Questions? Feedback? powered by Olark live chat software

Why You Must Stop Selling Your Time

If you’re stuck in the rut of selling your time, do yourself a favor and grab this free eBook I’ve cosponsored with my friends from FreshBooks – Breaking the Time Barrier.

Very early on in my consulting career I learned an important lesson about time – You only have so much.

unlock the time barrier

photo credit: subcircle via photopin cc

I know that may seem like an obvious thing, but many businesses still base their pricing, and therefore their capacity to earn, on time calculations. You know, it takes me 10 hours to build this so that will be 10 X $75/hr.

When I provided consulting services this way I quickly filled up my capacity and essentially trapped my profit potential. After I had done this for a few years I started to raise my prices and a funny thing happened – I stayed just as busy.

Then one day a potential client called and said he heard that I was really good at getting companies featured in the local business journal. Instead of suggesting an hourly fee I told him that if I was successful the cost would be $2,500. At first he balked, but then he considered there really wasn’t any risk unless he got a result.

I hung up the phone and made one call to a journalist that I knew was looking for precisely this kind of story. I secured the interview and called my client back with the good news and an invoice. He said, “but wait, it apparently only took you 15 minutes to get me that story and you want me to pay you $2,500?”

I told him in fact it had taken me the better part of 10 years to be able to get him that story and that he was paying for the value of the result and not my time. He had no argument with that logic, paid the invoice and was thrilled with the result.

That was the day I knew I would spend the rest of my business life using value based pricing. I began to align all of my fees based on the results I knew I could deliver and took time off the table every time it crept into a client conversation. In the end clients don’t want your time, they want a result. When they become confident you can deliver that, they don’t really care how you do it.

The keys to embracing value based pricing

  • Understand that price is a function of perceived value – increase your or your product’s perceived value and you can increase the price. This is why best-selling authors can charge much more for speaking fees and why Apple can charge more for a phone.
  • You must have a clear point of differentiation – Your methodology, point of view, feature set, delivery, packaging, experience, training, design, etc. must set you so far apart from others that there is no way in which a prospect would consider using price as the lone comparison tool.
  • You must measure results – Once you start to appreciate that the work you do delivers tens of thousands or hundreds of thousands of dollars in results to a client, you’ll get much more open about value based pricing. You must measure and review with your clients the actual results they get from working with you so that you can confidently begin to price and sell your work based on this knowledge and proof.

My friend Mike McDerment, co-founder of FreshBooks, just completed a free eBook (with Donald Cowper) in which he chronicles the story of a web designer who comes to appreciate why he’s going broke selling his time vs. selling the results of his work. If you’re stuck in the time rut, do yourself a favor and grab this free eBook – Breaking the Time Barrier – How to Unlock Your True Earning Potential.

Why Bing May Become Your Search Engine of Choice

It’s been a big week at Facebook. Hashtags rolled out to most users causing quite a stir in the marketing world. (It’s yet to be seen how much utility they actually bring to the everyday user.)

And, Graph Search finally got turned on for my account. Graph Search is the long-awaited jump by Facebook into the world of search engines powered by Microsoft’s Bing. The official announcement came several months ago but roll out has been slow.

The first thing I noted was that I had to relearn a bit of navigation as things aren’t where they were and don’t always do what they did. That’s a minor annoyance and not really what this post is about.

In playing around with Graph Search I noted some very useful internal search tricks that should pay off nicely for local businesses. All of a sudden there’s a Yelp like search function for nearby places that, say, my friends like. Obviously this has some utility. Here’s a Lifehacker article on some nice, clever uses for Graph Search

But, one thing that I did not fully appreciate, even though it was part of the story months ago, was the integration of Bing Web Search results.

Let’s say I type a search that’s not one of the obvious Graph Search categories, something random like, in the case of the image below – small business marketing system. The first option is to show web results from Bing.

As you can see from the image, these search results display right in the Facebook interface along with Bing Ads.

Bing Ads on Facebook

I know this was hyped when announced, but until I saw it for myself, in my own context, it didn’t ring as important as I think it may be.

Now, a great deal depends on this kind of search behavior catching on inside of Facebook, but if does it spells the first real threat to Google AdWords and search dominance.

For now it certainly means that marketers need to rethink their Bing search and Bing Ads approach. Get over to Bing and claim your Bing Webmaster account and create your Bing Ads account and start paying more attention to how your assets are faring on Bing.

What If How You Sold Was as Important as What You Sold?

