Brandon L. Clay's Blog, page 22

Road Rules!

Happy Monday!
 1:55:12
That is my unofficial Runmeter app time...just under two hours...not bad.
Yes...running the half was the best decision...I will have to get 15 minutes faster with this time to have any shot at running a full in 4 hours!
As you might have guessed, I did quite a bit of thinking as I was running...a few road rules came to mind.
Road Rule #1 - Stay in your lane! 
The first few miles, I spent most of it dodging people trying to hit my target pace.  There were 13,000 people in the narrow streets...
 5,000 in front of me and it felt like I said "pardon me" at least 2,000times (but I was passing them!).
I also burned up a lot of precious energy doing it! 
Road Rule #2 - Don't worry about other people
At about mile #8, the crowd was considerably thinner and passing was minimal. Tthere was a divide in the road and as Yogi Berra says, "When you come to a fork in the road...take it!"
This fork divided the marathoners from the half-marathoners.  I had a few moments of remorse that had I should have stuck to the longer race...then the lactic acid in my thighs reminded me that I still had 5 miles to go!
 Don't look at others around you...run!
Road Rule #3 - Stay focused when conditions change
 At about mile 10, I felt good and knew I was running a fairly good pace...well under 9 minutes a mile.  The 2 hour barrier was achievable. 
Then the wind picked up something fierce.  The rain began to fall.  My clothes got heavier and the wind felt like someone was physically holding me back...
The lady in my ear didn't know...didn't care..."run faster to achieve target pace" was all she could offer...  
When things change, bear down and keep your eye on your objectives!
At the 12th mile I saw a woman I had seen off and on for several miles.  I was sure I had passed her once or twice, but she likely passed me during one of 5 strategically scheduled 1-minute walk periods.
Her pace was consistent and steady...
As she pulled past me in the last 100 meters to cross 3 seconds before me I felt compelled to go over and congratulate her...
 "Great race", I said. 
She said 5 words (with limited signs of breathlessness!) that summed it all up...
"Thank you...I ALWAYS RUN MY RACE"...
  When I think about it...that is the only Road Rule you really need! 
 Until tomorrow, I wish you Money, Power, Success!

You Had Them At Hello!

I have a workout strategy before each officially timed running event (you can't be surprised!). The tactic is to walk the anticipated time that the race will last...in this case 2 hours for the half-marathon...8 miles.
So this gloriously beautiful Saturday morning, I began a 4 mph (again, my strategy and tactic!) walk in a business area that has a network of sidewalks.  I was getting into the music on my I-Pod... Old school... Gap Band, Wild Cherry, the BeeGees (hey, the post folk singing Gibb brothers are funky!)...lets just say I have a very eclectic mix!  At one point, "Boogie Nights" from Heatwave came on and I was jamming and hitting the air drums.  I lifted one hand high in the air to hit the" crash cymbal" and it must have looked like I waved to a passing car...
How do I know?  The woman smiled and enthusiastically waved back!  Sure... she might have been waving at the strikingly handsome man in a somewhat tight Under Amour shirt with shades...
I couldn't be sure.
So guess what I did?
I waved at the next car...a young man on the phone... guess what he did?  He waved back too!  You know me...for the next hour, I randomly waved at over 100 cars! 
Since that is a statistically relevant group here are my results;More than 90% waved back... most smiling... some honking...a "cowabunga" and "Freebird" hand signal... and yes...
2 One-Finger Salutes! (Hey, I must have looked crazy... I didn't take it personally!)

It confirmed something about people... we all love a good "hello".  It is the ultimate icebreaker, the deal maker...utilized by movers and shakers!
"Hello" is how a painfully shy Brandon met a strikingly beautiful Natalie while "strategically" tying his shoe in front of her 3rd period class.
With the success of my "waving" experiment, I have one for you tomorrow...
Call 10 of your clients and just let them know you were calling to say "Hello"...
Some will be surprised (but happy!) some will say "we were just talking about you the other day", and some will have to be reminded who you are.
Matters not...10 people
My guess for your results?
Just like my legions of new fans on Hudson Bridge Road in McDonough, GA...and Tom Cruise in Jerry Maguire...
YOU WILL HAVE THEM AT HELLO! Until tomorrow, I wish you Money, Power, Success!

