How to Boost Your Sales
with a Leads Group
By Don Cooper, The Sales Heretic™
Want more sales? You need more prospects. To some degree, sales is definitely a numbers game, and the more people you talk with, the more sales you’ll likely make. Not all prospects are equal, however. Some are better (much better) than others.
If you’re looking for great prospects, referrals are your best source. A person who is referred to you is five times as likely to buy from you as any other type of
prospect because they already have some trust in you based on their friend who referred them. So how can you get more referrals? A leads group is a very powerful way.
Like any other prospecting tool, however, your results depend on how well you use it. Simply showing up every once in a while isn’t enough. The more effort you put into the group, the more leads (and more sales) you’ll get out of it.
Leads Groups Defined
First, a quick explanation in case you’re unfamiliar with these organizations. Leads groups—also called referral groups, tip clubs or resource groups—exist for the sole purpose of providing referrals to members of the group. Members typically meet weekly or bi-weekly to pass leads to each other.
Meetings typically occur over breakfast or lunch, usually at the same location each time. Most groups meet at a restaurant, but some will meet at a hotel or country club. Still others might meet at a Chamber of Commerce office or community center.
During each meeting, members have the opportunity to share with other members details about their business and what kinds of prospects they’re looking for. At some meetings, there may be guest speakers to help members hone their
Most leads groups have a fee, although there are some that don’t. The membership fee may be minimal or it may be substantial. Groups can be non-profit or for-profit. Some even raise money for charitable organizations.
The key for all groups, though, is that members are expected to generate leads for other members on a regular basis.
Most groups take their mission very seriously and require a real commitment from all members. Groups typically have attendance and/or participation rules. Members can be fined or even expelled for missing too many meetings or not providing enough referrals. These rules exist to insure that all members are contributing to the group as well as benefiting.
Is a Leads Group Right for You?
Maybe. Then again, maybe not. Whether or not a leads group should be a part of your marketing or prospecting plan depends on a variety of factors. Consider the following before saying yes or no.
Your Business
What kind of business are you in? Is it one that has a large potential market or are you highly specialized? The more widely needed your product or service is, the better you will fare in a leads group. People who do particularly well include:
• accountants
• advertising specialties dealers • attorneys
• automobile salespeople • bankers
• business coaches • caterers
• cell phone dealers • chiropractors • collection agents • computer consultants • couriers • dentists • financial consultants • florists
• graphic designers • hair stylists
• insurance agents
• interior designers and decorators • landscapers • mortgage brokers • movers • organizers • photographers • printers
• real estate agents • travel agents • veterinarians
• web developers and designers
If what you do doesn’t appear on this list, don’t despair. There are plenty of other types of businesses that can prosper within a leads group. If your business is very specialized, though, or you cater to a niche market, you may want to consider other prospecting avenues.
Your Schedule
A leads group is somewhat time-intensive. You have to carve out roughly a two-hour block of time in your schedule each week. Every week. And if you’re like most salespeople or business owners, your weeks are already pretty full. Will you be able to fit the time for the meetings into your weekly calendar without making too big of a sacrifice elsewhere? Or is your time better spent in other places doing other things?
Commitment
Can you make a group’s meetings consistently? Most groups are serious and require a real commitment on your part. Members can be expelled for missing too many meetings or not providing enough referrals.
As a sales and marketing expert who constantly travels around the world conducting seminars and delivering speeches, I can’t belong to a leads group because it’s impossible for me to attend one regularly. Will your schedule allow you to make a group’s meetings on a regular basis or will it just set you up for frustration?
Patience
As in, do you have any? Like most other marketing and prospecting tools, leads groups take time to provide results. If you expect to get lots of leads right away, you’re in for a disappointment. It takes several weeks for other members to fully understand your business, get a good feel for you and remember you effectively enough to notice prospective customers for you.
Existing Referral Sources
Do you already get a lot of referrals from friends and clients? If so, then the
additional time required for a leads group may not be worth it for you. And if you already have a network of friends that you refer business to, you may not want to join a group because you’ll have to start sending those leads somewhere else. However, if the above two items are not the case for you, then a leads group may well be an excellent investment of your time and energy. An investment that can return a steady stream of high-quality prospects for you.
Finding a Leads Group
Depending on the size of your city or town, there may be dozens, or even
hundreds, of leads groups in the area. But they can be hard to find, because they typically don’t advertise, unless they’re actively recruiting new members. Here are some places to looks for groups.
