How to Sell Anything to Anybody Ch 11

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Questions and Answers

What is the primary purpose of the direct mailings mentioned in the content?

To sell cars directly to customers

To diminish mailing costs

To rely on commercial mail-order lists

To build goodwill and recruit new birddogs (correct)

How does the author describes the cost of paying birddogs for sales?

As an upfront investment

As a cost of sales paid after a sale is made (correct)

As an unnecessary business expense

As a reimbursable expense

What percentage of the birddog payment comes from tax savings for the author?

50% (correct)

75%

25%

100%

What strict rule does the author follow regarding birddog payments?

Always pays them promptly without delays Signup and view all the answers

What happens if a birddog's name is not on the card when the sale is made?

They are not compensated Signup and view all the answers

What is offered to the birddog if he cannot accept money due to employer restrictions?

A free service on his car Signup and view all the answers

Why is asking customers for referrals beneficial?

It increases customer satisfaction through involvement Signup and view all the answers

How does the approach with barbers help in gaining birddogs?

They see many clients and can recommend salespeople Signup and view all the answers

What is a primary strategy for obtaining referrals from banks, finance companies, and credit unions?

Building personal relationships with loan officers Signup and view all the answers

What type of card does the speaker give to barbers as an incentive?

Easel card for advertising referrals Signup and view all the answers

What role do doctors play as birddogs in this approach?

They have extensive networks with potential buyers Signup and view all the answers

What does the speaker do during a lunch meeting with loan officers?

Explain the referral reward system Signup and view all the answers

Why do loan officers often welcome the opportunity to earn extra money through referrals?

Their base pay is generally low Signup and view all the answers

What is the main focus of this strategy for building a referral network?

Forming authentic relationships with people Signup and view all the answers

What is the primary reason for paying birddogs even if they might not have earned the fee?

To keep business flowing even from unreliable sources. Signup and view all the answers

What is suggested as the minimum incentive to motivate birddogs?

$50 Signup and view all the answers

The author mentions giving birddogs business cards and a recruiting kit. What is the purpose of this action?

To remind them of the birddog program. Signup and view all the answers

Which type of individuals does the author prioritize when recruiting birddogs?

Political or community leaders. Signup and view all the answers

What issue does the author face regarding birddogs who prefer not to accept cash?

They may feel uncomfortable about the arrangement. Signup and view all the answers

How does the author perceive the overall cost of paying birddogs in relation to the earnings from sales?

As an acceptable trade-off for increased sales. Signup and view all the answers

What potential legal issue does the author caution against when paying birddogs?

Cash payments may be illegal in some areas. Signup and view all the answers

What is the primary reason for offering a price $200 lower than the competing dealership?

To make the offer appealing enough for the customer to come over Signup and view all the answers

What role does the loan officer play in this business model?

He acts as a referral source to bring in customers Signup and view all the answers

Why is a price reduction of $100 less likely to bring in customers?

Customers may have already paid a deposit with the other dealership Signup and view all the answers

What type of business professionals are mentioned as potential birddogs?

Mechanics and towing service workers Signup and view all the answers

What is the benefit for the loan officer in this arrangement?

He earns a $50 birddog fee for each successful referral Signup and view all the answers

How does the salesperson ensure that the customer is prepared to buy?

By making sure their credit is approved beforehand Signup and view all the answers

What should the salesperson do if certain birddogs stop providing leads?

Remind them of the birddog fee and encourage them to engage Signup and view all the answers

What misconception might salespeople have about offering low prices over the phone?

That it guarantees a sale without further engagement Signup and view all the answers

What habit does the salesperson emphasize as important in finding more birddogs?

