In the previous blog, we discussed what are the different types of marketing, what are the leads, and what is prospecting?
In this blog, we are going to discuss the three laws of constant prospecting and why to do constant prospecting to keep your sales pipeline full so that you don’t see a slump in the revenue.
We will start with what my Coach Chetan Patel says, “Action, Action, Action. Go out and get busy.” You can follow this quote as the golden rule for your sales team.
Why be in the action and why the constant prospecting is important?
Let me tell you, prospecting is hard. No one likes prospecting because of the fear of rejection. Even with that fear, we need to prospect consistently because of the following three reasons.
1. Law of need and Law of attraction
2. 30-day rule.
3. Law of replacement.
1. Law of need and law of attraction
We all experience the law of need and attraction in day to day life. When we are desperate for something, fewer chances that we get it. This happens because when we are desperate, we lose our focus and confidence, and we turn negative. When we become cynical, we attract negativity because of the law of attraction.
The same law applies to sales. When you go out and look for deals in desperation, when you need it, less are the chances that you will get it. As you don’t get sales, you become desperate, you lose our focus and confidence, and you turn negative. This way, you attract more negativity, resulting in the even worst sales.
Why does this happen? It is because you aren’t making the sales daily as per the plan. When you avoid sales, you attract the above situation. To prevent a slump in the sales, you should be making sales always, even if your sales book is full and revenue is flowing.
This way, you will avoid desperation to get the deals, and when your pipeline is full, you are more confident, you feel abundance, you make logical decisions. The same positive energy will reflect, and hence you attract more closing. This is how the law of need and the law of attraction works in sales.
2. 30-day rule
We have discussed this a couple of times earlier. When we see a slump in the sales, we start checking if our pricing is higher or the sales team is not able to close, but most of the time, chances are that we haven’t been doing enough prospecting. Either you are busy with your current clients, giving yourself the excuse that you don’t get time to do prospecting.
How many times have you left the lead on the table? How many leads you never replied because you were busy enjoying working with the client you already have? How many times have you kept following on the dead leads, connecting with them to check if there is some work and thus avoiding new prospecting?
The 30-day rule is, that when you prospect in 30 days, it payoffs in the next 90 days, so if you haven’t prospected enough for 30-day, it will slow up your sales in the following 90 days. And when you are in that situation, the law of need kicks in. You become desperate but with no way out. This 30-day rule can be a 7-day rule or here, and they all depend on business to business, so you should know what is working for you. But the law is definitive, and it does show you the effect of it if not applied favorably.
3. Law of replacement
We know that we can’t convert all the prospects. The ratio varies from industry to industry and company to company, and type of leads. For example, inbound leads would have different proportions compared to outbound leads. To know your ratio is critical because it gives you an idea of how many leads you would need to have active prospects and how many prospects you need to make a client.
Let’s say you have 50 opportunities, and your closing ratio is 10:1. How many prospects would you convert? Five, right? Let’s say you closed one opportunity and made him the client. Now, how many prospects are in your pipeline? Again, 50 prospects, closing ratio is 10:1 and one closed, how many prospects left? This is where all of us get confused, because we have 10:1 ratio, as soon as one prospect converts, we count we have 49 prospects left. But because our ratio is 10:1, and because we have closed one client, we now need ten more prospects to fill up the ratio of 10:1 to refill for the one closed deal.
Again, this can be done only with constant prospecting.
Above are the three laws of constant prospecting are essential for sales success.
Whenever sales have slumped, check if the following has happened:
- You didn’t follow the 30-day rule and had stopped prospecting
- Because you stopped prospecting, your pipeline started drying up
- Because your pipe is dried, your deals aren’t closing.
- As you aren’t closing deals, you aren’t feeling confident to prospect.
- As you aren’t feeling confident to prospect, you stop prospecting.
- As you stop prospecting, your pipeline goes from bad to worst.
- As the situation worsens, you become a desperate and universal law of need kicks in, and the whole cycle continues
To make sure you stay in control of your sales, keep prospecting, keep your pipeline full, follow the three laws of constant prospecting and you will have to never worry about the sales. Remember, more of your efforts, luckier you are.
Share your questions and thoughts.