Tag Archives: Selling Consulting

The Skin in the Game is Your Brand

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Success All the e-mail said was, “Being successful developing and commercializing technologies and start-ups is a given or I wouldn’t have contacted you. I appreciate your offer but I don’t do business with people or groups that don’t have skin in the game.”

Skin in the Game according to Investopedia

A term coined by renowned investor Warren Buffett referring to a situation in which high-ranking insiders use their own money to buy stock in the company they are running.

Your Brand is at stake every time.

Every consultant puts skin in the game every time they accept an engagement. If their recommendations fail they will lose Trust with that client and with every one that client tells. The skin they have in the game each time is the lifetime value of their brand. That value is always greater than being allowed to invest in the startup without having legal control.

Value, like Brand, is perceived.

Your value to clients depends on their situation, how much information you can elicit to make a proposal and how strongly you believe in yourself.

Here’s the suggestion that was rejected:

“I’m not a stranger to new products. I stopped counting successful introductions at 207 and that was years ago. I’m willing to invest an hour on Skype to determine how viable I think the product is. But, full disclosure, I’m too busy on paid retainers to take on any additional work without getting paid for it. If I believe your product has the positive value that Digimarc had (I named the company) I will give you the same deal I gave them, a monthly retainer plus a stock bonus. Call or e-mail if you want to take the next step.” 

Skin in the game is a two-way street.

In my experience, the proposition is always essentially the same: Give the start-up the benefit of your time, knowledge and wisdom for a percentage of the company in the future. In other words, we want all your value for as long as it takes but we don’t want to pay for it and, oh yes, you’ll have no say in how the company operates.

Does that sound fair and balanced to you?

Without candor there is no trust

In a conversation with any entrepreneur or start-up if they do not believe in their offering it will show. If they are not cognizant of a marketing problem I may be able to help merely by pointing it out. Should they have been short-sighted about how the company will be run as it moves into the future I may be able to suggest both interim and long term solutions. My initial conversations with start-ups are based on both of us being truthful with each other with the objective of making them successful.

The skin in the game is your brand… and theirs.

Your Brand has established value or they wouldn’t be talking to you. Theirs has little or none. In my view the fees for services is a negotiation.

They need to build a business. You need to be paid.

How you get paid is another matter. If you believe in your brand you should be able to determine the value of your services to the prospect and be paid at that level via any combination of cash, stock or ownership you can agree on.

What say you?

Jerry Fletcher Keynote in ColombiaJerry Fletcher is a beBee ambassador, founder and Grand Poobah of www.BrandBrainTrust.com

His consulting practice, founded in 1990, is known for Trust-based Brand development, Positioning and business development on and off-line. He is also a sought-after International Speaker.

Consulting: www.JerryFletcher.com
Speaking: www.NetworkingNinja.com

Get all the Brand Success Stories. Sign up at http://www.brandbraintrust.com/home.html

 

 

 

The Power of a Personal Touch

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As I put my laptop on the table and fired it up, Chris asked, “Should I go get some popcorn for movie time?”

Gail our resident good-mannered grammarian said, “You know, for a digital marketing type you know how video has become so pervasive, it seems to me that you might have a little more patience if not respect.”

Pesonal Touch VideoVIEW
“Easy,” I said. “I brought this along so all of you could comment on a video I edited this morning. It’s about trust. I’ve done a couple speeches recently and I was reviewing the video of them and thought it might be helpful to people to see how you can handle the same material with no technology or a full tilt animated Power Point. I just cut part of the two different appearances together.”

Rob, aka the Brand Buddha welcomed the opportunity to niggle me saying, “Minds me of the way gramps ‘splained the difference between a Yankee fairy tale and one from Dixie: Up north it starts out Once upon a time… Down home it’s you ain’t gonna believe this…”

Kate turned to him and said, “Even I couldn’t sell that notion without looking at the video. You know he’s been talkin’ about Trust on three continents for a lot of years. Besides, I think the presentation differences may be the point he’s making but first we have to watch.”

Bubba replied, “Crank that thing up Fletch and let’s have a look at A Personal Touch.”

About 9 minutes later it was quiet at the table.

Then Kate said, “I love the pearl at the end. The video works. I kind of like the way it goes back and forth. The message comes through either way.”

Gail agreed. She pointed out, “If there were no live sequences the Power Point with voice over would tell the story but wouldn’t be as friendly or real or powerful.”

Chris said, “And that is the point. Video we keep being told is the most powerful way to get a point across no matter where someone is on the pathway to purchase. Yes it is powerful but the real power comes from giving it a personal touch.”

Fletch just smiled.

The Takeaways:

A personal touch is the shortcut to trust.

The more personal a video is the more powerful the message.

What you show is important. What you say is critical. But the most important thing is who trusts you.

