HOW TO LOSE BUSINESS 6 mistakes you should never make by Kerry L. Johnson, Ph.D. Over the years, a lot has been written about the best techniques available on making sales. Writers and speakers have extensively reported on everything from the right foods to eat before an appointment to learning prospect astrological signs. But the obvious fact remains. You are paid to produce sales. Yet most producers continually make the same mistakes over and over again. Dozens tell me that they're already successful, so why change now? They're successful in spite of themselves. I just returned from Great Britain where I spoke to brokers at 9 meetings from Belfast to Basingstoke. The same mistakes that we make in America are being made in other countries. One of the most successful of the producers told me that he always makes cold calls because he likes the challenge of selling to strangers rather than to a referral. This is a great example of a lumberjack trying to cut down a tall redwood with a dull ax. Sure, it will come down, but how many more trees could he have cut in the meantime?  Here are a few mistakes that you may find yourself currently making. Each one you recognize has conservatively cost you $50,000 over the last 12 months: 1) Spend more time talking than your prospective customer.  Xerox research has shown that when 3 or more needs were discovered during an interview, a sale occurred. Unless the prospect has a chance to share his problems during the interview, a sale is an immaculate conception. Listening well is the most critical aspect of the interview/probe process. Yet, the American style of gaining business seemingly rewards those who can "talk" someone into buying. And that usually means that the sales producer is glib. The less you listen, the less trust you will gain. A great rule of thumb is to listen at least 80% of the time especially in the first hour of the interview. Also remember to talk for no more than 30 seconds at a time. Your prospect won't listen past that anyway. TV commercials are only 30 seconds long. Wonder why? The average camera shot is only 3.5 seconds. Our attention span is shorter than you think.  2) Assume you know what your potential customer wants to buy.  If you only carry a hammer, you'll tend to treat everything like a nail. Just because nails are popular this week doesn't mean that they are right for your next prospect. The more experienced you are, the more assumption will tempt you. The more gray hair you have, the less you are likely to prepare for an interview. This is understandable, but not excusable.  A divorce attorney I know never prepares for a case. She not only shows up to court not knowing the issues, but even double books her court appearances. I asked her once why she practiced this. She said that after 15 years of family law, every case was the same. To be fair, she was usually successful. But one of her associates once told me that she had concluded a case without ever mentioning custody, which was the main issue to the respondent. She ripped off her client. Of course the client sued her for malpractice. I'm sure she is usually successful, but she is the worst lawyer in the world to that jilted client. Think of what it would be like if every prospect sued you for not listening during the interview process?  Today, it's more important to build a client relationship than to make a short term sale. The most effective of producers will go to the length of encouraging potential clients to buy from their competition rather than sell something inappropriate for the buyer. They also have the wisdom knowing they can go back later and sell to that relationship. Long term relationships mean long term sales.  3) Answer never asked questions.  You must overcome objections before they are asked. But only if you are 100% sure they will come up. A major insurance company has had its share of bad press lately due to poor investments recently due to the stock market's volatility. I asked a group of that company's salespeople to lunch and queried them regarding what it was doing to their production. Almost all said it was having a harmful effect. Yet, most said they tried to address the investment issue before it came up. I asked them how many prospects brought up the bad press issue on their own. Only 1 had that experience.  Every sales producer has shot them self in the foot. But most don't reload very often. Assume the prospect is willing to trust you until they give you an objection. The exception is when you have a reliable hunch that the prospect is resistant over an issue. It is then important to address it right away. But why give him ammunition to use in shooting at you. Remember PEOPLE WANT TO BE SOLD THE WAY THEY WANT TO BUY, NOT THE WAY YOU WANT TO SELL.  4) Don't qualify before the interview.  It's probably more difficult to sell life insurance to a single person who has no plans for marriage. It's harder to sell annuities to an unemployed person than to someone who is thinking about retirement. As you make the phone call to book the appointment, make sure the prospect knows you are not willing to see anyone who can fog up a mirror. They must be people who can benefit from your unique expertise.  5) Keep calling on those who permanently procrastinate making decisions to buy.  As I travel around the world speaking, I usually ask how many attendees have a prospect right now who is wasting their time by procrastinating. Most raise their hands responsively. Yet, wouldn't it be better if prospects or customers said no in the beginning rather than waste so much of your time.  YOU KNOW THE ECONOMY IS BAD WHEN EVEN THOSE PEOPLE WHO NEVER INTENDED TO PAY---AREN'T BUYING.  80% of your time is spent chasing 20% of the business. 80% of your sales come only after 20% of your selling efforts. Therefore you should give your prospects and customers a time limit to buy. But you should also keep in contact with them even if they say no. Take away the dreaded "I want to think about it" routine that costs you hundreds of dollars every time you hear it. "Mr. prospect, I apologize for pushing you. I don't mean to push. But I don't want to keep calling on you unless there is a sincere desire on your part to work on this. I have so many other clients who need my time that I don't want to disserve them by working with those who aren't committed to becoming financially independent (for example). Would you like me to call again or would you rather we just let this go?" You'd be surprised how many of your prospects will make a commitment to you on the spot. The worst thing in the world to them is losing a relationship with an advisor they trust. Above all, don't let them string you on. The next time a salesperson calls on you, you might give them the courtesy of also saying "no" instead of "maybe". 6) Spend your time persuading people to buy instead of building a pipeline of prospects.  More careers are ruined because producers think the sharper they are in front of a prospective customer, the more money they'll make. The truth is that the two don't fit. The better you are at listening and matching needs to solutions, the higher your closing rate, but little else. Your income depends on how many people you contact. I have spent 20 years hearing about salespeople who close virtually everyone the see, but only talk to 3 potential customers per week. They're great at what they do, but don't do it enough. A new salesperson asked a more experienced top producer what the secret was to his success. The expert told him, "When opportunity knocks, open the door". The new producer said, "How will I know when opportunity knocks?" The sage replied, "You won't, you have to open every door you can looking for it". The harder you try to build your business, the more opportunities you will receive, the luckier you will get.  These are just a mistakes you will hopefully avoid in the coming year. Most of your competitors are doing them. So don't worry. Competitors are thick, but the competition is light. Do the opposite and the next 12 months are sure to be your most profitable yet.  Please give me a call if I can help you at 800-255-1813 or to subscribe to "The Winning Edge" newsletter, visit our website: Dr. Kerry Johnson is a frequent speaker at financial services industry conferences around the world. He speaks on topics like "How to Read Your Clients Mind" and "How to Increase Your Sales By 70% in 6 Weeks" . He is the author of 6 books including "Mastering the Game: The Human Edge in Sales and Marketing." To receive a free subscription to his monthly newsletter, "The Winning Edge - Online," call (800) 386-1749 or subscribe on his web site at www.Kerryjohnson.com E-Mail Kerry@kerryjohnson.com