A Miss Is As Good As A Mile!

I know you are happy there are no charts on the Daily Crumbs today!  However, there are two numbers we need to discuss...  13.1  26.2  For the runners in the crowd there is no mystery...these are half-marathon and marathon mileages.  I am running my first marathon tomorrow...  Correction...I am running the half-marathon tomorrow.  What happened Brandon?   Cold feet...chicken out...what?  Let me explain.  I set an objective to run a marathon this year and complete it in under 4 hours.  I have been running seriously about a year and have run two half-marathons at a pace that would indicate I could do it.  My strategy was to schedule the earliest marathon that made sense in the year.  I also downloaded anbapp called Runmeter (remember my Blackjack app?  These things are great!) to log my miles and keep me on track for training.  Tactically, I run 4-5 times a week with my long run on Saturday...  I had made it up to 17 miles and then the weather took a turn.  Georgia has had rain, sleet, and really cold weather that made my critical long Saturday runs difficult.  Two weeks ago, I asked myself two questions...  Can I finish a marathon?  Can I do it in under 4 hours (A little over 9 minutes a mile)?  First answer...yes...second one...   NO!   I had two choices...   I could run the marathon and be that guy that crossed in 5 hours hobbling  or  I  can treat the half-marathon like a long Saturday run and live to fight another day.   Ever watch Fear Factor with Joe Rogan?  I cringed each time someone would begin eating pig eyes, get 70% of the way through and then yell, "I can't" two eyeballs from victory! In my case..."A miss is as good as a mile!" Wish me luck...    Until tomorrow, I wish you Money, Power, Success!

Four To Go!

 Happy Friday! One for the money...two for the show...three to get ready...four to go...or alternatively...  Go man (woman) go!    That's what I want you to do...Go...Go...Go! As we "go deeper" into your business (hey, you are running a business now - congratulations!) let's look at how one more level of sales effectiveness can impact the results. Where does that 4th sale come from? We can't reasonably expect the response rate to exceed industry standard...that is not sustainable over the "scientific" long haul. We can't reasonably expect to set 100% appointments from the leads that come in...even I am not that good! We could push closing rate metrics but in the "wide net" of direct mail, we have shoppers, tire kickers and unqualified people...  No, with our current 45% close rate from this medium...you are doing great! You need to get better at  ONE THING that can change EVERYTHING ...   You will get better at asking for and getting REPEAT BUSINESS AND REFERRALS!  We will deal more in Daily Sales Crumbs with the techniques for both, but for now, let's just "dream" about how ONE REFERRAL out of three sales would impact our bottom line;    ActivityMetricsTerminologyAnalysis Cost of Direct Mail
  $400
  Acquisition Costs
  Same
 # of pieces 1,000
 Reach Same  Response Rate
  1.1%
 
Response Rate (RR) Same  Number of leads  11
  Leads
  Same Appointment Rate65%
  Lead to ApptConversion Rate
  Same
  # of Appointments
  7
 Opportunities Same
  Closing Rate
  45%
  Conversion Rate
  Same
  # of Sales
  43 Direct Marketing1 Referral
 
Closed Won  Cost Per Sale400/4 =$100.00 CPS
 Gross Revenue$1,600 Gross Revenue before costs and expenses deducted
  # of Sales x Commission 4 sales x $400 =$1,600 GR
 
Operating Revenue$1,200 Revenue generated - Cost of Acquisition
  $1,600 - $400 =$1,200 OR
 Return On Investment$1,200 or 300%Return On InvestmentROI =
Acquisition Cost/Operating Revenue$1,200/$400 300% ROI   Can you see the genius in this? I know there are some of you saying, "This works for other sales people, but won't work for me." Nothing could be further from the truth...take it from me...you can do this and get even better results...  I have met, trained, counseled, mentored, emailed and shook the hand of over 40,000 sales professionals in my 30 years...  Not one of them was better than you! The differences reside in drive, ambition, creation of and adherence to Objectives, Strategies...and Tactics... Hey, that reminds me... Until tomorrow, I wish you Money, Power, Success!

