How to build a broad and deep donor base from scratch in a poor locale

How to build a broad and deep donor base from scratch in a poor locale Chris Derry PO Box 51147, Bowling Green, KY 270-843-4642 or derry@bipps.org Bluegrass Institute Basics Began 5/29/03 with no major donors Fundraising history – $37,000 – $208,000 – $280,000 – $356,000 – $400,000 (goal) – $500,000 (goal) 2003 2004 2005 2006 2007 2008 2 full-time employees, 11 contractors Introduction Brian Tracy – “The Psychology of Selling” Successful fundraising = good selling skills & habits Maslow’s “Four Levels of Learning” 80/20 rule for top development people – 16x The “winning edge:” – – – – – – – – Positive mental attitude Likeable Health and appearance Product knowledge Prospecting & approaching skills Good presenters Know how to handle objections & close Effective time management skills _____ _____ _____ _____ _____ _____ _____ _____ A Positive Attitude 85% of what you accomplish “Golden rule” of fundraising Mental laws: – Law of belief – Law of expectations – Law of association – Law of emotions (desire & fear) – Law of attraction (you are the magnet) Keeping yourself motivated Self esteem = mental fitness Building self-esteem: – Action precedes feeling – Set clear goals (daily/weekly/monthly/yearly) – Accept 100% responsibility – Commit yourself to excellence – Mental rehearsal – Attitude of gratitude The Old Model of Selling Wear prospects down until they buy. Not fun or profitable. Almost always fails. Relate Qualify Present CLOSE, CLOSE, CLOSE Old Model 6 The New Model of Selling Creates long term relationships Assures an open door for you Makes fundraising enjoyable! Build Trust Relate Qualify New Identify Needs Present Close Present CLOSE, CLOSE, CLOSE 7 Building Trust Law of indirect effort Listen (“Spotlight” technique) Appeal to deep sub-conscious needs (Acceptance, Approval, Appreciation, Admiration, Agreeability) Build Trust Relate Qualify New Present CLOSE, CLOSE, CLOSE 8 Acceptance Smile as they are talking. Call people back within 24 hours. “Hello, Bob Smith!” Ask: “How do you mean that?” Ask: “What frustrates you the most about…” Approval Praise them: – For being sensitive to your arguments. – For telling their friends, neighbors & colleagues. – For increasing your funding. – For being a “lone-wolf.” – For helping you. Appreciation Thank people for: – Spending time with you. – Referring their friends, neighbors & colleagues. – Reading your publications. – Funding you when so many others won’t. – Serving in some important capacity. Admiration Compliment people when they: – Articulate an unpopular idea. – Deserve it. – Explain why they disagree with you. – Call you unexpectedly. – Provide you with a suggestion. – Convey “inside information” from their locale. Agreeability Always agree: – With their perception of a policy problem “What is seen…what is not seen.” Listening Two ears and one mouth Builds trust and self-esteem Lowers resistance Habits to acquire: – Face your prospect – Nod, smile and acknowledge – Pull out a notepad and take notes – Ask questions – Summarize & check Questions that get people to talk Open-ended start with: – Who, where, what, how, when, why & if. “How do you feel…?” “To what extent” versus “Do you…” Why do people contribute? For their reasons, not yours! Felt dissatisfaction – “no need, no sale” Funding motivations: – Fear of loss versus desire for gain Freudian slip – if you probe deeper Hot button – key benefit When to move to “Needs” Short cycle, small contribution – first visit Long cycle, large contribution – patience Ask yourself these questions: – Does he like me? – Does he trust me? – Do I know/understand him? – Is he willing to listen NOW? How else can you build trust? Don’t move into the selling process unless your prospect trusts and likes you. Identifying Needs Contented vs. discontented prospect (“no need, no sale”) Ask four key questions Build Trust Relate Qualify New Identify Needs Present CLOSE, CLOSE, CLOSE 19 Four key questions 1. Does the prospect want our product? – “What frustrates you the most about how Frankfort treats your business?” – “How tough is it for you to hire good people who can and will work in your company?” – “Do you think the average Kentucky student is prepared to compete head-to-head today with the average Chinese or Indian student?” Four key questions 2. Does the prospect need our product? – “Who constantly reminds Frankfort that money in YOUR pocket stimulates the economy better than money in government’s till?” “Do you believe your children and grandchildren are receiving the same quality of education that you received when you went through school?” “What will happen if you can’t find competent employees to work in your company?” – – Four key questions 3. Can the prospect use our product? – – – – To what extent could we be his surrogate for his ideas for how government should operate? “Do you employ a lobbyist?” Why not? “How often do you talk to your state-elected officials about how you feel about where Kentucky is headed economically?” “Where do you find the data to counter balance the statist arguments you hear from your friends and colleagues?” Four key questions 4. Can the prospect afford to contribute? – “How often do you help finance the campaigns of political candidates?” “Would you say you typically get your money’s worth?” (Describe one that wasted your money.) – “How often do you financially support causes you really believe in?” “What do candidates promise that causes you to pull out your checkbook?” Don’t waste your time making a presentation your prospect is not interested in considering. Presenting “No need – no presentation” WIIFM Build Trust Relate Qualify New Identify Needs Present Present CLOSE, CLOSE, CLOSE 25 Sales Presentation Skills General” to the “particular” sales funnel. Features & Benefits – meet the need. – – – – – – Curiosity is aroused vs. desire is inflamed. “What this means to you is…” (WIIFM) “So what?” – after every main point. “Get involvement from prospect. Use visual aids. “You are going to like this!” Ask for feedback (“How does this sound to you?”). Handle objections as they occur. Handling Objections Be agreeable. Is this a question asking for more information? Hear the objection out. (“Why do you feel that way?”) Assume the objection away Law of Six (then craft answers) Law of six for think tanks 1. “What does a think tank do?” 2. “What do you expect to accomplish?” 