Business

Marketing Ideas that Will Restore Your Faith in Humanity

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A few days ago, I heard someone complaining that all advertisers do is take advantage of consumers by manipulating them. They gain marketshare by telling bigger lies in louder voices than their competitors. But is that what advertising is about? Is that what business is about?

I argue that there is such a thing as truth in advertising. Advertising and lying are two different things in my book.

Moreover, marketing can actually make the world a better place. That’s how it ought to be used.

Taking inspiration from the instant viral hit “21 Pictures That Will Restore Your Faith in Humanity,” I wrote this month’s newsletter on the topic of how doing good is good for business.

Check it out below.

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Doing good is good for business.

Not everyone believes that. I’ve had several discussions with people who think marketing is inherently evil and that entrepreneurs are generally dishonest and greedy. Maybe you’ve had similar conversations.

As I’m sure you know, you don’t have to be one of the bad guys to be successful in business.

With that in mind, this issue was inspired by the instantly viral article “21 Pictures That Will Restore Your Faith in Humanity.” I normally wouldn’t ask you to stop listening while I’m talking (or reading while I’m typing) but you should strongly consider taking a few minutes to check out that article if you haven’t already done so. It’s just photos and captions, so it’ll only take a moment. Everything I say will make more sense if you do.

Let’s look at 3 instances of altruism in action from the article. Although I’m not sure any of these were meant to be marketing ideas, the insights we gain can have a dramatic impact on your business.

An Amazing First Impression

marketing first impression

When you look at the “21 Pictures” article, the caption under this image tells us that the owner of the dry cleaner who put on this “promotion” estimates that it cost $32,000 to help around 2,000 unemployed people in his community.

You know what I call that (other than “nice”)? An irresistible front-end offer.

Dry cleaners provide a service their customers need time after time. If they treat their customers right, they can form lifelong relationships. Free dry cleaning during a time of need is an incredible way to get the ball rolling. Where do you think these people had their suits cleaned in the future? How many other people did they tell about their experience? How much PR did this effort garner?

Think about it like this: this cleaner bought leads for $16 apiece.  Last time I went to the dry cleaners, I spent $45. Does that sound like a good investment?

Application:
1) Do you have an irresistible introductory offer? One so good that it’s virtually impossible to turn down?

In a previous newsletter, I mentioned how Gillette sent me a Mach 3 razor in the mail for my 18th birthday. I’ve been happily buying expensive blades from them for over a decade now.

Square (http://www.squareup.com) is giving away free mobile credit card readers. They make a small upfront loss to gain 2.75% of every transaction they process in the future.

Book of the Month Club will give you 4 books for $1, knowing you’re likely to buy plenty of books from them in the future.

2) Have you developed a profitable back-end to capitalize on the flood of leads/buyers coming in? In almost every industry, this is where the real money is made. Your current customers are your most valuable asset. Are you making the most of the opportunity to serve them in a way that’s mutually beneficial and profitable?

3) Are you specific in who you’re targeting with your marketing? Are you offers tailor-made for your ideal customers? This dry cleaner is appealed to a specific audience with a very powerful felt need. He saw a way to make their lives easier and improve their ability to make future purchases (by helping them look good on job interviews).

Serve a Starving Crowd. Literally.

social responsibility

Do you believe that the more you give, the more you get back?

If nothing else, this Subway location is helping people in a way that’s tax deductible. But chances are that plenty of customers notice this sign from day to day. This weekly act of kindness must build a lot of good will. Customers feel good about supporting businesses that are doing good in the community.

It pays off to treat people like human beings instead of walking wallets.

Application:
1) What are you doing to prove that you care? Are you using your talents and resources to meet a real need? Focusing on others rather than obsessively looking at your own business is essential to running a successful business.

A Truly Personal Touch

customer experience

Personal connection goes a long way in today’s “social economy.”  Not only do you want to treat people like people (as mentioned above), but you want to show your own human side, as well. This commercial from Ally Bank illustrates the point wonderfully.

These pictures show the correspondence between a 3-year old and the customer manager at a supermarket. Check out the way the manager responded to the letter. The fact that he responded at all is noteworthy, and he took the time to write a personal letter. Read the language he used. It’s not corporate-speak; it’s perfect for talking to a toddler.

A £3 gift card is a tiny investment to give a little girl an unforgettable experience. You can almost guarantee Sainsbury’s will hold a special place in her heart for the rest of her life (which will probably be a long, long time). Her parents, too.

On top of that, gift cards are notorious for putting extra money in retailers’ pockets. It’s hard to find an exact statistic, but the majority of consumers spend more than gift card is worth. They’d rather spend more than waste any of the cards value.

Application:
1) Are you showing your customers how much you appreciate them? What can you do to improve in that area?

2) Can you add even more personal touches to your marketing? Maybe do one thing per week that’s not automated to add value to your valued customers (or perhaps ones you’d like to “reactivate.”)

3) Do your marketing materials, including your website, show off your personality? Do you seem like a person/group of people or a corporate machine?

4) Is there a way to utlize gift cards or pre-punched reward cards to entice customers to come back and buy from you again?

Tactics Vs. Strategy

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What do you think is the biggest difference between successful people and businesses, and unsuccessful ones?

  • Wealthy parents/investors?
  • The right connections?
  • Positive thinking?
  • “Luck?”

While any of these could have a significant impact on one’s future success, none of them fit the bill.

The more experience I gain and the more I learn from high achievers, the clearer it becomes that strategic thinking paired with sustained action is the gamechanger in business and life.

Continue reading “The Noise Before Defeat”  on the Evolution Magazine website.

Edging Out the Competition

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Thousands of new businesses will open in the coming months. There will be really good ones, really bad ones and everything in between.

What can you do to outmaneuver your ever-expanding number of competitors?

How will you establish your uniqueness in the market?

What makes you more attractive to your chosen audience? How can you build on that foundation?

A.) Do you have a specialty? A very sharply-defined expertise or niche? You may or may know this, but specialists tend to be able to charge higher fees than generalists in any given field. Think brain surgeons versus general practitioners.

It’s also easier to get noticed and establish yourself as an authority in a small corner of any industry, rather than compete with everyone else.

B.) Do you possess a rare certification? Have you worked with a famous client who got outstanding results? Do you have a pile of testimonials from clients who will sing your praises?

