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Nobody to Somebody in 63 Days or Less: The Ultimate How-To Guide To Business Networking & Word of Mouth Advertising
by Joe Ilvento and Arnold SanowLead Groups
A lead group is an organization of people who meet on a regular basis for the sole purpose of exchanging sales leads. Typically, the groups only allow one person from each profession or business category. This ensures that the maximum number of leads get passed with the minimum amount of competition. In addition, each member is encouraged to bring guests and prospective members who may benefit from the group. For example, let's assume you are an accountant and you join a lead group that consists of a real estate agent, an insurance agent, a florist, a chiropractor, a painter, an auto mechanic, and a printer. Each of the members of the group becomes an extended sales arm of the other. So instead of just you out there keeping your ears and eyes open for new business opportunities, you now have seven additional sets of ears and eyes.
Always recommend and promote others in your network. For example, if a client asks you for a product or service you are unable to fulfill, instead of saying you can't handle it, try to match them with other clients and those in your lead group or network. It's great extra value to your existing clients when you can recommend them to someone. Imagine how loyal that client will be.
Here's how it works:
Over the course of the year the real estate agent will help on average three couples who were renting with the purchase of a home. Until their purchase, they did not itemize their tax returns, but with a significant mortgage deduction, closing costs and other moving expenses, they now have a need for an accountant. Knowing this, the real estate agent passes their names and phone number to you as a lead.
The insurance agent one day fields inquiries from a client who wants insurance quotes should they decide to rent their house to a tenant. The client also inquires about whether or not rates will increase or decrease on homes in a neighboring community. The insurance agent puts two and two together and confirms his clients are thinking about moving, that they currently do not have an agent and would be interested in being contacted by an agent who specializes in single family home sales.
The chiropractor, while working on an elderly patient with lower back pain, learns the patient wants to sell her three story townhouse and move into a condo. The patient complains that the constant stair climbing aggravates her back condition and that now would be a good time to sell. The chiropractor confirms that the patient is currently working with another agent and asks if she would like to be contacted by a friend of hers. The patient appreciates the referral.
The scenario goes on and on. In the Fall, the painter paints the home of a family looking to sell in the Spring. The florist sends flowers to a widower whose spouse recently died and will be moving in with family members across town. The mechanic works on the car of a person who complains that his long distance commute creates too much wear and tear on his car. And, the printer learns that one of his customers making photocopies of an upcoming garage sale is planning to put his house on the market after he sells off 20 years worth of accumulated stuff. Over the course of a year, you will probably attain at least one solid sales lead from each person in the group. Depending on the person and how complimentary the profession is to yours, you may receive upwards of five or more from a single member. As you know, a hot prospect referral is the equivalent to making 100 phone calls or mailing out 1,000 mail pieces. Membership in a lead group like this could double or even triple your sales over the course of a year.
Remember the sales leads must flow the other way too. Every customer you sell a home too, with the buyer's permission, would become a lead for the insurance agent in the group. During a listing appointment, you suggest the prospective seller paint the kitchen and master bedroom and suggest a painter who will give them a good price, etc.
In the above scenario, the lead group was made up of seven people. We belong to groups made up of more than 30. In addition, you may want to join multiple lead groups located in different areas of town with different members.
Lead groups work best when the members meet weekly, enforce mandatory attendance, chart and make public among group members the number of (good) leads each person in the group passes. The only cost associated with some groups is the cost of your breakfast or lunch each week. Other groups charge a small annual fee to cover minor expenses such as advertising, trade show booths and parties. And yet, others are "for-profit" and charge accordingly.
If you are unaware of lead groups existing in your area, check with your local Chamber of Commerce as well as local diners, restaurants and hotels. Most meet for breakfast at 7 AM or so on a weekly basis, others meet for lunch and still others meet after the business day. If you can't find a group, gather 8 or 10 compatible business people and start your own group.
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