Can generosity – giving stuff away, helping others really help you win at business?

This came up the other day during a workshop I was doing on Guerrilla Marketing – one of the characteristics of a successful Guerrilla Marketer is Generosity (contact me if you’d like to get an evaluation for all 16 characteristics).

I was talking about the importance of generosity when it comes to business and marketing success in front of 25 people and one of them interrupted and said quite brusquely:

“I totally disagree with the generosity point – I’ve given free things away for years and I’ve never…ever…gotten any business out of it!”

Nothing’s more fun than having a heckler when you’re giving a presentation!    However to be fair, I know lots of people who disagree with giving things away or helping others out when it comes to business. 

A big part of my approach with Aspire since I started over 3 years ago is a focus on the concept of generosity, paying it forward, karma, etc.  Not just as a philosophical idea, but because it’s good business!  However the heckling did get me to thinking about WHY this concept of generosity is important.  I came up with seven practical reasons you would want to develop a give first, give more approach with your business.

This was also timely because I had just finished reading the best-selling book “The Go-Giver” which totally aligns with this idea.  If you’re not familiar with the book – my friend Deb has a great review of it on her blog from a few weeks ago.

Let’s start with a clear definition of what I’m talking about:  The first law of stratospheric success from The Go-Giver is The Law of Value – Your true worth is determined by how much more you give in value than you take in payment. 

I would stretch the concept to include the idea that you add value into every interaction with others.  That value could be as tangible as tools, samples, educational materials, etc. or it could be intangible – things like referrals, introductions, ideas or just listening.

The other caveat that I would add into this definition is that it has to be giving without a clear expectation of getting something in return.  I suspect that was the issue with the person from my workshop.  They were giving away ‘free’ stuff, but with an expectation it was in exchange for something (a purchase, a referral, etc.)  Intent matters and I believe you have to authentically be trying to help someone for it to be considered ‘giving’ and not some sort of  complicated strategy.

But why would you want to help other people out in the first place?  Let’s ignore the obvious answer that it might be the ‘right’ thing to do and let’s look at clear benefits.

1. Demonstrate Value

Think about this in terms of giving away a ‘free sample’ – it’s a great way to let people know what you do.  In fact that’s what Content Marketing is all about – share valuable information to help educate your target market, demonstrate your expertise and position yourself as a resource when they’re ready to buy.

Along the same lines, you could offer a tangible sample – that’s the only kind of marketing that Burt’s Bees did for a long time.  You could also offer free or low cost workshops or seminars – all of these ideas leverage generating more value than you receive in payment.

2. Build Influence

One of the 6 Principles (or weapons) of Influence as laid out by Dr. Robert Cialdini is the Law of Reciprocation.  People are hardwired to feel indebted for receiving a gift and are more likely to respond favorably to future requests. 

As an example, a study was done that showed waiters received an increase in their tips if they left a mint or two with the check as a gift.  We’ve all felt pressure to say yes to someone who’s done us a favor…even if it’s not something we want to do.

3.  Build Relationships

There’s a catch-22 when you are trying to sell your product or service to someone who doesn’t know you.  People buy from someone that they know, like and trust, but because they haven’t yet bought from you, they can’t build up that Know, Like and Trust relationship with you.

Offering them a free sample, or giving them value up front before they buy anything (at no obligation) allows them to know you and decide if they like and trust you.  And…it may be obvious, but people are much more likely to like and trust you if you’ve given them something of value.

4. Establish yourself as a good partner

I’ve met several people through networking who have shared that they don’t really believe in giving out referrals or helping others get introduced to potential prospects.  In one case, the person was very clear that he didn’t have time and didn’t see the value in helping other people reach their goals – he had to focus on his stuff!

How likely are you to offer a referral or to help someone who demonstrates that they will not be helping you?  You’re certainly not going to go out of your way for them.

Conversely, I also know several people who I consider ‘connectors’ – people who are always trying to help me with introductions, referrals and resources.  These are the people who have moved to the top of my list of people that I want to help and hang out with.

5.  Be Authentic – Why you got started in the first place

Most of the people I know who got into their own business did so because they were good at something and they legitimately want to help people.  Yes, they also want to make money, but that’s a secondary thing.  If they were suddenly independently wealthy they would still use their skills to solve the problems and issues they address with their business.

By giving away value above and beyond what someone paid for it, you have the chance to really do what  you’d like to be doing anyway…and for all of the right reasons!  It’s not about money for most people, it’s about helping people and adding value.  You can legitimately do that and make money – they’re not mutually exclusive.

6.  Drive Word Of Mouth

Word of Mouth is like gold for small business owners that can get it…and the biggest driver of positive word of mouth are happy customers who are getting more than they expected!  Put another way, it’s a customer who received more value than they paid for (sound
familiar?).