Three To Get Ready!

have an expression that I coined (yes, I have a lot of them!) but this one fits our last few days...
  "Smart skims the surface...but genius goes deep"  You can use that one freely...just give me quotation credit! Notice I say that smart people skim the surface.  If you are successful in sales you are smart!  If you are able to meet your financial obligations by "the sweat of your brow" then you are already above average...smart. Smart comes from attention, study and experience.  Some of it text book...some comes from the school of hard knocks...anybody feel me?  Genius comes from enlightenment.  A revelation.  An inspired thought that takes everything you have experienced and "elevates" it to a higher level.     It shows you a new and better way...genius!  Smart people earn good livings, but geniuses get rich!  Now I have your attention...right?  Now that we are focused on the metrics of sales and marketing what if you could get a little better in a few categories...  What if you could become a sales and marketing genius...on your level?  How would that change your business?  Imagine, if you closed one more sale in our scenario, you would generate THREE SALES...  How would that impact your results?...let's take a look (improvements in black - for profit!!!);    ActivityMetricsTerminologyAnalysis Cost of Direct Mail
  $400
  Acquisition Costs
  Same
 # of pieces 1,000
 Reach Same  Response Rate
  1.1%
 
Response Rate (RR) 
Tweaked the income metrics for target audience a little higher  Number of leads
  11
  Leads
  Cost per lead400/11 =$36.36 CPL
 Appointment Rate65%
  Lead to ApptConversion Rate
  Did a better job selling appt and not trying to "sell over the phone"
  # of Appointments
  7
 Opportunities Cost per Opportunity400/7 =$57.14 CPO
  Closing Rate
  45%
  Conversion Rate
  Did pre-call planning for each client rather than "wing it" at kitchen table
  # of Sales
  3
 
Closed Won  Cost Per Sale400/3 =$133.33 CPS
 Gross Revenue$1,200 Gross Revenue before costs and expenses deducted
  # of Sales x Commission 3 sales x $400 =$1,200 GR
 
Operating Revenue$800 Revenue generated - Cost of Acquisition
  $1,200 - $400 =$800 OP
 Return On Investment$800 or 200%Return On InvestmentROI =
Acquisition Cost/Operating Revenue$800/$400 200% ROI   All it took was THREE TO GET READY...  That would make you TWICE as PROFITABLE!!! Excited about the possibilities...want more...? You guessed it...let's get FOUR TO GO!...   Until tomorrow, I wish you Money, Power, Success!

Two For The Show!

I remember as a child putting a lima bean in a wet towel and waiting to see what would happen as part of a science project.  Bet you had to do the same thing as a young student?  The first few days...nothing...  but then you would see the lima bean split...then a little green shoot would come out...exciting stuff!  Then we transplanted the little bean into a larger environment of a Styrofoam cup of dirt and watered, watched... and waited.  Eventually a stem would grow out of it and when it fully matured...a pod.   Imagine splitting that pod open and only finding ONE LIMA BEAN inside!!!   No one plants a seed to only get one seed back...what a waste of time and energy!  You should be no different with your Lima Bean of marketing.  You should be getting a true Return on Investment (ROI) not just Breaking Even...  Let's get more technical on our results from yesterday;  ActivityMetricsTerminologyAnalysis Cost of Direct Mail
  $400
  Acquisition Costs
  All costs related to getting a sale
 # of pieces 1,000
 Reach
# of pieces and demographics of target audience  Response Rate
  1%
 
Response Rate (RR) 
 Number of leads
  10
  Leads
  Cost per lead400/10 =$40 CPL
 Appointment Rate60%
  Lead to ApptConversion Rate
 
 # of Appointments
  6
 Opportunities Cost per Opportunity400/6 =$66.67 CPO
  Closing Rate
  30%
  Conversion Rate
 
 # of Sales
  2
 
Closed Won  Cost Per Sale400/2 =$200 CPS
 Gross Revenue$800 Gross Revenue before costs and expenses deducted
  # of Sales x Commission 2 sales x $400 =$800 GR
 
Operating Revenue$400 Revenue generated - Cost of Acquisition
  $800 - $400 =$400 OP
 Return On Investment$400 or 100%Return On InvestmentROI =
Acquisition Cost/Operating Revenue$400/$400 100% ROI Ok, some of you have zoned out...some of you need an aspirin!  Some of you need to stop scrambling to produce sales and start Running A Business!!!  This is what business owners and CEO's do...They run a business!  No, I am not angry...just emphatic!  While the terms used above may differ depending on the source you cite, these are all the metrics that are required to understand the efficiency and effectiveness of your precious marketing dollars and also Your Effectiveness at managing, monitoring and closing them!  Oh yes...back to the Lima Bean.   When you shuck that pod you expect to see at least two lima beans in it or you would consider it "defective"...right?  After you do all the things necessary to create a "one for the money" proposition... What is the single greatest thing you can do to increase your Return On Investment in the scenario above?...  GET TWO FOR THE SHOW!...   Until tomorrow, I wish you Money, Power, Success!