If any of those distinctions apply to you, put that information in the foreground.

C.) What activities are you doing that others are not doing? Where are you available that your peers can’t reach? What can you add to your repertoire to take the strategic advantage?

D.) What are you willing to do that none of your colleagues has the guts to try? What ways can you think of to differentiate yourself from the pack?

E.) What special ways are you touching and helping people? Society? The world?

F.) Is there an unusual guarantee that you offer to your clients? Specific results you basically promise that they will experience?

Don’t take for granted that would-be clients know these things. Tell them!

If others make the same claims about themselves truthfully, you have some more work to do to find your unique value proposition (UVP).

If your peers could make the same statements, but don’t, you can preempt them and take ownership of those claims. Be the first, and everyone else becomes a copy-cat.

What is the biggest, boldest claim about your services that you can honestly make? Say it!

The idea that you should “under-promise and over-deliver” is another myth that can cause considerable damage if you believe it. There is no question about over-delivering – you should always do that. The problem lies in under-promising.

Under-promising can be suicidal for your business. Imagine a dentist who advertises “Your teeth will probably be fairly clean when I’m finished,” because he wants to under-promise. Who would ever set up an appointment with that dentist? No one will find out how amazing the final delivery is; they will visit the dentist who guarantees that his patients’ teeth will be sparkling white and healthy.

That only makes sense. Under-promising sets a low expectation, which makes the over-delivery all the more pronounced. The hope is to surprise and delight the customer. But, weak promises will keep a customer from ever considering the purchase.

Make the strongest claims you can make. Otherwise you end up blending in with the competition. A reliable way to secure a steady flow of the type of clients you want to work with is to be great at something (the very best if at all possible) and make sure as many people in your target audience know about it.

 

Is a Recession a Bad Thing? That Depends on You

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You don’t need me to tell you that times are hard. The words of Charles Dickens ring true today: “It is the best of times. It is the worst of times.” How you position yourself and your business will determine whether you experience the best or the worst.

I recently spoke to a well-known certified resume writer/business owner. He described this paradox to me very clearly. “Job seekers need my services more than ever,” he noted. “But this is also the toughest time to spend the extra money to put together a really strong resume.”

The distinction needs to be made between an expense and an investment. Hiring a resume writer who can help your job hunt end satisfactorily is an investment, not an expense. It pays off.

The same is true for marketing, training and business development.

Many people and businesses are scaling back, pinching their pennies and cutting “non-essentials.” The problem is, they need to be good at attracting customers and clients more than ever before. Employees need to be equipped to deliver better service than their competitors, who are too busy saving money to properly train their people.

During “good times,” when money comes easily, the budget has plenty of room for these initiatives. But when revenue starts drying up, most people react in fear. As Samuel Taylor Coleridge said, “What begins in fear usually ends in folly.” You can’t grow a business that way.

When the going gets tough, people and businesses need more information, better direction, more counsel, more inspiration. They need more help. Those who provide the help people need so badly are in position to make these “the best of times” for their businesses.

That is why it is absolutely critical that you:

1.) provide real, tangible value,

2.) present yourself as a trusted advisor, not another money-drain. An investment that will yield a profitable return.

Fear is natural. Implementing defensive strategies is instinctive. But both are counterproductive. You can’t advance and retreat simultaneously.

Retreating is what your competitors are doing.

Statistics show that businesses that maintain or increase aggressiveness in their investments such as marketing and coaching during recessionary phases grow more than 200% more than those that pull back. (See “When the Going Gets Tough, the Tough Don’t Skimp on Their Ad Budgets.” )

The challenges are daunting; the opportunities are awesome.

How are you responding to the economic climate we’re facing now? How does this affect your interactions with clients and prospects?

Counteract This Trend

You’ll do well to consider different strategies to make your services accessible to your target audience. Low-cost entry items, pared-down basic coaching, and group sessions are possible choices.

Whatever you do, do not devalue yourself or your services. The attitude that says “I know it’s hard out there, so I’ll discount my prices,” is a position of weakness. You are not a commodity. You are not less valuable just because the economy is in bad shape currently (If anything, you could charge more because of inflation!)

A better move would be to present alternative options, multiple ways you can help different people in different financial situations.

The quality of what you deliver is of paramount importance here. If you sell a book that makes marked improvements for the reader, not only will he be more likely to purchase your higher-level offers, but he’ll be more able to do so because of those improvements.

Business is not a zero-sum proposition. Your clients are not $2,000/month poorer because they retain your services. They pay you (you win), you help them achieve their goals (they win), and everyone is richer and happier.

Companies who approach their practice from the perspective that someone wins and someone loses are forfeiting some of the benefits they should be getting. They may be doing more harm than good.

You’ve probably heard it said that more millionaires were created in the Great Depression than any other time in American history.  It seems that “bad times” aren’t bad for everyone. It’s up to you to decide if you’re going to use this downturn as an excuse for mediocrity and failure, or if you’ll look for the opportunities to gain the ground everyone else is forfeiting.

Devious Plans for World Domination

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How’s 2012 going for you so far? I hope your plans are big ones! Big visions are what leads to big breakthroughs. Why settle for small progress?

What if your goal was to rule entire planet? What would it take to pull that off?

While world domination is not in my schedule for this year, ask your favorite conspiracy theorist and he’ll be more than happy to describe who is plotting a global takeover and exactly how they plan to do it with minute detail.

Conspiracy theorists are usually written off as paranoid nutcases with too much time on their hands. But have you ever noticed not fiery adherents of any particular theory get when expressing their ideas? How loyal they are to their chosen “whistleblowers?” Could you stand to have some of these kinds of followers?

I don’t have a figure for how much money is floating around in the conspiracy theory space, but some people build full-blown careers out of it, Alex Jones possibly being the most notable example.

As business people and communicators, there are numerous lessons we can learn from how the “good” theorists operate. Let’s look at two major takeaways today.

(Note: For the record, I am not a conspiracy theorist, but I’m not saying real conspiracies never take place…)

Dramatic Characters

No one can deny that the people who concoct these vast conspiracy theories are dramatic personas. They tend to have intriguing pasts; they used to perform experiments in Area 51, or they worked in a secret office at the Federal Reserve. Because of their experience, they’ve become privy to information that is being concealed from the rest of us regular citizens.

