It’s an important question.

I was reminded of this the other day when I happened to see an email that was sent to a potential bookkeeping client by an accountant.

The email left the potential client confused and overwhelmed. And this is also how it goes when I see fellow freelance bookkeepers attempting to offer their services to their potential clients too, whether in person or in writing.

The email was intended as a way to persuade the potential client into doing business with the accountant by illustrating the services he had to offer. In his lengthy message he ran through a technical list of all the customized functions he could perform for the client.

Whenever we do that, we often defeat our purpose and snag far fewer clients than we could, for several reasons:
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• We don’t realize we are using our own accounting jargon, which the vast majority of our clients don’t understand (Accounts Payable, General Ledger, Balance Sheet, Adjustments, etc.) They have no idea what we are talking about, and worse yet, it does not communicate ANY value to solve their problems
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• We tell them WHAT we can do laundry-list style, instead of demonstrating how we can truly BENEFIT their business. In an effort to show how experienced and knowledgeable we are, we often make what we do sound like a lot of work and complicated. Again, this defeats our purpose because it doesn’t communicate value to the potential client
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• We are oblivious to the true needs of our potential clients. Instead of asking questions and finding out what they really WANT, we tend to tell them all about us and what we do and what we think they need.
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Do you really know what you have to offer your clients? How is what you do for them different than what other freelance bookkeepers offer?

If you don’t know the answers to those questions, you will be treated as a commodity, just like any other bookkeeper they can find online.

Likely, more than a few of your potential clients will try to get your rates as low as possible, since your services provide nothing of particular benefit to them, at least none that you are communicating.

And that’s the crux of the problem. Do YOU know what unique VALUE and BENEFITS you are providing for your clients? It is impossible to offer value that your clients will be willing to pay for if you are not crystal clear about the value you provide them yourself.

In my own business history, I’ve found it extremely helpful to come up with a short “elevator speech” which is what you say to someone that you meet in person who asks you, “What do you do?” It is a short blurb you give to help show WHO your ideal client is and WHAT you do for them.

But I think we need to dig deeper and know what our core offer is that we are offering as individuals and as a business. In fact, here’s a great short video I saw by Jim Edwards (my own marketing mentor) that really boils it down to four main components. These help you enter the conversation that is going on inside your client’s head when they are considering hiring you to do their bookkeeping. It’s definitely worth watching.

“Your #1 Business Problem” (6 min video)

And according to Jim, you have to be able to communicate what you have to offer in only 3-5 SECONDS! Wow! But if you think about it, that’s what Federal Express has done, and it’s easy to remember. That’s very powerful.

“When it absolutely, positively has to be there overnight”

Companies sometimes come up with a slogan that communicates their true offer (and sometimes they don’t) So it got me thinking about what my own true “sweet offer” is. Hmm…

It really takes some thought to come up with just a few well-chosen words that “say it all” about what we have to truly offer our clients.

So, I’ve decided that it’s time to come up with a laser-targeted short phrase for my own business. Care to join me? What is the essence of the VALUE you provide your clients that you can express in 3-5 seconds?

We can do some brainstorming and then share ideas and compare notes. I’ll also do a follow-up post when I’ve come up with just the right “sweet offer” for my own business and share it with you.

It sure does seem that we can always improve how we communicate to our clients and our prospective clients. And being able to get absolutely clear on what VALUE we have to offer is probably one of the most important bits of communication we all really need to master.

What do you think? How do YOU communicate what value you provide your clients that sets yourself apart from all the other freelance bookkeepers in your area?

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That’s the question I’ve been asking.

Like me, I’m sure you’ve heard all the noise about the BIG claims of mega-success by businesses who are using Social Media to promote their businesses. But is it really just that – a lot of NOISE that doesn’t mean a hill of beans in the real world? Or is this an important trend that small business owners need to pay attention to for the sake of their bottom line?

Cut through the hype and find out what the real deal is with social media. Get straight answers from an expert who’s actually doing it and knows first hand whether it’s really just a big waste of time, or if you can truly use it to market your business profitably.