As an example, my wife loves going to Nell Hills in Atchison, partially because she likes the store and what’s sold there, but the reason that she really loves going and why she tell a lot of people about it is because of the overall experience of shopping there.  How the employees treat her, how helpful they are…all of the value they add whether she actually buys anything or not on that trip. 

and finally…

7.  Life’s too short

You’ve basically got two choices – you can choose to believe that resources and customers and money are scarce and really hard to come by.  That you need to sweat over every nickel and obsess that people are taking things from you every chance they get.  With that kind of mentality, you clearly wouldn’t be likely to give anything away…it’s too precious.

Alternatively you can believe in abundance.  There are more customers in your niche than you could possibly service on your own, that although life isn’t easy there are always new opportunities and great things just around the corner.

Is the glass half full or half empty?  Either choice is technically correct, but I will tell you as someone who has spent time on both sides of that equation it’s much more satisfying to look at the positive side of things. 

Life is too short to cynically dwell on the negatives and you will drive people away if that’s how you look at the world (and you’ll be miserable doing it).

What do you think?

I believe that if you focus on giving value first and foremost to everyone you meet, that you will benefit in the long run.  Am I naive?  Crazy?  Spot on?

What do you think?  How do you conduct your business?  Are you proactively giving things away?  Helping people even if they aren’t currently paying you?  I’d love to hear your thoughts – please share them in the comments below.

Shawn Kinkade   Kansas City Business Coach

Similar Posts:

• How to get their attention…so you can sell
• Ready for a fresh start in 2012? Try this!
• Do you need to simplify your business?

Marketing for small business owners has gotten a lot harder in the last 20 years.  Way back when, if you wanted to generate some sales, you could pull together an ad, let people know what you were selling and you stood a good chance of selling more stuff.  These days there’s way too much noise out there for poor marketing to drive any sort of results.  You have to know your target market, but even more importantly you have to know the problem you’re solving or the outcome you’re delivering.

Marketing can be a complex process – you need to understand the demographics and the psychographics of your target market. You need to have an insight into their mindset and why they buy, what drives them to spend money. You need a clear call to action. You need your message conveyed in a medium that your target market is likely to read.

In fact there are a lot of reasons why your marketing isn’t working. However the most likely reason your marketing isn’t working is because your message isn’t resonating with your target market – they don’t care!

Which of these statements is more appealing to you?

• We use adaptive intelligence and state of the art digital detection technologies to optimize traffic flow and reduce congestion.
• We reduce stops at traffic lights by up to 90%.

That’s the choice that Kansas City based Rhythm Engineering (www.rhythmtraffic.com ) had to make and they’ve done a fantastic job translating complex (and impressive) technical features into the benefits and outcomes their target market responds to.

At the end of the day, I don’t care how you do what you do, or what technology you use, but I do care that you can deliver a solution that solves a problem I have (or means I spend a lot less time at red lights).

Tune into WIIFM (What’s In It For Me)

One of the biggest traps that businesses fall into is focusing their marketing efforts on the bells and whistles, the features of their products and services. Your potential buyers just want to know “What’s in it for me?”.

As an example, Sharp is currently running a big ad campaign for their new LCD televisions with a lead message of: “Quattron quad pixel Technology – creating colors never before seen on an LCD TV.”

What? I’ve been watching TV for a long time and I’m pretty sure I’ve seen all the colors that are out there. Quattron quad pixel technology sounds impressive, but really why should I care?

This features trap doesn’t just apply to technology companies. How many ads have you seen where the leading point is something like “Established since 1924” or “Located on the corner of 47^th and Main street”. The points they are likely trying to make is they’re reliable (since they’ve been around a long time) and they’re convenient since they are just around the corner. But from a marketing perspective, if you want people to get the point you have to spell it out for them.

Your customers don’t have the time, the patience or the inclination to read between the lines and figure out how your service or product is going to help them. You have to overtly spell it out for them.

Case Study – Rhythm Engineering

Let’s take a look at several of the important things Rhythm has done with their web page.

Clear and graphic benefits message – the primary point of attention on the home page is the graphic banner at the top left. Rhythm is using eye catching graphics and simple benefit statements (Up to 90% fewer stops, 30% less emissions, 25% less fuel consumption). These are strong appeals to their target market (drivers and traffic engineers).

Using numbers and statistics – people are inherently wired to respond to statistics and facts. Numbers build credibility and they create a framework that make it easy to understand and share. Rhythm uses a lot of numbers to communicate their points, but they do it in an easy to understand way that builds credibility and increases interest.