There’s a good chance that there have been attempts to kidnap or even assassinate them to silence their voices.

These whistleblowers take a passionate stand against the bad guys (whoever they might be) and against secrecy. They stand passionately for truth and for the good of the population at large (or at least those who will listen).

Are you or your business passionate advocates for your customers and clients? Do people in the market for what you offer see you taking a strong stand for their good? Are you boldly standing against their enemies and anything that might endanger their well-being?

Are you revealing information clients need, but can’t get anywhere else? Are you telling them the truth when no one else has the guts to?

This sort of pathos is uncommon. It will anger a lot of people. But you will also attract more committed followers than you could ever get otherwise. You’ll definitely be harder to ignore.

Intense, Comprehensive Stories

It’s nearly impossible to find stories with more intricate detail than good conspiracy theories. They dive deep into the shadows of events and organizations we don’t fully understand, uncovering clues of hidden agendas. They paint pictures illustrating the reality behind the mysterious. They answer unsolvable questions, point out inconsistencies and point fingers at people we know (but don’t really know). Breaking news meets secret history.

Controversy is appealing. Mystery is magnetic. These narratives take our curiosity and run. You almost have to question everything you thought you knew.

And they cover all their bases. Claiming George Washington was a Martian invader won’t cut it. They provide extensive “documentation” to prove it! Then they explain all the implications of those facts.

Are you making big statements that call into question harmful myths that are hurting your audience? Are you appropriately controversial?

Do you add proof elements and “documentation” to back up the claims you make about your business? Do you offer complete solutions and have answers for any questions your customers might want to know?

Do you have a well-thought out, customer-centric company narrative, culture and/or value system?

Conspiracy theories also create a scary bad guy, or at least define exactly who the bad guy is. They channel paranoia, distrust and anger toward this source of evil. Having an enemy is a powerful motivator. Assembling a group around a common enemy creates an incredible bond. Think of the Cold War. Every American knew who the enemy of world peace and progress was: communism, most clearly expressed in the Soviet Union. The culture and many of the policies of the entire nation were shaped by the fear and hatred of the enemy.

Americans also knew the threat posed by this enemy: nuclear war. That’s what was at stake.

Who or what is the “bad guy” your audience is up against? It could be something like a lack of respect they face in the marketplace or a difficulty getting clients. It could be a governmental policy that’s bleeding them dry.

What is the threat this enemy poses? What’s at stake for them? Bankruptcy? Heart attack? Embarrassment when speaking in public? Don’t be afraid to attack the bad guy! You can be the knight in shining armor, helping your customers fight off their foes and protect them from their version of nuclear war.

Most of your peers promote their products and services like this: “We are Acme Co. We sell anvils and dynamite to coyotes like you.” But Wile E. doesn’t want anvils and explosives. He wants to finally catch that slippery Road Runner and have a tasty meal. How much more interesting would their message be if they talked about that?

Think about it.

Six Business Lessons from the Book of Ecclesiastes

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The holiday season is upon us!

Many of your business will make a large chunk of your annual revenue between now and the end of the year. And quite a few of us spend a large chunk of our annual income on gifts, decorations, food, and the like.

Paradoxically, we’re told that November and December are also months in which discontentment and depression skyrocket. Add in the rotten state of the economy (what a terrible time to be unemployed or broke), and there are plenty of people feeling gloomy these days.

I had a moment not a couple of weeks ago where I felt as if I knew exactly how King Solomon felt when he wrote the Book of Ecclesiastes. The invisible part of me exclaimed “Vanity of vanities; all is vanity!”

But rather than submitting to despair, I found encouragement and inspiration reflecting on this book of wisdom. Now I’d like to distill some of that inspiration to you, if you don’t mind. I’ve pulled out six lessons which I believe will really benefit you as you strive to finish 2011 strong.

This is not a meant to be an exposition of the Biblical text, nor is it intended to be religious instruction. You can drop in on my weekly Bible study class if you’re interested in that. This newsletter is designed to help you build your business, and that’s what we’re going to do today.

Lesson 1: Enjoy What You Do

“A man can do nothing better than to eat and drink and find satisfaction in his work.” Ecclesiastes 2:24 New International Version

Who told you that work shouldn’t be enjoyable? The truth of the matter is that many Americans do not enjoy their jobs. Results released at the beginning of the year from a poll taken by the Conference Board indicate that only 45% of us are satisfied with our jobs. That’s the lowest level since they started taking the poll 22 years ago.

There are many factors that go into being satisfied with the work you do. There should be some level of enjoyment. Ideally, each of us would work in areas we’re gifted in, doing things we love to do.  Thomas Edison is quoted as saying “I never did a day’s work in my life. It was all fun.”

Satisfaction also implies that your work means something to you. Your inner drives and passions should match with your work. If you’ve been hanging around me for long, you know that I’m a quote nut, so here’s another for you: Malcolm Forbes said that “the biggest mistake people make in life is not trying to make a living at doing what they most enjoy.” You don’t have to go to work just to get a paycheck or earn a living. In fact, you’re really robbing yourself if you think about business that way. You have something special to offer the world. Something great. You just have to figure out what that is.

If you’re in a position you’re not crazy about, I bet you can still find something about it to enjoy or to be satisfied about. There’s nothing better than to enjoy your work while you work toward your dream, whether it be a job or an entrepreneurial opportunity.

One more note here. The New American Standard phrases Ecclesiastes 2:24 a little differently. It says that “there is nothing better than for a man to…tell himself that his labor is good.” You should only be doing work you can feel good about. What good is money if you have to sell your soul and beat down your conscience to earn it?

Lesson 2: Give It All You’ve Got

“Whatever your hand finds to do, do it with all your might.” Ecclesiastes 9:10 New International Version

This is related to the first lesson. It’s worth saying, though.

To keep it simple, never give less than 100% in your work. Whether you run a Fortune 500 company or a neighborhood shop that’s been in the family for generations, work as smart and as hard as you can every day.

There are times when “coasting” seems like a good idea, You know the feeling. “I worked my butt off yesterday, so I think I’ll take it easy today.” This is especially easy to do when you aren’t finding satisfaction in what you’re doing.

