Developing Great Leads and Prospects

Cold calling isn't always necessary. Try warm leads instead.

By Jenni Simcoe, Writer

"Build it and they will come." While that adage may work in the movies, it's not always the case in business. It takes effort on your part to attract customers to your business.

You can develop leads for your business in many ways including:

Network with other business owners.
Purchase a list of qualified leads.
Be the face of your company everywhere you go.
Ask existing customers for referrals.
Join associations and organizations that will introduce customers to your product.

A network isn't just a complex computer system

Networking is one of the best techniques for generating new business. Think of yourself as the face of and the spokesperson for your products and services. Every time you meet someone new, it's a chance for you to represent your company and make a connection that might pay off down the road.
Try: Discover how to make the most of networking with the American Marketing Association's Network Meeting Survival Guide. If you aren't comfortable with the idea of networking, consider hiring a sales coach to help ease your nerves when meeting a roomful of new people. Find sales coaches at Salesvantage.com.

Get involved

Taking an active role in your local community and in your industry can increase your leads. Joining an industry association or your local Chamber of Commerce provides you with instant networking opportunities, whether you're hoping to attract consumers to a retail location or you're looking for business-to-business clients.
Try: Find your local chamber at Chamberofcommerce.com. Increase networking opportunities by starting a leads group among members in your association or chamber.

Target your demographic

Whether your business is a one-woman-shop or your have a dedicated sales force, you have to make time to contact prospective customers via phone, email or mail. Spending too much time chasing unqualified leads is counterproductive.
Try: Avoid wasting time by buying a prospect list of your target market. Get quotes for phone, email and mailing lists at quotecatcher.com.

Collect information

You can start a list of prospects by simply gathering information from people you meet and from people you already know, including neighbors and existing customers.
Try: Create a prospect list by asking existing customers for referrals. Take advantage of industry tradeshows and business fairs by collecting business cards for a prize drawing. Locate a tradeshow where you might find prospective customers at Trade Show Week or at tradeshowbiz.com.

Follow-up is key

Leads and prospect lists aren't worth the paper they're printed on if you don't follow up, and do it quickly. In fact, studies show that your closing percentages will increase sharply if you follow up within 48 hours of being contacted by a prospect.
Try: Avoid letting prospects fall through the cracks by investing in a contact management system or customer relationship management (CRM) tool that will help you track prospects. Compare features and prices at Smarter.com. For follow-up tips, check out Seven Steps to Cold Calling Follow-up.

If you purchase a telemarketing list from a list broker, make sure they've run the list against the national do-not-call list. The last thing you want to do is perturb potential customers by calling them if they've opted out of telemarketing.
If you've purchased a leads list, start calling, emailing or mailing to customers while the list is fresh.
If you have different branches or locations for your business, or if your target market is more than one community, consider joining more than one Chamber of Commerce.
Track your results whether you use telemarketing, email or mail to prospective customers. It will help you determine which lead generation process works best for your business.