Are You Effectively DISQUALIFYING Your Leads?
In the online marketing world, I often hear “it’s all about leads.” Get people to sign up for your newsletter. Increase your followers. Get on the phone with as many people as you can.
Although there is some merit to increasing your exposure, this is a classic example of “more is not better.”
Especially if, like most of my clients, you are a service-based entrepreneur (coach, practitioner, facilitator, consultant, etc).
How Not to Qualify Leads
When I first started my business, I offered a free consultation to anyone who would sign up. I was excited and imagined that I’d be generating a lot of sales (a good average lead-to-sale conversion is 25 percent).
However, one year and sixty consultations later, I was disheartened and exhausted: only three of those sixty became clients.
Let me preface this conversation by saying that you don’t want to offer a free consultation solely for the sake of sales. This is inauthentic and manipulative. You want to genuinely help whoever you speak to, even if they don’t become a client.
However, I learned the lesson to be selective when generously giving my time.
Less is More
When I hired my own sales mentor at a crushing moment of struggle in my business, I felt relief when she said, “You just aren’t talking to your ideal client.” Yes, there were some opportunities to up-level my sales skills yet the main barrier was spending time with prospects who weren’t a good fit for my services.
For entrepreneurs, our time is precious. Time is money! I couldn’t afford to freely and continually give my time to tire kickers or people who weren’t a match.
I was running my business from a scarcity mindset: There aren’t enough people out there so I need to get on the phone with anyone who’ll talk with me.
How I Shifted My Business into High Gear
Interestingly, my business shifted when I got more selective. Standing in my value and in the certainty of my ideal client, the right people found me. (The longer I’ve been in business, the more spiritual I’ve become. The universe/source—insert whatever you want here—does follow your direction.)
I needed to clarify who I wanted to serve, all the way down to their values and characteristics. I also needed to create as many jump-through hoops as possible, ensuring my potential client was as committed to their transformation as I was.
Remember, it is better to get on the phone with three ideal clients than ten so-so clients. If you charge $100+ per hour, those seven dead-end conversations could cost you almost $1000!
Phase 1: How I Disqualify Leads
So how do I qualify prospects effectively? My qualification process went through three phases, outlined below. If you are a beginner, you want to start with Phase One and proceed as your business grows.
Phase One: Have your potential client fill out a form or application.
Do not get on the phone with someone if you don’t have information about them. If you do, you’ll unnecessarily spend time getting background information and crucial criteria that is better accessed through a form.
Ask pre-qualifying questions that help you to understand their challenges, goals, and ability to commit both emotionally and financially.
Yes, you’ll get on the phone with fewer people but this is a good thing. If someone can’t find the time to fill out a form to speak to you, they clearly aren’t committed to getting help. Send them off with love and allow the right people to come forth.
I ran my business for several years with this model. My conversion rate went up to 25 percent. Woohoo. But I was still on the phone a lot—sometimes as unsustainably long as two hours per prospect.
Phase 2: The “Coffee Date”
I realized that, even with the form, I wasn’t being masterful in fully assessing if we were a fit. So I found myself spending more time than needed on the phone, concluding that they weren’t in a place to expand their business (with or without me). Time to move to Phase Two.
Phase Two: After they fill out the form, schedule a 15-minute call to discuss the form and their eligibility for the longer consultation.
This does two things. First, it adds a second hoop that pre-qualifies the lead. I don’t give the full session just yet, we need to have our “coffee date” first. Secondly, it gives me an opportunity to ask questions about their form and get crucial upfront information before blocking out a precious hour in my calendar.
The 15-minute call is positioned as an “application review.” With this two-step process, prospects know they must qualify for a free consultation, giving my work with them an undeniable value.
I shaved off hours from my schedule in Phase Two. And I prevented unnecessary calls with people who weren’t ready for my coaching (free or otherwise).
Phase 3: Breaking Up Isn’t Hard to Do
Still, I wasn’t perfect. When I didn’t listen to my gut, I accepted applications with leads who I sensed weren’t really committed to transforming their business. I’d offer the free consultation just to find out my gut was right. Then I’d beat myself up about it.
Not only did I lose my own time, I was wasting the potential client’s time by not being straight with them in the first call. On to Phase Three!
Phase Three. Disqualify your leads.
You may be asking, “Wait, you want to actively try to push away leads?”
Yes. Often, it is what’s best for the client. Sometimes showing them that they aren’t ready is the best gift you can give them.
So what does “disqualifying” mean exactly? This means asking difficult questions, being straight and honest. It means testing the prospect to see if they are truly ready or if they are simply in an inquisitive “dip my toe in the water” phase. If they aren’t all in, they aren’t an ideal client. Period.
Recently, I gently told a potential client I did not see that she was ready for business. I sensed that she was only choosing her business idea because it was the logical, “safe” choice. But it didn’t light her up. I didn’t hear the hunger or passion in her voice.
Why I Disqualified Her
I knew that without that “fire in the heart” drive, she wouldn’t succeed. She didn’t fight me on it or try to convince me otherwise. If she had, I would have reconsidered working with her.
Is it possible that sharing my experience of her may have offended her? Sure. But what kind of coach would I be if I stepped over what my gut was screaming at me?
Could I be wrong about what I said? Perhaps. But the lack of certainty was enough for me to disqualify this lead and send her off with love.
In fact, I referred her to another coach who I thought could serve her better. (This is key by the way: ALWAYS leave a conversation being in service, even if they don’t become a client.)
My Invitation to You
I invite you to take on this three-phase approach, starting with the first and working your way to the third.
Your time is valuable; you need to be sure you are helping people who are ready for your gifts.
Many people will say they want a change but when it comes to taking action, they back out. You want to determine their true commitment level as soon as possible—for your sake AND theirs.
By standing in your value and truth, your dream clients will find you!
