Do you live by the 70-20-10 Rule?
I know you’re asking yourself, “Where did I miss this one in all those business books I’ve read?” Don’t worry one bit, you didn’t miss it. I just made it up for this blog post.
Seriously, do you ever think about where you get your business? I mean from a quantitative standpoint. Do you only have one arrow in your marketing quiver or several? Do you have various marketing strategies so you aren’t dependent on only one approach?
I used to go by the 70-20-10 Rule (only I didn’t have a fancy name for it back then). I learned a long time ago I needed multiple arrows. For me, formal and disciplined networking resulted in 70% of my business. I could spend 100% of my time doing that but I found I had to have diversification in my marketing strategy.
So I cold-called 20% of the time. It was fun. I made a game of it. It’s easy to do since it boils down to a numbers game in the end. I found out what the “norms” were for number of calls, hits, appointments, and booked business. Then I measured my daily and weekly performance against those benchmarks. Like I said, I made it a game.
The last 10% would be the business I derived as a result of referrals from existing clients. How many of you actually ask your client to introduce you to their clients or vendors? Some of you make this a standard part of your marketing plan. But you’re in the minority.
Many sales people (and I’m picking on you bankers out there) do not use their client base to its fullest potential when it comes to networking for referrals. Good people run with good people, right? Well, if your clients are good people, they’ll know other good people to introduce you to. All you have to do is ask. I’d do it once a quarter. If you’ve done a good job for your client, wouldn’t they want you to do a good job for their friends? You’re already a proven entity. Take the networking tactics and strategies we’ve discussed and put it to good use with your clients.
You are now allowed to pass on the 70-20-10 Rule to someone you know. I hope it makes its way to a textbook. Are textbooks still around?
Good luck and good networking.