New business is the lifeblood of any agency. Although it’s important to retain existing clients, if an agency doesn’t look for new prospects it’s going to be in trouble. Steve Anderson explains how the Internet has simplified life for agency marketers by providing an easier way to identify just the right prospect and help develop good prospect lists.
Let’s say you want to sell that new policy for welding distributors that one of your companies has developed and you need to identify prospects. Someone somewhere has created precisely the sort of business information database you need, and the owner of this database is willing to sell you the names of all the welding supply distributors in your area. There are any number of lists and databases (the latter is basically a “gussied up” version of the former) available in almost numbing variety and detail — and usually at a reasonable cost. There are lists of almost every conceivable description, affiliation, and category. All you have to do is figure out where to find them.
For business databases, there are basically three sources of prospects: List compilers, list managers, and governments (state, local, and federal).
List compilers, such as Dun & Bradstreet and R.H. Donnelley, essentially cull every business in the nation from a variety of sources (such as telephone directories and yellow pages) and then try to verify and expand this information from at least one other source. That’s a lot of compiling because, depending on how you count them, there are more than 10 million businesses in the U.S.
List managers sell names gathered from magazines, newsletters, and other sources that have customer lists. These are called “responsive lists” because each person on the list has responded to an offer in some way. Because these lists are usually highly targeted, they cost more than a simple compiled list. The extra cost is usually worth it because you know that the people on the list fit the profile of the type of prospect you want.
The final source is federal, state, and local governments. These lists are generally free, or next to free, and can be highly targeted to a specific business. The main problem is that they’re hard to locate.
PUTTING LISTS TO WORK
A number of years ago we developed a marketing plan for an Emergency Medical Service (Ambulances) Program for the State of Texas. When we began looking for prospect names, we called the state government offices in Austin. They directed us to the Texas Department of Health. After talking with several people, we learned that the department had a list of every licensed EMS provider in the state. We purchased the entire list of 1,300 names for only $27.50. We narrowed the list down to the 350 prime prospects and used them as the basis for a highly successful marketing program. Because the list was not in an electronic format, the only other cost was the expense of entering the names in the database.
Another source for prospect information is the Securities and Exchange Commission’s EDGAR database (www.sec.gov). Every public corporation is required to file a report, known as a 10-K, with the SEC at least once a year. The EDGAR database contains every report filed since 1996. The 10-Ks provide extensive information about a company, including detailed financial data, descriptions of products and services, listings of executives and key staff, and a discussion of problems and issues the company faces. If your prospect is a public company, there’s no better source for information about it than a 10-K — and it’s all free.
Government agencies provide an excellent a source for lists of any prospect that’s licensed, or required to register, by the state. Although it sometimes takes an effort to identify which agency or department has the list you need, the results can be well worth it.
ONLINE LIST RESOURCES
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InfoUSA.com. This site offers access to both business and consumer lists. After completing the selection process, you’ll be given the price based on the number of prospects and the amount of data that you want to purchase.
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CorporateInformation.com. Even though this site looks intimidating, it’s a user friendly and powerful search tool for researching an individual business or an entire industry. The site is free and you don’t even have to register or set up an account to use it. Research a company, and you’ll be provided with numerous links to corporate profiles, news archives, financial information, and message boards dedicated to the business. Research an industry, and you’ll be led to industry profiles, news, and more. Research reports are available and you can target your research by state or by county.
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Dun & Bradstreet Small Business Solutions. Dun & Bradstreet offers an intriguing suite of tools and services to small business owners. Tracking folders allow you to follow existing customers, suppliers, competition, and prospects. The basic service, which includes up to 15 “tracked” companies, is free. Additional services, such as credit evaluations or demand letters, are fee-based, but quite reasonably priced. D&B will also compile a list of new, credit-screened prospects for you, by location or by industry, for less than $1 per record. The site also provides the results of the latest D&B Small Business Survey.
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Hoover’s Online. Hoover’s, a D&B company, is known for its in-depth coverage of companies and industries, accurate lists of key decision-makers, and powerful search and targeting tools. The information is compiled from thousands of sources, including proprietary databases, magazines, newspapers, and industry journals. The site covers more than 12 million global companies, both public and private, and more than 300 industries.
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LeadBot. This Web-based provider of Life insurance leads has developed a proprietary system that automates the collection, distribution, marketing, and storage of self-qualified prospects. The leads come from a network of consumer Web sites that deliver insurance information to the public. All prospects have reviewed insurance material and have requested a quote for coverage. LeadBot also has relationships with other large lead generation corporations to buy and sell leads.
CONCLUSION
The Internet has made it far easier and dramatically less expensive to find good, qualified prospects so that you can achieve your sales goals. Go for it!