Synopsis -
In This Episode, Dr. Misner Describes How BNI Members Can Do A Better Job Of Converting Referrals Into Sales By Better Understanding The Sales Process:

Every BNI Member Is A Salesperson - Whether They Know It Or Not

A Referral Is Not A Guaranteed Sale - You Must Follow-Through With Your Prospective Customer And Make Good On Your Promises In Every Transaction

Studies Have Shown That 34% Of BNI Referrals Convert To Sales. Some BNI Members Claim Closing Rates Of 90% Or More.

BNI Has Created A Strategic Alliance With Brian Tracy Sales University To Bring Sales Training Resources To BNI Members

Complete Transcription of BNI Podcast Episode 022 -

Frank Felker:
Hello everybody in welcome back to the official BNI podcast, brought to you by networkingnow.com, the leading site on the net for networking downloadables. I’m Frank Felker in Washington DC joined on the phone today by Founder and Chairman of BNI, doctor Ivan Misner, calling in today again from BNI headquarters in southern California. How are you today, Ivan?

Ivan Misner:
I’m doing great today, Frank. Thank you very much.

Frank:
I understand that you have some more information for salespeople relative to referral marketing today.

Ivan:
I do. I just came out with a book called Masters of Sales so I thought it would be good to talk a little bit about selling in sales and the fact that really every one in BNI at some level or another is a salesperson. Even if you are a banker, a contractor, an attorney – you are still selling your products or services. It’s important to understand a little bit about the sales process especially if you are a BNI number because you may get a referral, and you have to turn that referral into a client, patient or customer.

Frank:
So what is the best approach to doing that?

Ivan:
Anyone who is experienced and successful in referral marketing will tell you that sales skills are essential. They are needed in every part of the process and not just in the closing but throughout the entire process.

The referral in BNI is not a guaranteed sale. It’s the opportunity to do business with someone who has recommended you. You have to show that you can and will provide the expected products or services and that your customer, client or patient will be happy with the process and, of course, the result.

If you can’t make the first sale, your potential referral source will dry up. You have to follow through effectively with people who give you referrals to close those deals so that people who are referring you understand that you’re good at what you do.

In the early nineties I conducted a survey as part of my doctoral studies, and I found out that about 34% of all business referrals within BNI turn into sales. That is huge. That’s higher than most numbers. 34% of all business referrals we found in my doctoral studies turn into sales.

Another doctoral student, Julian Sharpe, who is a BNI member – she was a BNI member in Florida and she is now in BNI in New York. She replicated my original study last year in 2006 and her findings were nearly identical. She did the study ten or eleven years after mine. She found the approximately 34% of all the referrals turn into a sale.

That’s an outstanding number but it’s not 100%. There are certain skills that you need to have that are important in the networking process. I want to talk about them throughout this podcast. Having the knowledge and skill to generate the referral and then close the sale gives the person sort of a one two punch.

There are countless books and seminars and classes on how to close a sale. I highly recommend that members of BNI participate in some of those. There’s a really good one now that we have created a strategic alliance with BrianTracyuniversity.com. We just started to expand our alliance with Brian Tracy and we’re working extensively with them. Listeners to this podcast will see pretty soon some special offers that Brian is giving to BNI members and it is a direct results of a meeting I just had with him one on one last week to talk about BNI and Brian Tracy University. Our listeners are going to hear some special offers.

Frank:
That sounds great. I would love to hear Brian on the podcast.

Ivan:
As a matter of fact, you will. Brian agreed to do some podcasts with me and so probably within the next month or two, we will be doing so. The second thing that I wanted to point out is that while referrals help a great deal, convincing the prospect of making the first appointment is really very important.

You want to avoid being aggressive or indecisive. But you want to make sure that you get the appointment when you get a referral from someone. Be confident that a mutually beneficial deal is in the works and communicate this to the prospect. That’s really important.

