Marketing , , Leave a comment

Is It Time for a Price Increase?

by

We’re here to talk about pricing today, a favorite subject of mine, but I admit the process is tricky. Pricing is more important than you might think because if you don’t get it right you either won’t sell much, because prospects and customers feel you’re too expensive, or you’ll sell but won’t make as much money as you could, because you’ve priced too low. Pricing B2B services can be a challenge. You can’t walk into a couple of stores or check on line and comparison shop your competitors, so competition-based pricing doesn’t work. Value-based pricing is the best option for B2B services.

So that you can at least maintain, if not increase, profitability in these unstable times, business leaders and owners would be wise to evaluate the pricing of their products and services and make adjustments when necessary. Revenue and profit are tied to more than sales volume. The most important driver of sales revenue, after ensuring that production or acquisition costs are covered by the price, is the value that clients assign to your products and services. I suppose that’s another compelling reason why B2B services are most successfully priced according to the value and ROI they bring to your customers.

Conducting basic market research will help you discover or confirm the purpose, must-haves, priorities and ROI that drive the confidence in and sales of your products and services. As usual, knowing the customer means everything. Whether you get them on the phone or take them out to lunch, speak to three or four of your best clients to determine which outcomes and benefits, tangible and intangible, matter most. You want to obtain insight into how your products or services bring ROI to clients. Once you understand what your offerings enable clients to do, align your price with the value they bring. Furthermore, include in your marketing messages those benefits that clients with whom you’ve spoken indicated are the most highly prized.

When announcing price increases, it may be useful to explain your increased costs and how long it’s been since your prices have been adjusted. Don’t shy away from highlighting how much your clients have raised their prices. For clients who may be struggling, consider “grandfathering” to continue the pricing for the product or service they buy most often. You could also soften the blow of price increases by designing product and service options to accommodate price-sensitive clients. No-frills, economy versions of your offerings may be welcomed by some. Consider also indirect price increases, such as adding surcharges for expedited shipping, longer payment terms, rush orders and for performing small projects.

Charging one price for your products and services is, in fact, limiting for both you and your clients. The buying decision may be simpler, but it leaves no room for clients to upgrade and you to bring in additional revenue from upselling.

Thanks for reading,

Kim

Image: The banker from the board game Monopoly ™, which was patented by Parker Brothers in 1935.

Uncategorized Leave a comment

How to Amplify Your Brand

by

What does branding mean to you? The term brand refers to a marketing strategy created to help a company’s current and potential customers identify that company and its products or services. A brand is a collection of often intangible characteristics that collectively represent the company and are the basis of its reputation. The brand helps to shape public perceptions of the company, its services and products and public-facing leaders. For those reasons, the brand is considered foundational to a business.

Brands commonly use certain attributes to help create an identity or personality to distinguish the brand and add to its appeal. A powerful brand identity attracts the loyalty and trust of a company’s customers and that usually results in purchases made, as fans of the brand seek to associate themselves with attributes they find desirable. A good brand brings enormous value to the company, giving it a competitive edge over others in the same industry. Many business entities provide legal protection for their brand by obtaining trademarks for the company name, logo design and slogan.

An effective and compelling brand generates memorable, lasting impressions. Developing a respected brand is integral to business success. Consistent communication of your company’s brand can enhance and solidify its reputation, revenues, profits and long-term viability.

Business owners and leaders are advised to continually evaluate the perception and performance of the company brand. Without careful stewardship, it’s possible to unintentionally weaken or muddle your company’s identity and get lost in the weeds regarding the messaging, priorities, values and practices that loyal customers trust and expect.

Therefore, devising a branding strategy to monitor the impact of your company brand is essential. Consistent promotion of the brand is key to launching and sustaining a company that current and potential customers regard as memorable, recognizable, dependable and trustworthy.

If building, enhancing, or refreshing your company brand, or if rebranding is your goal (perhaps in response to a pivot), follow these four steps:

  • Determine the target audience for your company’s products and services
  • Position your product and business in the marketplace–premium, mid-market, budget, or green, for example
  • Define your company’s personality—trend-setter, carefree, athletic, or folksy, for example
  • Create a logo, choose signature colors and devise a slogan/ tag line.

Effective branding involves developing a brand identity that carries through across all of your marketing platforms and consumer touch points. Everything from graphic design to content development, web design to email signatures should communicate your company’s brand identity. That way, from first to last impressions, your customers will know exactly who you are as a brand.

Everything embodied in your brand, from logo design to value propositions, should represent who you are, what you do and your fundamental brand personality to the customers who encounter your business. A successful and memorable brand image is one of the best ways to differentiate yourself from the competition and ensure that customers come knocking on your door. Branding is an opening to so many business opportunities. A robust brand strategy will help you:

Establish credibility

Building customer trust and loyalty for the company and its products and services is the purpose of branding. Communicating the brand consistently, at every customer touch point, demonstrates a business’s credibility and encourages brand loyalty in the process. Consistent marketing messages that deliver on promises and expectations reassure customers and prospects of the experience they can expect from doing business with your company.