Generous and visible testimonials – part of the psychology behind why people buy is the concept of ‘Social Proof’ – We determine what is correct by finding out what other people think is correct. This concept was popularized by Dr. Robert Cialdini as one of the 6 principles of influence. Basically the science proves the common sense idea that people are more likely to buy something that other people have already bought and approved. Rhythm uses lots of testimonials and places them in visible spots all throughout the website.

What should you do? Try a Red/Blue test.

If you think you might be at risk of falling into the Features trap, then you should do a Red/Blue test on your marketing materials. Pick out a brochure, flyer or print out your home page copy and circle in Red every statement that talks about you or your company. Look for sentences that start with ‘We’ or ‘Our Company’.

Now read through the document again and circle in blue every statement that talks about your customer or their problems. Look for sentences that start with ‘You’ or ‘Your’.

If you end up with more Red than Blue, then you need to rewrite your messaging. Although there’s not a specific right answer, at least two thirds of the focus (or more) should be on your customers and the outcomes that you deliver. Also look into using more testimonials…they should focus on solutions and outcomes as well.

It may feel like a lot of work to go back and rework your message, but if you want your marketing to work and your potential customers to care what you’re saying, it’s something you have to do.

If you get stuck, contact me or go check out Rhythm’s website again.

I’d love to hear your thoughts on this – leave me a comment here and let me know what you think.

Shawn Kinkade  Kansas City Business Coach

Similar Posts:

• 10 Ways to Take Control of your Marketing
• Web 2.0 isn't about Technology
• Is your business at a dead end?

I had a chance to check out Shrek Forever After this afternoon and one of the scenes that caught my attention was the sales process between RumpelStiltskin and Shrek (see picture above, courtesy of Dreamworks)

Rumpelstiltskin, if you’re not familiar is a magical dealmaker who specializes in granting wishes…with unfortunate consequences and lots of fine print.  In the movie he hangs out at the Crone’s Nest Carriage Park (full of witches and crones) and desperately wants to become the ruler of Far, Far Away (where Shrek lives).

What does this have to do with business?  Well our man Rumpel is a true salesman and he displays some serious selling skills in the movie that could benefit anyone in business.

He pretty much goes through the entire sales process, although in this case it’s a one session close type of opportunity.

What’s your target?  What do they want?

The sales process starts with understanding who your target market is and what it is they want to buy.  In our example, Rumpelstiltskin is a bit down on his luck and he’s missed out on some big opportunities, so his target is really anyone who’s looking for a big change that magic can deliver.  As it turns out Shrek fits the bill – he wants one day when he could live the life of a single Ogre again without all the stress that’s in his life.

Rumpel does a bit of back alley research to figure all of this out and he learns exactly what his prospective buyer is looking for and how he feels about it (what his pain points are).

Establishing Contact

The next step in the sales process is to get in front of your prospect.  Most of the time, your best bet is to be introduced, but sometimes that’s not possible.  If you can’t do that, then you want to find a way to get in front of your prospect.  It’s a little unconventional, but Rumpel goes the route of staging an accident and asking Shrek for help.

Not only does this put Shrek off his guard, but it give Rumpelstiltskin a reason to offer Shrek a ride, a drink and dinner as thanks for the rescue – a great opportunity to build up rapport.

Building Rapport

As they’re riding along in the carriage, they share stories over drinks and Rumpel sympathizes with Shrek’s problems.  He puts himself into Shrek’s shoes and lets him know that he really understands where Shrek is coming from.  Shrek finally has someone who gets where he’s coming from, what his problem is and he’s thrilled to be listened to.

The Offer

The offer is a very natural conclusion to the discussion…hey – if you’re interested, I have a contract here that can give you what you want. 

Of course Shrek wants to know what the catch is and Rumpel plays it cool – he explains clearly that to get something you have to give something…and in fact he even takes the offer away as a great persuasion technique (“Well if you’re not interested – it’s no big deal, we don’t need to do anything…!), prompting Shrek to make the move to keep talking about the deal.

Now I will say that Rumpel deviates from the ideal sales script at this point by tricking Shrek into a Win-Lose deal that’s pretty one-sided.  He does ending up closing the deal, but he lies about the outcomes -  however like most of those deals, they don’t pay off in the long run.

Aside from that though, the overall sales process was very effective and would make an worthwhile framework for a lot of sales.

So how was the movie?

In case you’re wondering, the movie was good – worth a trip to the theater in my opinion.  It’s not as engaging as the first couple in the series, but the animation and 3D are very good, it’s got a good story, it has several funny parts and overall it’s a nice way to get away with your family for a couple of hours.

Have you seen the movie?  Did I miss any sales tips?  Share your thoughts below, I’d love to hear them.

