How to build a broad and deep donor base from scratch in a poor locale

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How to build a broad and deep donor base from
scratch in a poor locale

• Chris Derry

PO Box 51147, Bowling Green, KY 270-843-4642 or
derry_at_bipps.org
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Bluegrass Institute Basics

• Began 5/29/03 with no major donors
• Fundraising history
• 37,000 2003
• 208,000 2004
• 280,000 2005
• 356,000 2006
• 400,000 (goal) 2007
• 500,000 (goal) 2008
• 2 full-time employees, 11 contractors

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Introduction
Brian Tracy The Psychology of Selling

• Successful fundraising good selling skills
  habits
• Maslows Four Levels of Learning
• 80/20 rule for top development people 16x
• The winning edge
• Positive mental attitude _____
• Likeable _____
• Health and appearance _____
• Product knowledge _____
• Prospecting approaching skills _____
• Good presenters _____
• Know how to handle objections close _____
• Effective time management skills _____

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A Positive Attitude

• 85 of what you accomplish
• Golden rule of fundraising
• Mental laws
• Law of belief
• Law of expectations
• Law of association
• Law of emotions (desire fear)
• Law of attraction (you are the magnet)

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Keeping yourself motivated

• Self esteem mental fitness
• Building self-esteem
• Action precedes feeling
• Set clear goals (daily/weekly/monthly/yearly)
• Accept 100 responsibility
• Commit yourself to excellence
• Mental rehearsal
• Attitude of gratitude

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The Old Model of Selling

• Wear prospects down until they buy.
• Not fun or profitable.
• Almost always fails.

Relate
Qualify
Old Model
Present
CLOSE, CLOSE, CLOSE
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The New Model of Selling

• Creates long term relationships
• Assures an open door for you
• Makes fundraising enjoyable!

Build Trust
Relate
Identify Needs
Qualify
New
Present
Present
Close
CLOSE, CLOSE, CLOSE
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Building Trust

• Law of indirect effort
• Listen (Spotlight technique)
• Appeal to deep sub-conscious needs (Acceptance,
  Approval, Appreciation, Admiration, Agreeability)

Build Trust
Relate
Qualify
New
Present
CLOSE, CLOSE, CLOSE
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Acceptance

• Smile as they are talking.
• Call people back within 24 hours.
• Hello, Bob Smith!
• Ask How do you mean that?
• Ask What frustrates you the most about

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Approval

• Praise them
• For being sensitive to your arguments.
• For telling their friends, neighbors
  colleagues.
• For increasing your funding.
• For being a lone-wolf.
• For helping you.

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Appreciation

• Thank people for
• Spending time with you.
• Referring their friends, neighbors colleagues.
• Reading your publications.
• Funding you when so many others wont.
• Serving in some important capacity.

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Admiration

• Compliment people when they
• Articulate an unpopular idea.
• Deserve it.
• Explain why they disagree with you.
• Call you unexpectedly.
• Provide you with a suggestion.
• Convey inside information from their locale.

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Agreeability

• Always agree
• With their perception of a policy problem What
  is seenwhat is not seen.

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Listening

• Two ears and one mouth
• Builds trust and self-esteem
• Lowers resistance
• Habits to acquire
• Face your prospect
• Nod, smile and acknowledge
• Pull out a notepad and take notes
• Ask questions
• Summarize check

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Questions that get people to talk

• Open-ended start with
• Who, where, what, how, when, why if.
• How do you feel?
• To what extent versus Do you

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Why do people contribute?

• For their reasons, not yours!
• Felt dissatisfaction no need, no sale
• Funding motivations
• Fear of loss versus desire for gain
• Freudian slip if you probe deeper
• Hot button key benefit

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When to move to Needs

• Short cycle, small contribution first visit
• Long cycle, large contribution patience
• Ask yourself these questions
• Does he like me?
• Does he trust me?
• Do I know/understand him?
• Is he willing to listen NOW?

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How else can you build trust?

• Dont move into the selling process unless your
  prospect trusts and likes you.

