Building a home based business is all about tapping in your markets. Whether it’s cold market or warm market, you have to be able to extract leads and prospects from either.
The question that is of utmost debate is: do you go for the cold market first or the warm market first?
In terms of pure markets, you want to start with your cold market, then approach your warm market, and then work both and build up the hot market.
The cold market – why you should start here first
Some people will fight me on this, but I am adamant that a new business owner should not start with their warm market. It’s a disaster waiting to happen. If you want to go ahead and kill your friends and family right off the bat, then be my guest. But if you are serious about them becoming potential business partners, heed my words carefully.
Starting off with the cold market is the best way to build up your business for two reasons: it’s good practice, and they don’t know you.
When you first begin your business, you’re going to be shaky. Even the most seasoned of veterans in the network marketing game need to practice scripts and elevator pitches to get good at it. You will too. So what better way to get good at it then to practice it on total strangers that you may not ever see again? And if they say yes to more information, bam! You just sealed yourself a win!
The second reason is that the cold market people don’t know you. Why that’s important is because you know have the opportunity to be an expert because they won’t know any better. It gives you a clean slate to work with, which allows for you to establish credibility immediately. This is the most effective way to book appointments for more information.
More on the cold market in just a bit.
The warm market – what’s the approach?
According to Mike Dillard, you should NEVER approach your warm market UNLESS you are not expecting to recruit them. A question I commonly get asked is “what if I want them to be my customers?” Sure, that’s a viable logic, but be forewarned. If you just started a new company, your credibility is quite suspect, so unless you have ample support, product demonstrations, and evidence to back up your claims, your chances of successful sales are limited.
Maintain the relationship. Establish yourself as an authority in the field before you circle back to approach them. When you can prove that you are a success, they will naturally get curious. Attract them. It’s a much more efficient process than trying to “sell” them on some new business or product you just got in to.
The hot market – what’s that?
This is a terminology that I label for a strategy I learned from Casey Eberhart. He is a huge in-person networker, and he purports the strategy of using the cold market, and building them up to be warm market. I like to keep the warm market separate from those that you built up to be warm market, because they are two entirely different groupings.
Casey teaches that he spends time to build up a relationship with the cold market. He hosts and attends countless events, networks with all kinds of people, and works to develop repoire. All the while, Casey displays himself as a person of authority and credibility, and he uses attraction marketing principles to have those now converted warm market prospects asking him how to get more information on what Casey does.
That’s attraction marketing folks. It’s the idea that instead of hunting and going after prospects to find business partners, you are attracting them to come crashing down your door to be recruited by you. If you can take the time to care for people and help them out to build a repoire, you can turn your cold market in to a “hot” prospect because now they are open-minded, trust you, and see you as someone worth getting to know or follow.