Prospects 

Your prospect list is one of the most valuable assets in your business. It’s a list of qualified people and/or businesses that have expressed an interest in your service or product. Unfortunately, in most small businesses the prospect list is dramatically underutilised. In fact it is most likely the most wasted, dormant asset in small business.

Most businesses treat prospects as a one-time-only, static asset. They place an advertisement or run a promotion, receive enquiries, and attempt to convert those enquiries into clients, one time only. It’s a ‘now or never’ approach. And this approach costs businesses a substantial amount of money!

What is the first thing a business owner in financial trouble does? Promotes to his mailing list!! Why is that? Because when an emergency arises he suddenly realises the value residing in the list.

You Should Be Continually Exploiting Your List’s Value

Why wait until you are in financial trouble before exploiting the value in your prospect list? It doesn’t make sense does it?

Successful businesses are continuously in contact with their prospects. Unsuccessful businesses have the mindset “they won’t want to hear from me” or “they won’t buy from me if I hassle them.” We have news for you. they categorically won’t buy from you if you don’t ask them too!

The Secret to Frequently Communicating With Prospects

You should be contacting your prospects a minimum of once a week. The secret, and it’s a powerful secret, to frequent communication is giving your prospects value with every contact. Each and every contact should add-value AND give them an opportunity to buy.

Many business owners are concerned that frequent contact will threaten the relationship and diminish the chances of making a sale. That will only happen for two reasons, either 1/ you are not providing enough value in your contacts; or 2/ the prospect was never going to buy anyway!

Here are some methods of communication to consider:

  • Email
  • eZine (e-newsletter)
  • Mail/ Letters
  • Newsletters
  • Phone
  • Gifts
  • Reports
  • Articles
  • Text messages
  • e-Course

As you can see, there are many ways to maintain communication and build credibility and rapport.

A Common Case Scenario

Let’s say you want to deliver a workshop as a means to convert clients. To promote the workshop you place an advertisement in a targeted journal. The ad costs you $2,500. It attracts 40 enquiries, of which you convert 15. The workshop costs attendees $89.00. Your income is $1,335.00; and expenses $2,500.00.

Of the 15 attendees you convert 3 into your 3-month coaching program, hence making an additional $4,500.00 (3 x $1,500.00).

Your net profit from the entire exercise is $3,335.00.

THE PROBLEM

When most coaches deliver a subsequent workshop, they start the process from scratch. And in most instances the subsequent workshop event is driven by a reactive need to fill more coaching spots. Hence they re-advertise, convert new leads and produce similar results.

If this process is repeated 3 times per year, your net result is $10,005.

There’s A Better Way!

By building and NURTURING your prospect list you can dramatically reduce client acquisition costs, compound your net profit, and sell additional products and services.

Case Scenario 2: A Slight Variation

Let’s review a variation of the Case Scenario above.

With a prospect list of zero, you still need to advertise for your first workshop. However, instead of ignoring the 25 unconverted leads you subscribe all leads to your eZine (electronic newsletter). Each week or fortnight you send your prospects valuable information that builds loyalty and credibility.

When you deliver your second workshop, you advertise again, but you also promote your workshop (maybe even under preferred conditions, such as offering a discount or a limited seat) to your prospect list. You receive another 40 leads from your ad and convert another 15. However, from your prospect list you also convert another 5. You now have 20 people attending your workshop, an immediate 33% increase.

This cycle will continue until you get to a point that your prospect list is large enough to fully sustain your workshop sales process. At this point your cost of acquisition of clients has reduced by your $2,500 per event advertising cost, hence putting that amount immediately back in to net profit.

IE Instead of making $10,005 net profit, you make $17,505 net profit. PLUS with a qualified, loyal prospect list you can continue to sell services and products over and over, dramatically increasing the Net Marginal Worth of clients.

This article is an abstract from the Ultimate Coaching Business Building Program (UCBBP); developed by the Life Coaching Institute and CoachIQ Coaching Club. The program is delivered to CoachIQ subscribers via weekly e-lessons, including extra resources such as Self-Assessment and Action Sheets, Links and Templates.

If you would like to build a flourishing coaching business, visit the Coaching Club website (www.coachingclub.com.au) and take advantage of the 60-day free access offer to new members.