Jerry Fletcher’s blog recaps conversations with clients, prospects and the unruly mob of business development professionals he consorts with. They discuss marketing that works from solopreneur to enterprise level. Jerry, The Consultant’s Communication Consultant, is the ringleader and “Watson” of the dialogue. Sign up for the blog and other publications at: www.JerryFletcher.com/Profit.html

Jerry has been researching and implementing small business marketing that builds businesses, careers and lives of joy for 25 years as President of Z-axis Marketing, Inc. Learn more at www.JerryFletcher.com

Schedule a personal appearance. Jerry speaks internationally on Networking, Marketing and Contact Relationship Magic. www.NetworkingNinja.com

Selling Consulting: 5 Questions Rainmakers Listen For

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Ken contacted me through Linked In and arranged a phone call. Selling Consulting 5 questions rainmakers listen for

It started out with him pitching me his publishing services and ended with two questions:

  1. Would I have time for him in my schedule?
  2. What would it cost?

Kate, our sales doyen said, “Like I always say—Never Stop Selling!”

“You’re right,” I agreed. “And I usually just sort of stumble into it.”

“That,” she said, “can be fixed. Think back on the conversation. When did it switch from him pitching you to the other way around? Was there a question that either of you asked that caused things to put you in the seller’s seat? If you’re listening you’ll hear one of these which will make it easy for you to shift the conversation:

  • How do you work? This one is sometimes a general interest question but if it comes after you’ve mentioned some accomplishment for a client means they want a taste of that for themselves.
  • Why do you consult? At a cocktail party it can be an opening gambit but if it comes after you’ve revealed your years in practice or how you acquired your expertise to someone you’ve identified as a prospect… Remember, a prospect is someone that has a problem you can solve, is willing to talk to you and can sign the check to pay you.
  • How many clients do you work with at a time? The clue phone should be ringing if you hear this. Always answer truthfully noting that although you are busy, you have room for another now depending on the time commitment required.
  • What is your hourly rate? They are looking for a way to figure out what it would cost to put you to work for them. Do not answer directly. Yes, a lot of consultants and professionals work on an hourly fee basis and that is what the world expects. My recommendation is to work on a value based or retainer basis with all your clients. Value based means you agree to put together a plan just for the prospect based on the value they assign to solving the problem they have. Normally you will want to give them three options and let them choose. Option 1 solves their problem for an amount that is 10% to 20% of the value they assigned to solving the problem. Option 2 includes option 1 and adds a desirable add-on that will make the solution more effective. Option 3 includes options 1 and 2 and provides additional access to you for more complex and longer term fixes. Frequently, option 3 generates long term retainer agreements that allow you to provide your expertise on an on-call basis. That eliminates the requirement of developing huge proposals and all the time that entails. You still may have to map out how you’re going to handle something but it less of a pitch and more of jointly determined approach.
  • Have you ever worked in my industry? Again, tell the truth. If you have, give them information on successes. Never get into industry politics. Always speak of former clients positively—even if you fired them or vice-versa. The real reason they are asking is their belief that their industry is different. People believe that their industry, state, profession etc. can’t be understood if you don’t work in it. Don’t argue. Instead tell them how you were a total newbie in some industry you have had success in. Explain how part of your approach is to first understand how the industry works and then solve the problem by bringing to bear all the people knowledge and processes you have come to understand working in a spectrum of industries. Or, if you are truly knowledgeable in a specialized area, give them facts, figures and success stories.

All those questions just start the conversation. It’s up to you to take it to a profitable conclusion.

  • If it is in a networking situation either personal or business get agreement to meet at their office.
  • If someone is pitching you, Then decide when you want to schedule a follow-up based on the interest they show. Always follow up. Top sales professionals estimate that beginning and even experienced sales people miss out on 20% to 30% of potential sales just through not following up. Plan to meet with them face to face if possible.
  • If a referral source is asking questions, carefully determine if they will tell you who they are asking for. If they will, orient your answers and questions to that prospect. If not, answer and question and suggest that it might be wise to introduce you to the prospect over lunch, on you, of course. Then, try to get that face to face meeting in their office.

The Takeaway:

Never stop selling! Listen for the questions that suggest more than casual interest in your consulting capabilities. Pay attention to indications that there is real interest in what you do.

 

Jerry Fletcher’s blog recaps conversations with clients, prospects and the unruly mob of business development professionals he consorts with. They discuss marketing that works from solopreneur to enterprise level. Jerry Fletcher is the ringleader and “Watson” of the dialogue. Sign up for the blog and other publications at: www.JerryFletcher.com/Profit.html

Jerry has been researching and implementing small business marketing that builds businesses, careers and lives of joy for 25 years as President of Z-axis Marketing, Inc. Learn more at www.JerryFletcher.com

Schedule a personal appearance. Jerry speaks internationally on Networking, Marketing and Contact Relationship Magic. www.NetworkingNinja.com