The Most Common Lead Generation Mistake: Asking The Budget Question
There is going to come a time when budget will come into play during the sales process. But the way you approach this question can mean the difference between a successful sale and a bad reputation. Play your cards right, you could turn this one sale into repeat business. Mess it up, and a scared or put-out prospect can spread the word around faster than you can dial the phone.
Although you are going to eventually ask some sort of budget question, it is important to understand the dangers in pursuing this information. If you don’t ask the question in just the right way and at just the right time you will moist likely create negative energy between you and the decision maker. When this happens you risk getting bad (or no information at all) thus your sale is about to veer off the road. My advice? Never ask "Do you have budget for this purchase?"
Sure, that's the question you want answered. But this is not the way to find that information. It is the way to shut down the process quickly. The prospect may say no when in fact he does have a budget because he thinks you are prying in to his personal information. Then again, he may say yes and tell you a low ball figure because he doesn’t like the way you do business. Some people are going to take this question to mean "how much can I possibly charge you for this before you'll run?"
Asking the question at the wrong stage of your sales cycle can be the kiss of death. Believe or not many sales people ask this question during lead generation (see the previous article about qualification questions). The earlier you ask this question the more dangerous your path becomes. You don't meet someone at a party and say "Hi, Jeff, nice to meet you. I'm Bob. So, what's your net worth?" It's not acceptable in a business environment, either.
Asking this question the wrong way is just like sticking your hand in the prospect's wallet. Although we would all like to do that…there are smarter ways to get to the same place. (And you can do it without getting thrown out of the decision makers office.)
Getting at the budget in a sale is an art form…it requires a lot of finesse. The real trick is getting the prospect to GIVE you the information you're looking for without having to ask for it. First, by leading off with questions that show you're concerned with their best interests. Then show them how you can help solve their problems. Finally, provide a basic cost-benefit scenario and leave it to them to tell you if the can afford it. You don't even have to ask if the "have enough money."
The concept of budget is usually best introduced in the context of ROI. Don't ask if they can afford it. Show them how they CAN afford it. For example: "Our solution can save help you reduce your payroll by x and also give you more capacity and faster processing. This means that you can save X during the next 12 months…the cost of our solution is Y…would a return on your investment of Z be a good fit for you? If so, then we might have just the solution you're looking for.
Again, you aren't ASKING them for money, you're SHOWING them how much money they can save/make with your product or service, as well as how you are going to solve their problem(s) at the same time.
Related Articles
Does a Lead Generation Cold Call Have to be so Cold?
By: Al Davidson | 13/10/2007 | Marketing
When you are calling a prospective sales lead, there is a fence between you and the other person. That fence is there to keep out people who are trying to waste their time. People who want something. People like you (and me). Our job is to find the gate in that fence and coax the prospect to open it for us.
The Sales Lead Sherpa: How to Find your Decision Maker
By: Al Davidson | 13/10/2007 | Marketing
One group of people, the Sherpas, have a lock on guiding explorers and adventurers up the slopes of Mount Everest. To the Sherpas, the mountain is not just holy ground, it is worshiped as a god itself. They live in such close connection with Everest, that they know the mountain like they know their own homes, or their families. It is this connection, not just the geographic proximity that makes them such sought after guides.
How To Fix A Broken Lead Generation Program
By: Al Davidson | 28/10/2007 | Marketing
I like computers. Really, I do. But there are times when they (like any technologically sophisticated object) can confound. When they aren't working the way we expect them to--or more often, the way we want them to--we have to work to figure out if it is broken, if there is...
Sources of Business Leads
By: Vaibhav Aggarwal | 09/10/2007 | Business
Generating business leads can be a challenging task that too on a consistent basis. However, finding and generating good business leads is really important for a promising business enterprise. Usually, business leads can be generating by different methods, brief information about each of them is given in the article.
4 Critical Things your Network Marketing Company Will Never Teach You!
By: William Winch | 17/12/2007 | Home Business
This article is designed to educate the reader about four of the missing components that Network Marketing companies don't teach you, and why they never will. This article also offers inexpensive and successful alternatives to starting a home-based business. The author is a Business Growth Specialist whose mission is helping people expand and explode their home-based businesses without falling into costly traps of wasting time, energy and money.
Effectiveness of Email Programs in Generating Sales Leads
By: Synapse India | 21/02/2008 | Business
The onset of the internet has boosted many working avenues of the internet marketing, driving people to expand their entrepreneurial aspirations to new heights and destinations. Now, with some easy strategies, companies can reach to their potential customers broadly with more focused level
The Importance of Sales Leads
By: Vaibhav Aggarwal | 09/10/2007 | Business
Sales leads are pivotal for any business activity. It is really acute to match the pace of business activity with the generation of good and effective sales leads. However, one must be careful that these leads should be potential enough to give your desired results that you want to make.
