The American Consultant's League Ideas, strategies, and tips, far growing your consulting business From the Editor: In this issue you’ll learn how to write an effective ad for your consulting services… the value of e-letters as retention tools, along with a sample of a good one…and a few more strategies for improving your negotiating skills. Special thanks to Bob Bly, Ruth Stevens and Amy Bly. "Life offers two great gifts: time and the ability to choose how we spend it. Planning is a process of choosing among -- Richard I. Winwood In other words, ignore most of what you would learn as a student in any basic advertising class or as a trainee in one of the big Madison Avenue consumer ad agencies. Okay. So that’s what an ad shouldn’t be. As for what an ad should be, here are some characteristics shared by successful direct response print ads: All ads should have an offer, because the offer generates immediate response and business from prospects who are ready to buy now or at least thinking about buying. Without an offer, these “urgent” prospects are not encouraged to reach out to you, and you lose many potential customers. In addition, strong offers increase readership, because people like ads that offer them something - especially if it is free and has high perceived value. Writers of image advertising may object, “But doesn’t making an offer cheapen the ad, destroy our image? After all, we want awareness, not response.” But how does offering a free booklet weaken the rest of the ad? It doesn’t, of course. The entire notion that you cannot simultaneously elicit a response and communicate a message is absorb and without foundation. They are designed to emphasize the offer. Graphic techniques such as “kickers” or eyebrows (copy lines above the headline), bold headlines, liberal use of subheads, bulleted or numbered copy points, coupons, sketches of telephone, toll-free numbers set in large type, pictures of response booklets and brochures, dashed borders, asterisks, and marginal notes make your ads more eye-catching and response-oriented, increasing readership. Why? My theory is that when people see a non-direct response ad, they know it’s just a reminder-type ad and figure they don’t have to read it. But when they see response-type graphic devices, these visuals say to the reader, “Stop! This is a response ad! Read it so you can find out what we are offering. And mail the coupon - so you can get it NOW!” They are clearly illustrated. Good advertising does not use abstract art or concepts that force the reader to puzzle out what is being sold. Ideally, you should be able to understand exactly what the advertiser’s proposition is within five seconds of looking at the ad. As John Caples observed a long time ago, the best visual for an ad for a record club is probably a picture of records. At about this point, someone from DDB will stand up and object: “Wait a minute. You said these are the characteristics of a successful direct response ad. But isn’t general advertising different?” Maybe. But one of the ways to make your general advertising more effective is to write and design it as a direct response ad. Applying all the stock-in-trade techniques of the direct marketer (coupons, toll-free numbers, free booklets, reason-why copy, benefit-headlines, informative subheads) virtually guarantees that your advertisement will be better read - and get more response - than the average “image” ad. I agree with Howard Ruff when he says that everything a marketer does should be direct response. I think the general advertising people who claim that a coupon or free booklet offer “runs” their lyrical copy or stark, dramatic layout are ineffectual artists more interested in appearance and portfolios than results. ROBERT BLY is a freelance copywriter specializing in business-to-business and direct response advertising. He writes ads, brochures, direct mail packages, and sales letter for more than 75 clients nationwide including Prentice-Hall, Grumman Corporation, Sony, Online Software, Digital Linguistix, and Philadelphia National Bank. He is also the author of 17 books including The Copywriter’s Handbook (Dodd, Mead) E-mail newsletters are one of the best retention tools around. They are relatively cheap to produce and deliver. And, if the content is right, what more efficient way to stay in touch and be top of mind when a customer is ready to repurchase or upgrade? The secret is in relevance. As with any marketing communication, one person's useful information is another's annoying junk. A winning e-newsletter is light on the sales pitch and heavy on the "news you can use." It provides content that informs, entertains and solves problems. One of the best examples is iSource, published Wednesdays by IBM. Now, we all know that IBM is a behemoth of a corporation, with myriad product lines, serving customers of all sizes in every conceivable category, whether business or consumer. So how do they make iSource relevant to everyone? They let each subscriber customize