Always being alert for opportunities Signup and view all the answers

Study Notes

Hunting with Birddogs

Building a Prospect List: The author meticulously builds their own prospect list, not relying on mail-order lists. This is a gradual process, enabling them to afford the mailing costs for each contact. Mailings help bring prospects back, creating a self-sustaining system.
Birddogs as an Investment: Birddogs are people who refer customers. The payment of $50 per referral is not an upfront investment but a cost of sales. The author calculates that from their tax bracket perspective, the payment is actually a 50% cost savings because it's a reduction in the previously payable income tax.
Strict Payment Policy: The author prioritizes prompt and fair payment to birddogs. Failure to pay, or delaying payment, is considered dishonest.
Customer Loyalty as Birddog Recruitment: Satisfied customers are valuable birddogs. The author targets influential individuals like shop stewards or union presidents for preferential treatment and strong commitment to their cause, as these people are highly likely to send more referrals
Non-Cash Rewards: The author understands potential legal issues with cash payments. They offer alternative incentives for birddogs who don't wish to accept cash, such as dinner invitations or free car services.
Establishing Relationship Value: A critical aspect of birddog effectiveness is to make the deal attractive for the birddog--this is crucial for building consistent, long-term relationships with people who can generate future business.
Value Proposition for Birddogs: The author prioritizes the value of the $50 reward to prospects, making the referral incentives highly attractive.
Importance of Persistence: The author emphasizes patience; building a consistent birddog system requires time and nurturing relationships.
Customer Value Proposition: Birddogs add value both to the customers referred and to the birddog, giving both a positive reward for their services leading to further referrals.

Utilizing Diverse Referral Sources

Targeting Various Professionals: The author seeks out professionals in various fields – from barbers and doctors to hospital staff, bank loan officers and mechanics – to act as birddogs. Identifying potential contacts leads to consistent business.
Barbers as Birddogs: The author uses a simple easel sign (“ASK ME ABOUT THE BEST CAR DEAL IN TOWN”) to recruit barbers as birddogs, enabling a wider referral network.
Leveraging Existing Customer Networks: Utilizing existing customers to extend the referral network is seen as an important element, with a focus on leaders.
Partnerships with service providers: The author interacts with various service providers (garage, towing, car repair) to identify potential customers looking for new replacement vehicles.

Strategic Negotiation and Deals

Strategic Pricing to Beat Competitors: The author frequently negotiates deals below the prices offered by competitors.
Loss Leader Strategy: Recognizing the importance of business longevity, the author understands that there might be instances where certain sales and deals may need to be offered below the normal profit line. This is seen as a valuable investment, even if it incurs a small initial loss, because it helps to boost the overall volume of sales and build reputation amongst the target demographic.
Focus on Customer Value: The key focus has been on delivering value even when a sale goes below the normal profit margin, since a satisfied customer is important for long-term success.
The Value of a Satisfied Customer: Delivering a potentially high value, even below a normal profit margin, strengthens customer satisfaction, driving consistent business and repeat sales. Satisfied customers translate directly into loyal customers which leads to higher referral rates and business growth.
Utilizing phone calls: Employing proactive phone calls to prospect clients and working out viable deals based on their needs, is an effective strategy to increase the rate of conversions, referrals and sales.

Strategies for Building Birddog Networks

Continuing Engagement: Keeping in touch with birddogs via regular communication, cards, and ongoing incentives remains crucial.
Developing Habits and Relationships: Recognizing that different people take different amounts of time to develop habits within their existing relationships, implies that the key is finding the appropriate method to help each birddog, strengthening their commitment over time.
Adaptability and Continuous Improvement: The author remains proactive in seeking new opportunites and sources whenever possible. This demonstrates the necessity of ongoing engagement, adaptation and expansion.
Avoiding Aggressive Tactics: Using appropriate strategies, as opposed to underhanded tactics, is key to ensuring long term relationships, as negative press from unethical deals can lead to substantial reputational damage.

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Description

This quiz explores effective strategies for building a prospect list through birddogs, the concept of birddogs as a cost-effective referral system, and the importance of strict payment policies. Additionally, it highlights the role of customer loyalty in birddog recruitment, emphasizing the recruitment of influential individuals for enhanced referrals.