We've all had that client or customer that you just hate to hear from. Everything is a problem, nothing is right and you can never do enough to keep them happy. And when they call and their name pops up on your phone, you feel your blood pressure rise. What can be done with these people?
In my book, I mention that most salespeople think there is good business (clients who pay on time, rarely have issues and are easy to get along with), there's bad business (clients who take up your time, pay poorly and you don't want to deal with) and no business, when you have nothing to do but prospect. For some reason, the mainstream idea is that bad business is better than no business, because at least you're getting some income out of them.
In my worldview, I think no business is better than bad business. I would rather spend that "no business" time prospecting for good, or better, business. Who wants to keep a bunch of jerks calling me, taking up time when I can spend that time seeking out a better clientele?
Many of us are taught the 80/20 rule, which states that 20% of your clients will take up 80% of your time. The idea is to slowly move the needle to a 90/10 or even 95/5 ratio.
When someone first gets into sales, especially a job that pays 100% commission, they are desperate for a sale. And they will settle for the anyone, even the person that no one else wants. This is fine if you're selling a home or a car. You sell the car, you don't see them again. Same with selling a home.
But if you're in an industry that relies on the client making payments that your income is based on it's difficult. Fortunately, I've learned with experience to recognize these people at the beginning of the sales process. Sure a few will slip through, but instead of putting up with people who don't keep appointments, pay poorly, make excuses and other signals, I either pass them along to someone else or simply don't take their calls. In other words, I'll fire a client before they become a client. And the time I would have wasted on them I can invest into better clients.
Don't let bad customers get in the way of your success.
Chris Castanes is a professional speaker who helps sales people succeed through workshops and humorous presentations. For booking information, click here. He's also the president of Surf Financial Brokers selling life and disability insurance in several states.
In my book, I mention that most salespeople think there is good business (clients who pay on time, rarely have issues and are easy to get along with), there's bad business (clients who take up your time, pay poorly and you don't want to deal with) and no business, when you have nothing to do but prospect. For some reason, the mainstream idea is that bad business is better than no business, because at least you're getting some income out of them.
In my worldview, I think no business is better than bad business. I would rather spend that "no business" time prospecting for good, or better, business. Who wants to keep a bunch of jerks calling me, taking up time when I can spend that time seeking out a better clientele?
Many of us are taught the 80/20 rule, which states that 20% of your clients will take up 80% of your time. The idea is to slowly move the needle to a 90/10 or even 95/5 ratio.
When someone first gets into sales, especially a job that pays 100% commission, they are desperate for a sale. And they will settle for the anyone, even the person that no one else wants. This is fine if you're selling a home or a car. You sell the car, you don't see them again. Same with selling a home.
But if you're in an industry that relies on the client making payments that your income is based on it's difficult. Fortunately, I've learned with experience to recognize these people at the beginning of the sales process. Sure a few will slip through, but instead of putting up with people who don't keep appointments, pay poorly, make excuses and other signals, I either pass them along to someone else or simply don't take their calls. In other words, I'll fire a client before they become a client. And the time I would have wasted on them I can invest into better clients.
Don't let bad customers get in the way of your success.
Chris Castanes is a professional speaker who helps sales people succeed through workshops and humorous presentations. For booking information, click here. He's also the president of Surf Financial Brokers selling life and disability insurance in several states.
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