Chambers of Commerce
Many Chambers of Commerce host leads groups. (Note: you must be a Chamber member to join one.) Chambers that don’t host them are still typically aware of them and can refer you to several. You can find your local Chamber of Commerce through a web search or in the phone book.
Online
Do a web search using the name of your community and one of the following terms:
• Leads group
• Lead exchange group • Networking group • Referral group
• Referral network • Tip group
• Tip club
Be sure to put the above phrases in quotation marks so you don’t get a lot of results for metals dealers and lead detection and removal services.
Phone Book
Leads groups don’t typically advertise in the Yellow Pages, but occasionally you’ll find some listed under the above terms.
Trade Shows and Expos
Sometimes leads groups will exhibit at local business-to-business trade shows in an effort to recruit members. Watch your local business publications for upcoming shows.
Your Own Network
Most leads groups grow by word of mouth. So ask your friends, colleagues, clients and vendors if they belong to a leads group or know about one. Odds are, someone you know is a member of one. (Or is at least familiar with one.)
Choosing a Group
While all leads groups share the same basic goal—generating referrals for
members—the ways they go about achieving that goal can vary widely from group to group. And even among groups affiliated with the same organization (which share the same philosophies, policies and practices), every group has a different makeup and schedule.
What you’re looking for is the group that will be the best fit for you and your business. Here are some factors to consider when trying to decide which group to join.
Schedule and Location
Is the group’s meeting time and meeting date (not to mention meeting location) convenient for you? Can you be on time for meetings or will it be too much of a hassle?
Current Members
Who’s already in the group? If there is someone there who does what you do, you typically will not be allowed to join that particular group, since most groups limit membership to one company per industry, e.g. one lawyer, one printer, one florist, one insurance agent, etc. This way, members aren’t forced to choose whom to give their leads to.
Even if there isn’t someone who does exactly what you do, there may be one or more people who have some crossover. If that’s the case, you may or may not be permitted to join, depending on the group’s perception of exactly how much crossover there is.
However, even if you’re allowed to join in such a situation, you may not want to, because it may not be the best fit for you. Crossover can dilute the number of leads you get, which can create tension, frustration and even resentment. Your ideal group will contain members whose businesses complement yours. For example, if you’re a wedding planner, a group that has a florist and a caterer is a perfect fit for you.
Size
How big is the group? If it’s too small, not enough leads will get passed. If it’s too large, you may feel that you can’t know everyone and they can’t know you very well. Somewhere between 20 and 35 members is where most groups tend to find the most success.
Don’t dismiss an otherwise good group just because it’s small, though. Keep in mind that a small group can grow and a large group can experience falloff. Also, with a small group, you can recruit as members people you already know, trust and want to refer.
Policies
Every group has its own “house rules” that govern fees, meeting attendance,
number of leads that must be contributed, who gets in the spotlight and many other issues. There’s no right or wrong, and what works for one group doesn’t work for another. The important question is do you agree with the group’s policies? Since you’ll have to abide by them, it’s important to find a group whose rules you fully support.
Making the Most of Your Group
Involvement in a leads group requires a significant investment of time, effort and often money. Naturally, you want to get the most from your investment. Here are some specific tactics for maximizing the return you get from belonging to a leads group.
Be on Time
Or better yet, be early. Always. Showing up late for meetings sends a signal to other members that you’re not very organized, reliable or both. That kind of negative reputation can really put a damper on a member’s willingness to recommend you, since it’s also their reputation on the line.
Arriving early (and staying late, if you can) also gives you a chance to converse with other members, strengthening your relationships with them.
Get to Know People
The better you know your group colleagues, the easier it is to refer them. So learn as much as you can about the other members of your group. Take the time to fully understand what it is that they do, how they do it and what the results are. Discover the breadth of their product or service offerings, as well as their specialties and their target markets.
Items you want to know include:
• What do they do differently than everyone else? • What are the benefits of doing business with them? • What makes them worth their price?
• Who are their best prospects?
• What do their customers say about them?
• How should you describe them to a potential prospect?
Don’t be afraid to ask questions. Other members will typically be flattered that you want to know more about their business so you can refer them more effectively. Also don’t be afraid to take notes so you can remember what you learn about your fellow group members. Everyone knows our memories are faulty, so no one will chastise you. On the contrary, people will typically be impressed by your
Give Lots of Referrals
As a general rule, the more referrals you give, the more referrals you’ll get. So make it a point to constantly be on the lookout for referral opportunities.