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Identifying Needs

• Contented vs. discontented prospect (no need, no
  sale)
• Ask four key questions

Build Trust
Relate
Identify Needs
Qualify
New
Present
CLOSE, CLOSE, CLOSE
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Four key questions

• 1. Does the prospect want our product?
• What frustrates you the most about how Frankfort
  treats your business?
• How tough is it for you to hire good people who
  can and will work in your company?
• Do you think the average Kentucky student is
  prepared to compete head-to-head today with the
  average Chinese or Indian student?

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Four key questions

• 2. Does the prospect need our product?
• Who constantly reminds Frankfort that money in
  YOUR pocket stimulates the economy better than
  money in governments till?
• Do you believe your children and grandchildren
  are receiving the same quality of education that
  you received when you went through school?
• What will happen if you cant find competent
  employees to work in your company?

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Four key questions

• 3. Can the prospect use our product?
• To what extent could we be his surrogate for his
  ideas for how government should operate?
• Do you employ a lobbyist? Why not?
• How often do you talk to your state-elected
  officials about how you feel about where Kentucky
  is headed economically?
• Where do you find the data to counter balance
  the statist arguments you hear from your friends
  and colleagues?

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Four key questions

• 4. Can the prospect afford to contribute?
• How often do you help finance the campaigns of
  political candidates?
• Would you say you typically get your moneys
  worth? (Describe one that wasted your money.)
• How often do you financially support causes you
  really believe in?
• What do candidates promise that causes you to
  pull out your checkbook?

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Dont waste your time making a presentation your
prospect is not interested in considering.
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Presenting

• No need no presentation
• WIIFM

Build Trust
Relate
Identify Needs
Qualify
New
Present
Present
CLOSE, CLOSE, CLOSE
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Sales Presentation Skills

• General to the particular sales funnel.
• Features Benefits meet the need.
• Curiosity is aroused vs. desire is inflamed.
• What this means to you is (WIIFM)
• So what? after every main point.
• Get involvement from prospect.
• Use visual aids.
• You are going to like this!
• Ask for feedback (How does this sound to you?).
• Handle objections as they occur.

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Handling Objections

• Be agreeable.
• Is this a question asking for more information?
• Hear the objection out. (Why do you feel that
  way?)
• Assume the objection away
• Law of Six (then craft answers)

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Law of six for think tanks

• What does a think tank do?
• What do you expect to accomplish?
• I prefer to contribute to candidates not to
  organizations like yours.
• What makes you think you can influence the
  media?
• Ive never paid for anything like this.
• Ive heard that no one is listening to you in
  Frankfort.

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What does a think tank do?

• We make bad public policies fail faster.
• Have you ever seen the General Assembly get
  behind an idea that you know wont work? (Give
  examples)
• What did you do when you heard about it?

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What do you expect to accomplish?

• Over the next generation our vision is to make
  Kentucky the destination of choice for
  entrepreneurs.
• Hong Kong proved to China that liberty and free
  trade generates higher levels of economic
  prosperity.
• Ireland proved to Europe that lower taxes and
  improved education could reinvigorate a nation.
• We want Kentucky to show the rest of the states
  the economic prosperity that results when you
  lower taxes, improve education results, take the
  shackles off labor and make government smaller.

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I prefer to contribute to candidates not to
organizations like yours.

• Who have you placed in charge of promoting the
  ideas you feel are essential?
• Why do you contribute to candidates? (Listen for
  personal influence or public policy)
• Maggie Thatcher liked to say, First win the
  argument, then win the vote. Why do you think
  she said that?
• Have you ever experienced a candidate saying one
  thing in a campaign but saying the reverse after
  he is elected?

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What makes you think you can influence the
media?

• We know we cant change their minds, but we can
  change their stories. (Show examples)
• Many reporters are lazy and seek out a credible
  source who will answer the phone when they are on
  deadline.

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Ive never paid for anything like this.

• Use feel, felt, found
• I understand exactly how you feel. Many of our
  first-time investors felt the same way when I
  first asked them to invest in the Institute. But
  when they found how persuasively we influence the
  media, they thanked us for doing our job. Please
  let me show you what I mean and then you can be
  the judge.

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Ive heard that no one is listening to you in
Frankfort.