You don’t need me to tell you that this mentality is appealing to all of us every once in a while. But giving into it is dangerous. Giving your best effort will bring success faster. You’ll experience breakthroughs that you’d have never come across just drifting along. And you’ll have a chance to gain mastery that comes with going all out. Anyone who wants to get to the top of their game and be recognized as an expert or superstar will have to put all their might behind their work.

This is not to say that you shouldn’t take vacations or enjoy your leisure time. You absolutely have to do that. But when you’re working, give it all you’ve got.

I’ve often noted that “success is never accidental.” If you insist on coasting or working half-heartedly, don’t hold your breath waiting on it. On the other hand, success can be coincidental. It tends to happen while you’re working hard.

Lesson 3: Live Up to Your Claims

“It is better to say nothing than to promise something that you don’t follow through on.” Ecclesiastes 5:5 New Living Translation

This lesson is simple enough, but so many businesses screw up at this point.

In a recent post on my blog, I put up a video of an old television commercial for Cash4Gold. I don’t have any issue with the concept of sending in jewelry in exchange for money. It’s a good idea: people need money, Cash4Gold and its counterparts are getting ultra-high rates for precious metals, so no one is really getting robbed, as far as I know.

The problem is how the commercial is set up. The claim is that you can end your “personal recession” by dealing with this company. Crazy, huh? A bit insulting, too. Do I look like an idiot? (Don’t answer that)

Jerry Della Famina says that “there is a great deal of advertising that is much better than the product. When that happens, all the good advertising will do is put you out of business faster.”

And Bill Bernbach: “Advertising doesn’t create a product advantage. It can only convey it.”

Many businesspeople and marketers feel the need to use hype and exaggerated claims to get attention for their product or service. Salespeople often overpromise to close the deal. This is no good. Your customers will find you out. And then, all your credibility is gone. The negative publicity you’ll receive often more than undoes the positive contributions gained by the dishonesty.

Don’t say you can do anything you can’t. Don’t promise to do anything that you won’t do.

If you say it, you better do it!

Having said that, never shy away from making big claims if you can back them up. Sometimes we are scared to make the bold statements about how great our product or service is. But if it’s true, tell the world. Otherwise you’re selling yourself short and robbing your potential customers of an opportunity to have a great experience.

Lesson 4: Pay Attention to the Seasons

“There is a time for everything.” Ecclesiastes 3:1 New Living Translation

In this passage, Solomon describes one of life’s great truths. There is a time for everything. Then he lists several of them: there’s a time to be born, to die, to plant and harvest, to cry and laugh.

So where am I going with this? Two things.

First, don’t let economic cycles destroy your confidence or courage. These cycles occur on a macro (nation- or even worldwide) level, as well as on a micro level (pertaining to you and your business personally). You will have to be smart to figure out how to thrive in both good times and bad, but don’t throw in the towel just because we’re in a recession. Don’t mentally give up, like so many of your colleagues and competitors already have. This is a season. It will pass sooner or later.

Second, I want to focus on Ecclesiastes 3:6, which says there is a “time to get, and a time to lose; a time to keep, and a time to cast away.”

Specifically, I’m thinking about clients and customers here. There is a time when your business needs to be on the look out for new and more customers. For some businesses and industries, that may be all the time. For others, clients stick around longer and the need to get new or more is much less urgent.

Every business has to balance their customer acquisition efforts with their retention efforts. Some customers you want to keep. But there are times that you’ll want to cast some of them away and get new ones to replace them. If you have “bad” customers or clients, ones that take up too much of your time, pay you too little, or who just don’t work well with you, it may be time to lose those individuals.

Lesson 5: Protect Your Good Name

“A good reputation is more valuable than the most expensive perfume.” Ecclesiastes 7:1 New Living Translation

Lesson 4 is an important part of Lesson 5.

You build your reputation by doing good work, providing value, treating people well, etc. You can ruin your reputation by doing crappy jobs, disrespecting people or making them feel ripped off. I don’t know that there’s any more effective way to demolish your chances at business success than to allow your good name to be ill spoken of.

There are a million ways to build a solid reputation. Here’s a start:

  • Always provide all the value you possibly can
  • Never leave a job done in a way that you wouldn’t want God to inspect
  • Treat your customers the way you would want to be treated. You know what? Do better than that. Treat them the way THEY want to be treated
  • Meet your deadlines
  • Be consistent
  • Don’t overpromise
  • Overdeliver as much as you can
  • Be the expert

Warren Buffett teaches that “it takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” I don’t think it takes 20 years to build a good name (at least not any more), but what he’s saying is true. You have to work hard to obtain good standing in your industry or locality. It is incredibly easy to undo all of that hard work. Be diligent in protecting what you’ve built.

Lesson 6: Three Is Better Than One

“Though one may be overpowered, two can defend themselves. A cord of three strands is not easily broken.” Ecclesiastes 4:12 New International Version

I know this has been a long newsletter, so I’ll make this point brief.

Develop intelligent strategic alliances. Partner with other businesses and business people who you can work with in a mutually beneficial manner.

A good example of this is the home inspector I used when I purchased my house. He had an alliance with a sales representative for a home security company. Whenever he would inspect a home for a customer, he’d present an offer from his buddy with the security system. Both knew that new home buyers are ripe for these kinds of offers. They worked together to compliment each other’s business.

Look for ways you can do the same thing.

I also advise people to get a strong personal network in place. Family, loved ones and friends are an important part of life. Who wants to be lonely? When we go through hard times, it’s nice to have people to comfort us. When things are going better than we could have imagined, we want people to celebrate with.

There’s an African proverb that says “if you want to go fast, go alone. If you want to go far, go together.” Think about it.

In Conclusion

The road we’re traveling on can get rough. You may feel like crying, like quitting. You may lament with Solomon that “all is vanity;” it feels that way sometimes. I beg you, take heart, refocus on the goals you’ve set before you, and keep pushing. Mediocrity is not what you want. So don’t let it happen to you.

4 Trends that Will Challenge the Ability of Coaches to Grow their Practices in 2012

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Over the next 6-12 months, a series of factors will introduce intimidating new difficulties for business, executive and life coaches around the globe. The dynamics are already well underway, and they will affect the way almost all coaches will do business going forward.

The way the world works is changing at a faster pace than ever before. The way business works is changing rapidly, too.