Shawn Kinkade  Kansas City Business Coach

Similar Posts:

• How do you get your prospects to move?
• How success and despair can help you for next year!
• Save Ferris – Lessons learned from a Day Off

Just like everyone loves a puppy – everyone loves new functionality on applications they are already using (and you are already using LinkedIn aren’t you?).

I actively use Twitter, I reluctantly use Facebook and I’m constantly trying out a lot of the other social media and social network platforms, but I will admit I’ve got a strong bias for LinkedIn as the best place to start (and spend a lot of your valuable time) when it comes to using Social Media for your business.  It’s a great extension of the real world networking you already do (you are networking aren’t you?).

Beyond being professional, easy to use with lots of powerful features, LinkedIn has done a great job of consistently adding new functions and features.  Here’s 3 of the latest additions I thought were interesting.

Follow Company

One of the features / drawbacks of Social Media is the automated ability to become a ‘stalker’ of people.  LinkedIn has ramped up this concept recently for individuals (I can get a summary of questions you answered, groups you posted to, status updates, profile changes, etc.).

Now they’ve added a similar concept for company profiles.  You can select a company to follow (do a search on the company tab to find the profile of the company you’re interested in and ‘Follow’ the company).  Then you’ll be able to choose the kind of information you want to receive and how often you’ll receive it.

Why would I care?  With company follow, you can find out new jobs being posted, changes to the company profile, who they’re hiring, who’s leaving…potentially lots of important things you’d like to know about your clients, prospects or competitors!

Updated Status Updating

LinkedIn has had status updates for a long time, but they were pretty basic and didn’t really stand out as a useful feature.  However they’ve made several recent changes that make it easier to communicate effectively.

You can now add in a link with graphics and an article excerpt, making it more likely people will click through to see what you’re sharing.  You can also share what others have posted (kind of like re-tweeting in Twitter).  Finally, with the status update you can choose who you share with – the whole world, your connections, a specific group or even just an individual.

Why should I care?  Status updates are a great way to stay top of mind and let people know what you’re up to, sharing content, blog posts, events, and things that you’re interested in.  By making it a more fully featured option, you’ll have a lot more control over what you share and who you share it with…all good things!

Sharing Videos on your Profile

There are over 2 Billion YouTube views per day!  Video has clearly become a major way to share ideas and communicate with customers or prospective clients.  However until recently you could share those videos on YouTube, your website, Facebook and lots of other places, but you couldn’t share them on LinkedIn.

Now you can!  Slideshare has added the capability to share videos in the same way you could previously share presentations.  And you can add Slideshare to your LinkedIn profile (just like you could before)…only now it supports videos.

Why should I care?  If you haven’t yet, at some point you will create a video that explains who you are and what you do.  That’s the perfect kind of thing to post on LinkedIn to let people know what you’re all about.

What functionality on LinkedIn do you use the most?  Have you noticed anything new?  I’d love to hear your thoughts and comments below – share them when you get a chance.

Shawn Kinkade  Kansas City Business Coach

Similar Posts:

• Are you using LinkedIn’s Company Page?
• Supercharge your Rolodex…with LinkedIn
• Stop Blending In with your LinkedIn Profile!

One of the foundations of Guerrilla Marketing is creativity – finding a unique and interesting way to capture attention.  However just as importantly you need to be talking to the right people and you need to be getting them to think about the problems you solve and the benefits you deliver.

The example above does a great job of being different and illustrating the benefits…the only drawback is that it probably was pretty expensive, but compared to a TV commercial, I’m sure it was a bargain and it would have much longer lasting impact.

Interested in seeing some more examples…

I love the Free Air Guitar promotion from Rock 96.3…it’s about as low cost as you can get, but you instantly know what kind of station they are, you’re going to tell your friends and it’s pretty funny!  Thanks to DirectDaily

This one is a little more subtle, but another clever way to get across a benefit visually.

I really like the clever and interactive way this company ran their campaign.  Rather than just creating pictures to use for ads, they created staged scenes and encouraged people to take their own pictures and submit them…with the winners voted on and used in posters.  It doesn’t focus on benefits, but it’s a great way to get talked about.

A creative way to draw attention to a difficult subject – non profits are a lot more likely to come up with really clever ideas because they have limited resources.

Finally – the mouth above is series of flyers for…a local dentist of course!  Extremely low cost, eye catching and a good way to get some attention.

If you’re interested in seeing more like this – there’s a lot of great posts at the Creative Guerrilla Marketing blog and at the Boot$trapping Blog – great stuff.

What kind of creative visual could you use to grab the attention of your prospects?

Share your thoughts in the comments below, I’d love to hear them.

Shawn Kinkade  Kansas City Business Coach

Similar Posts:

• Do you need to simplify your business?
• Are you unconsciously marketing yourself?
• 7 Reasons why giving drives success in business