When you attend other networking events, ask people you meet what their biggest challenges are. Listen attentively during conversations to pick up on potential needs of the people you’re talking to. Keep extra business cards of your group colleagues with you to hand out on the spot. In fact, some leads groups give their members a special business card holder to carry extra cards in to facilitate referrals.
Give Good Referrals
Of course, in a leads group, it’s not just the quantity of leads you provide that matter—it’s also the quality of them. So the better the quality of your referrals, the better they’ll be received and the more you’ll be appreciated. There are three basic levels of leads: cold, warm and hot.
Cold Lead—The lead you’re passing may or may not have a need. However, the person you’re passing the lead to can contact them using your name to get in the door and find out whether or not they have a need. This is the weakest type of lead, but it’s better than nothing. It’s certainly better than a pure cold call and it has some (albeit minimal) chance of turning into a sale.
Warm Lead—You think (or know) that the lead has a need, but you haven’t specifically discussed it with them. They’re not expecting a call from your leads group colleague, but they’re likely to be
receptive to it, especially when the person mentions your name. This is a good lead, and in fact, the most common type of lead passed. Hot Lead—The lead definitely has a need and you’ve already discussed the person you’re referring with them. As a result, the prospect is expecting a call from the person you’re referring. Obviously, this is the best possible type of lead. It takes more time and effort, but it makes your colleague’s job much easier and dramatically increases the chance of a sale.
To generate a hot lead (which you should, whenever possible), you need to set up the referral ahead of time, and the way you set it up makes a big difference to the
person receiving it, as well as the person to whom you’re making it. A lackluster referral doesn’t do anybody much good.
When you are referring a group member to an acquaintance who has a need, be enthusiastic. (If you’re not excited about the person you’re referring, why should they be?) Describe the member in some detail to build confidence.
Then, when you are giving the lead to your group member, provide as much information about that prospect as you can. You might include their budget, their time frame, their current or previous vendor and the best time to call. The more information your group member has, the easier it will be for them to make the initial contact as well as close the sale.
Be Clear
Make it easy for others in the group to refer you. Explain clearly what you do, what kinds of problems you solve and what kinds of prospects are the best fit for you. The more specific you can be (both about your work and your ideal
prospects), the better.
However, don’t bog down members with technical language or industry jargon. (A very common mistake.) If they don’t understand what you’re saying, they can’t help you much. Instead, illustrate your work by relating stories of customers and how you’ve helped them.
Collateral material is also valuable. Obviously, you want to give everyone your card. But give out your brochures, catalogs, booklets, white papers and any other marketing materials as well. Show your group colleagues photos or testimonial letters. If possible, provide free samples, trials or consultations to the other group members.
The better other members understand what you do, the easier it is for them to explain it to others. And the better other members understand who your best prospects are, the easier it will be for them to find new ones for you.
Recruit Members
As a general rule, bigger groups are better. Which makes sense when you think about it. The larger your leads group, the more people there are actively scouting for prospects for you. And, of course, the easier it is to find referrals for other people.
Be an evangelist for your group. Mention it at networking mixers and other
business events. Invite people you know and trust to visit your group. If they join, they win, you win and the group wins.
Provide Value to Group Members
Instead of spending the entire 30 or 60 seconds allotted to you for your
introduction talking about yourself and your business, try demonstrating your expertise by offering a tip that other members can use. People will sometimes zone out while a member is talking about themselves (everyone does it now and then, it’s human nature), but if you are providing information they can actually use, you can bet you’ll have their complete attention.
For example:
• If you’re an insurance agent, you might give out a tip each week about how members can keep their homes, cars or kids safe.
• A business coach could offer a different success strategy each week.
• A florist might provide tips on how to choose the right flowers for different occasions and how to keep them alive longer.
• A real estate agent could suggest different ways to increase or maintain a home’s value.
• A chiropractor could offer ways to keep a body healthy.
• A web designer might update members on the latest technology tools to increase a website’s effectiveness.
• A caterer could offer event planning tips.
• A landscaper might provide recommendations about lawn and garden care based on the current weather.
• And an accountant could alert the rest of the group to proposed or recent tax code changes and their impact.
Find Speakers
If your group brings in guest speakers, assist in finding good ones. Look for
experts in the fields of sales, marketing, networking, customer service, presentation skills, negotiating, productivity and communication. (You should also consider people who are pure motivational speakers. After all, the right attitude is essential.) A twenty-to-thirty minute presentation every now and then can help keep the group invigorated and refresh everyone’s skills.