the e'zine for himself. Very neat. When you click on www.ibm.com/isource, you are offered a choice among 90 interest areas: hardware types, software types, services, industries or geographies. You check the ones that are relevant, and your customized newsletter arrives weekly. Moreover, you can update your selects at any time as your interests change. ISource also lets subscribers choose to receive press releases and product announcements as they become available, meaning in addition to the weekly newsletter. According to Dianne Lucca, the IBM executive who oversees iSource, the newsletter has "hundreds of thousands" of subscribers. About half of them have opted in to receive other communications from IBM, and these names are migrated into the IBM marketing database for campaign use. ISource readers tend to respond several times better than do other database segments, due to their recency and accuracy and to the presence of self-identified interest codes for selection by IBM campaign planners. Lucca estimates that an iSource name generates three times the revenue of a name in the general population of IBM customers and prospects. ISource content is gathered from 150 sources around the corporation; mainly product managers and marketing teams who want to promote new campaigns. At first, it was a struggle for iSource editors to get much attention from other IBMers, so in their pursuit of content Lucca's team undertook considerable internal awareness building. As the iSource subscription base grew and word of its power got out, the tables have turned. Lucca is even considering imposing a participation fee on IBM content providers, not only to defray her costs, but also to keep the quality of the content high and reduce the chance of overload. How did iSource get to "hundreds of thousands" of subscribers? The newsletter dates from 1996 and has grown steadily from its origins as a print-based customized communications package available to a few key customers. Essentially, Lucca's team has harnessed the viral nature of marketing communications. The team requests that iSource be mentioned within the communications of as many IBM products and services as possible. They also conduct subscription campaigns to IBM's opt-in e-mail database. And they operate member-get-a-member programs within the newsletter and at the iSource Web site. Finally, they hook up to certain keyword searches at the ibm.com Web site. ISource's success in North America has attracted the attention of other IBM sales territories. A French version has been launched, and a Japanese edition is in the works. Check out iSource as an example of how to do an e-newsletter right: https://isource.ibm.com/world/ RUTH P. STEVENS, president of eMarketing Strategy, is one of the world’s leading authorities in business-to-business marketing strategy, and teaches marketing to graduate students at Columbia Business School. Before opening a private practice, she had broad responsibilities for direct marketing at three corporate giants – IBM, Ziff-Davis and Time Warner. Her latest book is The DMA Lead Generation Handbook Success in negotiations can increase your salary; get you a better position, gather support for your project or department; gain approval for a budget; and improve your chance for success on the Job. Therefore, it pays to overcome your aversion to haggling and to improve your negotiating skills. You can gain immediate improvement simply by following the suggestions presented below. When most of us think of negotiating, we assume one of two things will happen: either we'll win or we will lose. But the pros don't look at it that way. They know that a successful negotiation is one in which both sides feel like winners...at least to some degree. When you sit down to bargain, don't feel you have to win on every issue. Score major victories, but concede small points. Ask yourself, "What can I give up that will please the other person without putting a major dent in what I want out of this?" Many corporate workers like to think t at certain company policies and procedures are unchangeable, as commandments etched in stone. The fact is, nothing is unchangeable and everything is negotiable. Knowing this fact is a powerful advantage in bargaining. For example, an engineering consultant, negotiating his fee with a client, was told that the company could not go along with his request for partial payment in advance. "I don't see anything wrong with it but my hands are tied," explained the project manager. "Company policy doesn't allow payment until at least part of the work is completed." The consultant knew better than to accept this at face value. "Bill," he replied, "I appreciate that that may be the way you normally deal with suppliers. But as an independent consultant, I receive payment up front from people who want to hire me. I know that this policy is just a guideline set by management and management can break it if it wants to. And I am telling you that you have to break it if you want