Stand out in competitive marketplace

Branding gives a business the opportunity to stand out from its competitors. Use your branding strategy to differentiate your company from the competition. Develop a brand persona that resonates with your target market and promote it relentlessly, through verbal and visual messaging, pricing, packaging, advertising media choices (the publications or social media platforms that you use, for example) in a way that speaks directly to your target market.

Project a trustworthy and professional image

Consistent communication of the company’s brand persona makes the business look professional. The best way to maintain a comprehensive branding strategy is to create a set of branding guidelines (a.k.a, a brand book). Your brand book will function as a reference library that documents your defining brand symbolisms, including the brand name, narrative, logo, text fonts, color schemes, images and even the theme song, if applicable.

Increase customer loyalty and customer referrals

If customers gravitate to your brand persona and values, they are more likely to buy. Furthermore, they’re more likely to become repeat customers who share their enthusiasm for your products and services with friends and family members. Great branding is a launchpad for increased sales, customer loyalty and referrals. Compelling and consistent verbal and visual messaging is the key to attracting a loyal customer base for your business.

Thanks for reading,

Kim

Image: The Reddit logo was designed by the company co-founder Alexis Ohanian

Technology / Office , , Leave a comment

Step Up to Business Tech

by

Are you operating your business as if it was still the 20th century? You may do a good job and generate enough revenue to reliably pay your expenses and take the occasional vacation but we’re 20 + years into the 21st century now. It’s time to catch up! Respectfully, I suggest that a few practical concessions to the present will improve your command of business management, save time and increase revenue and profit.

You don’t have to give up everything you like about last century. You can still listen to 80s music (like me) and rollerblade (I was afraid to try that). Help yourself sustain and build on the successes you’ve already created. Step out from behind your unease with the unknown and understand that to conquer today’s business challenges you won’t win without today’s business tools and the tools are digital. Fast access to accurate, actionable data is just one of the benefits you’ll receive when you take on a digital business solution or two.

According to a 2017 survey of 2000+ small businesses in the U.S. conducted by Google on behalf of mega-consulting firm Deloitte, 80 % of small business owners underutilize digital business tools (I think that finding can be extended to include Freelancers) and 40 % feel that digital tools don’t apply to their business. The survey was pre-pandemic but other than the introduction of videoconference sales meetings not much has changed, despite the fact that even pre-pandemic it had been demonstrated that prospects and customers expect to be able to communicate and do business online, whether or not the companies are e-commerce.

Here’s the reality—-mostly, prospects launch their buyer’s journey on the internet, using key words they hope will call up websites they can browse to investigate available options. When they find providers who look promising they dig deeper and, e.g., check out case studies and testimonials. They’ll use chatbots to quickly find what they’d like to see. They might click call-to-action buttons and schedule free consultation calls with companies whose offerings look like a fit. They’ll probably also search those companies on Yelp and social media.

Does your website measure up to the buyer’s journey described above? If not, it’s time to step up your business technology. Don’t panic! Accelo, Google Analytics, Constant Contact, Block, Calendly and others are here to help you analyze and use your website stats, support your email marketing and/ or newsletter or blog, get you going with a chatbot and overall help you to build a more profitable company.

Google Analytics —-Make sense of the numbers taken from your blog, newsletter, website and social media accounts and use the data to make smart decisions that improve your company’s sales funnel/ buyer’s journey and win more new customers. Are there pages in your website that seem to frustrate visitors and cause them to exit the site? Your data will find the problem so you can consider how to improve page experiences. Click to get more info and register your website and business.

https://marketingplatform.google.com/about/small-business/

Email marketing—-promote your products and services to current and potential customers. You’ll need to invite/ persuade prospects to provide their email address. Do not spam. The link is to an overview and comparison of companies that provide the services, including prices.

https://www.quicksprout.com/best-email-marketing-services/

Time tracking & invoices—-B2B service providers need to monitor time spent on hourly work assignments, as well as invoice client work on time, in order to get paid when the bills are due. See the features and cost overview and comparison of companies at the link below.

https://timeanalyticssoftware.com/19-best-billable-hours-tracker-software-in-2021/

Call-to-Action—-Ask your website designer to create this for you or DIY with an embedded hyperlink. Use CTAs to take your website and social media visitors by the hand and 1.) tempt them with timely and valuable information and 2.) persuade them to take a quick and easy action to get it (click me!). Sort of like what I’m doing in this post when I invite you to click below and learn how to create your CTA.

https://tinkseo.com/call-to-action-button-cta-design-guide/

Chat bot—-Ask a web or app development expert to set one up because my research shows that “plug & play” is a myth. Furthermore, think carefully about how to make your chat bot useful. What questions can the bot answer? Please click the article accessed at the link.

https://www.callcentrehelper.com/chatbots-examples-160804.htm

Mobile payments—-Secure, convenient payment is an important component of good customer service as well as a component of good cash-flow. Take a look and decide which system will be most useful for you and your customers.

https://www.predictiveanalyticstoday.com/mobile-payment-providers/

Online and in-person payments—-The customers of many small businesses are a mix of e-commerce and in-person, making it necessary to find a credit /debit card processor that offers acceptable processing fees for both types of transactions. Another consideration is the number of transactions that you’ll run: some businesses have many (often small) transactions and the fee structure will be an important factor. But if a significant number of orders are typically phoned in, then the keyed-in transaction rate will be a deciding factor. Bear in mind that according to American Consumer Credit Counseling, Inc., just 14% of shoppers use cash for every day or large purchases.

