Orvel Ray Wilson, CSP

Best-selling Author and Speaker on Guerrilla Selling
Unconventional Weapons and Tactics for Increasing Your Sales

Guerrilla Gets a Bad Rap

Some people, when they hear the title of our materials, think we’re advocating something manipulative or dishonest. That couldn’t be farther from the truth. The truth is that Guerrilla Selling relies on Time, Energy, and Imagination to gain a competitive advantage.

On the other hand, it’s no wonder some people get confused.

NOT Guerrilla

Camo is back in style

–Orvel Ray

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Is it ethical to give a cash/gift or commission for referrals?

Fellow guerrilla Vince Golder posted a question on the Guerrilla Marketing Tips for Small Business forum on LinkedIn, asking:

“I’ve had a couple of debates over the years with people who were quite firm in their belief that any form of cash/gift commission given in return for a successful referral was a bribe!! I would rather pay one of my own clients or contacts a just reward for promoting my business, than an expensive agency or media company.” What do you think?

Let me start by saying that cash, gifts and commissions are three very different things. Each may be appropriate or not, depending on the circumstances. Guerrillas ALWAYS look for appropriate ways to REWARD customers for their business.

As I’ve said before in this forum, the best way to get referrals is to ASK for them. (See my recent blog on the topic, March 4, 2009, below) And only reward referrals if you want to KEEP getting them.

No, it is not a bribe. And no, it is not enough to simply express your appreciation.

A nice Thank You card is a good start, but don’t be tempted to send it by e-mail. Personally, I use Hallmark, because I care enough to ____________________ .

Cash is awkward, so enclose a gift card instead. Coffee at Starbucks, free fries at McDonald’s. Better still, relate to their interests: something from Amazon or Borders for bookworms, or office supplies from Staples to reward the whole office.

If the referral is unsolicited, keep the amount something under $100. For bigger referrals, consider bigger rewards: a bottle (or case) of nice wine, a magazine subscription, dinner for two somewhere special, or the fruit-of-the-month club from Harry & David. You can always take them out, for coffee, for lunch, for a round of golf. We’ve given clients pairs of plane tickets. We once took a dozen people from United Airlines to a Rockies game.

There are two guerrilla gifts you can give to people who can’t accept gifts: flowers and food. For women, send a simple bouquet with a business card, delivered to their office by FTD. A variation is to send a large bouquet (something everyone can enjoy) to the Reception desk, with a “Thanks Everyone” note. And if you send flowers on a holiday, like Easter or Halloween, all the better. If you customer is a man, send roses. Red ones. You send me a dozen red roses with a “Thank You” note, and my wife is going to love me, and I’m going to REMEMBER you.

Food works if you send enough to share. Send Domino’s, KFC, or a monster Subway at lunchtime. Or a big birthday cake decorated with your logo and a big “Thank You” in icing across the top.

A professional speaker routinely pays bureaus 25% commission, but the agent who recommended you sees only a fraction of those funds. So I send the rep a very large box of Godiva chocolates. (Wasn’t it Will Rogers who said, “I never met a chocolate I didn’t like.”)

In another example, Wendy Kruger, with Speakers Platform in San Francisco, booked me for a string of several seminars. I knew that she was a fan of Cirque du Soleil, and a bit of browsing revealed that there was an engagement running in San Jose. So I used the Internet to book a pair of VIP back-stage tickets in her name at Will-Call. She took her boyfriend out for a surprise date, and nobody’s the wiser. (That is just SO California!)

If you’re closing a big contract with a new customer, buy a nice pen. A RILLY nice pen; a Cross or Mt. Blanc. After you’ve signed the paperwork, “accidentally” leave the pen behind. They’ll quietly put in their desk and remember your generosity every time they use it.

If you’re concerned about ethics, give them an award, a brass plaque or silver trophy engraved with your appreciations. It will be given a place of honor on their desk or bookshelf.

Here’s guerrilla work-around; send an age-appropriate toy for their kid. Who would begrudge a child a new toy?

Another loophole: if the item has your logo on it, it’s a tchotchke, not a gift. It’s not a bribe; it’s ADVERTISING. So you can send them a coffee mug or a golf towel or a $200 down parka, or any useful item for that matter, imprinted with your advertising, and they will wear it with pride. And they’ll tell all their friends.

Still not sure what to do? I once received a birthday card that read, “People who say you’re hard to shop for obviously don’t know where to buy beer.”

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Professional speakers add value, but can you prove it?