me to take on this project for you." A week later, the consultant received a purchase order and a check for one-third of his fee. Before you sit down to bargain, you should have three figures or positions fixed firmly in your mind: • The maximum--the highest figure. The most you dare ask for without fear of "blowing away" your Opponent. • The minimum--the bottom line. The lowest figure you'd settle for. • The goal--a realistic figure you have a good chance of getting. The goal is probably between 50 and 75 percent of the maximum. It pays to be optimistic and aim high when setting your maximum. For example, a scientist requesting funds to purchase a new piece of laboratory equipment might be able to buy an adequate machine for between $15,000 and $50,000. If he proposes $50,000, and management cuts his budget in half he ends up with a $25,000 machine. But by setting his initial request 20 percent higher, at $60,000, a cut In half would leave him with $30,000--and a machine with $5,000 more in capabilities and performance. When negotiating, try for your goal but be prepared to accept any offer between the minimum and the maximum. In some cases, you may be surprised to find that the maximum is approved without argument. At other times, your opponent may not even grant you the minimum. If this happens, you may be forced to consider more drastic action such as going to your opponent's supervisor, threatening to quit, or changing jobs. The person who controls the negotiation is usually the one who has set the guidelines. Make sure this person is you--and not your opponent. To do this, say, "Before we get started, I'd like to go over the situation as it stands, and outline what we hope to accomplish here." Then go on to state things as you see them. The other person will generally agree, interjecting only to make a few minor modifications to what is your point of view Thus, when you begin to negotiate, you're in control of the situation--because you defined it. To succeed in a negotiation, you must be prepared physically, mentally and psychically. To throw you off guard, the other person may try to force you into a surprise negotiation. A boss, for example, sticks his head in the door and makes a request to which he wants an immediate answer. Or, the phone rings. And a customer suddenly wants an on-the-spot price quotation on a project you and he discussed in vague terms months ago. Don't be bullied into a negotiation You're not prepared for. Say to the boss, "Gee, I'm in the middle of a rush job. Why don't I drop by your office later this afternoon." Say to the customer, "I'm with someone right now, and it will take me some time to put the figures together. I will call you back tomorrow." No reasonable person would deny these requests, and you will gain time to prepare your case. You'll also enjoy the advantage that comes from holding the negotiation at a time and place of your choosing. The best way to prepare for a negotiation is to gather all the facts, statistics, precedents, case histories, documents and other evidence supporting your position Printed evidence is especially potent. People are skeptical of oral arguments, but they assume that words printed in an article, book or report are true. Collect surveys, studies and article clippings, make copies, and highlight or underline key facts to make them leap off the page. Unleash this powerful support when you feel you are losing ground on a key point. You may end up using only a small percentage of this material, but you'll negotiate with greater confidence knowing it is available. Experience proves that people who succeed in debates and negotiations are usually the ones who have the most facts. Engineers and other people who think logically are eager to achieve what psychologists call closure." Closure is a neat, final, well-defined solution to a problem. Technical people seek closure because they are trained to find precise solutions. But life isn't an equation; negotiations and other "people problems" can't always be wrapped up as neatly as a mathematical proof or engineering design. When negotiating, you should expect and be willing to accept at least some ambiguity in what is resolved. If 90 percent of the issue is settled, and people in the meeting are beginning to grow restless, let the other 10 percent go for a while. Don't insist that every last detail be buttoned down that day; otherwise, you risk angering people and losing the ground, you've gained. On the other hand, don't start giving in to your opponent just because you're tired, cranky, and ready to go home. Instead, call for a break. Sum up where you are so far, and suggest wrapping it up in a future session...when, thanks to a few days rest and contemplation, everyone will be able to approach the situation with fresh Ideas--and fresh minds. Above all, remember that you're dealing with human beings, not machines or chemicals. You'll have an edge if you learn as much as you can about your opponents before you sit down to