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One of the SECRETS of adsales greatness.

We usually re-publish this article once every year or 18 months. That is how VITAL can circles can be to your success. What do we mean by ‘magic circle?’

The way we use it, ‘Magic Circle’ means using OTHER PEOPLE’S circle of influence. This is a very powerful referral technique, and is mostly used to gather ‘Support’ advertising.

We use it all the time for ALL advertising referrals.

Before explaining this, let’s agree what a ‘circle of influence’ is — but — NOT in ad sales.

The term ‘circle of influence’ is usually heard in industries where sales are made by exploiting existing relationships. It refers to a sales person’s OWN circle. It includes friends, relations, clubs, people met at church, and so on.

The commission-only life-insurance industry used to exploit a new salesperson’s ‘circle of influence’ by sitting them in a room on their first day at work, and requiring them to write down a list of EVERYBODY they knew.

Then the new salesperson was told to go to each person on the list and give them a sales talk on life insurance. Most quit the company after the first ten or so embarrassing meetings with their friends.

The insurance company then gave the rest of that new salesperson’s list to their best salespeople — who would call every name with the message: “So-and-So has recommended that I call you with this opportunity…..” (And they wondered why the insurance industry got a bad name ….)

Multi-Level Marketing also depends on each MLMer selling to their own ‘circle of influence’.

But exploiting a friendship to make money off the back of your relationship isn’t too clever. It usually ends in a series of socially awkward moments, and your ‘circle of influence’ hiding in doorways whenever they see you coming.

Pretty soon you’ve exchanged all your friends for a ‘downline’. You’re LONELY.

WE MEAN SOMETHING COMPLETELY DIFFERENT.

Imagine for a moment that you are selling advertising in a business magazine

Your editor is doing an article on ‘Management Buyouts’ (sometimes called leveraged buyouts). It’s an article showing how the managers of well-run divisions of major public companies can buy their division from the parent company, and run it themselves, as the owners. Learn how you can smash your sales quota by reading on … very quickly.

However, to make their buy-out work, the managers will need to borrow some money from a bank; which means that they will have to have their accounts examined by an outside firm of accountants. Lawyers will be needed. Insurance will have to be arranged.

YOU have to sell the advertising space to accompany the article. Who do you call?

Right. The people who are LOOKING to pick up business FROM any managers who want to do a buyout …..

Your Number One, BEST, strategy in this situation? Find ONE keen advertiser, and then milk THEIR ‘circle of influence’ or ‘magic circle’.

Suppose you find a lawyer who specialises in management buyouts and is keen to advertise. After you have booked her in, you ask: “Obviously, you do a lot of business with certain banks in this town. Is there a particular one which you use most often for these deals?”

“And accountants. Who do you most often work with? Who would you be proud to see alongside you in this PROJECT?” (It’s a project to find buyout managers, NOT an article, O.K.?)

“Which insurance company do you usually cut in on good deals like this?”

They will tell you. They will also tell you the name of the executive to call in each company. Often (if you offer to pay for the drinks) they’ll introduce you, after work, to each person you need to meet.

Why?

Because there are only so many good deals to go round each week. And EVERY professional who gets a good lead shares it around THEIR OWN CIRCLE. It creates networks of favours and obligations.

YOU TAP INTO THAT NETWORK.

If the bank executive has a client who needs an extra lawyer (often happens when the parent company has one lawyer, and the managers need to appoint their own lawyer to negotiate with the parent) then the banker calls a lawyer who is a member of his circle.

THAT LAWYER NOW OWES THE BANKER. So when she gets a client who is looking for a bank loan, she recommends her buddy. And she calls a friend who is a CPA to review the financials. And an insurance executive to provide cover.

Each professional in the management buyout field knows about 20 sources of bank loans, works closely with four or five bankers, and has a couple of particular favourites. They also know the lawyers, accountants, insurance brokers etc. who work on deals together

Once you’ve sold one advert to ANY member of this tight community, you get THEM to help you approach the REST of their circle. Often you’ll find that they are GRATEFUL to you for allowing them to CHOOSE who else is seen advertising with them (or at least given first refusal — if their nomination fails to book, you get in a competitor. You tell them this. It MOTIVATES them to help you).

Have you ever had someone THANK you for selling them ad space? BEFORE the ad appears? It happens when you move through a circle of influence. A fringe member of the group is often PLEASED to be invited to advertise alongside a group of other professionals whom they are courting for new business.

We’ve used the world of corporate finance as an example. You can find ‘magic circles’ of influence wherever groups of people do business together. Plumbers work with favourite electricians and builders. Couriers work with favourite ad agencies. Lipstick companies work with favourite stores.

Once you have ONE keen advertiser, find out who they like to work with. Who are their suppliers and supporters? Who owes them a favour, or who do they owe one to? Who do they lunch with, or drink with after work? Who are they COMFORTABLE with?

The chances are that they will be happy for you to meet with that person (especially if you position yourself as an expert on finding new customers – not just an adsales rep).

Magic circles. Finding and exploiting these networks is a key to ad sales success.