A Bad Lead Is Worse Than No Lead at All

Entrepreneurs can learn to target "high probability" prospective clients instead of wasting time and money selling to the ones who won't commit

by Christine Comaford

"I have a coaching company and am super-frustrated. I ended up courting a client for a large contract for about three months and then he ended up bailing. I took a big tumble and I want to know, from your perspective, how I could have avoided that." That was a question a business owner asked me in a recent tele-seminar I led. I've heard of similar struggles from other entrepreneurs.

My answer? The prospective client never really was a prospective client. Instead, the person was an expertise-vampire, sucking up time and advice. The owner of the coaching company ended up giving the person three months of free consulting when she should have disqualified him quickly. I realize the term "disqualify" sounds harsh but really, haven't we all chased sales leads only to realize months later that the person never had any intention of buying?

Disqualify these leads. They're not worthy.

The Art of Sales Communication

Too many entrepreneurs waste time and energy chasing sales prospects that have no potential. To increase your sales, you must learn to disqualify sales leads. Though it might seem like a skill better suited for your sales team, you, as an entrepreneur, should master it to get and stay financed.

Sales communication is different from advertising and marketing—it's more personal. Too many salespeople make the mistake of spewing off hype-driven sales talk. But no one likes to feel manipulated, so this approach doesn't work. Some sales people don't even bother to explain the benefits of what they're selling.

The timeless book High Probability Selling by Jacques Werth and Nicholas Ruben does a fabulous job upending conventional thinking about selling. It explains how to identify real prospects and sell to them using benefits they're already seeking. You don't ask annoying rhetorical questions such as "Do you want to increase your profits by 20%?" The answer is obvious, the practice is manipulative, and it ultimately doesn't screen for real prospects. Plus, potential clients usually end up reacting negatively. Werth and Ruben offer a different approach.

Key Points for Entrepreneurs

I've paraphrased their book's key points with entrepreneurs in mind:

1. Be a shrink. We all bring our emotional baggage to every aspect of our lives. We all need to be loved and respected, and to trust others. In selling situations, many of these psychological buttons are pushed. Your sole job as a salesperson is to build rapport. Rapport leads to trust. Trust leads to lasting relationships and sales.

2. Set your objective for prospecting. Shifting your objective from getting the appointment to determining whether the prospect qualifies for an appointment is key. Next, you need to eliminate your fear of rejection. It's easier to do this when you aren't begging for sales meetings. And you won't be begging for meetings. Instead, you'll identify your target prospects using specifics such as price-points, budgets, decision-making ability, and schedules. You'll only make appointments with prospects who need, want, and can afford what you are selling and are willing to buy from you now if you meet their requirements. You'll also learn to embrace the fact that disqualifying a prospect is just as valuable and important as qualifying one—whether you disqualify/qualify him or he disqualifies/qualifies himself.

3. Start separating real leads from unlikely ones. This type of prospecting is essentially a practice of sorting and identifying by talking to as many people as you can in the shortest amount of time. You'll need to avoid the temptation of trying to create prospects—they simple cannot be created. This process involves learning how to disqualify a low-probability prospect and maintain control of the interaction. Remember, whoever asks the questions is in control.

Print out these reminders and tape them by your phone to help you when you call:

• I work with high probability prospects only. I disqualify everyone else.

• Prospecting is a disqualification process.