One of the hardest things in business is to turn down a sale.
But if you rarely do this, you'll never really build a solid foundation for your business. As Stephen Covey says in his Sixth Habit: "Win/win or no deal." And sometimes if you make a sale, it will be win/lose, lose/win or lose/lose.
I just turned down a sale today. I talked to someone who wanted to be in my Certification Program and I recommended that he take a different course of action.
He really wanted to get into marketing coaching but his current business and financial situation were less than ideal. He was about to go into a full time job and then wanted to transition into being a marketing coach.
I won't go into all the details, but bottom line, I turned him down because his likelihood of succeeding at this point was not high.
And anytime you accept a client or project where the chances of success are not good, it's a set-up for a lose/lose situation. Your client would lose because they wouldn't get the result they contracted for and you would lose by damaging your reputation.
When you are engaged in the selling process and negotiating the terms of the deal, unfortunately, it's easy to lose sight of this. And as you know, it's all too common to use some kind of manipulation to get the business. That's a "you win/client loses deal."
On the other hand, if you put yourself in a position where you feel you are begging for the business and make all kinds of concessions, then it can end up as a "you lose/client wins deal."
Only a win/win deal should be acceptable.
How do you create a foundation for win/win deals? Two very simple but powerful things:
1. Results-Oriented Services
Make sure your services are designed to produce results when performed under normal conditions. This might sound funny to you, but the truth is, many services are structured to only produce results under perfect conditions. And since conditions are rarely perfect, you'll end up with a lot of disappointed clients.
For instance lot of programs are presented like this: "If your people are motivated, and if the management provides the support, and if you follow our advice to the letter, you will get results with this program."
That's a lot of ifs, and it's easy to underplay them and focus on the potential results (which are rarely produced).
Instead, you need to offer a service that removes the ifs and substitutes "requirements of the engagement." For instance, in my Certification Program you must participate in all sessions for a full year in order to get certified. There are no ifs.
Design your own requirements for engagement and stick to them.
2. Well-Qualified Clients
Clearly define an ideal, qualified client for your services. If you're willing to sell to anyone who can pay your bill, the chances of success plummet. You need to have a list of qualifications and stick to them. Actually communicate these qualifications in detail on your web site: "Clients who succeed with us are..."
Spend as much time as you need qualifying your prospects. And in every conversation with a prospect, emphasize that "We work with clients who..." You'll waste a lot less time trying to sell to prospects who are not right for you, and you'll get out of the self-destructive begging mindset.
Start by listing: a) the problems and challenges of an idea client, b) the aspirations of this client and c) any other qualifications required to increase your clients' chances of success.
Sure, you still need to implement marketing-oriented outreach activities that increase your visibility and educate your prospects about what you do, but if you don't build this solid win/win foundation first, your business will never take off.
It all starts with this question: "What do I need to do to consistently create win/wins with my clients?"
The More Clients bottom line: If you make it a priority to deliver a results-oriented service and carefully qualify your prospects, your success rate will go up dramatically. You'll then get testimonials, develop case studies and generate more word-of-mouth business.
How do you make sure all your deals are win/win? Please share on the More Clients Blog.
This was my philosophy entirely when I set up my business and thought of an appropriate name.
Love the article.
Wim
Posted by: Wim van Nunen | December 10, 2010 at 07:52 AM
When I first started in sales, I spent a lot of time learning how to close and got very good at it despite the fact that it was wrecking my business due to not being clear win/win like Robert illustrates here.
After realizing what ideal clients really were, it was still tempting to close a win/lose, etc. especially when I was feeling desperate for a sale. Every single time those closes yield bad fruit.
Business is so much more fun with well qualified clients and well designed 'requirements for engagement'.
Posted by: Jay Griffin | August 15, 2007 at 05:46 PM
Your win/win article hits the bulls-eye!
Frankly it's a very bad business practice to do business with clients who you know from the get -go don't pass muster.
When I've taken this type of client the one overriding factor I've noticed is that's it's always about me and my "need"...and that's the wrong place to come from in a client relationship...how could I possibly help them get the results they're looking to get when I'm focused on me? I can't!
Without exception whenever I've bowed to my own personal pressures and accepted a client who doesn't meet the "requirements" I end up "on the rocks".
Thank you Robert for reminding me once again and also giving me a tool to work with so I can remind myself.
Posted by: Andrew Finkelstein | July 12, 2007 at 03:14 PM
I usually get a feeling in my gut when I feel a prospect is going to turn out to be a bad customer...at least for us. I can almost visualize them running around my office carrying a giant "red flag" like something out of Braveheart. (Almost) every time I ignore this feeling and take the business I live to regret it.
As an entrepreneur, it's very difficult to say no to business. However, you're not doing you client, yourself, or your reputation any good if you take on bad jobs, or jobs that are better suited for someone else.
Just today I saw that happening and plan on recommending a "competitor" to the prospect because I believe they're in a better position to help them.
Posted by: Rich Brooks | July 11, 2007 at 04:43 AM
I've been thinking a lot about what an ideal client is for me since I read, "Attracting Ideal Clients" a couple years ago.
The best first step for me has been keeping track of the qualities of clients where there is a win-win situation. And to know that the list will change and evolve.
The toughest situations for me are the ones that are not clear cut. When the prospective client has most of the characteristics of an ideal client but not all of the characteristics.
Some deal-breakers are simple: can't pay my fees, looking for someone who will do all their marketing for them, etc. But there are times when I don't know if it's a deal breaker until I've actually experienced the problem in a client situation.
Thanks for the reminder that my standard for enrolling a new client is being as certain as possible that it will be win/win.
Posted by: Judy Murdoch: Highly Contagious Marketing | July 10, 2007 at 09:21 AM
So true, so true. It takes a while to get to the point where you don't have to accept every project.
It is better to turn business away and focus on attracting tht types of clients you can really help than to work with clients who aren't ready, or lower your price just to get "the gig".
Great article!
Posted by: JC | July 10, 2007 at 05:37 AM
I spent over 20 years in professional sales, and the clients or customers who aren't a great fit usually end up unhappy. They think they've wasted money or made a poor buying decision.
There are many sales people who are very skilled at 'getting people in the moment'...the moment when they're ready to buy. You'll be more succesful in the long run, if you look for clients who understand your message and are a great fit for your product or service.
Susan
Posted by: Susan | July 10, 2007 at 05:14 AM