So, when the time is right for their prospect to buy, guess who gets the call?

The post I’m interested, but not right now. appeared first on Chuck Sink Link.

Clients and customers are just like you, me, our friends, neighbors and coworkers. We use social media to stay in touch and be informed about people, groups, organizations and causes that interest us. It’s mostly about the people.

You and I don’t intentionally log on to Facebook to be wooed by a big brand and persuaded to share their self promoting messages with our friends. Neither does your social media audience (if you have one). They are online to socialize and be entertained or informed. Some are there to feed their egos.

Social Media is nothing but a collection of tools that are free for anyone to use. Social Media is not a free advertising medium. It is a good paid advertising opportunity but that’s a topic for another article. We’ll stick to free organic use for today.

Presumptive conventional thinkers continue to treat social media as a place to broadcast without paying for time and space. All they have to show for it is a lack of results and the conclusion that it doesn’t work.

I’m going to let another author take over by way of an article share. Liz Gross writes in Social Media Today about the best current approach to social media use. It’s all about networking, public relations and stakeholder service. READ MORE…

The post Marketing Mistake: Focusing on Social Media appeared first on Chuck Sink Link.

Can we make this quick?

The idea sounds good.  Turbo charge your networking effectiveness by jamming in as many quick conversations in pairs as possible under a drill sergeant with a stopwatch. Collect more business cards in less time!  That’s what appeals to a lot of salespeople who sign up for these events.

 

I remember studying the faces of some speed networkers at one gathering.  The dominant ones doing most of the talking would lean over the table, boasting about their companies and products with an intense stare. For them there was blood in the water and prey to be had. The ones listening tended to lean awkwardly back, politely holding attention to the full frontal sales pitch.

What’s wrong with this model?  It goes against human nature and business principles. Speed networking is awkwardly prospecting for leads.  Real networking is forging lasting relationships and building loyalty that is genuine. Which one actually works?

Even if you’ve scored a good contact or two at a speed networking event, it wasn’t those rushed elevator speeches that made it happen. It happened because you connected as human beings and liked each other. A buyer-seller fit would be a nice bonus. A good relationship can develop only by spending time communicating at deeper and deeper levels. This includes business relationships.

Networking events just for the sake of networking are wonderful when the people attending understand the principles of networking and follow the rules of engagement.  There are lots of books and countless articles & blogs on the art of networking. This space is too short to expound further, but I’ll offer a few quick tips for how to approach networking:

• This is not about you and it never has been.
• Get really interested in what others have to say.
• Be an ambassador and a connector, not a salesman.
• Have an awesome value proposition ready for when people ask what you do.
• Show up again and again – enjoy the friendships you make follow through on the referrals you get.

The post Speed what? Are you kidding? appeared first on Chuck Sink Link.

A FREE NETWORKING EVENT to celebrate our TWO YEAR ANNIVERSARY!

Thursday, May 30, 2013 – 8:30 AM – 10:00 AM

Eastpoint Executive Center – 264 South River Road Bedford, NH 03110

Create Content  to Drive New Business!

Presented by Chuck Sink Link and Eastpoint Executive Center

Please RSVP  by leaving a comment right here on this post.

You may also RSVP by contacting Chuck:  chuck@chucksink.com  |  (603) 345-7223

Come learn something valuable and make connections.  See you May 30th!

Create content that is engaging!

The post Learn and Network at the Chuck Sink Link Anniversary Event appeared first on Chuck Sink Link.

Marketing is every business activity directed toward selling a product/service and successfully delivering it into customers’ hands. Marketing drives sales. There is no business until a sale is made and that’s why every CEO is his or her company’s chief of sales. Sleepless nights are the result of insufficient new business flowing through the pipeline.

One or two salespeople control their smirks knowing they’ve already exceeded goals while the other 80 percent of the team desperately hold poker faces, fighting the fear that furrows the brow, lest their weakness show through. “How many calls are you making per day? What are you doing to qualify your appointments? How many serious leads did you get from that schmooze fest you call a networking event? What’s your average closing ratio? We actually lost money on your last two clients! They aren’t the right fit for us.” Let me the hell out of there!

The accusations, complaints and criticisms of the average boss toward his sales team ought to be leveled right back at him if such an attitude is his. After all, that selling model died about 20 years ago, so shame on our poor old hypothetical boss. But meetings like this are still takingplace out there and it’s too bad when there’s a better way to sell. It’s called positioning and it isn’t new. It’s many decades old, in fact.

What if the boss was instead focused on positioning his company’s brand so customers knew it was the easiest choice to make in the crowded market?

Positioning is essentially how much space your brand occupies in your prospect’s mind relative to your business or product category. The more you win the battle for the mind, the more sales you will make because your prospects will be sold before a single call is made to them.

Effective positioning differentiates your brand with relevance combined with emotion. The perception of quality is higher, therefore the value is greater than other brands.