A great resource is the National Speakers Association, the professional association of experts who speak professionally. Go to their website at www.nsaspeaker.org
and click on “Find a Speaker” to find experts in your community who are excellent speakers.
Volunteer
There are all kinds of jobs that need to be done in order for a leads group to function effectively. Volunteer to help out and you’ll raise your visibility and generate additional goodwill among the other members. When you give to the organization, others feel compelled to give to you in return.
Use Your Group
This should be obvious, yet it’s so easy to forget. When you need products and services, look to the members of your group first. When you buy from them, they’re encouraged to buy from you.
If nobody in your group provides the product or service you need, ask them to refer someone does. Needless to say, that person then becomes a new prospect for group membership.
Visit Other Groups
Is your group as good as it can possibly be? Would you like it to be better? Pay a visit to other leads groups periodically (with permission of course) to see what they do differently than your group. You may discover ideas that can help your group and you can share your ideas with other groups.
You may also find opportunities to collaborate with other leads groups for mutual benefit. Perhaps you can coordinate a joint membership event. Or pool your
resources to exhibit at a trade show together. Or sponsor an event that none of you would be able to do individually.
Focus on One and Only One Group
I’ve heard people brag about belonging to three, four, even five leads groups. But that’s a recipe for disaster. If you belong to more than one group, you’ll be forced to split your leads among them, since there will undoubtedly be people with similar businesses in each group. It’s also hard to keep track of that many people and
remember to refer them all. Not to mention all the time that kind of group-hopping requires.
Instead, focus your attention and efforts on just one group. A group that’s a good fit for you that you can be loyal to. A few strong referral relationships are infinitely more productive than a bunch of weak ones.
By all means, get involved with other types of business groups (Chambers of Commerce, community service organizations, professional associations,
Toastmasters, etc.), because they can expand your networking contacts and help your business in a variety of ways. But when it comes to leads groups, one is plenty.
Invite Group Members to Other Events
Don’t limit your interactions with your fellow group members to just once a week. Invite them to other networking and social events. Doing so will garner you several benefits.
First, you’ll have a chance to get to know each other better, both on a business and personal level. There’s only limited time at each leads group meeting for you all to talk with each other, and creating a deeper, stronger relationship makes it easier for you all to find referrals for each other.
Second, when you invite your group colleagues to other events, it positions you positively in their minds. Not only are you “in the know” and “well-connected,” but the fact that you thought to invite them creates a sense of appreciation. Being at the forefront of their minds (in a positive fashion) helps insure that they’re working harder to find you more leads.
And finally, when you give your fellow group members the opportunity to meet new people, it means they have more chances to meet someone they can refer to you!
Enjoy Yourself
Have fun! Nobody like doing business with someone whose attitude reminds them of a Department of Motor Vehicles bureaucrat. But people love doing business with a person who loves their work, their products and their customers.
Enthusiasm is a powerful asset. People will flock to you when your attitude is positive because you make them feel better.
Be Consistent
Consistency pays off. Be diligent about attending meetings. Mention your leads group in conversations with other business acquaintances. Actively seek out referrals for other members. The harder you work to procure leads for others, the harder they’ll work to return the favor.
Be Patient
Like most other prospecting tools, leads groups take time to provide results. If you expect to get lots of leads right away, you’re in for a disappointment. It takes
several weeks just for other members to get a good feel for you and your business. It can take several more for them to remember you effectively enough to notice prospective customers for you.
Once you do start receiving leads, remember that it won’t always be a steady stream. Every person in a leads group experiences ebbs and flows of referrals, especially if their business is seasonal. (Think accounting and landscaping.) Don’t be concerned with your numbers from week to week. Instead, keep your focus on the long term. And if you follow these guidelines for success, over the long term, your leads group should prove to be an extremely profitable investment.
Don Cooper—The Sales Heretic™—is an
internationally-acclaimed sales expert who helps salespeople, business owners and professionals dramatically increase their sales. He delivers custom seminars and keynote speeches for corporations, associations, chambers of commerce and other business organizations.
His most popular programs include:
• The Myth of Price: Why you should charge more and how to do it
• Never Sell Ice to Eskimos: A practical program for powerful prospecting
• The Physics of Closing: How to make the hardest part of the sale easy
• When Bad Things Happen to Good Customers: How to transform
customers from enraged to ecstatic
For information about booking Don to speak to your group, please call
303-832-4248 or e-mail Don@DonCooper.com. You can also find free articles, tips and