How I Wasted 10 Years Trying to Grow a Home-based Business
By: William Winch | 18/12/2007 | Home Business
This article outlines five techniques taught in Network Marketing by companies that I followed without success for ten years. There is a 95% drop-out rate in Network Marketing because hopeful distributors are being taught outdated techniques on how to distribute products rather than how to properly market them. Also offered are successful alternatives to consider. The author is a Business Growth Specialist dedicated to helping people expand their businesses.
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by:
Latest Sales Articles
Sell With Trading Assistant on Ebay
By: Dr John Anne | 28/08/2008
Everyone knows eBay is a shopping hot spot. Purchasing something on eBay can be a familiar process for emptor. As it takes much time it can be a feverish method then, there is a second option and that is “Trading Assistant (TA)”
Plot The Course Of Your Business By Tracking Cold Calling
By: Terry Stanfield | 28/08/2008
Unlike virtually any other marketing tool, cold calling lets companies change courses at almost any time.
Laminated Cheaper and Practical Functionality Stylish Diaper Bag
By: m.jeya | 28/08/2008
Laminated diaper bag is a fun and colorful addition to your wardrobe. Disco Dots Cream Laminated Buckle Diaper Bag by Kalencom The laminated buckle diaper bag brings fun style to amazing function so you can get the most out of your diaper bag. Cheaper and modern Kalencom disco dots Diaper Bag from Kalencom just how stylish and efficient a diaper bag can be with the cheaper stylish Kalencom Disco dots diaper bag.
Different Types of Vital Records
By: Apolie Turtz | 27/08/2008
For beginners, you should know that there really are several kinds of vital records. Death records, for example, are one of those types of vital records. These records contain a lot of important information such as the name of the person who passed away, the date and the place when and where it happened, the person’s age at the time of death, the cause of death and even the cause of death.
Aside from that, additional information that could be found in the document are the names of the persons
Why Outsourcing Your Teleprospecting Is A Smart Choice
By: Terry Stanfield | 27/08/2008
If you are weighting the benefits of outsourcing your teleprospecting for sales leads against setting up your own teleprospecting program in house...
Sprink Tech Company of Bellingham Announces New Division
By: Joe D'eramo | 27/08/2008
DATELINE: BELLINGHAM, MA…
Sprink Tech Company, Inc., a leading provider of sprinkler systems for commercial, residential, educational and retail clients throughout Massachusetts, Rhode Island and New Hampshire, has recently developed a new Educational Division within the company to cater to a growing number of educational clients.
Business Environment Threatens Cold Calling Effectiveness
By: Terry Stanfield | 27/08/2008
But four specific steps can turn disastrous campaigns into successes. Despite frustrations, B2B cold calling is alive and well
Dissecting the Successful Cold Call
By: Terry Stanfield | 27/08/2008
When you're the one who receives the cold call, what is the sales person doing to create success?
More from Al Davidson
Sales Lead Generation: Warming Up the Cold Call
By: Al Davidson | 01/03/2008 | Marketing Tips
Your first sales lead qualification question should be the least intrusive question that you ask. Why? Your relationship with the decision maker is brand new and you don’t want to appear pushy…instead you want to appear to be consultative and helpful.
How The Internet Is Changing First Sales Call And Lead Generation.
By: Al Davidson | 28/10/2007 | Marketing
Back in 1978, when I made my first ever sales call, the thought of doing anything but meeting my client face to face was not an option. Sales was an industry of first names and firm handshakes, of looking your client in the eye and saying their name. That was...
How To Fix A Broken Lead Generation Program
By: Al Davidson | 28/10/2007 | Marketing
I like computers. Really, I do. But there are times when they (like any technologically sophisticated object) can confound. When they aren't working the way we expect them to--or more often, the way we want them to--we have to work to figure out if it is broken, if there is...
Lead Generation Script Or No Lead Generation Script?
By: Al Davidson | 28/10/2007 | Marketing
If you've ever been to the theater and witnessed a truly engaging performance, though you may not realize it, you know everything you need to know about how to make a sales lead generation script work for you.
In a successful play, the actors have all memorized every word they say....
The Sales Lead Sherpa: How to Find your Decision Maker
By: Al Davidson | 13/10/2007 | Marketing
One group of people, the Sherpas, have a lock on guiding explorers and adventurers up the slopes of Mount Everest. To the Sherpas, the mountain is not just holy ground, it is worshiped as a god itself. They live in such close connection with Everest, that they know the mountain like they know their own homes, or their families. It is this connection, not just the geographic proximity that makes them such sought after guides.
Does a Lead Generation Cold Call Have to be so Cold?
By: Al Davidson | 13/10/2007 | Marketing
When you are calling a prospective sales lead, there is a fence between you and the other person. That fence is there to keep out people who are trying to waste their time. People who want something. People like you (and me). Our job is to find the gate in that fence and coax the prospect to open it for us.
Business 