As with any period of substantial change, those who prepare and get into the proper position will benefit from their foresight and adaptability. Those caught unaware will pay a heavy toll.

The coaching industry is facing this kind of massive shift today.

The Tenuous State of the Industry

Coaches charge some of the highest hourly rates of any service providers. But depending on whose surveys you read, between one-third and one-half of all coaches earn less than $10,000 per year and up to 70% earn under $50,000 a year. (“Coach Career Survey 2007.” Suzanne Falter-Barnes & David Wood). These figures speak volumes about the state of the coaching industry.

At the same time, the number of individuals choosing coaching as their profession continues to increase steadily, averaging 20% annual growth. But with as many as half of them will earn less than $800/month, a large percentage of coaches still depend on other sources of revenue to meet their financial needs. Many are also leaving the field, disappointed in their inability to make the business part of the practice operate profitably, in a way that fits their desired lifestyle

Two Reasons So Many Coaches Struggle to Get and Keep Good Clients

There are two fundamental shortcomings that are pervasive among both new and experienced coaches that are the root cause of these startling statistics. The top 10%, the ones earning six figures or more, generally excel in both of these areas. The other 90% needs to improve in either one or both categories if they want to break out of the rut.

Regardless of where they are on the broad spectrum of success, every coach on the planet should be seeking to constantly improve in both areas:

1.) Lack of marketing know-how

Let’s be honest: most coaches are not passionate about marketing. Many are even shy about self-promotion. Many training programs do not adequately prepare coaches to market their services.

When prioritizing how you’ll spend the 24 hours you have to work with each day, marketing usually gets placed near the bottom of the list, if it makes it at all. Or, if you understand the urgency and importance of marketing, maybe you aren’t sure how to approach the subject. How can you put the tactics you’ve seen other use into your own strategy to boost your business?

Don’t buy into the “build a better mousetrap” myth. It’s simply not true. The most talented, experienced coach in the world is likely to get lost in the shuffle if he is not being actively promoted to qualified prospective clients. There are too many voices screaming for attention. No matter how ingenious the shy coach may be, how will she get noticed if she doesn’t come out of the corner and interact in the marketplace of ideas?

Why should a client choose you? It’s your marketing’s job to broadcast that value proposition to the right audience.

2.) Lack of coaching capability or competence

According to Peer Resources, there are 324 accredited coaching schools or programs around the world (as of September 2011). One can only imagine how many unrecognized programs are available for people who would like to enter into the realm of coaching.

An honest assessment of such institutions will show that many of them are top-notch, requiring graduates to demonstrate proficiency in various disciplines before certifying them. Others are simply taking advantage of the popularity and rapid growth of the industry to make profits from would-be coaches. Many release students into the real world before they are ready.

Beyond that, formal training and certification are not requirements for entrance into the field. Anyone can call themselves a coach, whether or not they are capable of providing genuinely valuable leadership to others.

The results, therefore, are mixed. Some people only seek to use coaching to make a quick buck. They view as a simple opportunity to do just that. Most of these fail early and miserably.

Others gained knowledge and expertise through work and life experience. Formal education may not be necessary for them to begin giving valuable coaching lessons to peers or clients right away.

Unfortunately, because of the low barrier to entry into the field, a large number of individuals start their coaching careers with no knowledge of what it takes to grow a profitable practice. They may have trouble finding clients. Or, they may get clients, but fail to deliver quality instruction and insight, so they can’t keep them. They develop poor reputations, which (as you know) is a major obstacle in this arena.

Don’t Get Lost in Transition

The next year is going to be a period of major transition for the coaching industry. There are four dangerous trends that will completely change the way coaches have to operate in order to survive and thrive. Even the big names, the six- and seven-figure earners will need to understand these trends and move proactively to make the appropriate adjustments in their businesses. It will be a tough road for those that wait too long or refuse to adapt to the coming changes.

I believe that we will see some bright stars fade in 2012. Coaches who can read the handwriting on the wall and take action to get in the position to take advantage of the new environment will rise to new heights.

Study, act, and watch your practice succeed, even in the midst of the coming seismic shift in the industry. The following information will place you securely among the prepared, if you grasp the facts and apply the insights.

The Trends

Death of the Web

Last August, Wired Magazine published an article entitled “The Web is Dead. Long Live the Internet.” The authors describe the dramatic change in the way people use the internet compared to how it’s been used in the past 15 years.

“Sure, we’ll always have Web pages,” Chris Anderson says. “We still have postcards and telegrams, don’t we?”

But as technology evolves and our use of it adapts, the traditional ways coaches and others have used the internet to build their brands and expand their influence will no longer be effective to the same degree. What worked yesterday simply will not work tomorrow. You may have noticed that downward trend is already taking impacting your online efforts.

Take a quick mental inventory of the time you’ve spent online lately. What are some of the traits you notice? Avalanches of information, often conflicting other sources. Mediocre content quality. Spam and scams. Wild pitch fests.

And everyone is an “expert,” even if they’re not.

Do you remember high school economics class? One of the first concepts you learn is supply and demand. As the supply of anything increases, its value decreases. On the internet, we’ve pretty much reached the maximum capacity for information demand, but the supply continues to grow exponentially.

So, you see the two causes for the general decline of perceived value of online information: 1) the low quality of the majority of content and 2) the super-abundance and ease of access.

On some level, everyone over the age of 16 senses this deterioration.

Seth Godin, one of the most popular marketing minds in the world, recently wrote in his blog:

“..the price we’re willing to pay for a digital copy (of a book – DB) is plummeting, and will continue to plummet…Prepare for a continuous erosion of what you pay for digital content, at the same time we’ll see a sticky and upward trend for what you might be charged for the… the scarce or custom.”

The world wide web is increasingly becoming a content flea market, so much so that internet giants like Yahoo and AOL are struggling with their current business models.

Don’t misunderstand. Although it seems contradictory, the internet is more important than ever. The rules are changing, and coaches will have to modify their online initiatives to take full advantage.

Counteract This Trend

To overcome the quality erosion of online information, you absolutely must offer something unique and indisputably valuable. You also have to be able to deliver it to your core audience, the people who can most benefit from what you have to offer. Exclusivity can also to protect the perception of high worth around your content.

Unique – It’s cliché, but you have to be yourself. Do the hard work of getting to know yourself and defining your Unique Selling Proposition (USP). Then you have to get the message out.