So, for starters, the title to this post poses a bit of a trick question because significant research suggests it is in fact a fact.

photo credit: dragonanswers via photopin cc

photo credit: dragonanswers via photopin cc

Buyers have become so adept at doing initial purchase research that they no longer need or have the patience for a sales presentation on the benefits of your widget. Ironically, this applies doubly for B2B, big ticket items where you might think a little face time would be a good thing.

A CEB study of more than 1,400 B2B customers across industries revealed that 57% of a typical purchase decision is made before a customer even talks to a supplier.

So, what does this spell for the typical sales and marketing professional? You better find a way to make your marketing as useful as your products. That’s right, sales and marketing is no longer about being found and providing educational information – those are still important, but today you better have prospects looking to you as an adviser, teacher, time saver, problem solver and guide on life’s journey or what’s the point.

I repeat – it’s not just your product or service that must perform – it’s your actual sales and marketing process that must provide these things as well.

This same CEB study also found that 53% of those surveyed claimed that the sales experience itself was one of the greatest contributing factors in continued loyalty to the brand.

The feeling is that most products, services, brands and even pricing are about the same, but the sales experience, or value, ease and insight delivered during the actual process of buying, was what tipped the scale.

Two recent books hit this theme pretty hard. Mitch Joel’s CTRL+ALT+DEL (Check out interview with Mitch Joel here) and Jay Baer’s Youtility (Ships June 27th – look for an upcoming interview Jay.) And of course CEB’s book derived from the extensive sales research cited in this post called The Challenger Sale by Matthew Dixon and Brent Adamson. (Check out interview with Matthew Dixon here)

So, how do you make your sales process more useful?

Let’s say you were shopping for some running shoes. You search around and find a few sites that seem to specialize in the selection you are looking for and a couple even provide lots of information and reviews from other runners. But, you’re not sure which $150 pair of shoes are right and that’s enough money that you want to get it right.

So, you fire off a couple questions to sites that seem the most informational. One sends you back some specs from the manufacture and then Patton Gleason from OptimalRun.com sends you a personal video showing you all 3 shoes you were considering and telling you why, based on your needs, which one he suggests.

Now, you tell me – is that sales process useful?

And, the beauty of this kind of sales process is that it actually favors the little guy.

Here’s what some of his customers had to say – sounds like they found his sales process useful!

“It was amazing and so helpful and kind: I finally felt like someone was actually listening to me instead of just trying to rush me into making a purchase.”

“You’re too great – this is awesome that you answer with a personal video.”

“Thanks again so much for your help, it especially helps to be able to see the shoes other than just in photos.”

Ladies and gentlemen, that’s the bar today. Creating marketing and sales insight that’s so useful people would be willing to pay to receive it.

So, what can you to create a much better buying experience in your business? What have you seen others do that you would like to share?

Weekend Favs June Fifteen

My weekend blog post routine includes posting links to a handful of tools or great content I ran across during the week.

I don’t go into depth about the finds, but encourage you check them out if they sound interesting. The photo in the post is a favorite for the week from Flickr or one that I took out there on the road.

9041001865_c0ebfb9326

This is how they roll at Oddly Correct Coffee in Kansas City

Good stuff I found this week:

theSkimm – daily newsletter that simplifies the headlines for the educated professional who knows enough to know she needs more.

Webinar tools – Nice list of tools to use for online seminars, includes reviews.

Week Plan- Nice little online planning tools that turns to do list into a weekly plan.

How to Work on Purpose and Why You Must

Marketing podcast with Tom Asacker

A few months ago I started a series of posts I’m calling Recover You. The series is focused on practices and habits that I believe lead to a healthier mind, body and spirit, a healthier business and ultimately a healthier economy. This is the final post in the series. You can catch the entire Recover You series here.

photo credit: JeremyMP via photopin cc

photo credit: JeremyMP via photopin cc

I have spent a great deal of time over the last decade or two trying to understand and sort out the role of purpose as it relates to work.

And you know what? – it’s a lot easier to consider in retrospect than to try to grasp by looking towards some far off horizon.

In this quest I think you can indeed consider what brings you joy the most, where your passion lies and even what legacy you want to leave behind, but until you succumb to the fact that what you are doing right now must be your life’s purpose you’ll always feel cheated somehow.

Now, this isn’t one of those you must live in the moment posts. What I’m saying is that I discovered my purpose in work when I finally realized that it’s the experience of what I’m doing and living my work with passion that defines my purpose. Giving in to that idea is how purpose finds you.