https://www.usnews.com/360-reviews/business/credit-card-processing/best-small-business-credit-card-processing

Appointments and calls—-Whether you invite a client or prospect to speak by telephone, video, or face2face, by way of a CTA button or email, creating the appointment online is a given. Check out this link and evaluate free scheduling apps that allow you to indicate your availability, clients and prospects to choose a time and will send a reminder to all parties.

https://fitsmallbusiness.com/best-free-appointment-scheduling-software/

Thanks for reading,

Kim

Image: Leonard Nimoy as First Officer Spock in Star Trek (NBC-TV 1966-1969)

Business Strategy , , , Leave a comment

Good Questions Are Your Best Sales Strategy

by

Many factors influence a B2B sale, including egos and power struggles, budget allocation and politics, trending industry fads and the success or failure of what’s been done before. But as you know, Freelancer friend, you can only control what you can control.

To obtain some measure of control you need information, because knowledge is power. To determine whether there is a sale here for you, you’ll need clarification of the factors listed below, which are known to influence B2B sales. Knowing if there was a recent attempt to reach the goal or resolve the problem before you were contacted is also useful intel, as is knowing if the prospect is actively considering another solution (that would be provided by someone else).

  • Define the problem or goal and learn if it’s high priority or urgent
  • Understand what the prospect wants you to do and when it must be completed or delivered
  • Is the prospect talking to a competitor?
  • The decision-maker
  • Estimated budget

The most efficient way to get the backstory on your sale and create for yourself a realistic chance of winning is to ask questions that bring out the answers you need. Phrase the questions in words that feel natural for you. I think what’s listed below will both lead you to more sales and quickly eliminate those who present themselves as interested but are just not that into you.

1. What led you to contact me/ respond to our outreach?

2. Is getting this project done/ product installed an immediate priority? When would you like to see it completed/ made available?

3. Have you been using a solution (i. e., a product or service) that isn’t working? What fell short of your needs?

4. What. are three key outcomes you want to occur when the goal is reached/ problem is resolved?

5. What other options are you currently considering?

6. Which department in your company will be the end users of the product/ or who will be my contact as the service is implemented?

7. What kind of support/ training/ post-sale service would your team like to receive as the solution is being implemented or when the product is purchased?

8. Are you the person who decides the budget for this project and has funding been allocated?

9. Based on what you’ve told me, I think my organization can help you achieve your objectives. I’d like to work with you! What is your decision-making process like?

10. Is there anyone else who might appreciate having a conversation about this solution? Anyone else I might speak with?

Thanks for reading,

Kim

Image: Judy Holliday (standing) has a couple of incisive questions for her husband (Tom Ewell) and the other woman (Jean Hagen) in Adam’s Rib (1949, directed by George Kukor and starring Spencer Tracy and Katharine Hepburn).

Sales , , Leave a comment

10 Tips to Create Repeat Business

by

A well-known study conducted by Frederick Reichheld of Bain & Company in 2010 confirmed what has been well-known anecdotally by business owners and leaders for decades—that it costs (at least) 5 times more to bring in a new customer than it does to keep the customer you already have. Decreasing churn, that is, the phenomenon of one-off customers who are never seen again, is not the way to build a sustainably profitable venture. You don’t want to run a business that behaves like a revolving door.

Your repeat customers are loyal to your brand because they have had good experiences with you. Due to this, repeat customers are highly likely to promote your brand through word of mouth or social media and on review sites such as Yelp and Trip Advisor. In other words, your repeat customers pay you with referrals and testimonials that bring more new customers to your door. It doesn’t get better than that!

As you build your business and go about refining and strengthening your brand, you should strive to cultivate a community that believes in your brand, that is loyal and is invested in seeing you succeed. One of the best ways to ensure customer loyalty is to make your customers feel that they’re a part of something rewarding when they engage and do business with your brand. Below are a few low-cost, no-cost actions you can take to promote customer loyalty, which usually translate into customer retention, I.e. repeat business and referrals, too.

Surprise and delight

Pleasant surprises are always a good thing during the course of a customer relationship. Introducing a nice surprise, typically in the form of an unexpected little perk for the customer and in particular at the beginning of the interaction, is a great strategy to differentiate yourself from competitors. It’s good business to show customers and serious prospects that you’re a cut above.

Customer experience, customer service

According to a 2018 survey of US consumers released by the multinational professional services company Price Waterhouse Coopers (PwC), which happens to be the second-largest professional services firm in the world, consumers rank price and quality at top-of-mind when buying decisions are made. But when they think about interacting with companies they buy from, 73% of survey respondents reported that positive experiences influence their purchasing decisions and 65% feel that a positive buying experience is more influential than great advertising.

You basically have only one chance to get your customer experience and service right. 32% of customers surveyed reported that they’d stop doing business with a brand they loved after even
one bad experience.

Make an effort to structure the experience your business provides to reflect what matters most to the customers. When customers feel appreciated the company benefits, primarily from customer retention and referrals. 86% of survey respondents indicated that they’re willing to pay more for a good end-to-end customer experience and 80% say their reason for switching to another company was poor customer service.

