May, 2010

Qualifying Prospects
I’ve been writing about niche marketing and positioning on the ‘ole blog lately. One of the topics is qualifying prospects. Actually, to be a wee bit more exact, it should be qualifying suspects. Why, I do believe this calls for some definition of terms.

I segment contacts three ways. Here’s how:

• Suspects
These are folks who I think may need my services. This designation is based on a highly scientific method – poking around and gut feelings. These contacts are hopeful “maybes” that require further investigation and qualifying.

• Prospects
Theses are those contacts that have passed the basic litmus test. They’ve demonstrated that they buy what I have on offer and meet my initial lofty criteria.

• Clients
Clients are businesses that have graduated from the ranks of prospect by assigning me a project, signed an agreement and greased my palm along the way with some dough.

Each step in this process helps me determine whether or not a company is a good fit for me and vice versa. It helps to avoid woes down the road for everybody.

The truth be told, not everybody is a good fit for you and your business. Nor should they be. But, indie pros, freelancers and small businesses take on whatever walks in the door, so to speak, every day.

Why, say you? Usually, it’s a subtle motivating factor called blind fear. It’s fear they won’t have enough work, resulting in the cascading effect of creditors banging at the door, losing a roof over one’s head, going hungry and the implosion of the Universe, as we know it.

But, taking on whatever rolls in can be equally as bad, if not worse. Aside from the fact that doing so is just letting your business happen to you, if things go South midway through a gig it can lead to mistrust, ill will, bad mouthing, late payment, no payment, court and, of course, the implosion of the Universe, as we know it.

So, it’s critical to the safety of the Universe that you qualify your suspects. We’ll all thank you for it. So will the inhabitants of Pandora, Naboo, and Endor. Well, Endor’s technically a moon. Vulcan and the Klingon home world haven’t checked in yet, but I’m sure they’re onboard too.

Alas, I digress.

So, how does one go about qualifying suspects? There are a few steps. Odds are your process will be a bit different depending upon your specific needs and business model, but the following should lay the groundwork.

Scope out the suspect’s site
This is pretty much a no-brainer. Check their site to see if what they do relates to what you offer. If you’re a print designer, does the suspect’s site carry brochure downloads or literature request forms? If you’re a writer, does the site carry news releases. If so, do they appear to be written in-house or by a p.r. firm?

Check with your colleagues
If the suspect is local to you, check with your business associates who may have worked with them or know folks who did. This can yield loads of useful information. “They’re a nightmare to work with ...” “Those folks are a dream come true ...” You get the idea.

Run a D&B report
Dun & Bradstreet provides credit and other business reports for a fee. But, it’s not too bad. Their eValuator Plus report is just under $60 US. 60 bucks might just save you loads of time and aggravation down the road when collecting time rolls around.

Once you’ve done some general background research and have set up a face-to-face, you’ll want to ask some qualifying questions at the meeting and review the project specs. Here are some examples.

• Have you ever worked with a (insert profession du jour)?
If they haven’t, you might want to let some other poor soul train them.

• What is your project timeline?
If it’s unrealistic, you might want to walk away.

• What’s the budget for the project?
This is always tricky. If they say they don’t have one, that’s usually baloney, whether the prospect knows it or not. If need be, toss out some numbers. For example, “I’ve worked on projects similar to what you’ve described. They’ve been in the $2500 - $3500 range. Is that roughly what you were expecting?” This opens the door. If you have to pick them up off the floor, you’ve learned that it’s time to head for the door. Also, don’t give them, or imply, a firm price at this point. You’re just trying to see if they’re a good fit financially.

• Who, beside yourself, will be responsible for approvals?
You want to learn upfront if the person on the other side of the conference table is the true decision maker. Asking the question in this manner saves face for the prospect while cluing you in as to whether or not others are involved. If there are, you’ll want to bring them in early on.

• Ensure you’re comfortable with the project specs
Have you done this type of thing before or will you need to invest time and possibly money getting up to speed? Does the project require you to shell out a load of dough for software, new equipment and such? Can you bill for that time and expenses?

• Do things feel right?
Gut feelings are often spot on. If the prospect gives you the heebie jeebies, turn and run. If something doesn’t set well with you about the prospect, the company, the project, etc. there’s likely a reason.

Although it may sound counterproductive, during the qualifying process, while Julie Andrews is singing Getting To Know You in my head, I’m essentially looking for all the reasons why I shouldn’t work with the prospect. It’s something I’ve learned over the years and tends to keep me safe. Following these simple steps will help keep you safe too.

What about you? What types of qualifying tasks and questions work for your business?

Until next month ...

All the best,
Neil