A large percentage of your peers heavily model themselves and their business after someone they admire. Modeling makes sense up to a point. Imitation is a problem.

Legendary adman Bruce Barton notes that everyone possesses a “single spark of divinity that sets you off and makes you different from every other living creature.” Nurture that spark instead of copying someone else’s.

Not only to you have to have a one-of-a-kind persona, you have do conduct business in a way that differs from other coaches.

  • What can you do that others can’t or won’t do?
  • What do your clients experience while working with you that no one else can claim to provide?
  • How do you reach your audience that other coaches don’t?

Valuable – Everything you do should be impressive. Your personal brand and your reputation depend on showing yourself to be someone who improves the lives of others, not a peddler trying to sell stuff. (People love to buy, but they hate to be sold.)

Value starts with understanding what your target audience wants and needs, then helping them attain those things. Ninety-nine percent of people online are openly egocentric and their efforts online revolve around trying to suck money out of their clients’ wallets.

Quite a few businesses, entrepreneurs and service providers adhere to an online strategy that emphasizes quantity over quality. The more pages you have on your website, the more visible it becomes to search engines. More articles on more directories put you in front of more potential clients. Blogging every day will keep readers from forgetting about you and help you stay relevant.

That’s a lot of pressure! Placing so much attention to creating large quantities of content makes it difficult to make each piece shine. All of the information you make available to clients and prospects is a reflection of who you are and what you’re about. If your content is highly-visible but unremarkable, what have you accomplished? Not much more than demonstrating to more people that you’re nothing special. As a coach, especially one trying to grow a profitable and enjoyable practice, the last thing you want to be is average.

Search engine optimization (SEO) is another facet of your promotional efforts that can be tricky. Do you write to be attractive to search engines or to have the biggest impact on your readers?

Of course, you want to rank well in search rankings. There are benefits to being on Google’s first page. But, again, if you spend your effort to please the algorithms search engines use (and they are subject to change), you can lose out on opportunities to communicate more powerfully with your audience.

Focus on value. You’d rather have a few superb coaching clients than a lot of pain-in-the-butt ones, wouldn’t you? Remember that quality trumps quantity every day of the week

Exclusive – You are unique and valuable. You are not a commodity. Being too available decreases your sense of worth. Exclusivity gives the impression that your content and services are even more valuable. Make potential clients qualify themselves through opt-ins, purchases or other requirements.

Making some of your material available only to qualified individuals heightens the value and significance of that material.

The same is true for making some of your content or products only available in physical copies rather than electronic form. That increases your fulfillment costs, but that is part of what makes going offline work. It feels more expensive. Your prestige factor increases when your readers and listeners know that you’re “putting your money where your mouth is.” (This will also force you to deliver high-level quality because it costs you time and money to produce these items.)

Examples:

  • books
  • CDs
  • DVDs
  • print newsletter (free, paid or bundled with another service or product)
  • columns in print magazines

This distinguishes you from nearly all of your competitors and everyone else online. Rarity increases actual consumption of your content. Your teachings have little effect if they never enter your clients’ brains and get put to use.

Exclusivity builds a sense of belonging and entitlement. The effect creates a formidable emotional and intellectual bond between your audience and you, even while they’re forgetting everyone else.

Decreasing Response Rates

You may have already noticed that selling and marketing your coaching services online, offline and even in person is getting harder. Lead generators are not performing like they used to, or it costs more to produce the same results.

There are multiple reasons for this trend, but we’ll just address a couple of them.

1.) Lack of attention

As you are reaching out, attempting to attract new clients and grow your influence, you face the difficult challenge of getting noticed. A lot of your stuff runs the risk of never being seen at all by your intended viewers.

Because of the preponderance of content available today, most of your audience is experiencing information overload to some extent, but how you communicate your message is a major factor. What can you say that is impossible to ignore? How can you broadcast that message in a way that can’t be disregarded? Most coaches have something that qualifies, but how many actually find a way to get through and touch the people they want to connect with?

Poor targeting and poorly crafted messaging are more to blame than information overload in this area. As I mentioned, most coaches have compelling things to share, but they aren’t sure how to get the word out. They settle for doing what they seen others do. That’s not the way to stand out from the crowd.

2.) Overused tactics

Simply put, your audience has “seen it all before.” Just like magic, people aren’t impressed or moved to act by tricks that they’ve seen before, much less ones that they know how they work. This is happening en masse today.

The key factor in getting response is messaging. That what you say and how you say it is of the utmost importance isn’t commonly understood, and even less commonly acted on.

As a coach, you understand that better than most. Are you able to translate that comprehension into your promotional materials (including your website, emails, presentations and commercials)?

These days, people never stop getting sold to. Consequently, their mental filters are actively discarding everything that looks the slightest bit like a sales pitch. If you want to help people with your distinct giftedness and expertise, you have to find a way to penetrate through that resistance.

If you’ve been coaching for more than a few years, you’ve probably noticed a dip in the response you used to get from your communications. You have to work harder to get people to take you up on your offers. You’re not alone. Businesses in all sectors are seeing the same slump.

In a period of time when solid life and business coaching is needed more than ever, you have a responsibility to break through to the people you can help.

Side note: People can intuitively sense desperation. If you’re communicating and acting as if you need a particular response, you give off the impression of weakness. That is bad positioning for a successful coach.

You’ll need to bolster the character of your content. Become one of the few sources of information that your target audience doesn’t dare to miss, one of the few emails that doesn’t get trashed before getting opened.

Maybe you’re already there, maybe you’re on your way. Concentrate in strengthening your hold on the attention of your listeners and readers.

Understand:

  • An early definition of the word client is one who comes under the care, guidance and protection of another. Is that how you view your clients? Do your clients think of you as someone caring, guiding and protecting them? With each message they (and others who are not yet your clients) receive, they should get to know you better and trust you more as a caregiver, guide and protector.
  • Education is the most powerful selling tool in existence. But you should educate for it for the benefit your students receive, rather than to be a salesperson.
  • People are far more concerned with their desires or problems than with your specific solution. The way you portray your offer has tremendous impact. How can you present your offer in a way that meets them where their need is so that you can be of service?