The third point that I wanted to mention is that once you’ve made the appointment, it is important to persuade the prospect to buy your product or service. This part usually comes to mind when one hears the word sale, but in this particular case, integrity is paramount in the stage. The prospect should know exactly what to expect. No hidden charges no unexpected exceptions, no bait and switch. You have to walk the talk with the referrals that you get, particularly through BNI or otherwise your BNI members will never refer you again.

If you’ve created a highly efficient system of generating referrals for your business- and we believe BNI is one of those in getting a steady stream of referrals- this doesn’t guarantee that you’re going to be capable closing any of them. It certainly takes sales skills to turn the prospects into new clients, customers and patients. We are not experts in sales techniques and that’s why we refer people to organizations like Brian Tracy and others who have contributed to the book – Tommy Hawkins and Zig Zigler, contributed to Masters of Sales.

You have to learn those techniques that apply. Getting the referral is only half the process. The other half is turning them into a sale – the client, customer or patient. That part of the process is something that the member has to do themselves.

Sometimes, Frank, people say why don’t we teach sales techniques in BNI? It’s an easy answer. I believe you can be all things to all people. We are the world’s leading networking organization. We are second to none. If we start trying to become the leading sales training organization, we’re not going to make that. There are already organizations out there that do that. It’s better that they focus on that.

Understand that the referral process is half the battle but closing the deal is the other half. Be thorough in taking care of your referral and dealing with them with integrity if you want to continue to get referrals.

Frank:
One thing I would say as an experienced salesperson is there is nothing better in terms –I know we don’t like to use the words leads or prospects within BNI – but in terms of a perspective buyer, nothing is stronger than a personal referral from somebody else, particularly from within the BNI context.

You’re almost halfway home because you know sees that person has a need and you’ve been recommended by somebody that both you and the other person trust. At that point, it is exactly what you’re saying. You make good on the promises and expectations that were created by the referrer and you try to find out what the best optimal solution for the buyer is. But of course, at some point, you have to ask for the sale.

Ivan:
That’s right. There is nothing stronger than a third party testimonial. I’ve met BNI members who said they have had 90% of the referrals turn into sales. You can spend all the time getting the referrals, but if you don’t know what you’re doing in terms of closing the customer, it’s not going to work for you.

Having the skills to take that referral and turn them into a client is a whole set of skills that are critical and important, and there are a lot of organizations out there who really teach that and teach it better than us. I really recommend that you take a look at programs like Brian Tracy University and we will get Brian in on the podcasts coming up soon. Zig Zigler has material and so does Tommy Hawkins. If you have a chance, look at the Masters of Sales. We have 80 contributing authors to that book to help you learn how to sell more effectively.

Frank:
One thing that I try to tell people who are shy of sales is that sales is not something that you do to someone but rather something that you do for someone. You’re not trying to jam something down their throat unless, of course, that your approach. You’re trying to listen to what they’re telling you their problem is and then bringing your specialized knowledge and resources to bear to solve the problem for them. You’re actually there to help them and benefit them. You’re not there to cheat them. Once you get that in your mind, if you believe in your product or service and you know it’s beneficial and that you can help people, your closing rate will go through the roof.

Ivan:
You’re absolutely right. You have to believe in your product. If you believe in your product and you show them how it solves problems, your closing ratio will go up substantially. This is one of those simple ideas that’s not always easily done.

Frank:
The difference between simple and easy. We’re just about out of time for this week’s podcast, is there any last pearl of wisdom that he would like to share with the listeners this week?

Ivan:
Well, if you have a chance go take a look at Masters of Sales. It’s available at mastersbooks.com and there are some excerpts in there that you might find a value. Pick up a copy of the book. I have a prediction for you, Frank, within three or four weeks after this podcast.

Frank:
That’s great, Ivan. Congratulations. That’s it for this week. For Ivan Misner, I’m Frank Felker saying we will see you next week on the official BNI podcast.