One For The Money!

I bet you are dying of suspense to hear what happened when I sat down at the Blackjack table?  Well, I confidently put down my $5 chip and drew two cards...12...take a hit...queen!  Busted!  Down $5 to the house...  Put down another chip...drew 15...I remembered my Blackjack training card said "hold"...so I did...  The house busted!  Now I am even!  Next hand, I drew two Jacks...20...I held and didn't split.  House busted!  Your boy is up $5!  Guess what I did?  That's right...I walked away!  I can hear many of you saying, "Why walk away...you were up on the house?"  It was only a test...I simply wanted to prove my strategy would work.  The same way I want you to test some form of marketing...say direct mail.  If 1,000 piece mail drop cost $400 and the average commission on the intended product is $400, I want you to conduct a campaign expecting to sell two people.  It would look somethjng like this;  Cost of Direct Mail$400# of pieces1,000Response Rate1%Number of leads10Appointment Rate60%
 # of Appointments6Closing Rate30%# of Sales2Gross Revenue$800Return On Investment$400 or 100% That means you spent $400 to earn $400...  More specifically, the first sale went to "the house" to pay for the direct mail...the other goes to you!  So I can hear you say that you can do better than 1% response rate, or 60% appointment rate, and certainly better than a 30% closing rate.  That's great...I want you to do better!   More importantly, I want you to market your business!  Won't you do it based on these odds?  If a stockbroker came to you and told you he guaranteed you 100% on your investment, what should you do?  Run!!!  Nothing is a sure thing, so when you are "gambling" your money on the "science' (odds) of direct mail or other marketing strategies, always be willing to take...  ONE FOR THE MONEY!!!    Do better if you can, but it sure beats being down to the house!   Until tomorrow, I wish you Money, Power, Success!

Play the Odds!

Happy Monday!  I went to Las Vegas for the first time about 6 months ago. (Yes...the first time!)  We stayed at the Palazzo and loved the décor, the food, and shopping of the Vegas experience. I was upset that Celine Dion wasn't there...(no comments please!)  " Brandon...did you gamble?"  Anyone that knows me, knows I hate wasting money. Gambling feels like a big waste of time and money...unless you win!  People that know me also know I hate...not knowing!    I am not a "know it all" but if I have something on the line, I want to be smart enough to win graciously or lose with dignity. So I walked by the tables several times a day as they are conveniently located on the way to EVERYTHING!  I saw smiling faces of winners and disgust of losers.  The allure of the lights, bells and chips being thrown around was too much.  I was eager to join in... Guess what I did? No...I didn't gamble.  I took a blackjack class!   1. Before spending money, allow someone to "show you the ropes"! Tony was my teacher.  For some reason, I was the only person there for class...odd!  For 45 minutes (class is normally 15 minutes but I am an inquisitive student!) Tony ran me through several scenarios.  Armed with basic knowledge I was more confident...  Guess what I did?  No...I didn't gamble.  I went and spent $2 on one of those Blackjack scenario cards.   2. Before spending money, get all the knowledge and insight you can!  It had numbers all over it...most too small to be read without my reading glasses (Hey, it's also dark in the casino!).    I was becoming more comfortable realizing that there was a scientific element to gambling ...who knew?  Now that it was beginning to make sense...    Guess what I did?  No...I didn't gamble.  I downloaded a Blackjack app.  3. Before spending money, practice!  I played over 1,000 hands by the pool.  I tried to use my "instincts" for the first 500 hands and was down $1,000 on $5 dollar hands.  I HATE GAMBLING!  Then I played 500 hands using the card and insight gained from Tony.  I was up $750 on $5 hands, splitting cards, buying insurance and doubling down!  I LOVE GAMBLING!  Guess what I did?  I walked up to a Blackjack table, $50 of chips in hand, sweat on my brow and Blackjack card in my hand...  AND I SAT DOWN!  Hey, you can laugh if you want to, but with my preparation, dedication and learning I felt ready to...  PLAY THE ODDS!  Are you?  Until tomorrow, I wish you Money, Power, Success!

