We Are Switching Blog Platforms

In order to provide our readers with an easier subscription process to our blog along with making our posts easier to find on Google and Yahoo, we will be switching to wordpress as a hosting platform form for our blog as of today.

There will be an easy method of signing up for our blog now, by simply filling out the simple capture form on the home page, you will be e-mailed automatic updates.

Click here to access the new blog and if you have any questions please contact Brad Yoho by e-mailing him at brad@daveyoho.com.

Review from the Summit: Per-Inquiry Advertising Continued

Ron Sherman was the next featured speaker at the Home Improvement Summit and while he was not able to attend he sent us a video of his presentation to share with attendees.

He is the President of the multi-million dollar ad agency, Ron Sherman Advertising, which is headquartered in Little Rock, Arkansas. He specializes in producing programs for the home improvement industry. He acts as producer and spokesperson for many of those in the room today. In any given time, throughout the US, you can count on running into a Ron Sherman production television program. He has dedicated his business and his modern production studio to the art of producing leads.

It will only take about 7 minutes out of your day to watch the video and the information that you gain will be invaluable. If you have any questions feel free to e-mail Ron Sherman.

The Benefits of Social Networking

Social networking has played an integral role in transforming our business. In 2008, we did over 90% of our business offline - - and - - while there are many other factors at play, we are currently doing between 70-75% of our business offline, and we expect this number to keep trending downward.

The thing that bothers me most about the perception of social networking is that people still have doubts about the success of these tools as they relate to business. These "naysayers" typically fall into one of two categories:

1. Those who heard a negative experience from a friend/colleague and have never actually tried to experiment with social media
2. Those who used social media in an ineffective manner in such a way that they actually dissuaded prospects from buying from them

Neither of these strike me as the type of individual I would want in charge of my marketing department.

The benefits of social media are numerous and these tools are so new that you can expect many new ones to develop over time. Here are the primary benefits:

• Find new customers: Social sites such as Twitter and Facebook have many simple to use/teach tools that you can use to find potential customers.
• Give current customers added value: There are sites such as Alltop that allow you to find industry-related topics that would be of benefit to your customers. By posting this information you become seen as a valuable resource and stay fresh in the customer’s mind
• Create positive content to combat your detractors: It is a fact that regardless of how great your company is and how excellent a service you perform you will have some people who want to damage your image. By enlisting your customers to post positive reviews on such sites, you will help to avoid negative perceptions.
• Improve your search engine ranking: Social networking sites are ranked extremely high by Google. In many cases they may even rank higher than your own website. The more material that you have on the first few pages of Google will improve your value in the eyes of the prospect immensely.
• Build inbound links to your website: Nothing improves search engine optimization more than inbound links to your website and with the abundance of social networking sites available you can easily build relevant links that will continuously work for you in building traffic for your site.
• Establish yourself as the local authority: There are many forums that you can use to build up your credibility further. It is easy to monitor these sites and find the questions that are aligned with your business model.
• Network with other businesses: This is an often overlooked part of these sites, but the majority of companies out there are looking to help as part of a reciprocal relationship. You will be shocked at the business partnerships that can develop overnight just through the basis of a simple online conversation.
  

The marketing cost(s) of utilizing social networking sites is peanuts. If you spend a week learning how to use them, you can spend only 30 minutes-1 hour participating every day and you will see amazing results.

For more information on how to utilize social networking in your business feel free to e-mail me at brad@daveyoho.com

Review from the Summit: Per-Inquiry Advertising

The next topic that we dealt with during last year's Home Improvement Summit was per inquiry advertising.

The first expert on this issue was Sam Borgia who is the President of the Homeowner Resource Center. He is also a managing partner for Home Lending Corporation and Energy Star Trust. Sam used his background in the home remodeling and lending business to structure a unique company in a highly competitive market. His business was established in the early 1980's when the country was in the middle of a great recession. His companies specialize in matching consumers and special finance programs. They have been responsible for over $500 million of home improvement and lending dollars. In addition, his companies have been negotiating special contracts including PI advertising for the last 20 years.

Per inquiry advertising is a type of direct response marketing where the advertiser gets free ad time and space while paying only for results. In return, the advertiser gives up control of where and when the ads will run.

Some of the key points that he touched on in his presentation included:

• Understanding the complexities of a per inquiry program before you start
• How to start a per inquiry relationship
• How to present a per inquiry advertising program
• Understanding the benefits of a per inquiry program (Both for the advertiser and the media source)
• How to maintain the per inquiry relationship
• Creative per inquiry relationships

For detailed information on this topic, feel free to contact Sam Borgia for assistance.

The next posting will feature of video from an advertising legend, Ron Sherman.

Make vs. Take Marketing

Ask a marketing major studying for an undergraduate degree and the interpretation of marketing will be abundant statistical data and case history laden. Ask an MBA candidate with the same major and you will receive a much more sophisticated analysis. In each case, this is preparation for the daunting task of understanding the complexity of marketing, more so in a rapidly changing economy with many geo-political implications.