Email marketing, social media, blog, newsletter

Update your customers by way of your website and social media accounts about what’s new—-special offers, new products or services or special pricing and be certain to include those who have not purchased in a while. If you publish a newsletter and/ or blog, include your product and service special offers, special pricing or new product or service announcement. Get your community excited about what’s happening and they may share the good news with those who could become your future customers and loyal fans.

Retain on your mailing list all customers with whom you’ve worked over the past five years, including those who’ve been inactive, and also retain on your mailing list prospects who have had some level of engagement with your organization. Always position yourself to win over a prospect or win back an inactive customer. Until someone clicks the opt-out button, continue to send marketing emails, your newsletter and/or your blog. You never know when lightening will strike.

Payment made easy

Make paying for your products and services easy. By adding digital payment options such as Square, Paypal, Bill.com, or Stripe and facilitating direct deposit payments to your bank or debit card and/or accepting online check payments, you’ll encourage customers to do business with you more often because you’ll make paying invoices a convenient process. Easy payment is an element of a pleasant customer experience.

Website and social media

Merely having an “online presence” is no longer enough. The internet is over-saturated and short attention spans are the norm. To maintain the appeal of your social media accounts and website, make your content—text, audio and video–relevant and timely. Constantly confirm that your posts and images resonate. Update regularly with fresh images, blog posts and and other text, audio and/or video.

Thank you card

The survey revealed that human interaction matters now—and 82% of U.S.
consumers want more of it in the future. With that in mind, a small personal gesture, such as sending a thank you card (or note) to a new customer, or one who has spent a certain threshold amount is a powerful statement. Your card or note can create or enhance the feeling of community and build loyalty for your brand.

Special occasions

The PwC survey found that when customers feel appreciated, they are more likely to recommend or endorse a brand on social media or review sites, subscribe to a brand’s newsletter, sign up for special promotions and make repeat purchases. Sending cards to mark occasions such as customer birthdays, if that is appropriate for your industry, or holiday cards in December is a predictable but usually much-appreciated way to communicate to customers your thoughtfulness.

Showcase testimonials

If visitors to your website and social media accounts see your customers and colleagues singing your praises, in text, audio, or video, then chances are they’ll be more likely to take a chance and buy from you themselves. User-generated content in the form of reviews is a powerful way to win customer loyalty. Case studies in text or video format, are also quite compelling since the story of how you and your team assess and resolve a problem is told.

After sale service

After-sales service often amounts to listening to customer feedback and being available to answer questions or give encouragement. After-sales service can make the difference between a happy customer who loves doing business with your organization, or one who is underwhelmed or even frustrated. A follow-up call to a customer, especially a new customer, will 1). Show your empathy—you care about the customer’s pain point or goal; and 2). Ensure that the customer is achieving objectives. If the solution isn’t working as expected, you can quickly diagnose the glitch and fix it. If a training will help, deliver it, on the spot or by appointment. You want to create a cadre of satisfied customers who will become your loyal cheerleaders.

Do the math

While at the University of Lausanne in Switzerland, the Italian economist Vilfredo Pareto (1848-1923) in 1896 demonstrated that on average, a business will derive 80% of its revenue from 20% of its customers. Further research has demonstrated that the likelihood of selling to an existing customer is 60% – 70% and repeat customers will on average spend 31% more than your new customers. Just a 5% increase your company’s customer retention rate will reward you with a 25% increase in profits. Are you convinced yet?

Thanks for reading,

Kim

Image: © WalterFilm. Marilyn Monroe in a publicity photo for How to Marry a Millionaire (1953, 20th Century Fox Studios)

Professional Development , , , Leave a comment

Why Upskilling Matters

by

A study that polled more than 5,670 global executives in 48 countries and was published in September 2019 by the IBM Institute for Business Value (IBV) found that as many as 120 million workers in the world’s 12 largest economies may need to be either retrained or upskilled as a result of the increasing use of AI and intelligent automation in workplaces. No surprise, study respondents indicated that new skills requirements are rapidly emerging, as other skills become obsolete.

For example in the 2016 IBV study, participating executives ranked STEM technical core capabilities and basic computer and software/application competency as the top two most critical skills for employees. But in 2018, the most valued skills were behavioral, not technical– willingness to be flexible/ agile and adaptable to change, as well as time management skills and the ability to prioritize.

Because you are a small fish Freelance consultant or small business owner, it would be wise to acknowledge that in order to successfully compete and sustain your venture, the quality of the solutions and value your company delivers is intimately dependent on the quality of your expertise. To maintain the efficacy and viability of your skills, continuing education is required.

Sometimes, Freelancers aren’t sure of which new skills it makes sense to acquire, especially when looking ahead to emerging technologies and the evolving priorities of clients. What might be a passing fad and what will probably be a keeper that calls for a pivot or retooling? You may not subscribe to the (sometimes costly) data that provides insights and analyses of market trends.

The advantage gained through digital marketing techniques is but one example of where many small operations should strive to catch-up. Many Freelancers and small business owners and leaders are not fully aware that their marketing tactics are behind the curve. Marketers at small ventures often haven’t seen how bigger, better-funded companies use digital tools and tactics to generate leads and move prospects through the sales funnel by using social media. They haven’t seen the evidence that shows how SEO key words and phrases can drive traffic to websites and social media accounts.

