How to make more money…even on the prospects you don’t close
Do you know your close ratio? It’s the percentage of prospects you close every month, and the higher it is, the more money you’ll make—and this part is important—without having to spend any extra time or money. Furthermore, because there are only so many hours in the day to interview prospective clients while serving your current clients, the more effective you are at qualifying and closing prospective clients, the more money you’ll make. That’s called leverage.
For example, if you close one out of every 10 prospects, then your close ratio is 10 percent—not bad in today’s economy. But think of the amount of time and energy it takes to speak with those 10 people. Which would you rather do: attract 10 more prospects every month and have to speak with 20 different people per month, just to close one additional client? Or would you rather learn how to close two or three clients out of 10, so that you’re making two to three times as much money without having to spend any more time?
The first step in closing a prospective client is effectively qualifying them—quickly determining whether they are a serious buyer and your Ideal Client. If they’re your Ideal Client but not serious, smart business owners move on.
If they’re serious but not your Ideal Client, then my $1 million tip is to refer them to a designer who can help them. This will pay off in spades—in referrals from the prospect as well as the designer. Wouldn’t you like to make money on the prospects you don’t close? This is one of the best ways to do that.
If they’re serious and your Ideal Client, then the more quickly you can close them, the more clients you can serve, and the more money you’ll make. That’s leverage.
I’ll teach you how to close more clients in our groundbreaking series which your fellow designers have been raving about. When you download our complimentary 2012 Interior Design Fee & Salary Survey eBook ($179 Value), we will keep you posted about the next free call.
—Maria Bayer, Authentic Sales Sales Coach for Design Success University, has sold millions of dollars of products and services, and she teaches designers and small business owners how to do the same without feeling “sales-y.”
This entry was posted on Thursday, July 5th, 2012 at 12:00 PM and is filed under Business, Inspiration. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.