Now – - ask a grizzled veteran who has endured years of preparation, projections, analysis and evaluation to define marketing with one added caveat – keep it simple. Here is how that explanation might sound:

Marketing is defining how to sell the right product (service) - in the right markets - at the right time - in the right quantities - to the right customers - at the right price.

How’s that for simplicity? Now let’s muddy the waters. I’ll inject a little known phenomenon known as 'make marketing vs. take marketing'. Moreover, this is a key if you are selling specialty products vs. commodities and particularly if you are selling directly to the user. To understand this phenomenon is to grasp the key issue for developing more leads – for more prospects – to whom to sell your products/services.

Simply stated 'take marketing' enables the seller of goods and services to analyze the market, then design a program which will enable the marketer to sell a satisfactory percentage of that market. Once accomplished, this is called market share. There is in the case of most manufactured goods rather accurate statistical analysis which defines how many automobiles (even by make, model, size and color) will be sold in the US. This is equally true of beer, clothing, carpeting -- in fact, most of the manufactured goods offered for sale.

The previous example is especially true regarding building materials. There is a rather accurate projection as to how many houses will be built, torn down or remodeled over the course of a year. An accurate projection can also be made as to how many square feet of piping, flooring, roofing and insulation, windows, etc. will be used. Those who offer goods in those markets will decide how to “take” the piece of that market which their product can accommodate by price, quality, and similar factors.

Next, compute what happens when there is a decline in new construction, and fewer people undertake remodeling. The marketer, unable to maintain their market position, downsizes, adjusts prices or undergoes similar machinations to try and maintain market size.

Now, let's examine make marketing, particularly in how it relates to building products, and more specifically, home improvement sales. The make marketer finds ways to stimulate prospects by offering them an opportunity to look, preview, see a demonstration, get free estimates and other similar tactics. The exhortation to participate in any of the latter utilizes almost every conceivable manner of communication, some a lot more effective than others - while some are complicated to understand.

Here are some examples (this is just a sampling and each method has numerous variations):

• Print media (newspaper and magazine)
• Direct mail and marriage mailings
• Shows and events
• Kiosks in malls
• Radio and television
• Direct and telephone marketing
• Internet marketing including social networking

Each of these methods requires an in-depth understanding of buyers’ habits, attitudes and a probe of value systems. Each also involves a special level of marketing know-how, together with tenacity and a budget which is accommodating. These are nonetheless, the means by which a marketer develops business - by interacting with prospects who are not yet committed. The technique works hand-in-hand with training salespeople how to present (demonstrate) a product or service that meets the specific needs of individual prospects and moreover, how to convince them that now may be the best time to buy. Above all it requires a make marketing attitude.

Incidentally, here is but one example of why and how this works. In early ’08, the statistics were released on the number of windows manufactured for residential housing in the US over the prior 12 months. Those statistics are revealing. Approximately 22 million windows for new construction and 33 million were used in replacement. I estimate that approximately 60% of the latter came because of make marketing which also drives and stimulates the market for others.

There are many other examples of make marketing:

• Canvassing, when done properly (most canvassing isn’t)
• Soliciting around installed jobs
• S.F.I. (sell, furnish, install) programs utilized by wise marketers such as Home Depot, Sears, Sam’s Club, etc.

All of these techniques require thoughtful preparation, supervised execution and budgetary controls.

To summarize, in most instances, it is the make marketer who thrives in a changing economy.

How to Pre-train Your Sales Force

One of my clients, recently came up with a fantastic way of training his sales force in our methodology.

When he hires a new salesperson he issues them a copy of our newest series, The Science of Successful In-Home Selling, but does so without giving them the workbook that normally accompanies it. He then tells them that they have to listen to the entire series prior to their training taking place (this period is approximately one week). He also makes sure to get a copy of their credit card, the reason for this being that if they decide to skip out with the copy of the album he will charge their card for the full retail price of the copy.

Then, he issues them a test which he has devised by removing some of the key concepts and ideas from the workbook. This occurs on day one of their training and ensures that the new trainee has taken the necessary time to listen to the material.

The learning curve of his first training class of the year improved dramatically because the new trainee had a fundamental understanding of the selling process prior to coming into training.

For more information on how you can accomplish this in your organization feel free to e-mail me at brian@briannsmith.com.

Attitudes & Affirmations

What are affirmations?

I like to define them as positive reinforcements that you give yourself to keep negativity from pervading your daily existence.

Here is a partial list of affirmations that I incorporate into my daily life

• All issues of life, painful and otherwise, are learning experiences.
• Those who reared you, despite their apparent flaws, were doing the best they could.
• In the moment of your greatest pain you may be experiencing your greatest opportunity to “grow”.
• The search for parental approval or acceptance can be destructive.
• Until we are affirmed by a significant “other”, our achievements will seldom give us sustained happiness.
• Negative actions by others in our development can be held to be a detriment to our growth and happiness.
• We are limited by our prevailing awareness.
  

The primary affirmation that I use in my daily life can be viewed in this powerful video.