3. “I prefer to contribute to candidates not to organizations like yours.” 4. “What makes you think you can influence the media?” 5. “I’ve never paid for anything like this.” 6. “I’ve heard that no one is listening to you in Frankfort.” “What does a think tank do?” We make bad public policies fail faster. Have you ever seen the General Assembly get behind an idea that you know won’t work? (Give examples) What did you do when you heard about it? What do you expect to accomplish?” Over the next generation our vision is to make Kentucky the destination of choice for entrepreneurs. – Hong Kong proved to China that liberty and free trade generates higher levels of economic prosperity. – Ireland proved to Europe that lower taxes and improved education could reinvigorate a nation. – We want Kentucky to show the rest of the states the economic prosperity that results when you lower taxes, improve education results, take the shackles off labor and make government smaller. “I prefer to contribute to candidates not to organizations like yours.” Who have you placed in charge of promoting the ideas you feel are essential? Why do you contribute to candidates? (Listen for personal influence or public policy) Maggie Thatcher liked to say, “First win the argument, then win the vote.” Why do you think she said that? Have you ever experienced a candidate saying one thing in a campaign but saying the reverse after he is elected? “What makes you think you can influence the media?” We know we can’t change their minds, but we can change their stories. (Show examples) Many reporters are lazy and seek out a credible source who will answer the phone when they are on deadline. “I’ve never paid for anything like this.” Use “feel, felt, found”: I understand exactly how you feel. Many of our first-time investors felt the same way when I first asked them to invest in the Institute. But when they found how persuasively we influence the media, they thanked us for doing our job. Please let me show you what I mean and then you can be the judge. “I’ve heard that no one is listening to you in Frankfort.” The people who are not listening are the ones who favor higher taxes, more regulation and bigger government. The ones who ARE listening are those who pay taxes, hate regulation and encroaching government. Which camp are you in? Six secrets of persuasion Reciprocation - create an obligation Consistency – past and future Social proof – testimonials. Likeability & friendship Authority – Atlas, Heritage, CATO, IEA Scarcity Reciprocation Figure out how to do something for your prospect that causes them to “owe you:” – Never terminate a first call without agreeing to do something for your prospect. – Send them a copy of an article with a handwritten note attached. (Sign your first name above the inside address) – Concede a point. – Pay for a meal or function. Consistency People want the future to resemble the past. – Have they contributed to another non-profit? – Understand their “hot button” & leverage it. Social proof People are influenced by others they respect: – “Last year 188 people contributed $356,000 to us.” – “Who’s on your board of directors?” – Get testimonials from political leaders. Likeability/Friendship People do business with people they like: – Start on a personal note. – Comment on what you see. (“Where did you get than lamp?” “Where was that picture taken?”) – Referrals are worth 15x a cold call. – “Who else do you know who believes as strongly as you do on this subject?” Authority A very strong motivator: – Dress just above your prospect’s expectations – Bring copies of newspaper media mentions – You are part of a worldwide movement. – Use your network to help your prospect. Scarcity Fear of loss is a great motivator: – # of seats in an event. – Special speaker from out-of-town. – A film to which you have exclusive rights. When should you close? Does she understand you? Does she believe you? Will she buy your idea? Buying signals: – Asks how you are funded: “People just like you…” – Positive posture. – Hear “smoke screen” objections. Closing the Sale Close when you see “buying signals” Be ready for five “No’s” Build Trust Relate Qualify New Identify Needs Present Close Present CLOSE, CLOSE, CLOSE 43 What to do when you hear “No” It means, “Not yet.” Smile: “What is it about funding us that causes you the most concern?” (80/20) Is the concern a “condition” or “objection?” Listen completely & get ready to meet the objection (Answer his question.) Money objections “What does it cost to become a member?” “I’ve never considered anything like this before.” “I can’t afford this.” “My budget is tight right now.” “I prefer contributing to candidates whose ideas are closest to mine.” Obstacles to closing Fear of rejection Donor – making a bad decision Law of inertia All buying decisions are emotional. Errors to avoid: – – – – Arguing Personal opinions Knocking the