by Tom Woodcock, Seal the Deal

For decades people have tried to find business through the painstaking process of cold calling. I battle old school sales managers all the time who swear cold calling is the way to go. Think about, do you like someone coming in and interrupting you in the middle of working on a project and trying to sell you tools? No! Then why would you think someone else would? Don’t get me wrong, I grew up as a salesperson cold calling my little guts out. Back in the day we had no choice. Our lead source was the Yellow Pages. We hoped we would be greeted by a cordial receptionist and often only had the building sign as advanced information. This made cold calling not only necessary but mandatory.

Today, the ability to get advanced information on a potential customer is at its highest level in history. Via the Web you can secure company information, market presence and even contact information. This eliminates much of the need for a cold call. The issue here is you lose the physical presence with the customer. Therefore, we need to find a way to accomplish this in order to gain the initial meeting. The best way to do this is by going backwards to move forward—using associations, organizations and chambers of commerce. Yes, that’s right—pools of people! Add your own, designed network of contacts and you have a lead machine. Getting to events, happy hours, business breakfasts and business groups is paramount to finding opportunities. There are some qualifiers to keep in mind so you don’t waste time and effort. They are:

1. Customer Rich: Does the event appear to attract customers or potential customers? Though often you’ll never really know until you attend, promotional media will give you an indication on the target market. Customer-rich environments are always your best shot at direct business opportunities.
2. Network Development: Will there be current or potential network contacts in attendance? These are individuals who also sell to your customer base. They can be great sources for introductions and inside information. Your personal network should have a high concentration of these types of individuals.
3. Association Affiliation: Events that are hosted by associations are often well attended. They tend to cater to specific groups ,so it’s easy to qualify attendees. Many times the events are limited to members and their guests, but every so often they’re open to visitors. Grab those chances.
4. Known Host: These are events hosted by individuals or companies well known in the industry. People will attend because they know historically that host has strong networking meetings. Some have a knack in setting up these programs. Why reinvent the wheel. Take advantage of their expertise!

Simply using these four criteria will produce results. Then it comes down to your personal approach to networking. You have to develop a methodology that you’re comfortable with and that matches your personality. Some people can simply own a room. Others need a good, structured plan of attack. Either way, its best to attend with a little information and strategy. Here are some tricks to get more bang for your buck.

1. Get There Early: Check out those nametags and select a couple of targets you want to approach.
2. Permission to Call: Politely asking if you can contact a potential client goes a long way. Do not be challenging or confrontational. You’re hoping to get permission to contact them.
3. Use Your Existing Network: Connect with those already in a network relationship with you to meet new contacts. This is the easiest way to gain new personal contacts.
4. Stay Late: A lot happens after the scheduled meeting is over. Those who hang around tend to be more open and freer in their discussions. This can provide an inside track on potential projects or opportunities.

I’m a firm believer in the power of networking. If you combine a good physical network with a functioning electronic network you’ll have the basis for a lead-generating machine. Finding business opportunity is a primary goal of all companies. Without leads there aren’t sales, without sales there aren’t projects, without projects there aren’t contractors. Continually priming your network will result in a steady stream of leads and prospects. Under-valuing the power of networking can not only be short-sighted, but also may result in business decline. Forcing a cold-call-first mentality displays a dated sales approach. It also reveals a weakness in network development. With the increase in communication and social connection, it is far easier to find, as well as secure, sales leads.

The final piece of the networking puzzle is to be sure to follow up on the information secured at the networking event. This of course is assuming you gained some information. What good is information that is never acted on? It happens all the time. Taking the time to make the phone calls and get the appointments is where the real rubber meets the road. Not turning networking information into business is inexcusable. The discipline to attend networking events has to be followed by the discipline of acting on the results. A healthy sales effort includes between four to eight networking events a month. That’s roughly 50 a year! I find it hard to believe that kind of networking commitment will not produce results. As a matter of fact, I know it will, because I do it myself. The results have been impressive and it will always be a part of my sales regimen.

Before my age-related peers shout at this article and tell me I’m killing their sales direction, I throw you a bone and say the occasional “fill in” cold call may be worth a shot. But with the need to maximize the time of those doing the selling, effectively networking will get you greater bang for the buck. The overall issue is how much time and effort is put into generating business. So many people in the construction industry that are tasked with selling have other responsibilities as well. They either estimate or manage projects on top of getting business. This is completely understandable in a small company, but is inexcusable in larger ones. It always amazes me that most company owners will admit sales is the most important aspect of their business, but have no one dedicated to specifically that area of importance. They’ll spend more and staff up on the administrative side of the business while neglecting to properly support the sales team—if there even is a team!

Cold calling is a system going the way of the pay phone. Every now and then you see one but day-to-day, it’s just not productive enough—a  dinosaur of sales days past. Why, there may even be a day when a sales employee asks, “What’s a cold call?” Actually, that just happened last week with a brand new, millennial rep I’m training. I know, Zig Ziglar is rolling in his grave. The master of sales would even admit in this day and age, networking has replaced the cold call.

Tom Woodcock, president, Seal the Deal, Manchester, Mo., is a speaker, trainer, and author of the book You’re Not Sellin’, They’re Buyin’! He can be reached at (314) 775-9217 or www.tomwoodcocksealthedeal.com.