The struggle to find that perfect thing you were meant to be is what causes untold amounts of pressure while the very thing you were meant to do is experience what you’re actually doing more fully.

When you realize that one distinction you can start to change the world around you by building new beliefs. Every thing we do in business and in life is dictated by our beliefs and changing this one belief is how you change your existing reality.

I recently sat down with Tom Asacker author of several critically acclaimed books including his latest, The Business of Belief: How the World’s Best Marketers, Designers, Salespeople, Coaches, Fundraisers, Educators, Entrepreneurs and Other Leaders Get Us to Believe to talk about the subject of purpose and beliefs for an episode of the Duct Tape Marketing Podcast.

Asacker first approaches how our beliefs dictate, right or wrong, every action we take. To me this notion also rules how we think about purpose and passion. Many people don’t find purpose in their work because they don’t think they can or should or that purpose must represent something much grander than what they are about today.

Asacker’s book also shows how marketers and others can use the power of belief for good and evil, but ultimately this short read is all about getting you to take charge of your beliefs so you can change your view of purpose and passion.

To me the missing piece in the struggle to bring purpose to the workplace lies in the words of Buckminster Fuller. “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”

So, in order to work more fully on purpose you must make your existing model of work obsolete.

I think every business owner should carve that quote into something permanent and persistently visible!

What If Your Customers Were Actually People?

Marketing Podcast with Adele Revella

I think it’s pretty easy to get caught up in marketing speak when it comes to customers and think in terms of target markets and market share and the like, but in the end, even the buyer at the big corporate purchasing department is a person.

photo credit: GuiMeneghelli via photopin cc

photo credit: GuiMeneghelli via photopin cc

Defining and sketching the make up and personality of your ideal customer, you know, the ones you love to work with, is something I’ve been preaching for years.

The impact of narrowly defining who makes a great fit for your business – meaning who you can actually deliver the most value to – is astonishingly simple and profound.

It helps you first and foremost spot business you should not take. It helps you attract the right kind of customer and it guides how you simplify and communicate your marketing message.

Over the years marketers have come to call this sketch of ideal customer segments customer personas. I love the terms as it draws heavily on personality traits and behavior – two of the most important elements of a good fit.

The term persona originates in the theater world, which translates wonderfully to the world of business where character development, story lines and emotional connection are staples.

The idea behind a persona for the sake of marketing is to describe or sketch in elaborate detail exactly what a customer segment looks and acts like as though they are a real person. This might involve a character name like Mary or a descriptive term like Techie as well as an image. But the key is that Mary or Techie’s behavior is described in a way that gives clues to what they expect and how to spot them.

For example in my world you might meet: Bob – The Learning Focused Business Owner – Bob owns a business and realizes that he loves to learn – he soaks up everything he can and knows where to find more. He reads books, attends online seminars and can spout the latest business lingo. He researches before he makes a decision and relies heavily on information from his network. He craves a combination of coaching, teaching and DIY and demands the ability to dive deeper into subjects on his own. He wants help on things he does not understand and validation on the things he is working on to make sure he is on the right course.

To give more insight into the notion of customer personas I visited with Adele Revella, president of Buyer Persona Institute and author of the eBook The Buyer Persona Manifesto

Revella describes what she calls 5 Rings of Insight that are required to accurately create customer personas.

1. Priority initiatives – What’s important to your customer right now
2. Success factors – What would success look like to them
3. Perceived barrier – What might hold them back from buying
4. Buying process – How do gather information and make a purchase
5. Decision criteria – How do they come to a decision

Revella’s work is focused primarily on large organizations but the considerations for any size business are the same. Have you ever considered the factors above as you consider your ideal customer?

Discovering and using customer personas is part gut feeling from your own experience, part stepping back and considering things like Revella’s five rings and part consistently asking your customers and prospect why they do what they do, why they don’t choose you, how they make decision and why they chose you.

Take all of that information and put into a set of characters your business is built to attract and everyone in your organization will learn how to attract the right kinds of clients.

Solving the Most Frustrating Part of Marketing

I’ve spent the better part of the last 10 years telling any small business owner that would listen that marketing isn’t really that complicated.

What’s complicated and frustrating about marketing perhaps is how small business owners and those that work in the field of marketing think about it.

The Marketing HourglassMarketing is just a system and, operated as such, it isn’t any different from many of the other systems needed to run a business. A system creates control, a system guides priorities, a system creates process, a system generates accountability and a way to measure and win the game.