competition (politicians) Over-selling/over-promising Personal obstacles to closing Negative expectations Lack of enthusiasm Lack of sincerity Different wavelength Personality clash Four closing techniques Invitation close: “Why don’t you give us a try? Assumption close: “Is there any real reason you shouldn’t become a member today?” Alternative close: “Would you feel more comfortable starting at the President’s or the Business funding level?” Ben Franklin close: “T-close” T-Close Contribute Don’t Contribute You give something back to your country/state. You are a part of something that is making your state/country a better place to work and live. You value ideas as an essential part of the political process. You believe someone should stand up for liberty, free markets, limited government and secure property rights. If you and I don’t do this, who will? Maximizing your selling time Fast tempo “Do it now!” Holes in your schedule/poor planning. “What is the most valuable thing I should be doing right now?” Unconfirmed appointments. Incomplete sales call. Fatigue – being out of shape. Maslow’s 4 levels of learning Where are you now? – Unconsciously incompetent? – Consciously incompetent? – Consciously competent? – Unconsciously competent? How do you find prospects? What category of people best understand why first principles are essential to the future of a free and prosperous society? Entrepreneurs! How do you find them? What’s in it for them to talk to you? What could you do to motivate them to want to work with you? I discovered: Let’s watch it! My initial analysis: 1. Entrepreneurs will appreciate this 2. Successful entrepreneurs are my #1 3. 4. 5. 6. fundraising targets Could I get a copy from Acton? Could I persuade entrepreneurs to watch it? Ask them who else should see it “Call” + Entrepreneurs = New Funding! Test group Called existing donors Asked them to bring a friend 4:00 – 5:30 pm time frame One donor hosted the screening Bought a pair of BOSE speakers ($69) Laptop + projector = Show-on-the-road The Results 15 people showed up and they LOVED IT! They suggested “Call” should be shown to: – Six specific schools. – Fifteen organizations (Chambers of Commerce, Knights of Columbus, NKU Entrepreneurial and Young Republicans Club, Chase Federalist Society, League of KY Property Owners, Cincinnati YPO, etc.) – Two churches – One Rotary Club Two contributions = $1,500 Next Step Mentioned to a small-town donor He wanted to see it. He gave me a prospect list. I invited them. We watched it a home setting. Discussion following lasted 1 ½ hours. The New Model of Selling How to get to a telephone presentation quickly: – High quality referrals build trust – Find something your prospect already needs Build Trust Relate Qualify New Identify Needs Present Close Present CLOSE, CLOSE, CLOSE 59 Voicemail introduction Good afternoon, Bob Smith, My name is Chris Derry, President of the Bluegrass Institute. We don’t know each other yet, but our mutual friend, Mark Haines, thinks you and I SHOULD know each other. I’m hoping you have 6 minutes available sometime today so we can meet each other on the phone. I’ve got something I want to show you. It’s now 10:30am EDT and I will be at the following number all day today if you have time to return this call. Thanks, Bob Smith, I look forward to meeting you soon. Prospecting by telephone Receptionist: “Can you help me?” Four minutes to likeability. “Hello, Steve Smith, you don’t know me yet but your friend Mark Haines thinks you and I should know each other.” Is this a good time for us to talk? Must break your prospect’s pre-occupation. (You only have 30 seconds.) “Why should I talk to you?” (WIIFM?) “I have found a new documentary that tells your story.” “I need 6 minutes of your time on the phone and then you can be the judge. Is this a good time for us to talk?” YES… Telephone Presentation “As an entrepreneur, you know what it’s like to work until midnight, sweep the floors after everyone’s gone home, be rejected by bankers half your age, etc, etc, etc. What percentage of the KY population do you think understands what it takes to be in business for yourself?” Introduce BIPPS & vision. I found “Call” & Acton Institute – can’t buy this film now. “This new film portrays the Entrepreneur in an inspiring and enlightening way. The Entrepreneur as benefactor, the creator of wealth and jobs, the person who should be revered instead of being criticized as greedy, selfish and egotistical.” Pretty weird, huh? We think Kentucky could be a lot more prosperous if more people learned what it takes to work on their own versus waiting for one of Frankfort’s checks to land in their mailbox. I would like you and a few other entrepreneurs in Louisville to view “Call of the Entrepreneur.” Once you see it, my bet is that you’re going to want others to see it in Louisville, too. It’s that good… Google “Call of the entrepreneur.” The Close “Would you like to attend?” “Who of your entrepreneurial friends do you think would enjoy this?” Send him an “official invitation” so he has all the details. Wait 24 hours and then call him back to see if he will be attending. Send e-mail with results of referral calls. Connect to his network I predicted that this documentary would be about you. How close was I? Are there some other entrepreneurs in Owensboro you think would appreciate seeing this? Why are we showing it: “We believe that entrepreneurship will create a lot more prosperity than government can by redistributing your money to those who don’t deserve it.” The Psychology of Selling www.BrianTracy.com Build Trust Relate Qualify New Identify Needs Present Close Present CLOSE, CLOSE, CLOSE 68