• The people who are not listening are the ones who
  favor higher taxes, more regulation and bigger
  government.
• The ones who ARE listening are those who pay
  taxes, hate regulation and encroaching
  government.
• Which camp are you in?

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Six secrets of persuasion

• Reciprocation - create an obligation
• Consistency past and future
• Social proof testimonials.
• Likeability friendship
• Authority Atlas, Heritage, CATO, IEA
• Scarcity

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Reciprocation

• Figure out how to do something for your prospect
  that causes them to owe you
• Never terminate a first call without agreeing to
  do something for your prospect.
• Send them a copy of an article with a
  hand-written note attached. (Sign your first name
  above the inside address)
• Concede a point.
• Pay for a meal or function.

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Consistency

• People want the future to resemble the past.
• Have they contributed to another non-profit?
• Understand their hot button leverage it.

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Social proof

• People are influenced by others they respect
• Last year 188 people contributed 356,000 to
  us.
• Whos on your board of directors?
• Get testimonials from political leaders.

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Likeability/Friendship

• People do business with people they like
• Start on a personal note.
• Comment on what you see. (Where did you get than
  lamp? Where was that picture taken?)
• Referrals are worth 15x a cold call.
• Who else do you know who believes as strongly as
  you do on this subject?

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Authority

• A very strong motivator
• Dress just above your prospects expectations
• Bring copies of newspaper media mentions
• You are part of a worldwide movement.
• Use your network to help your prospect.

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Scarcity

• Fear of loss is a great motivator
• of seats in an event.
• Special speaker from out-of-town.
• A film to which you have exclusive rights.

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When should you close?

• Does she understand you?
• Does she believe you?
• Will she buy your idea?
• Buying signals
• Asks how you are funded People just like you
• Positive posture.
• Hear smoke screen objections.

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Closing the Sale

• Close when you see buying signals
• Be ready for five Nos

Build Trust
Relate
Identify Needs
Qualify
New
Present
Present
Close
CLOSE, CLOSE, CLOSE
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What to do when you hear No

• It means, Not yet.
• Smile What is it about funding us that causes
  you the most concern? (80/20)
• Is the concern a condition or objection?
• Listen completely get ready to meet the
  objection (Answer his question.)

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Money objections

• What does it cost to become a member?
• Ive never considered anything like this
  before.
• I cant afford this.
• My budget is tight right now.
• I prefer contributing to candidates whose ideas
  are closest to mine.

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Obstacles to closing

• Fear of rejection
• Donor making a bad decision
• Law of inertia
• All buying decisions are emotional.
• Errors to avoid
• Arguing
• Personal opinions
• Knocking the competition (politicians)
• Over-selling/over-promising

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Personal obstacles to closing

• Negative expectations
• Lack of enthusiasm
• Lack of sincerity
• Different wavelength
• Personality clash

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Four closing techniques

• Invitation close Why dont you give us a try?
• Assumption close Is there any real reason you
  shouldnt become a member today?
• Alternative close Would you feel more
  comfortable starting at the Presidents or the
  Business funding level?
• Ben Franklin close T-close

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T-Close
Contribute
Dont Contribute

• You give something back to your country/state.
• You are a part of something that is making your
  state/country a better place to work and live.
• You value ideas as an essential part of the
  political process.
• You believe someone should stand up for liberty,
  free markets, limited government and secure
  property rights.
• If you and I dont do this, who will?

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Maximizing your selling time

• Fast tempo Do it now!
• Holes in your schedule/poor planning.
• What is the most valuable thing I should be
  doing right now?
• Unconfirmed appointments.
• Incomplete sales call.
• Fatigue being out of shape.

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Maslows 4 levels of learning

• Where are you now?
• Unconsciously incompetent?
• Consciously incompetent?
• Consciously competent?
• Unconsciously competent?

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How do you find prospects?

• What category of people best understand why
  first principles are essential to the future of a
  free and prosperous society?
• Entrepreneurs!
• How do you find them?
• Whats in it for them to talk to you?
• What could you do to motivate them to want to
  work with you?

