Reading the FT at the weekend I came across two really interesting pieces in the ‘Finance Corner’ which I wanted to share with you.

The first was about the lack of market research being done by small firms in their new business development work. Apparently in the UK “one man bands” spend on average £1,100 a year ($2200 approx) on sales and marketing with an average spend of UK business overall of £28,000*. However less than half do any kind of research into prospective customers such as checking out websites or researching key personnel.

This seems almost hard to believe, especially in this day and age with information being so readily available on the Internet. For every single new business prospect I acquire the first place I head to is Google. It’s amazing what information is available on the internet and it’s even more amazing how much this can help your sales.

The second story was about how fathers are hugely influential in inspiring their off spring to become entrepreneurs, even more so than mothers - who the article says are more likely to want to talk about their business and entrepreneurial experiences. However the research ** also found that:

students in the USA are found to be more likely to have a larger number of role models and more enthusiasm for the idea of becoming an entrepreneur.

Are role models part of the reason why so many world class businesses and products emerge in the States then? Maybe there is some value then in reading those books about Donald Trump, Jack Welch and co then… (although I have to say I’m a little biased towards reading about great British entrepreneurs such as Sir Richard Branson and Dame Anita Roddick)

* Research completed by Marketsafe and published by the Financial Times on Sept 22/23 2007.
** Research completed by Lancaster University Management School and published by the Financial Times on Sept 22/23 2007.

I don’t know how many times I’ve read incredibly long sales letters for ebooks, software programmes, affiliate marketing schemes etc etc and wondered whether there is some magic formula that all internet marketers follow. Well, in actual fact it seems there is. Aurelius Tjin, a leading internet marketer from Australia, has written a very clear guide as to what you should include in a sales letter to make it effective i.e. sales generating. If you want some ideas and advice, this is definitely worth reading  - there are some points I’ll be taking on board.

For me, I’ve always wondered why these letters are so long. More often than not, I read the first paragraph and then scroll down the entire page, skipping all the testimonials to look for a price. If I can’t find a good, clear price early on, I’ll often leave the site. Does anyone else do this?

Actually Aurelius, (I hope he reads this) I’d be really keen to get your comments on the statement that “all internet marketers know that a long copy will sell more than a short copy.”

Surely there has to be an argument for a more direct sales approach, with a shorter sales letter….. what do you think..?

Small business owners may find selling awkward or difficult at best. Here are some tips and sales techniques to help understand the process.

Sales is not a dirty word. People seek answers to problems and if you provide a quality solution at a fair price, delivered on time and willingness to service after the sale, the buyer and seller each win. This is key to making repeat sales.

A sale is identifying a need (problem) and offering a suitable product or service (solution), yet there’s more.

You know the value of what you offer, so how do you convince a prospective customer? Understanding the psychology of what happens during the sales process requires empathy. You need to know what the prospect is thinking. Here are a few sales tips with answers to that part of the mystery.

Tip #1
People buy based on emotion more often than reason. They purchase what they want, not necessarily what they need. First impressions are crucial, so your initial approach must establish a professional image. You have 5 seconds.

Tip #2
People will buy from someone they trust. Your credibility must be evident, and how you open after those critical first 5 seconds will often determine your success. Do not try a hard sell up front. Avoid talking about the weather, current events, or the latest joke. It is time to listen. A brief introduction is usually enough which gives the prospect a chance to explain their business and situation.

Tip #3
People are not looking just at you. What you have, what it does, and how it will help doesn’t matter until you understand fully what they want. If you start out with an open ended question, you show respect for the buyer’s time, and a willingness to listen. Any question that may be answered “yes” or “no” won’t work. Open ended means you begin by asking or stating something like “Please take a moment to explain your business and a few details about what you need.”

Tip #4
People will open up if given a chance. Do not dominate the conversation until you understand what they want. Be prepared to paraphrase what you hear, and then offer your solution. Your message needs to be direct and to the point to establish the benefits of what you offer. Anything that you can do to create a mental image of your solution and the benefits to the customer shows you care more about them than the sale.

Tip #5
People are usually sold before you ask for the order. Many are presold in those first 5 seconds explained in Tip #1. If you listen first, restate what they have said, and then explain your solution in terms of the benefits, it’s time to ask for the order. A small business owner may not be comfortable here. My advice is simply state “I want to do business with you. From what I have learned, I’m ready to help, so let’s get started today.”