That doesn’t mean you don’t sell. You must sell. Again, it is your responsibility to use your knowledge, gifts and experience to help your “tribe” reach new levels of success. That’s why you have the gifts that you have!

It takes selling to convert passers-by into partakers of the unique value you bring into the world. Accentuate that value rather than the selling aspect.

There is a big difference in perspective between thinking “I will be lucky if this person hires me” and “this person will be lucky if they hire me.” Which response sounds more like you? Provide truly valuable service and information, and you can hold the latter opinion with pride.

Know that you give much more than you ask in return (in fees, etc.). Don’t just proclaim that fact – demonstrate it. Show potential clients that working with you will be the best investment they can make, and that they would be missing out if they waited.

3.) Fear of getting burned

No one likes the feeling of being taken advantage of, of spending money on something and ending up disappointed. Most people will turn down 9 out of 10 great opportunities because they would rather miss an open door than take the chance of feeling and looking foolish.

Again, as a coach, you understand that.

Like any purchase, hiring a coach is a risk. What if she’s not what she says she is? What if we don’t get along? What if I spend all my time and money and don’t get the results I’m looking for? These are questions that nearly everyone who thinks about obtaining coaching help asks themselves. In the back of their minds, there is fear.

Fear is one of the biggest reasons it takes so much effort to compel people to listen. Even those who could benefit immensely from what you teach. It’s the reason many people never get the help they desperately need.

Take the risk out of the decision as much as possible. Find ways to make your first encounters easy choices to make. Offer free or low-cost initial consultation or “strategy session,” E-zine or newsletter, sample CD, etc. Let your prospective clients get a taste of who you are and what you can do for them.

In addition, give the strongest guarantee you can. This is simpler with your products than your service, but you can come up with a creative way to assure your potential clients that they won’t get ripped off.

Don’t be shy about testimonials, either. Testimonials from enthusiastically satisfied past or current clients form social proof that getting coaching from you is a safe bet. Ask for and display as many as you can in a tasteful manner. The confidence boost will go a long way to reducing the fear of risk.

Counteract This Trend

  • Create the posture of a successful coach, dedicated to helping people.
  • Promote and sell through education. The sales maneuvers most businesses are using are becoming less effective.
  • Remove as much risk as possible from the first points of contact.
  • Stand out!

Economic Downturn

I don’t have to tell you that times are hard. The words of Charles Dickens ring true today: “It was the best of times. It was the worst of times.” How you position yourself will determine which reality you will experience.

I recently spoke to a well-known certified resume writer/business owner. He described this paradox to me very clearly. “Job seekers need my services more than ever,” he noted. “But this is also the least opportune time to spend the extra money to assemble a really good resume.”

The distinction needs to be made between an expense and an investment. Hiring a resume writer who can help make your job hunt end satisfactorily is an investment, not an expense. It pays off.

The same is true for coaching.

Many people and businesses are scaling back, pinching their pennies tighter and cutting “non-essentials.” The problem is, they need the clear insight and battle-tested wisdom of a good coach more than ever before. During “good times,” when money comes easily, it’s not hard to justify the apportioning a coach into the budget. But when revenue starts drying up, most people react in fear. As Samuel Taylor Coleridge said, “What begins in fear usually ends in folly.” You can’t grow that way.

When things are hard, people and businesses need more information, better direction, more counsel, more inspiration. You need more help.

That is why it is absolutely critical, as a coach who wants to be one of those helpers, that you:

1.) provide real, tangible value,

2.) present yourself as a trustworthy advisor, not another money drain. An investment that will yield a profitable return.

Fear is natural. Implementing defensive strategies is instinctive. But both are counterproductive. It is impossible to both advance and retreat simultaneously.

Retreating is what your competitors are doing.

Statistics show that businesses that maintain or increase aggressiveness in their investments such as marketing and coaching during recessionary phases grow more than 200% more than those that pull back.

The challenges are daunting; the opportunities are awesome.

How are you responding to the tough times we’re going through now? How does this affect your interactions with clients and prospects?

Counteract This Trend

You’ll do well to consider different strategies to make your services accessible to your target audience. Low-cost entry items, pared-down basic coaching, and group sessions are possible choices.

Whatever you do, do not devalue yourself or your services. The attitude that says “I know it’s hard out there, so I’ll discount my prices,” is a position of weakness. You are not a commodity. You are not less valuable just because the economy is in bad shape currently (If anything, you could charge more because of inflation!)

A better move would be to present alternative options, multiple ways you can help different people in different financial situations.

The quality of what you deliver is of paramount importance here. If you sell a book that makes marked improvements for the reader, not only will he be more likely to purchase your higher-level offers, but he’ll be more able to do so because of those improvements.

Coaching is not a zero-sum proposition. Your clients are not $2,000/month poorer because they retain your services. They pay you (you win), you help them achieve their goals (they win), and everyone is richer and happier.

Coaches who approach their practice from the perspective that someone wins and someone loses are forfeiting some of the benefits they should be getting. They may be doing more harm than good.

Surging Competition

As was noted in the introduction, the pool of coaches and consultants grows daily. There are really good ones, really bad ones, and everything in between.

What can you do to outmaneuver your ever-expanding number of competitors?

How will you establish your uniqueness to the market?

What makes you more attractive to your chosen audience? How can you build on that foundation?

A.) Do you have a specialty? A very sharply-defined expertise or niche? You may or may know this, but specialists tend to be able to charge higher fees than generalists in any given field. Think brain surgeons versus general practitioners.

It’s also easier to get noticed and establish yourself as an authority in a small corner of any industry, rather than compete with everyone else.

B.) Do you possess a rare certification? Have you worked with a famous client who got outstanding results? Do you have a pile of testimonials from clients who will sing your praises?

If any of those distinctions apply to you, put that information in the foreground.

C.) What activities are you doing that other coaches are not? Where are you available that your peers can’t reach? What can you add to your repertoire to take the strategic advantage?

D.) What are you willing to do that none of your colleagues has the guts to try? What ways can you think of to differentiate yourself from the pack?

E.) What special ways are you touching and helping people? Society? The world?

F.) Is there an unusual guarantee that you offer to your clients? Specific results you basically promise that they will experience?

Don’t take for granted that would-be clients know these things. Tell them!

If others make the same claims about themselves truthfully, you have some more work to do to find your USP.

