For the best part of the last quarter, I was ’on the road’ meeting with channel companies across the country.  I learned a lot about today’s channel business from system builders and integrators in the channel.  I learned that things don't look as bad as they did a year ago, but we can't say things look good.  We haven’t lost any customers really; they’re just not buying as much.  We need new sales to replace that revenue.  We need new sales to grow.

Big companies increase their marketing and advertising budgets in an effort to increase sales.  Channel companies don't have marketing budgets and advertising is usually limited to giveaways for our customers.  Simply put, channel companies have to actually see more [people] to sell more.  We have to see prospects and make a connection as small businesses.  It is something unique that we have in common with the small business marketplace, and the MNCs will forever envy our customer ‘touch’.  That’s our value-add and, intuitively, the prospect understands that.

Beyond your products and services, you want to sell the small-business brand.  Essentially, the small-business brand means "we cost a little more, but we’re worth it".  Small business will customize products for customers and back them up with the craftsman's guarantee.  Everyone I know expects to pay a premium for a company that works like that.  Small business in IT offers the same things to our customers; customized technology, industry expertise, and unconditional service.

"Sounds good.  Let's go sell them.  What are we going to do now?"

First, we have to find some new prospects.  There are many schools of thought on that matter.  Some recommend cold-calling (a waste of time for system builders) or telemarketing, and some prefer direct mail.  Personally, I practice ‘networking’.  And the best network to harvest for referrals is your personal customer network. Here’s an example:

I’m having a normal conversation with one of my customers.  In the course of conversation, he’s likely to ask me “What’s up with you?”

"I'm prospecting.  I'm calling my customers and getting referrals”, I say, “and I'm going to need five from you."

"Well, I don't know anybody who is buying servers right now,” says your customer.  “I'll be sure to refer to them to you if I hear of anybody."

(That is the standard response.  And here's the good stuff...)

"Thanks, Matt, but I'm not looking for people buying servers.  I'm looking for the names of people you know and trust who have computers and use them in their business.  Because I know when they buy computers, people usually buy from reputable companies and people they trust.  And with your recommendation, I get a chance to be that guy.  Just the names of five friends or associates…”

Then play the same thing back to the prospect:

“I’m Pat Taylor with Atypical Business and I was referred to you by Matt as someone he knows and trusts.  I build and support all of Matt’s IT equipment.”

“Well, I don’t need any servers right now.”

“Yes, sir; Matt said that when he gave me your name.  But he knows that people buy computers from a reputable company and from someone they trust.  And that’s why I called today.  I want to meet with you and learn a little about your business.  And maybe the next time you’re buying computers, I’ll be the guy that you trust.  Like Matt does.  Is Tuesday at lunch a good time to meet or is Wednesday morning better?

And this is Sales!  This is how it is done; if you see two of these referrals each day - three days a week, you’ll see almost 300 new prospects a year… and you’re going to make more sales.  No high-dollar marketing campaign will prove as effective as direct communication with prospects by referral.  People will agree to meet with you.  At those meetings, you lay the groundwork for long-term, mutually-beneficial business relationships.

From the moment you sit at the table to meet with a prospect, you must take care to establish the appropriate relationship with this person.  This entrepreneur.  It is important to remember that for him - as for you - business is personal.  And since he doesn’t really want to know about the 15 locations your company has in America and your long history of achievement as expressed as a percentage of some acronym, he would like to begin building this personal relationship by telling you about his business.  And he wants you to listen.

By listening, you gather invaluable information about the customer and the company.  Moreover, you begin to establish a relationship; you become a communications link he can trust.  Just the act of taking time to listen to a prospect or customer adds value to your service.  What we really provide is Comfort and that adds value, too.  You want your customers to know that you’re "a little more expensive, but worth it".  In the beginning, you do that by listening.

These simple suggestions will work for you.  I have shared them with channel companies across the U.S. and Canada and the feedback I receive validates that claim.  If we can discipline ourselves to seek out new customers – one call at a time – we can begin to turn this thing around and secure our niche in the marketplace.

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