Tip #6
People will forgive mistakes if you remain honest. Establish trust, and openly admit errors if mistakes are made, and your customers are more likely to remain loyal. Have a plan when things go wrong. React quickly and state what happened, what you are doing to resolve any problems, and how long it will take. How you handle mistakes will be remembered by your customers a lot longer than what went wrong.

Tip #7
People will not forgive a dishonest salesperson. A sale is not about tricking someone into something they don’t want or need. This is an important and tough rule: Be prepared to refuse an order if you realize your solution just won’t work. In any sales situation if you perceive an opportunity to sell, but doubt the results of your product or service, consider your long term reputation. Credibility lost is nearly impossible to regain, so give your customers the truth up front.

In conclusion, the value of placing what your customer wants, or needs, ahead of your sales quota or personal interests will help you succeed. Repeat sales depend on a business relationship where you care about your customers. Adapt your thinking to solving problems instead of selling something. The best salespersons are still those who are good listeners.

The lifeline of most businesses is sales. If your business is unable to reach its target sales for several years, chances are your business might close sooner or later. Without ample sales, a business would find it very hard to sustain itself. Therefore, it is imperative for any company to attract as much people as possible to buy its products or contract its services.

There are many ways to promote your goods or services. You could opt to advertise using the different media available today, such as television, print or even the Internet. Sending sales letters, whether through the post or the Internet, is one technique that many companies use because of its effectivity in helping boost sales.

If you want to take advantage of such a tool, however, you need to know its vital components. Making a sales letter is easy, even your 10-year old child or niece can do it. The hard part is actually creating a sales letter that will effectively provide you and your company actual sales. Here are the important elements of an effective sales letter:

1. Very interesting headline

The reason why newspaper headlines are big, bold and interesting is to attract people to buy the papers. The same is true for sales letters. You not only need to highlight your headline by using a font that is bigger and bolder than the rest of the body of the letter, but you also must make it interesting and compelling.

In sales letters, the headline will almost always be the one that will hook your potential customers to read the rest of the letter. Headlines that work usually give a promise, such as a discount or money back agreement, or a very compelling benefit, such as a guarantee that your product will work 100%.

2. Short but substantial background of your company and product

People usually buy from the people and companies that they trust or that their friends or family trust. One way of establishing trust is by giving your potential client a background of your company and product. Consumers usually do not trust those who do not mention their background and contact information.

You also need to discuss, to some extent, the service or product that you are offering. Is the product safe, effective, natural? In case of services, are your employees qualified or experts in their field? These are examples of the things that possible customers are interested in.

3. Facts, figures and testimonials

Another way of establishing credibility, both for the goods that you are offering and your company, is by incorporating fact, figures and even testimonials in your sales letter. It would be better if you could get someone that your target customers know and can relate to. Results of poll or research studies are also good information to add. However, be sure that the figures that you will be providing will highlight the superiority and excellence of what you are offering.

4. Various benefits the product and your company can offer

Nowadays, consumers demand value for every cent they spend. Thus, if you want the recipient of your letter to consider your product, you need to show him or her the benefits that he or she will get from the product from your company. Will the customers be able to buy the product at a discount? Does the product provide various uses? Can the client get extra perks or gift items from buying from you? These are just some of the things that your potential clients will be looking for.

5. Promises and guarantees you can keep

If you already mentioned a promise or guarantee in the headline, you need to reaffirm it in the body. Will you provide a refund if the customer was not satisfied with your product? Do you provide warranty on parts and services for certain number of years? Do you have a customer service number that is available 24 hours a day?

6. Specific period of time

In order for people to feel required or obliged to buy your product the soonest possible time, you need to give them a specific period or time frame to avail themselves of the discount, gift or promo.

7. Add a post script

Post scripts are really intended for busy people who do not like to read long letters. If you put a post script that is as strong as your headline, people might be inclined to read the whole letter, and even buy your product.

8. Giveaways and gifts

An effective sales letter usually comes with a freebie. If you are sending your sales letter via post, make sure your free item is something that will be useful to your potential client. You don’t really have to give very expensive items, a refrigerator magnet or a pen will do. Just make sure that the free gift has the name of your company and your contact information. If you are sending a sales letter via electronic mail, you could probably offer a free e-book or free subscription to your newsletter.