negotiate. Be aware of the personalities involved and adjust your "sales pitch" accordingly. Top executives, for example, usually want to get to the bottom line in a hurry. They are concerned with the "big picture" and don't want to waste time with minutia. Technical managers, on the other hand, like to prove that they've kept up with the latest developments in the industry . . . even though they're managers now, and not working engineers. So, before they approve your project, they might want you to explain every detail down to the last nut, bolt, fan and filter. The poet Henry Wadsworth Longfellow once said, "If we could read the secret history of our enemies, we should find in each man's life sorrow and suffering enough to disarm all hostility." You may dislike your opponent or be angry at him for blocking your way, but your negotiations with him should be civil and friendly not argumentative and hostile. Keep your cool when attacked, and respond with sound arguments and supporting facts. Not an outburst of temper or shouting. Try to highlight, whenever possible, the common goals and points of agreement between you. After all, this isn't war, it's a negotiation. The two of you have, for the most part, similar goals; it's your ideas on how to achieve these goals that differ. When responding, use phrases that show your empathy with the other person's position, such as "That's a good point" or "I agree with most of that, but . . ." Make the other person feel like a winner and both of you will be. About the Authors: AMY BLY, a freelance public-relations writer, and BOB BLY, an independent copywriter and consultant, live and work in New Milford, N.J. CONSULTING RESOURCE OF THE MONTH: Periodically, the editors of Consulting Tips will make recommendations on books or other resources that we believe would be of interest to our members. This month, we’re recommending: Value Based Fees: How to Charge and Get What You’re Worth, by Alan Weiss ( Jossey-Bass, San Francisco) Reminder: HOW TO GET CONNECTED WITH THE ACL WEBSITE: As you probably know by now, the ACL web site is being revised. You can access our working version by using the link below. Just copy this address into your browser and it will take you to the landing page for American Consultants League. Editor’s Note: One of our members wrote and asked that we include a copy of the ACL Code of Ethics in the newsletter. Here you go… The American Consultants League Code of Ethics 1. I am competent in my field. 2. I will always make every attempt to identify the client’s real problems. 3. I will always clearly specify my role in the client’s project or assignment. 4. I will adapt to the individuality of my client’s problems. 5. My recommendations will be feasible. 6. I will at all times avoid any conflict of interest. 7. I will never fail to perform my services to the best of my abilities. 8. I will never deceive my client. 9. I will never be negligent. 10. I will always inform my client of the risks of any undertaking. 11. I will always inform my client of my basic approach to his/her problem. 12. The matter of my fee will always be presented forthrightly so that my client will always know what his/her money will buy. 13. I will maintain total confidentiality with regard to my client’s business. 14. I will always work to the best of my ability to insure the quick success of my client’s project. 15. Charges for expenses over and above my regular fee will always be fair and accurate. 16. I will never accept fees or commissions from others for recommending equipment, supplies, or services to my client. RSVP: Like what you see? Have suggestions for topics that you would like Board members to address? Send us your comments and suggestions to: American Consultants League, c/o Early to Rise www.earlytorise.com or email us at: support@earlytorise.com. Be sure to mention that you are a subscriber to ACL. American Consultants League Consulting Tips Newsletter 245 NE 4th Ave Ste 102 ACL Board Members: Mark Amtower, Ilise Benun, Bob Bly, Tony Narinesingh,
Consulting Tips Newsletter
Vol. 1, No. 3 May, 2004
those many options. If we do not choose to plan, then we choose to have others plan for us."
An opposite style, ineffectively used by many “professional” agency copywriters, is to reduce everything to the simplest common denominator and assume the reader is completely ignorant. But this can insult the reader’s intelligence and destroy your credibility with him.
Many engineers look upon negotiating as an unpleasant, stressful chore to be avoided at all costs. And, because they're uncomfortable with negotiating and the confrontation and risk taking it entails, these engineers frequently get the short end in bargaining sessions.
The Win-Win Negotiation
Everything Is Negotiable
The Rule of 3
YOU Set the Rules
You Pick the Time and Place
An Arsenal of Facts
Don't Be Hasty
The Human Touch
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Editor: Denise Ford
Ruth Stevens, Valerie Young, Deeba Jafri, Michael Masterson