Unfortunately, upskilling education can be expensive. The good news is that obtaining professional education has never been more accessible than it is today, thanks to the pandemic-fueled explosion of online learning. In September 2020, I used a federal stimulus check to finance a 2-day remotely presented workshop (total 14 hours) to improve my ability to present remote workshops (or run online meetings, for that matter) and optimize the experience for those who attend.

For 12+ years I’ve taught business plan writing courses and other business-themed workshops at an incubator that for 26 years has provided coaching and other assistance to aspiring and current female entrepreneurs. It was easy to see that if I wanted to continue working with the organization, I had to master the subtle differences between in-person and remote instruction and communication dynamics.

In January the incubator, which operates 5 locations in 4 New England states, offered the rare opportunity of providing teacher training (at no charge to affiliated instructors). Last week, I completed the second installment of a 3-part (total 9 hours) remote workshop that’s teaching my colleagues and I the rationale for and fundamentals of an innovative business model canvasing technique that borrows from the lean start-up method. In the third session, we’ll learn how to present the business modeling method in our classes.

How can you find upskilling education that will be useful and reasonably affordable, as well as convenient? Once again, I’ll recommend the usually well-designed and presented professional development programs and resources available at chambers of commerce and other business or professional associations. Explore community colleges as well; they’ll mostly offer semester long courses but many now also offer day-long and half-day workshops that appeal to business owners and leaders. The available courses seem to have become more sophisticated and varied over the years, apparently in response to demand.

Visit websites and join mailing lists to receive advance notice of what might benefit you. Also, pay attention to thought leaders and analysts by listening to business-themed podcasts every once in a while, and reading the business section of your local newspaper. Do a search to locate articles and even studies that address your industry and customer groups and please, keep reading my posts. I’m here for you.

Thanks for reading,

Kim

Image: John Houseman (1902-1988) as the redoubtable law professor Charles W. Kingsfield in The Paper Chase (1973, directed by James Bridges), for which he won the 1974 Academy Award for Best Supporting Actor. Houseman reprised the role in the television series that was inspired by the film and broadcast 1978-1979 on CBS-TV and then on Showtime 1983-1986.

Administrative , , , Leave a comment

Talking Tax Year 2021

by

The new year is just one month old and it’s already time to think about filing taxes. Ugh! Then again business owners, including Freelance consultants, must usually file quarterly taxes so we often have our minds on the subject. As we know, planning is key (for all of life and business!) and the purpose of this post is to support your tax planning.

Let’s start with the question of whether or not you’ll file a 2021 tax return. If any one client paid you at least $400 in total during the year, you must file a tax return. Why is $400 the filing trigger point and not $600, the well-known earnings threshold for paying income tax?Because Freelancers are required to pay self-employment taxes in addition to regular income tax on the revenue you generate (minus business expenses and a few other deductions). While you may not owe income tax on the $500 project you billed, you’ll pay self-employment taxes on that amount.

The Internal Revenue Service compels Freelancers to file taxes like a business owner. In addition to the standard income tax based on your tax bracket and filing status, you are obliged to pay the self-employment tax of 15.3%, which constitutes the Social Security and Medicare taxes that everyone who works must pay, and also pay the half that’s covered by a traditional employer (this requirement does not apply to Freelancers who have U. S. clients but are not U.S. citizens and do not reside in the U.S.).

Clients pay to you the entire amount of the agreed-upon project fee and do not withhold taxes. Total earnings received from each client are reported on a Form 1099-NEC that is sent to you by each client no later than January 31. Freelancers pay the self-employment tax directly to the IRS, on your own.

Now you probably have business expenses to factor into your revenue earned, so if you’re a part-time, occasional Freelance moonlighter, you might not owe either income or self-employment taxes. File Schedule C or Schedule C-EZ to calculate and report business expenses to your state’s Department of Revenue and the IRS.

Freelancers and other business owners who expect to owe $1000 in taxes in a given year must also pay an estimated quarterly tax because, again, no portion of Freelance income is withheld by clients and applied to taxes that are presumably due. IRS Form 1040-ES will help you calculate how much you’ll owe in estimated taxes each quarter. It’s beneficial to you when your estimated quarterly tax is close to reality because if you underpay, you’ll owe the IRS the remaining balance when you file the annual tax return (by April 15). Habitual underpayment of quarterly taxes can cause you to be penalized and compelled to pay a fine, along with taxes owed.

Finally, heads up if you use services such as PayPal or Square to accept invoice or other client payments. Be advised that new tax reporting changes affecting these platforms are now in effect. A new tax ruling gives the IRS information on income that Freelancers and other small businesses proprietors receive via transactions on payment applications.

As of January 1, 2022, businesses that receive payment of $600 or more per year for goods and services purchased through payment apps such as Venmo, Square, PayPal and Cash App will receive Form 1099-K so that the IRS can be assured that you will include those payments in your taxable revenue. In an effort to reduce the amount of unreported taxable income flowing through these payment platforms, the IRS now requires payment app businesses to report on Form 1099-K each of their user’s business transactions (defined as a payment for a good or service). The threshold for reporting was previously 200 transactions per year amounting to a combined total gross payments of at least $20,000.