I developed my own view of “marketing as a system” after discovering that working with small business owners in the way I wanted wasn’t possible unless I was willing to change my view of marketing.

What I quickly discovered was it’s a two-way street. Marketing consultants are often frustrated because they have no system or methodology they can apply over and over again and small business owners are frustrated because there’s no logical way to buy marketing services from people pitching the idea of the week.

I had a large ad agency professional approach me recently and tell me about trying to help several of his family members find some marketing help for their startup. Because he had spent most of his life in six and seven digit budget land he was appalled at how hard it was to find help that made sense for this startup.

And that’s precisely the work I’ve been engaged in for over a decade – putting an end to marketing frustration – both on the part of marketing consultants and coaches and on the part of the tens of thousands of small business owners that have adopted some version of this systems approach to marketing.

For some the concept of a system for marketing seems so still and uncreative, but for me a system is how you Save YourSelf Time Energy and Money – corny, I know, but something we all need a little more of!

I’ve built a marketing system that gives relief to frustrated marketing consultants by way of the Duct Tape Marketing Network and provides real results for small business owners through the Duct Tape Marketing System.

Below is a very brief description of the elements of a marketing system

1) Strategy before tactics – create a narrowly defined strategy first

This is without a doubt the most crucial step. Strategy must come before any tactics. Until you can narrowly define your ideal client and uncover or create some way your business is both unique and remarkable you’ll compete on price and struggle to build any sense of momentum. More on this . . .

2) Build your Marketing Hourglass – A marketing focused business model

The next step involves what I call The Marketing Hourglass. This simple process asks you to view your business and discover how you will move your ideal prospects down the path of know, like, trust, try, buy, repeat and refer. The beauty of this thinking is that it puts the focus on the end – a happy customer, willing to buy more and tell others. Get that part right and you’ll never need to worry about lead generation in the same way again. More on this . . .

3) Become a publishing engine – Your content become the voice of strategy

Almost every element of the Marketing Hourglass relies on some form of intentional content to operate properly. In this step business owners create their content plan with some very specific objectives in mind. More content is not the answer. The right content, delivered to the right person, at the right time is the answer. More on this . . .

4) Build a total online and offline presence – Integration is the key to success

Integration is what makes social media work. It’s what makes email marketing work and it’s what drives effective advertising. Until you view your online and offline presence as one integrated whole you’ll continue to fall prey to the idea of the week. Any decision on what to do on Facebook comes with content, SEO, email and advertising implications as well. View it that way and you’ll never wonder about ROI again. More on this . . .

5) Build a lead generation machine – Lead momentum comes from multiple streams of lead generation

Lead generation is a game of trust, context and repetition. Advertising, public relations and referral generation built around an effective marketing strategy is the secret to creating the right awareness with the right prospects. More on this . . .

6) Lead conversion is a system – Lead conversion as a repeatable sales process and customer experience

The thing about an effective marketing system, such as the one described above, is that it eliminates the need to sell – at least in the traditional sense of the word. When you educate, build trust and create engagement all that’s left to do is show prospects how they can get the result you’ve shown them. More on this . . .

7) Live by the calendar – You’re never done, simply operate the system over and over again

Once you build the various elements of your marketing system you must map it out on a calendar, test, analyze, tweak and improve it continuously. For some, simply carving out the time to create new processes and putting in the effort to develop new marketing behaviors must become a habit before any progress can be made. It’s a long-term game, you’re never done, just deal with it every day. More on this . . .

I’ve taken every element of this system and turned it into an online course that any business can apply to build a marketing system. Each element is presented in step-by-step lessons that include video, workbooks, worksheets, examples and resources. We continue to work on it and improve it and add to it as new tools and tactics arise.

Once you gain access to the Duct Tape Marketing System you’ll be able to visit each lesson over and over again as you perfect your system and even use our materials to train and guide your marketing staff.

You can find complete details here.

Weekend Favs June Eight

My weekend blog post routine includes posting links to a handful of tools or great content I ran across during the week.

I don’t go into depth about the finds, but encourage you check them out if they sound interesting. The photo in the post is a favorite for the week from Flickr or one that I took out there on the road.

8976299153_fd229e91c4My podcasting set up at Duct Tape Marketing HQ

Good stuff I found this week:
Long Tail Pro – handy SEO tool allows you to find long tail search opportunities.

Ask Me Every – Very simple way to create daily accountability. Set up daily questions and reply to collect and track your progress.

Thing Link – tool that allows you to make your images interactive with text, music and links