We’ve all heard the expression, “The more things change the more they stay the same.” How true this is, especially in terms of cultivating new business.

As “Social Media” (Facebook, LinkedIn, Twitter, etc.) becomes utilized by more and more people, the potential for its mis-use in terms of productive business-building becomes greater and greater.

The first thing I note (and most of my online social/businss networking is done on Facebook and Twitter) is the number of – ugg, I hate this word – pitches from people for their product or service…when first connecting!! No relationship-building; no focusing on the other (and, no, thinking you’re going to help them by their buying from you is not focusing on them) , no taking time to identify want, need or desire; no respecting the process, just pitching. {Side note: on Twitter this is often done via auto-responder which I believe, as the saying goes, “adds insult to injury”)

This is the online equivalent to introducing yourself to someone at a Chamber of Commerce or other business mixer and immediately shoving your business card at them and telling them all about what you do. Does that really achieve the desired result? While we can “never say never” we can definitely say the odds are well against it, both for short and long-term success.

Remember, “All things being equal, people will do business with, and refer business to, those people they know, like and trust.” This doesn’t happen as a result of being pitched but as a result of knowing the other person has their best interests in mind.

So, when connecting with someone online, instead of pitching your product or service or asking yourself how they can help you, ask yourself, “how can I somehow provide value – real value – to the relationship, and effectively communicate my desire to do so?”

If sales and referrals are going to happen, they will…after you’ve proved yourself to be an asset of value; not a taker of energy.

The following is reprinted with permission from one of my favorite speakers/authors, Richard Weylman:

Secrets of Success

By Richard Weylman

There are several key lessons to learn that are necessary for success, whether that be in business or your personal life. Here are some of the most important keys:

1. Be trustworthy! Whether you are dealing with clients, family members or friends, it is absolutely imperative that they know you can be trusted. You can establish this trust by being completely open and honest in all of your dealings (this includes being willing to admit your mistakes), exhibiting competence in your actions, and showing concern for others and their needs.

2. Listen, listen, listen! Focus on the other person rather than always doing the talking. Not only does this help build a relationship with them, but you can also glean information that may be important to you in other areas.

3. Be persistent – but not obnoxious! Don’t give up too soon on that prospect, however be sensitive to when your persistence is causing them to view you as desperate.

4. Focus on the person, not your product. This might sound counter-productive when your end-goal is to sell your product. When you establish a relationship with the person first though, they will turn to you over and over rather than just buying once.

5. Be prepared! Spend time researching and planning. This builds confidence in you and your ability.

The successful person is the one who is constantly educating and evaluating themselves and how they relate to others. Success means nothing without true, trusted, personal relationships!

—–

Richard Weylman speaks and consults and is the author of the bestselling book, Opening Closed Doors.  He is the founder of The Weylman Center for Excellence in Practice Management ™
, an online university and resource center.  While he specializes in helping you elevate your success in the affluent marketplace, his principle-based information is applicable to anyone in business whose desire is to add value to their relationships and create a high income.  You can learn more about Richard at www.WeylmanCenter.com.”

Walking into a place named “Good Feet” (seller of arch support products) in Juno Beach, Florida I thought about the recent blog post regarding the concept of “good profits and bad profits” based on the book,  The Ultimate Question*: Driving Good Profits and True Growth by Fred Reichheld.

I entered the store right before closing time and was greeted by Lynn. When I discovered she’d have to go through a 15-minute testing and analyzation process to determine the best products for me (their products help bad backs) I assured her I could come back tomorrow so as not to keep her late.

She insisted I stay, that she could see I was in discomfort and needed help. And, no, she’s not on commission (which, in my opionion, is a shame – effort, caring and value such as that is exactly what should be rewarded via commission); she herself suffered for years from back pain and since discovering these products  is on a mission to help others from suffering similarly.

The entire transaction was a delight, especially once she got the hint that I didn’t care about the features (and detailed explanation); only the benefits, and that – rather than different products that I’d have to think about in order to use correctly, that I just wanted one all-purpose pair even if a bit more expensive.

She also made sure I knew I could call her any time if I had any questions. And, I could tell from the transaction that she wanted me to call and ask, and would be there to answer.

At the end of the recent post I shared that Reichheld’s main question was, “Would you recommend us to a friend?

In this case . . . Yes! Yes! Yes!

Isn’t “any profit” good profit? Not at all. In fact, “bad profits” can absolutely destroy a business.

In his excellent book, The Ultimate Question*: Driving Good Profits and True Growth, Fred Reichheld explains (paraphrased) that bad profits are profis that come at the expense of customer satisfaction.

In other words, just because someone buys from your company, doesn’t necessarily mean they had a positive experience. And, if they didn’t (and/or consistently don’t) they could become what the author calls a “detractor.”

Not only will they defect at the first opportunity; they will relate their experience to others.

So, while a transaction may be profitable in the short run, in the long run, it can destroy that business.

In fact, according to Reichheld, a business’s sole assets and liabilities are its promoters and detractors. Thus, the “Net Promoter Score” (NPS) which is at the very heart of his book.

Since reading this Wall St. Journal Bestseller, I’ve taken even more notice of the “good profits/bad profits” concept…in the various businesses from which I buy, and with much disappointment. I need to make sure that — while I’m shaking my head at the way others are handling their businesses — I’m handling mine in order to create a positive NPS.

What about you? Are your profits good profits that are creating promoters or bad profits that are creating detractors? Some of each? You might want to pick up this book and give it a study.

* By the way, the “Ultimate Question” referenced  in the title is, “Would you recommend us to a friend?”