By lowering the reporting threshold, peer-to-peer payment applications must now report income if a user earns more than $600 from the sale of goods or services in one year. This change applies only to “income received from goods and services,” meaning it does not apply to gifts and other personal transactions, such as reimbursing friends and relatives for rent, dinner, or other social expenses.

If you use payment apps for non-business transactions and you receive a 1099–K. from one of these platforms, examine it carefully and be prepared to clarify your activities with the IRS. There may be a chance that some of your transactions will be reported twice or somehow inaccurately, since these reporting requirements are new. Check carefully the 1099–Ks you receive from your payment apps as well as the statements you receive from clients who use the apps to pay you. Again, be prepared to explain to the IRS that the two 1099-Ks are for the same transaction.

Let’s finish up with a peek at important 2022 tax filing dates to remember:

· January 31, 2022 – Deadline for clients to send Form 1099–NEC to Freelance consultants

· March 15, 2022 – Deadline for partnership tax returns (and LLCs taxed as a partnership) and S-corporation tax returns

· April 18, 2022 – Deadline for 2022 Q1 estimated tax payments. It’s also the deadline for C-corporation, sole proprietor (businesses you report on a schedule C) and individual tax returns. If you file an extension for the deadline, the Individual Tax Return Extension Form is due on April 18.

· June 15, 2022 – Deadline for 2022 Q2 estimated tax payments

· September 15, 2022 – Deadline for 2022 Q3 estimated tax payments

· October 17, 2022 – Deadline for 2021 individual tax returns that received a filing extension

. January 15, 2023 – Deadline for 2022 Q4 estimated tax payments

Thanks for reading,

Kim

Image: Mohamed El Korchi as Matthew, a tax collector who, after a monumental pivot and rebrand, would go on to become a saint, in the Lumo Project, an educational resource designed for anyone interested in the Bible’s four books of the Gospel.

Sales , , , Leave a comment

B2B Selling: Virtual or Face2Face?

by

Hand-wringing regularly ensues when business owners and their sales teams discuss the subject of B2B selling in the pandemic era of the digital age. Gaining access to prospective customers, especially, has never been more challenging. Work From Home has sharply limited personal contact between buyers and sellers and impeded the development of a mutually beneficial relationship that the standard face2face sales call enables.

I spent about a dozen years selling at a Fortune 100 company and built a 7-figure sales territory by driving around to meet customers and prospects face2face, developing and nurturing relationships and creating business. There’s lots of evidence to prove that the ideal sales call takes place In Real Time. However, there are exceptions. Much depends on the product or service being sold as well as the industry tradition.

Office-based sales reps at one time earned a nice living by using the telephone, the original virtual communication tool, to sell ad placements for magazines and newspapers. Sellers and buyers often developed cozy relationships that over time led to regularly appearing ads and excellent life time customer value for many accounts.

Telephone sales of ad placements in print and online publications continues, but customer lists and revenues have withered. Advertising on social media platforms, especially Facebook and LinkedIn, plus Google, Bing and Yahoo are robust and growing. With the exception of Google, which employs telemarketers to call prospects, email appeals and pop-up ads on the sites are the sales strategies. Other than a record of prior sales, customer knowledge and relationship development have been shunted aside. No one is complaining, so the practice continues.

Despite the new normal sales landscape, every business will eventually need B2B products or services of some sort. The traditional role of the sales professional—sharing anecdotal user experience data, recommending solutions that could potentially deliver the desired result, earning trust and building relationships—-is even more valuable in our prolonged state of uncertainty. The customer and the type of product or service being sold will guide you to the most effective sales approach, face2face or virtual, if you have the luxury of making a choice.

When face2face is best

New customer acquisition is more difficult in the virtual realm, whether telephone or videoconferencing. Many subtleties of voice, body language, or facial expression could be unnoticed by the seller or go unexpressed by the buyer in a medium that some consider to be unnatural or inscrutable.

Whenever possible, arrange a face2face sales meeting with prospects. You want to enable good communication so that the prospective customer will be relaxed enough to tell his/her story—- the problem or goal, the purpose, the deadline, the budget and the decision-maker.

You don’t want clunky technology inadvertently putting up a barrier. There’s just no substitute for the reassuring presence of a friendly, efficient and knowledgeable sales professional to encourage the customer’s confidence and trust in your organization and its products and services.

Especially in complex sales situations, virtual connections alone can’t match the ability of a sales professional on the scene, to draw out of the prospect the kind of full disclosure that puts all the cards on the table and allows for the best solution to be proposed.

When phone calls work


Cross-selling, up-selling, add-ons and renewals can usually be successfully achieved by way of a digital medium, including the phone. Many are weary of videoconferencing and will be relieved to work things out on the telephone.

The WFH environment presents a credible excuse to call customers to initiate a check-in to verify that they’re fully realizing the purpose and value of the solution that’s been purchased. The phone call can also open the door to a cross-selling/ up-selling pitch. Phone follow-up is especially useful when products or services are bought as a subscription (e.g., SaaS) or consumption-based (e.g., cloud services).

Usage by customers is the key to repeat business (and sales revenue growth) and usage is ruled by value. Technology companies have customer success managers who work mostly by phone and videoconferencing to help existing customers maximize the ongoing benefits of their purchase.