If your peers could make the same statements, but don’t, you can preempt them and take ownership of those claims. Be the first, and everyone else becomes a copy-cat.

What is the biggest, boldest claim about your services that you can honestly make? Say it!

The idea that you should “under-promise and over-deliver” is another myth that can cause considerable damage if you believe it. There is no question about over-delivering – you should always do that. The problem lies in under-promising.

Under-promising can be suicidal for your business. Imagine a dentist who advertises “Your teeth will probably be fairly clean when I’m finished,” because he wants to under-promise. Who would ever set up an appointment with that dentist? No one will find out how amazing the final delivery is; they will visit the dentist who guarantees that his patients’ teeth will be sparkling white and healthy.

That only makes sense. Under-promising sets a low expectation, which makes the over-delivery all the more pronounced. The hope is to surprise and delight the customer. But, weak promises will keep a customer from ever considering the purchase.

Make the strongest claims you can make. Otherwise you end up blending in with the competition. A reliable way to secure a steady flow of the type of clients you want to work with is to be great at something (the very best if at all possible) and make sure as many people in your target audience know about it.

Conclusion

Coaching is one of the most rewarding careers anyone could hope to have. To be able to positively impact the lives of individuals, organizations and society as a whole is an enviable position to be in.

Coaching can also be a particularly challenging business to build. It is likely that there will be even more impediments to growing your coaching practice in the next few months. Using insights gleaned from this report can give you a sizeable advantage over those who don’t see what’s coming down the road.

Continue to improve yourself and your ability to give incredible service to your clients. Carve out time to work on your business itself, as well. Prepare for the difficulties that are coming, and set yourself up for continued success.

Set Your Sails

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“It is the set of the sails, not the direction of the wind that determines which way we will go.”  – Jim Rohn

The economy is front, middle and back page news these days. Debt ceilings, the declining dollar and defaults are all we keep hearing about.

And lets face it;  the economy is in shambles. Experts across the country and around the globe are saying that a crisis is unavoidable at this stage.

Now I’m no economics expert, but I’m forced to concur.

The truth is, you and I can’t do much about America’s economy as a whole. The problem is just too big.

I’m not saying that to convince you to throw up you hands and take a fatalistic mentality. Quite the contrary.  Any good coach will tell you not to get caught up in things you have no control over, but to focus on what you can control.

So here’s the question that really matters: how’s YOUR economy?

You can get bogged down about the macroeconomic situation, but you should be more worried about protecting your personal microeconomy.

2011 has been my most profitable year yet as a copywriter. While so many of my colleagues are complaining about taking a hit, having difficulty finding gigs. On the other hand, right now, I have a waiting list for clients who want to work with me.

I’m not saying that to brag, believe me. I bring it up because if I can do it, so can you.

I’d be remiss if I didn’t give you a few insights into why my economy is not currently reflecting what we’re seeing in the economy at large.

1.) I’m continuing to give. So many businesses are clenching their fists, holding back what they could be sharing, for fear of being ripped off. Or, instead of taking the time to nurture leads and develop relationships, they are rushing the selling process.

Give as much value as you can. Giving information (in a strategic fashion) will firmly establish you as an expert, as an individual or business that cares about it’s customers and communities.

2.) Positioning. Don’t get caught in the death spiral of commoditization. You absolutely must be unique, especially during a downturn like we’re facing now. If your competitors can honestly make the same claims that you make about your business, you can only compete with them on price. You don’t really want to do that, do you?

Find your own unique selling proposition/competitive advantage and make sure your target audience knows why you’re a smarter choice than the other guy.

3.) Don’t react in fear. Define a plan of attack and be proactive. What do you want to achieve? Who do you want to work with? What  account are you aiming for? What do you have to do to get it?

Fear is killing your competitors.

Remember: “The possibilities are numerous once we decide to act and not react.” (George Bernard Shaw)

4.) Find out what your audience wants and help them get it.

5.) Don’t be afraid to negotiate confidently.

By all means, seek to understand the big picture. But also understand that no matter what the economy at large is like, there are always some people who are winning. Put yourself in a place to be one of the victors.

U of You: Why Education Matters More Than Ever

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Education has never been more important than it is at this moment. Your parents always told you to get your education. Every year your teachers prepared and encouraged you to continue down the path to higher levels education.

Repeat: education is more important now than it has ever been. But not for the reasons that have been drilled into your mind.

I was watching television the other afternoon during one of my rare couch-potato moments. My brilliant wife pointed out that there was an advertisement for a college or university during every commercial break. Apparently getting a degree is big business these days.

The lessons you learn when you understand what’s really going on here can transform your business.

Let’s get right to the point, shall we? Here are 4 crucial insights:

1.  People value education. But why? Do they want to know more for the sake of knowing more? Of course not! People want to learn so they can get what they want. More. Faster. More easily.

Why does anyone go to college? If this were Family Feud, the number one answer would be “To get a good job.” Simply put, people seek educations to get what they want in life.

2.  Schools are rarely short on students. Good schools have people fighting to get in.

3.  Some of the most trusted individuals in any community are its teachers. Professors are acknowledged experts in their fields.

4.  Educators shape the way their students understand the world.

Now, I’m not telling you to go back to school. In fact, I believe the way the modern school system is structured is radically flawed.

Can you see how the 4 lessons above can apply to your business?

I’ll say it one more time: education is more important than ever. Your potential customers are constantly looking for information. Why? So they can get what they want. More. Faster. More easily.

How do you differentiate yourself from the competition? Better yet, how do you rise above the rest of the pack to become, not the best, but the only person your prospects want to deal with?

The most powerful way to accomplish this feat is to become the educator in your niche. Establish the University of You!

By setting yourself or your company up as the source of quality information and/or training, you have gained all the advantages that Harvard or Yale have. You are the expert. Trust is easier to gain, even from skeptics, because of the credibility you’ve built. Your “marketshare” of people seeking knowledge in your field will increase naturally and dramatically.

And you will have the opportunity to really influence the people you communicate with. Think about it— who has had a greater impact on your life, a teacher/mentor or a salesperson? (Not to diminish the importance of selling!)

There are more benefits to educating your prospects than can be covered here. If you’re ready to start reaping those benefits, consider the “Ivy League” approach to doing business. No degree is required. Just start taking action today.