It Takes Money...To Make Money!

In Sales Crumbs from the Master's Table, LeRoy asks Matt why he took the job in sales.  His answer was,  "Duh...money."  I think you might have a similar answer.   As I say about sales, we fall into it but then we "fall in love".  That's great, but the love won't last long if you are not making money.  Yes...love for sales is in the air!    Spring is also in the air.  Besides April showers bringing May flowers, what else do you have to do to get a garden to bloom?  "Duh Brandon...plant seeds"  Ok, that's true about most things in life...to get something out you have to put something in.  What do you have to do to get sales to bloom?  "Uhhh...prospect?"  Not so sarcastic now huh?  Every sales person knows they have to "plant the seeds" of prospecting in order to get a harvest of clients, but why do so few do it?   Uhhh...   Why do so few spend money on marketing to prime the pump of opportunity?   Uhhh...  In the industry that I have been a part of for over 17 years, I ask independent sales people all the time, why they aren't reaching their goals.  They could say,  "Governmental regulations have constricted the opportunity to such a degree that thecash-flow equation is no longer fortuitous for an business enterprise of this fashion..."   They don't!   They could say,  "I am in the midst of reengineering my business model to include a broader range of product offerings and that has temporarily dampened revenue opportunities..."   They don't   What do you think the #1 answer is from people whose entire livelihood lay in the balance?   "DUH BRANDON, ...I NEED LEADS!"  "OK, Are you spending money to generate some?"  "Well...no", they answer.  "Unless you think prospects are going to fall out of the sky you are going to have to do something to generate opportunity for yourself," I say emphatically.  "I don't have any money for marketing", they counter.  "Then I have some bad news... It takes money...to make money!"  Until tomorrow, I wish you Money, Power, Success!

Follow the Bouncing Balls!

Happy Saturday!  I promise to get back to inspirational Daily Sales Crumbs (Monday!), but for now, I have to stay on you about tracking and measuring results.  Why is this so important?  Simple, it provides you with deeper insight into what is working and what isn't?  Then you have two things to do:  If something is working you want to EXPAND it  - do more of it...Yes, that means more sales!If it isn't working, you have to EVOLVE It - fix it or cut it loose...and put that money into things that are working!Why don't more sales people review, track and manage their sales effectiveness?  Again...simple...  IT TAKES EFFORT TO FOLLOW THE BOUNCING BALLS!  Ok, I am about to take a shot at you (not a sucker punch!)...it is almost tax time...where are all your receipts, 1099's, and supporting documents for mileage?  Yea...go get "The Box"!  Why isn't it in Quicken or some other form of financial management tool?  Again, because it takes effort!  If you work for a corporation they are watching everything like a hawk...yes that includes you!   They have a full marketing department that makes subtle changes to creative (advertising) to uptick the response rate from 1.15% to 1.3%.  They change demographic data to reflect a specific buyer profile.  They spend money in targeted outlets with a mix of television, direct mail and print....   The follow the bouncing balls!   Your company has a full finance department that reviews the acquisition costs.  They set the budgets based on sales projections and that cost of getting new clients.  They account for the marketing, sales and general administration costs and watch monthly, weekly and daily dashboards to see if things are on track...   They follow the bouncing balls!   Your company also has a full sales department with Sr. VP's, VP's, Directors and managers.   They monitor and manage your close rate, referral and repeat business rate.  They want to know the disposition on your last 10 sales, make you role play to get stronger with the new product.  They take all the data that the marketing and finance department give them and have only one thing to do...   FOLLOW YOU!   They make the effort because they know the "science" of selling is precise and that the only variable factor...is you!  Ok...what if you don't work for a large corporation?   You don't have people breathing down your neck to make sure you are doing all the right things.     You are free do it "Your Way"...  That makes you the marketing, finance and sales department...chief cook and bottle washer.   What should you do with all of this power and freedom?...  FOLLOW THE BOUNCING BALLS!   Until tomorrow, I wish you Money, Power, Success!