Leverage the virtual advantage

B2B sales execs are learning that effective virtual selling requires more than just shifting their usual face2face script to a videoconference or phone call. It’s much easier to make a call than to take a plane and for that obvious reason, virtual meetings make sense for customers located in geographies not easy to reach.

But the real power of virtual selling is realized by leveraging its unique advantages. Consider this—both buyers and sellers can easily pull into a sales meeting key stakeholders and experts from multiple locations—corporate HQ, region office, or WFH. Meetings can be recorded. Participants can quickly look up or verify information and share it on the screen. AI-driven prompts can be activated(e.g., about the preferences of similar customers) to guide the discussion.

Find the balance

Tailoring your product or service talking points to customer needs has always been a cornerstone of successful selling. Now, successful selling also includes tailoring your communication modes (when possible), employing the right mix of face2face and virtual selling, supported with email marketing outreach and online customer self-service, as appropriate.

Making a sale has always required fine-tuning the sales process to match the purpose, experiences, priorities and expectations of buyers. The question is no longer whether online digital tools will overtake traditional selling methods. Now the question is, how can sales professionals best integrate digital technology with traditional sales techniques to create value and trust and generate sales?

Thanks for reading,

Kim

Image: In 2020, Los Angeles filmmaker Jesse Orrall showed how he one-upped a few virtual meetings by creating a pre-recorded image of himself to substitute for his actual presence at the meetings.

Marketing , , , , Leave a comment

Eyes On the Competition

by

As was noted in three or four recent posts, business data and other forms of business information, which may consist of the observations and predictions of researchers, journalists and other experts, have always been an essential resource for business owners and leaders. As we move through the 21st century, data-driven decision-making, enabled by powerful software programs and artificial intelligence, has become the hallmark of responsible business management.

Chief among the market research that every successful business owner or leader must do is assess the competitive landscape in his/her marketplace. Questions you’ll want to find answers to include:

  • Who sells products and services similar to your own?
  • Who are their customers?
  • What is the estimated size of their market?
  • Who dominates, how and why?
  • How do the marketplace leaders attract and retain customers?
  • What is their price range?
  • How successful are they?
  • Can you launch your venture alongside these competitors and achieve sustainable success?

Mapping your competitive landscape also includes identifying direct competitors, meaning companies whose services and products closely resemble your own and indirect competitors, that is, those whose products and services present an alternative choice within a similar price range that can be sold as a potentially satisfactory solution. Understanding the difference between direct and indirect competitors can be simplified by comparing the process to shopping for a Valentine’s Day gift.

The chocolate shops are all direct competitors, with price as a potential differentiator, because chocolates are more or less interchangeable. The same can be said for florists. But chocolate shops and florists are as well one another’s indirect competitors within a similar price range because for $50.00, you can buy either a nice bouquet or a nice box of chocolates.

Start your investigation with a key word search using terms commonly chosen to describe your company’s products and/ or services to see who appears and how they rank. Whoever makes it into the top 10 are the most successful of your competitors. You can also check out member lists at the business and professional groups you’ve joined (yet another reason why business associations are a good investment). Visit the websites of the top 4 or 5 competitors in your search, along with their social media pages and Yelp reviews.

Make note of speaking engagements made by the principals—-host organization and topic, along with company participation in local charity events and business awards and nominations received. If successful competitors have done any of those things, don’t be ashamed to follow with a me, too.

Popular products and services

Knowing what sort of products and services are best-sellers for your top competitors is tremendously useful intel and will enable you to make smarter decisions about building your solutions and making your prospect’s hot buttons blink.

So try to figure out what competitors sell the most, what sells the least for them and what’s somewhere in the middle. Keep the best sellers in mind as you design your services, perhaps adding a differentiating something extra to create more value in a way that’s affordable for you, or that you can sell at a premium.

Finally, watch for what gets revised and what gets dropped. Notice how products and services are described and positioned and, if possible, priced. Learn from competitors’ mistakes.

Leadgen strategies

Absolutely, spend time analyzing the website landing pages and social media accounts of your major competitors. You want to know how they keep their pipelines filled and how they persuade prospects to remain on the buyer’s journey. What informational goodies and special offers have they sprinkled into their TOFU, MOFU and BOFU ( top, middle and bottom of the funnel)?

You may find the inevitable free-for-the-price-of-your-email-address e-book or highlights of a keynote speech delivered at a popular conference. You’re looking for inspired, desirable content choices that you hadn’t thought of, so you can offer something similar as a way to engage prospects and stimulate lead creation.

Blog and newsletter content

Pay attention to topics that are most often covered and those that are infrequently discussed. Notice also if certain topics are spotlighted during particular months. Observe which types of posts are often shared on social media and note which platforms are most often used (and which ones used the least). Your objective is to help yourself plan a content marketing strategy that features topics of interest to prospective readers and simultaneously support the premise that you are a reliable source of good information and a capable professional.

If you’re feeling more curious, use a traffic analysis tool to search for the blog-related URLs in the Top Pages list. Analyze their unique page views and visits, conversions, traffic sources ⁠— make note of all the data that’s presented. Publishing a respected blog or newsletter could become an integral building block of your success. .