Of course, with the corporate meetings sector cutting back and slashing budgets (as much as 30% by some accounts) we are all being called to account for results. One of the 10 Principles of Guerrilla Selling is “Measurement.” It’s easy, but most speakers don’t bother.

There are five levels of metrics that speakers and event planners should apply to every program, every speaker:

1. Did they like it?

These are the “smile sheets” that you collect after the applause. It’s relatively easy to get a standing ovation. In fact, I have a testimonial on my web site that says, “Yours was the highest-rated program we’ve ever had; 5.0 out of 5!” But for the most part, these numbers are meaningless. Every professional speaker should be engaging and entertaining. Otherwise you’re better off spending the money upgrading the lunch entrée from rigatoni to chicken.

2. Did they remember it?

Do you quizz participants after 24 hours, 72 hours, and at the end of a week, to see how “sticky” the material was. Most “motivational” speakers fall into this trap. People will recall that “it was a great speech” but can’t tell you one new thing that they learned. Really good speakers build their programs so that the audience remembers the point as well as the punchline. Otherwise, skip the speaker and splurge on the standup comic. I hear Jeff Foxworthy is available for about the same fee as an average NSA keynoter.

3. Did they use it?

Great information and innovative ideas are useless if they’re not put to use. An effective speaker should leave their audience feeling, “I can DO that!” They should take back practical guerrilla action items that they can use right away, and feel confident taking the initiative. If a professional speaker doesn’t change people’s behavior as well as their attitude, you might as well book the booze cruise instead.

4. When they tried it, did it work?

If the strategies and tactics that the speaker is espousing don’t actually work (and I mean in the REAL world) then they may do more harm than good. Your people will waste hundreds of hours and gawd-knows how much money. Professional speakers have the expertise to back up their eloquence. They can point to actual examples where their recommendations have been effective. And if they can’t, dump the DJ and bring on the rock band.

5. If it worked, how much was it worth?

Did you increase sales? Boost profits? Cut costs? Reduce turnover? Capture new customers? Leapfrog the competition? This is where you justify the “lavish” meeting at the “posh” resort to the accountants and the press. An effective speaker will follow through with the client long after the program (yes, even after a year or two) to monitize their impact.

Case in point:

Philips Medical was spending nearly $6M over 4½ days to exhibit at their industry’s biggest trade show. Twenty-six tractor-trailers full of fixtures and equipment filled a 10,000 sq/ft booth in McCormick Place. It would be staffed by 136 mostly technical personnel. At the pre-show briefing they invited me to present a three-hour custom training session on “Guerrilla Trade Show Selling.”

The seminar was well received. Ratings in the low fours. But ninety days later we looked at the numbers. Participants had applied their new skills to good affect. Qualified leads were up 144% over the previous year, and they had already closed more than $8M worth of new business. Today this training is required for every employee who might represent Philips at a trade show anywhere in the world.

If you take the time, and build this kind of deep evaluation into every project you do, you’ll never have difficulty justifying the cost of your meeting, or the speakers you hire to present at them. If you still have to cut costs, dump the golf.

–OrvelRay


Trade and consumer shows are an important source of new customers, especially in tough economic times. While attendance at shows is generally down, those who do attend are serious and ready to buy.

Trade shows and consumer shows require different approaches, promotions, and follow up. Here’s specific strategies to succeed at each type of show.

Trade Shows

People attend trade shows to review the latest developments in their industry or association, make future buying decisions, and meet with other industry colleagues.

Buying or writing shows are a special type of trade show that purchasers attend to order inventory for their businesses, shops, and chain stores. These shows happen at regular times of the year tied to consumer buying patterns.

Exhibits are often large and complex, with companies spending lots of money to buy position and prestige in their industry.

The exhibit staff tend to be sales and upper level management. Many peer-to-peer meetings occur — CEO’s visit with CEOs arranging business deals. Visitors expect access to high-level decision makers and want to speak with people who can make commitments. While some sales are closed at the show, most of the closing is done after the show is over.

Consumer Shows

Consumer shows are a collection of temporary stores, like a bazaar. Vendors present their goods and services for sale, and are looking for consumers of what they sell. Examples include home decorating shows, sports shows, and Chamber of Commerce expos.

Exhibits at consumer shows are often no larger than a single booth, only going to larger sizes if there are many products to show, such as an appliance or furniture company.

At consumer shows, you’re probably talking to the buyer, or a person who has direct and powerful influence on the buyer. You only have to impress and persuade the person you’re speaking with to make the sale.

Visitors don’t need to speak with decision makers, and expect to speak with a sales person. At consumer shows, you should be selling and closing as much as possible.

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