Posted in Planning

Converting prospects to leads

Before I get into this process, it’s important for me to say one thing. A prospect is not a lead. Businesses confuse this all the time. If he picks up the phone and answers you great, can you close him? Depending on his stage. What do I mean? There are four stages to a prospect. The first is surprised, he didn’t expect you to call or worse yet show up at his home. And to add insult to injury your timing can’t be worse. These are that calls that go like this:

 “hello, this is mike from… I wanted to talk to you about…”

“dude my girlfriend just came home and we’re kinda busy”

 This is known as a cold call. Your closing ratio will be very low, I’m talking about 1% maybe 2%.

 the second stage is the prospect knows he needs something, but he’s not ready to do something about it. This is the guy that needs to lose weight but is not feeling enough pain to get help. Again this is a bad stage to call him, he will most likely keep you on the line too long. Or make you follow up for the next ten years, and maybe will close the deal at some point. By the way, this prospect has a hard time making up his mind and a hard time excepting his own decisions. Most likely this prospect will ask for a refund.

 Prospects at the third stage are looking for answers. These are the people looking around your store just asking about prices because they want to replace their TV or blender. At this point, the prospect will listen to what you have to say, but still will not necessarily take action. In order to sell to these prospects, you need a hard close. That means you need to put some pressure on them to take action. They are close-able, but it will take some work.

One effective method with these prospects is scarcity. If you have a sale that is about to expire or limited amounts of the products you’re selling. Use that to get these prospects to close on the spot.

 The fourth group is the leads. These are the people that are ready to spend some money because they can’t take the pain anymore. These are the people calling the hospital in the middle of the night asking for any dentist, they don’t really care which one, they need help now. Out of the four groups, these are the people you are looking for, but they are the smallest group (about 3% to 7% of you target audience). The thing is, you can convert prospects from other groups to this one. With a method, I like to call cooking leads.

 How do you cook a lead?

 First, you have to understand what group they belong to. You can only learn this from engaging them. Make them fill out a survey to get some goodies, like a free video, book, or checklist. Then offer something else for the opt-in. I don’t know how familiar you are with cooking but slow cooking produces the best results, it’s the same thing with cooking a lead. It can take up to 6 months to convert a prospect to a lead. And you do it by not trying to sell him!

 You probably think that you’re going to send them sales letters twice a day but your not. You’re going to swamp them with free information. So much free information they become your fan, at that point, they will buy pretty much anything you have to sell that answers one of their burning desires. Notice I didn’t say they will buy any product you just fart out. You still need to create a quality product, but they will be much more receptive to it and to you. A good example of this is Pat Flynn, he produces tons of free materials. You build trust with him and when he offers you a product you are likely to buy.

 Remember you don’t have to reinvent the wheel. Just learn from someone who is successful.

I hope you found this post helpful, if so like it and share it with your friends. And while you’re at it, check out my ebook ‘level up your business’ a guide to starting your own business the right way.


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