Selling points

What objectives emerge as the core purpose, the main problem-solving motivation, that your competitors speak to when communicating to prospects—on their website and social media platforms, in case studies, and testimonials and in their newsletters and blog posts? What do they aim to help their customers achieve when making the case to do business with them? What descriptive language is used? Also, what benefits do they emphasize to persuade prospects to reach out to them?

Moreover, what competencies do your competitors trumpet as a valuable resource that their clients prize and prospects desire? Is it a specialized academic degree, skills certifications, prior work experience and/ or prestigious client list?

Call-to-Action

What you want to know is how competitors sell their CTA. “Buy now” and “click here” are phrases you can think up on your own. The purpose of this research is to see examples of (presumably effective) CTA pitches, both the give-away info and what is said to create an appetite for it. The information offered should be something that prospects are likely to find useful, or somehow interesting and for some items they’ll be willing to surrender their email address to obtain it.

A free 30-minute phone conversation with you or a team member that will allow serious prospects to get insight and answers about how your products and services might help them achieve a goal or solve a problem should make a tempting offer. Click the link to learn more about effective CTAs (gotcha!):

https://freelancetheconsultantsdiary.wordpress.com/2021/04/06/a-call-to-action/

Thanks for reading,

Kim

Image: Krystle (L, Linda Evans) and Alexis (Joan Collins) were eternal rivals and fierce competitors on the prime time soap opera Dynasty (ABC-TV 1981-1989)

Marketing , , , Leave a comment

2022 Prediction: How You’ll Succeed in Business

by

If we’re honest with ourselves, we’ll acknowledge that the ground beneath us began to tremble at least two years before the coronavirus appeared and since its arrival, the instability has intensified. Unquestionably, the economic landscape has changed. As the global economy hungers for signs of a robust post-pandemic recovery in 2022, business owners and leaders have no choice but to adapt to the new reality in order to survive and thrive.

You are not in Kansas anymore. The assumptions and practices that were considered prudent even three years ago will fall flat today. Forward thinking business owners and leaders are taking a fresh look at every major aspect of their organization—sales, marketing, customers, operations, finance, HR / staffing and technology-—to reassess how each job function contributes to sustainable profitability, the brand and the values, vision and mission of the company.

Define the purpose of your products and services

We’re accustomed to communicating benefits—-use this or do that so your boss and colleagues will think you’re a genius and your company’s customers will be happy that their needs are being met. But defining purpose is subtly different.

To figure out purpose, you’ll need to understand the pain point, goal, or challenge that compels prospects to search your website and look for information they hope can move them forward. If you want to provide the information they’re looking for—-and you’d better!—-you must know what prospects have in mind, basically know what they need to resolve, when they reach out to your organization.

Define your customer segments

Regardless of the product or service based solutions that your company provides, there will nevertheless be differences among those who buy from you based on factors such as motivation, budget, maybe age or gender, maybe also geography or education level. The more you can discern those differences, the more successful you’ll be in bringing business to your door, both new customers and those you’ve retained.

Expectations and the journey

Marketing research experts agree that customers have high expectations these days; they’re quite used to getting what they want, the way they want it and when they want it. Maybe the expectations started with next-day deliveries? Whatever, it’s a thing now and you have to keep up. Your only option is to make each customer touch point with your company seamless, that is, easy, fast, meaningful and pleasant. You’ll only achieve that nirvana by:

1.) accurately communicating the purpose(s) of your products and services

2.) knowing the motivations and other defining characteristics of the various customer segments

The customer journey that your company presents requires intentional creation. So much is at stake, and first impressions matter. The information and call-to-action you devise to showcase its presence influences the prospect’s decision to further engage (or not), depending on its perceived relevance to the problem or goal the prospect wants to address.

Info that supports the purpose and efficacy of your products and/or services will be contained in a white paper, case studies, archived newsletters or blog posts, customer testimonials and your website’s “About us” page. Does the information that you make available effectively support the purpose of your products and services? If it doesn’t, rewrite or replace.

The Yellow Brick Road known as your customer journey must be seeded with a series of positive and relevant encounters with information that demonstrates your expertise and builds trust. Trot out the info equivalent of the Mayor of Munchkin Land, the Wizard of Oz and Glinda, the Good Witch to persuade prospects to do business with you.

Digital support

The very thought of incorporating digital tools can be intimidating but you can start small, so long as you start. Don’t imagine you must immediately dive into the digital deep end. You’ve been clicking on chat bots for 5 years, so why not put that AI-powered tool to work on your website?

Do that and visitors to your site will be favorably impressed with the sophistication of your company, which is a confidence-booster, and if you know your customers well enough to program in answers to the 6-7 questions they’ll most likely have, you will contribute positively to the customer journey. Other AI/ digital tools can take the form of marketing analytics that you sign up to access. As noted in a December 2021 post, Micrsoft Excel or Power BI, Python, Jupyter and Apache Spark are among the most highly rated data analytics tools.

Thanks for reading,

Kim

Image: Dorothy and Toto, the Lion, the Tin Man and the Scare Crow take the Yellow Brick Road into the Emerald City in The Wizard of Oz (Metro-Goldwyn-Mayer, 1939)