Tuesday, 28 February 2012

12 Most Valid Reasons You Should Disqualify a Prospective Client

12 Most Valid Reasons You Should Disqualify a Prospective Client
You need to improve your sales. You need new clients. You found someone who is receptive to your message and willing to meet with you. You have a prospect! Maybe.
Doing exceptionally good work means disqualifying prospective clients for whom you cannot do good work. It isn’t easy to do so when you are hungry, but being an effective salesperson—and a good businessperson—means eliminating and disqualifying prospects that aren’t right for you (and for whom you aren’t right, either).
This list of 12 Most important reasons you should disqualify a prospective client will get you started.

1. You Can’t Create Value

If you cannot create value for a prospective client, regardless of how badly you may need the sale, you must disqualify them. Selling well is about creating value for your clients and customers, and when you can’t do so, the prospect must be disqualified.

2. They Don’t Value the Value You Create

Sometimes you can create value but your prospective client doesn’t value the value that you create. You are never going to do brag-worthy, raving fan work for someone who doesn’t believe what you do is valuable. Disqualify them.

3. They Are Low on the Business Maturity Continuum

Some prospective clients are low on the business maturity continuum. They are adversarial, driven by conflict, and believe that they need to beat up their vendors to get the best out of them. Life is too short to spend with people who mistreat you and your team. Say goodbye.

4. They Believe You Are a Commodity

If you aren’t a commodity, you shouldn’t allow yourself to be treated like a commodity. If you are treated like you are expendable and easily replaced, you will never have the opportunity to do your best work. You will also never capture any of the value you create for yourself and your company.

5. Protect Your Focus and Sweet Spot

The best way to make selling easy and fulfilling is to stick to your sweet spot. It is easier to make deals where you can create a massive amount of value. It only feels easier to sell to receptive prospects outside your sweet spot. Protect your focus on disqualify prospects who are only receptive.

6. The Business Is Unprofitable

Some natural laws govern our universe. One of them is that there is no way to lose money on every transaction and make it up on volume. You must disqualify and reject business that isn’t profitable for you and for your company.

7. Avoid Receptivity Traps

Some prospects are so receptive to you and your message that they feel like they are good prospects. They are interested and they ask a lot of good questions. But they don’t really use what you sell and they aren’t going to buy. They are simply receptive and like talking to people. Be nice, but disqualify them.

8. Make Time for Better Prospects

Your time in sales is short. You move from quarter to quarter, always working against the clock. It is critical to disqualify prospects that are wrong for you and your business so that you can make time for better prospects.

9. Make Time to Nurture Long Term Dream Clients

Your dream clients are the clients for whom you can do breath-taking, jaw-dropping, earth-shattering work. They already have someone who does what you do. You need time to nurture these relationships so that when they become dissatisfied, you get and opportunity to compete for their business.

10. Protect Your Reputation

When you take on work that doesn’t allow you to create real value, you risk your reputation. These clients tell other clients that you are “okay” or that “there is nothing special” about what you do. Worse, some will say you don’t do good work. Protect your reputation and disqualify them.

11. You Don’t Know Them

Lots of things that look like opportunities aren’t. The unsolicited RFP, the referral from your networking group, your best friend’s brother-in-law. If the prospect isn’t really a prospect, you can’t treat it like one. You don’t win RFP’s when you haven’t laid the groundwork. The referral is too small. Your best friend is trying to be helpful, nothing there.

12. Face Your Real Problem

The real reason most salespeople don’t like to disqualify is because they have to few prospects and a too shallow pipeline. The real underlying problem is almost always a lack of prospecting, or a lack of effectiveness when it comes to opening and creating opportunities. Dealing with these two factors does more to help you build a pipeline of qualified opportunities.
It’s not always easy. It is not always fun. But to protect your time for real prospects and dream clients, to protect your reputation, and to do meaningful work for clients who love you, you have to mercilessly disqualify everything else. 

Posted by Anthony Iannarino on Aug 4, 2011

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