Getting to Yes - Part III

Last week I discussed the final steps of getting to "Third Base" in the selling process. Now I'll tell you what you need to do to get to Home Base. Pay close attention to this part, because I've had people use this material to make hundreds of thousands of dollars.

And in many ways, it's the simplest step of all.

You've won a new client and arrived at Home Base when all of these conditions have been met:

1. Your prospect says they want to work with you.
2. You have agreed to the conditions of the engagement.
3. They have given you your first payment.

If you don't get all three, you're in trouble. So let's look at them a little more closely.

At the end of the sales process you close (I covered this last week). If the prospect shows definite interest in moving forward, then you move to #2. But if they are not solidly committed to #1, the chances are that #2 and #3 won't happen.

So confirm your close: "Great, I look forward to working with you. Let's just review what we'll be doing. We'll be starting a coaching relationship that will last one year. Your main objective is to expand your business and increase your income by $100K, right?"

And if they agree, you're on track. But you may need to discuss in more detail what their actual objectives are as well as discuss the details of how the service will be performed. When you are in agreement, you can go to #2, (a written agreement, proposal or contract).

It's important that you don't prepare a proposal before you have agreed, in principle, to work together and have agreed on the objectives to be met. If you present a proposal before this point, the chances are that you'll lose the sale.

So don't get all excited after briefly talking to a prospect when they say, "Why don't you put a proposal together for me?" It's often a strategy to put you off. And it's a great time-waster.

As Alan Weiss says, "A proposal is a summation, not an exploration." But when the time comes for this summation, there are several options.

If you're selling an individual service such as coaching or developing a web site for a small business, you should have an agreement or proposal template that's pretty much the same for everyone.

This proposal outlines, first of all, the objectives you have agreed to as well as expected results. And then it gives an overview of your methodology and the structure of how you will work together. It will also include your pricing and any other important details (such as who is responsible for what).

Next, tell them what to do and what you will do.

"I'll send you my standard agreement by email. Please take a look at it, sign it and send a copy back to me. Then we can get started next week. Why don't we also set up a time for our first meeting?"

The agreement may be a formality, but it's necessary. It prevents misunderstandings and sets the foundation for a good working relationship. Make sure your agreement is in plain English and contains no legalese; it's not necessary.

If you are selling a big project to a larger company, the complexity increases. But the order of things is still the same. Close and get agreement that you'll be working together. Working out all the details may take longer and involve more people.

But don't submit a proposal until you are in agreement.

The proposal itself will need to be more customized, but you can still make it two or three pages and cover all you need. Here's a proven 9-point proposal format:

1. Start with: a) a situation summary, b) a list of agreed-upon objectives (what they said they wanted) and c) measures of success (how you'll both know if the objectives have been met). This may be the most important part of the proposal, and yet many don't even include it.

2. Continue with: d) your methodology (what you'll do and how you'll do it e) your responsibilities f) their responsibilities. This part often doesn't need to be as detailed as you think. Don't go into excruciating detail about your process. Just give them a good sense of what will happen.

3. Complete with: g) Choice of options (give them a basic, standard, and deluxe option). A choice of yeses makes it easier to decide. h) Compensation (how and when you'll get paid. - P.S. ask for more up front than you usually do) and i) Agreed to.. (where you'll both sign)

This simple proposal template, which I learned from Alan Weiss and have used myself, has helped me and others confirm very large deals with relatively little struggle and effort.

The last thing is to get your payment. Up front, of course. After all, you deserve it. Don't start any work until you've been paid.

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The More Clients Bottom Line: Once you close and come to agreement about what you'll do, put it in writing as an agreement or proposal that summarizes what you've agreed to. Make it simple and always start with what they'll get, not what you'll do.

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Do you have any great stories about successful proposals? Tell them on the Blog. (Click on Comments below.)

Comments

[Jerry L. Fletcher]

Robert,
I do training programs, high level consulting to individuals and organizations, and individual coaching of senior executives. I would emphasize one thing quite differently from you.

The key to getting to Home Plate is getting a date on the client's calendar when you will arrive at their place of work to start doing the work of the contract. For example, once we agree on a start date -- let's say, February 10, 2007 -- then everything else kicks in. They have their people put it on their calendars, the training rooms get scheduled, their travel people schedule me (or I get their permission to schedule my own travel).

Oh, and by the way, we exchange a couple of drafts of the proposal until we get it the way we want, and the budget gets worked out, the agreed on payment (40% up front at least) gets submitted to accounts payable, the lawyers get involved in having me sign confidentiality agreements, descriptions of what is going to happen get sent out to the employees involved (often I write them with my client or write them for him/her), etc. It all happens between whenever we agree and February 10 because it has to.

Get the start date on the calendar. Then things happen. It can't sit on someone's desk. Don't even bother writing a proposal until that's agreed. I've written proposals in the form of a letter of a page and a half that involved hundreds of thousands of dollars. The dates were agreed on. The client and I knew what he/she wanted me to do. The rest was all "stuff" that had to get done.

Jerry

[Jeremy Boone]

Robert,
Great post today! The outline of the proposal is a wonderul resource. I have used you template now for the past four or five years and have been extremely successful using it when working with professional teams!

Keep it up!