The Recession-Proof Experts
Good news for 2008. Budgets are up for outside experts in all the obvious places: conferences and conventions, training and development, and of course coaching and consulting. Due to economic fears, though, prices are under a microscope. When times get tough, buyers take one of two paths: either the "good enough" option or the "insurance policy" avenue. Experts who appeal to both get the best of both worlds.

What the "good enough" buyers want
Conferences still need speakers for their meetings. Organizations still need consulting and training. But some buyers just can't invest enough to get what they really need. Their thinking: I really would love to get AAA but I think BBB will be good enough for this year. BBB will get me started in the right direction so I can afford (when the budget comes back) AAA later. This is how the "good enough" buyers are born.

Too many experts have too few options for prospects who want to work with them but can't pay for high-end options. Result: the buyers do nothing or go somewhere else, promising to "come back later" when the budget is better. And that's a promise that is rarely kept. In a tough economy, loving the one you're with can fill in the gaps on those slow months.

So your next best step: include options that are seen as "less than, but will work for me." When you lower the risk, more people can work with you. As my grandmother used to say, "A little here, a little there...pretty soon, it's real money.".”

What the high-end buyers look for
When the party has started, it's easy to take risks. High-end buyers like to be "cutting-edge" and try new experts with good ideas. What they really want in a tough economy: a safe bet. Insiders call this the "insurance policy." Their thinking: I'm pooling several budgets together because this expert is already known. I don't have to spend a lot of political capital to sell him/her and I know I'll look like a hero afterwards.

The worst mistake experts can make here: to ease up on branding and other prominence-building activities. These buyers need to "drink the Kool-Aid" before committing big bucks. Savvy experts will use the "good enough" revenue to invest in their prominence that drives sales from the high-end buyers.

So your next big step: gear up and unleash the brand-building machine. It's not enough to be everywhere - thanks to the Internet, good ideas are a dime a dozen. It's time to get clear and get strategic. Be confident in what you're worth and hold your price on big-ticket options. Again, they can choose other revenue streams if they don't want to invest right now.

A tough economy raises the bar for everyone. Bring out the one-two punch - prominent safe bet for the high-fee buyers and lower-cost alternatives for the good enough prospects - and you'll never know the recession ever happened.

Options: Defining value differences

Another Catch 22 of a tough economy: how do you position lesser-price options without diluting your brand? The last thing high-end buyers want is to pay more for what someone else is getting for less. At the same time, the "good enough" folks want to feel that they are getting a "deal." The key is how you describe the differences between the options. Two great tools: boundaries and benchmarks.

Boundaries manage expectations

Boundaries are borders. They show the edge where one option ends and another begins. Comparing what you get and what you don't creates a clear mental picture of expectations. It also prevents any misunderstandings. If there's a difference in expectations, both parties can refer back to the boundaries.

Examples: one-on-one attention vs group offerings. Keynote speaking vs an all-day training session. No customizing vs full analysis. Ongoing support vs no access.

Best tactic: go to the dark side. Show the limits up front. Let the good enough buyers know what they are missing. The omitted areas outline why the price is lower. It answers the unspoken question, "why am I getting this prominent expert for less?" The delineation also maps out the next step. The high-end buyers also need to know the "extra stuff" they are getting. Showing the VIP treatment offers concrete reasons why their options are higher priced.

Benchmarks create clarity

Benchmarks are points of reference. They create the mental equation, "if my situation is AAA then BBB is the best option for me." These standards allow people to see "where they are" and therefore, what they need. Buyers can decide which option is best, based on their situation. Boundaries outline what is offered; benchmarks outline who is the ideal candidate.

Examples: new to the industry/profession vs advanced. Do it yourself-ers vs do it for me. See my equations here and here.

Best tactic: spell out the equation. Be specific. Again, don't be afraid to go to the dark side. It's OK to outline what options won't work for whom. People get to make the choice; you dodge the unpleasant "you're not a good fit for this" conversation. Everybody wins....

Boundaries and benchmarks create clarity in the chaos of many options. And the clearer the prospect is on what you offer, the stronger your brand.

Fasten your seat belt for a bumpy ride
The most interesting thing about the marketplace right now: the paradox of investment. Budgets are rising, the money is flowing and…buyers are holding back. What they are looking for: experts who have their act together and offer something they just have to have. What the market is really saying: you first. You invest in your brand, your business, you offer us something real and then we’ll invest in you. This is a test folks – to see who’s real and who isn’t. Who’s willing to bet on their business and who is just talking big. Let the games begin….

A dose of my own medicine
For those of you I have pushed into new things, you'll be glad to know that I had a dose of my own medicine last month. Step Up 2008 was the first retreat or summit I ever held. I'm pleased to report that the results went beyond everyone's expectations. One participant called two weeks later to report that she's now working on a SEVEN FIGURE DEAL with the ideas we generated. My biggest lesson: when you step up to face the unknown, magic happens. Click here to get the results. And yep, I'll do this again sometime in 2008. Stay tuned...

Does this mean I'm an adult now?
On February 1st, I started Sullivan Speaker Services. Twenty-one years ago. (Guess this means I'm "legal" now.) Seriously, I am overwhelmed with gratitude every time I think of every single person who has crossed my path. I have learned so much from all of you. I hope our connection has helped you too. Let's go for another 21 years!!

A:  The real issue is ignorance: these folks are reaching out because they need help and are, either 1) under a deadline or direct order to get some quick answers or 2) don't know how to work with you. Your response is a balance between a polite refusal for unpaid work and the exploration of possibilities to get paid.

Don't say things such as, "Hey I get paid for this," or "This is how I earn my living." These statements make the other person wrong and shut down any further discussion. Instead, adopt a "no inquiry left behind" approach. First, talk shop. Empathize with their situation and show how they are not alone. Then, give just a couple of "lessons learned" from your experience. Not your entire plan - just some insights to focus their thinking. Finally, give a couple of options to work with you further. They leave with something valuable and you leave with an advocate that might help down the road. No one leaves empty-handed.

" I was recently approached by a potential sponsor who heard me speak ...they were in a position to offer me quite a bit of money but the two of us could not hammer out a plan that would make sense. So I talked with Vickie afterwards and BOOM! She had the plan just like that! She knew exactly what to do...I'm meeting with the CEO to get that plan launched for next year."

Seth Kahan
Author, Building Beehives: A Handbook for Creating Communities that Generate Return

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