The past weekend I attended a major Personal Development Event from My Company
where I took some amazing notes I'll be sharing with you. On Day #1 our Director of Training ~who is an absolute master on Cold Prospecting for Network Marketing~ taught us why cold prospecting is important as well as some cold prospecting techniques.
But first, let's talk about what other "markets" are out there? you might be new in the industry and
possibly confused with all this terms as I was when I got started, or maybe you have been in the industry for sometime and still are confused on what is the difference, who you should talk to first, why, and if you ever
should cold prospect.
Here is a Brief Description of Each One...
The Hot Market: is composed by people close to us, like family members or friends. Just imagine... you are driving in the middle of the night, your car brakes down, you know you need help, who would you call first? that person is part of your hot market. 🙂 No matter what company, product or service you are affiliated with, my recommendation is you go to talk to them first. The reason is simple, if you make mistakes ~ as we tend to do specially if we are super new in the industry~ because they are close to you, they will forget about it. It is very likely even if they don't join you ~at least initially~that your relationship won't be affected in any way... would your mom stop talking to you even if she doesn't join your opportunity? I guess you know the answer. 😉
The Warm Market: these are people we know and they know us, but we don't have a close relationship with.This could be people you see in a daily basis at the coffee shop, or somebody who you see at the gym. You move someone from the Warm Market to the Hot Market by developing a relationship. You also can expect to have a higher closing ratio with your hot market and warm market than your cold market because they know you. With my product/company it is as high as 6 out of 10 (Crazy right? no I'm not kidding!...and it's true, all my hot market in the USA are my customers or biz partners)
The Cold Market: these are basically strangers. People you don't know who come across in your daily life randomly and sometimes you don't get to see again. For example, the waitress who took your order in the last restaurant you ate. Somebody you briefly talked to in the store and so on.
The closing ratio with cold market is 1 out of 10. A lot lower than with hot and warm market, but why is that? People buy from people they know, like and trust and with cold market the levels of trust are not that high since they don't know you enough. At this point you might be wondering, if it's so low, why even bother?
The Reason, is simply because at some point you will run out of your hot/warm market.... and guess what, the only way to expand your "list", to have more potentials joining your business or becoming your clients is talking to your cold market. So learning some Cold Prospecting Techniques is definitely something I recommend to everybody in order to keep growing their business successfully.
Basics on Cold Prospecting
Cold Prospecting is easier than you think, here are some basics so you can have a better idea of how does this work:
- Don't go out to Prospect... prospect when you go out to do what you always do. That way you won't feel weird and the people you talk to won't get that odd vibe either.
- You are not looking for anybody specifically, you are "evaluating them" .Keep in mind not everybody is a great prospect.
- Connect with people.
A few tips on how to connect...
Compliment: establishing the first connection. If your waitress or barista is really outstanding you can compliment her on doing such a an amazing job, but wouldn't sound real if she wasn't right? You can compliment on anything, performance, accessories, apparel, etc. Just keep in mind to be genuine and sincere.
Ask questions: evaluating your potential prospect. Ask questions to connect with them and find out what kind of people they are, what interests they have, to find their pain or what they love, and see if they could be a fit for your your business, product or service.
Ask for their contact info: building the relationship. You can ask for email, work phone, or personal phone. I suggest ask whatever makes you and them feel more comfortable. (One of my mentors prefers to ask for emails, while others ask for phone, so any choice is good! )
Was this helpful? If it was, I would greatly appreciate if you commented below and shared on Facebook and HAPPY PROSPECTING!
With lots of appreciation,
P.S: I will be sharing more notes from Day #2 and Day#3 from this Event where we had Robert Kiyosaki as a Keynote Speaker so stay tuned for the next Blog Posts.