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I discovered
Lets watch it!
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My initial analysis

• Entrepreneurs will appreciate this
• Successful entrepreneurs are my 1 fundraising
  targets
• Could I get a copy from Acton?
• Could I persuade entrepreneurs to watch it?
• Ask them who else should see it
• Call Entrepreneurs New Funding!

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Test group

• Called existing donors
• Asked them to bring a friend
• 400 530 pm time frame
• One donor hosted the screening
• Bought a pair of BOSE speakers (69)
• Laptop projector Show-on-the-road

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The Results

• 15 people showed up and they LOVED IT!
• They suggested Call should be shown to
• Six specific schools.
• Fifteen organizations (Chambers of Commerce,
  Knights of Columbus, NKU Entrepreneurial and
  Young Republicans Club, Chase Federalist Society,
  League of KY Property Owners, Cincinnati YPO,
  etc.)
• Two churches
• One Rotary Club
• Two contributions 1,500

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Next Step

• Mentioned to a small-town donor
• He wanted to see it.
• He gave me a prospect list.
• I invited them.
• We watched it a home setting.
• Discussion following lasted 1 ½ hours.

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The New Model of Selling

• How to get to a telephone presentation quickly
• High quality referrals build trust
• Find something your prospect already needs

Build Trust
Relate
Identify Needs
Qualify
New
Present
Present
Close
CLOSE, CLOSE, CLOSE
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Voicemail introduction

• Good afternoon, Bob Smith, My name is Chris
  Derry, President of the Bluegrass Institute.
• We dont know each other yet, but our mutual
  friend, Mark Haines, thinks you and I SHOULD know
  each other.
• Im hoping you have 6 minutes available sometime
  today so we can meet each other on the phone.
  Ive got something I want to show you.
• Its now 1030am EDT and I will be at the
  following number all day today if you have time
  to return this call.
• Thanks, Bob Smith, I look forward to meeting you
  soon.

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Prospecting by telephone

• Receptionist Can you help me?
• Four minutes to likeability.
• Hello, Steve Smith, you dont know me yet but
  your friend Mark Haines thinks you and I should
  know each other. Is this a good time for us to
  talk?
• Must break your prospects pre-occupation. (You
  only have 30 seconds.)
• Why should I talk to you? (WIIFM?) I have
  found a new documentary that tells your story.
• I need 6 minutes of your time on the phone and
  then you can be the judge. Is this a good time
  for us to talk?
• YES

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Telephone Presentation

• As an entrepreneur, you know what its like to
  work until midnight, sweep the floors after
  everyones gone home, be rejected by bankers half
  your age, etc, etc, etc. What percentage of the
  KY population do you think understands what it
  takes to be in business for yourself?
• Introduce BIPPS vision.
• I found Call Acton Institute cant buy this
  film now.
• This new film portrays the Entrepreneur in an
  inspiring and enlightening way. The Entrepreneur
  as benefactor, the creator of wealth and jobs,
  the person who should be revered instead of being
  criticized as greedy, selfish and egotistical.
  Pretty weird, huh?
• We think Kentucky could be a lot more prosperous
  if more people learned what it takes to work on
  their own versus waiting for one of Frankforts
  checks to land in their mailbox.
• I would like you and a few other entrepreneurs in
  Louisville to view Call of the Entrepreneur.
  Once you see it, my bet is that youre going to
  want others to see it in Louisville, too. Its
  that good
• Google Call of the entrepreneur.

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The Close

• Would you like to attend?
• Who of your entrepreneurial friends do you think
  would enjoy this?
• Send him an official invitation so he has all
  the details.
• Wait 24 hours and then call him back to see if he
  will be attending.
• Send e-mail with results of referral calls.

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Connect to his network

• I predicted that this documentary would be about
  you. How close was I?
• Are there some other entrepreneurs in Owensboro
  you think would appreciate seeing this?
• Why are we showing it We believe that
  entrepreneurship will create a lot more
  prosperity than government can by redistributing
  your money to those who dont deserve it.

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The Psychology of Selling

• www.BrianTracy.com

Build Trust
Relate
Identify Needs
Qualify
New
Present
Present
Close
CLOSE, CLOSE, CLOSE
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