If customers and potential customers want the Apple i-Product instead of the Microsoft or Android device, they will wait longer, travel farther and pay more for the Apple. It happens every day. If the thrill seeking driver is already drooling over the Ford Mustang Shelby GT500, the Chevy Camaro ZL1 won’t even be given a test drive.

Sales nostalgia can never bring back the effectiveness of cold calling, follow up and closing – ever!  So it’s high time every CEO wakes up to the positioning model and starts directing his team to communicate his brand’s authentic value using the myriad digital tools available to everyone – including answering the phone.

The post Positioning: Relax, the sale is yours. appeared first on Chuck Sink Link.

I have a one-year business plan in place. It’s a blueprint for a successful year of growth. A reasonable goal has been set and an activity plan following a proven strategy will be implemented. It’s my plan and I’m sticking to it!

If we all have an intelligent, ethical strategic plan requiring focused and determined activity every day and then execute, we can renew the prosperity of the nation and change the direction of the culture. We can make 2013 the turnaround year if enough people work hard enough!

2012 proved to be a very disappointing year for countless millions of us. Ninety nine percent of my friends and associates could not rid their calendars of 2012 fast enough. I join them in welcoming 2013.

People who happen to be superstitious about numbers needn’t worry about the “13.”  I read somewhere that 13 is a very lucky number when preceded by the digits 2 and 0.  😉

What’s your plan to improve your business and community, thereby making the USA at large an industrious, vibrant and culturally rich country again?

Yes, you can!

You see, thousands upon thousands of solid business plans executed daily drive wealth creation, economic growth and higher performance standards among those businesses. Success breeds competition and more success – unless the culture rejects the notion of enterprise, dignity, ethics and the value of work. Frankly I’m worried about what I see going on in the culture and will leave that topic on the table for now.

I remain optimistic this year because I’m amazed by the fantastic people in my professional network and other circles. There is so much good stuff out there to which we can turn our attention while ignoring the negative garbage in the media echo chambers. We can also turn away from gossipy chatter in the workplace.

Throughout history it has been the determined efforts of a few that have managed to turn the many away from destructive paths toward revitalization, prosperity and cultural renaissance.

It’s now abundantly clear among business leaders everywhere. I feel it’s safe to say that most of us have reached consensus; Washington has become a putrid cesspool of corruption and incompetence and it may get worse. Too harsh? No way. The national dept heaped upon young people and future generations is unconscionable. The federal government has failed to enact and implement any effective policy direction to help build a strong economy again.  My opinion is we’ve completely blown it during the last decade.

So, it’s up to you and me. Let’s take some risks, work our butts off and fix the economy ourselves, regardless of this cliff or that crisis. Nobody else is going to make conditions right for your business. Step up to the plate ladies and gentlemen, seriously!

The post Your business plans can revitalize the country. appeared first on Chuck Sink Link.

Most professionals know a thing or two about the value of referrals. They also know about the value of focused, dedicated networking – the key to a steady stream of lucrative referrals and new clients.

Great networkers understand that people will more readily listen to your value proposition when other people talk about it. What your clients & customers say about you is more believable than what you say about yourself because it’s proof of your value rather than just good salesmanship.

The How and Why of BNI

I have friends in BNI groups (Business Networking International) and have sat in quite a few meetings. People in BNI  groups understand the concept of developing a team of “salespeople” completely outside their own organization. While the requirements for continuous membership in a BNI group are comparably rigorous, the structured discipline works for the members who embrace it. Only one representative of any business category is allowed in a group so it eliminates internal competition. Every other member of the group is expected, actually required, to provide a steady stream of qualified business referrals to other members of the group.

In essence, you enlist a team of 15, 25, maybe 50 or more individual “salespeople” who are expected to help you find new customers. In return, you promise to do the same for other members. What’s really interesting about BNI is that the people who provide the most leads for others almost always garner the most new business from the group. It may sound counterintuitive but it works! Spewing your sales pitch on people will usually annoy them. When they’re in the market and ready to talk about buying, will you be top-of-mind? Now, if a friend of theirs eagerly recommends you and your company, then the deal is yours if you treat the client well. There’s no sales pressure.

Pick them and stick with them!

There are myriad excellent networking groups out there for anyone in business: Chambers of Commerce, Non-profit Boards, Trade Associations, Civic Clubs and many local privatenetworking groups. BNI is just one option that some find to be very effective although it’s not my cup of tea personally. Choose the organizations in your market that make sense for your business networking activity and then do one thing early and often: participate!

Show up at meetings. Listen more than talk (you’ll have ample opportunities to promote your business). Seek to help the mortgage broker, the contractor, the lawyer, the accountant, the architect, the web developer, the insurance agent, the dentist, the fitness club owner, the chiropractor, and other professionals in your groups. Doing so will enlist obligatory support on your behalf from a whole team of “salespeople” who can actually state clearly your value proposition because you took the time to develop a good relationship with them.

The post Who’s your real sales team? appeared first on Chuck Sink Link.