Join me, Gabrielle Fontaine, and my special guest, marketing expert and social media guru, Ely Delaney as we cut through the hype and finally learn…

* How to use social media to build relationships with prospects, customer and referral sources

* How social media is changing the way we do business

* How to easily get up and running on the three biggest and most strategic social media networks

* How to attract quality “friends” and “followers” without getting caught up in the numbers game

* What free automation tools you can use to maximize your reach and save time in the process

* How to avoid getting sucked in to wasting a ton of time keeping up with your social posting

* What NOT to do so you don’t make enemies, or worse, get banned from the social networking sites

* How networking online is not the same as in-person networking

Find out for yourself why such respected business authorities as Inc. Magazine are now saying that Social Media really is worth your time.

Isn’t it time you found out how to put it to work for YOUR business? Now you can, right after you attend this cut-to-the-chase, FREE, get-action webinar.

Join us Thursday, July 8 at 8:00 PM Eastern Time for this LIVE webinar training.

“Social Media” Online Business Networking Basics”

Grab your seat as our free guest right here:

=> Register Here

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An often overlooked way to get your phone ringing with calls from prospective new clients is by making sure you are where they are looking when they need help.

One of the first places people look for help is on the web, using search engines. The most popular ones are Google, Yahoo, and Bing (formerly MSN).

When someone searches for bookkeeping help in your local area, can they find you easily in the search engines? Do you Google yourself from time to time and know what prospective clients see?

A Chance To Be Found More Quickly

I just learned about a special program that Intuit Proline is running, especially focused at QuickBooks ProAdvisors, but even if you are not part of the program, there’s an important tip here for you.

Here’s the scoop.

From now until the end of June, there is a special for all QuickBooks ProAdvisors wherein you can not only connect your ProAdvisor profile (if you’re certified) to a listing in Intuit’s Business Directory, but you can also get their WebListing service for 90 days and then a discounted rate thereafter (only $9.99/mo.)

The listing service helps you with your local listings so that you will come up on the first page when people are searching for QuickBooks services, and it ties to your own website as well as your ProAdvisor profile. So you can really give a lot more good, enticing information to pull in new clients 24 hours a day, 7 days a week.

This price is far more effective than paying for a Yellow Pages ad, and it is optimized for your local area!

I’ve signed up for it myself just a few days ago, and I’m already listed #1 in my city (which is a very BIG metropolitan area). Amazing.

If you are a ProAdvisor, you can find the offer after logging into your account, it’s near the bottom of the page.

If you’re not part of the ProAdvisor Program, but have been thinking about it, this would be a good time to join! Here’s why:

You’ll not only be able to get in on this deal, but you can still get certified in QuickBooks 2009 until the end of June, as well as get certified in 2010, and 2011 will be coming out in the Fall. That will qualify you to go for your Advanced Certification.

Talk about the fast track!

And of course, you’ll get the 2010 software now, and the 2011 software when it comes out too. You can’t beat getting all that for a single annual membership. This is the best time of year to join!

Finally, if you’re not quite ready for the ProAdvisor program, and you’re just getting started in your freelance bookkeeping business, you can still get a completely free business profile listing (though it won’t get fed out to all the major search engines, at least not as quickly), but there is still a lot of traffic on the Intuit sites. So you will still get targeted exposure to those who may need your help.

So my best advice is to take advantage of ALL the free profile listings you can on the web (and there are a lot of them!), including this one at the Intuit Business Directory.

You want people in your area to be able to find you in as many places as possible. Even if you don’t have a website yet, you can link your profile to your LinkedIn profile or your Facebook business page.

So those are just some quick tips I thought you could use and get in on while the getting is still good. This is a great way to make your marketing dollars work overtime for your business this summer.

And just in case you’re wondering, no, I’m not an affiliate of the Intuit WebListing service or the ProAdvisor Program and don’t get anything but the satisfaction of knowing that I’m helping you fill your business with great clients!

There really are plenty of clients to go around!

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Recently an article was published in one of our industry organization’s newsletters that took me a bit by surprise. They claim to “raise your professional status as a bookkeeper by making sure you are up to date.” They touted that, “We also give freelancing bookkeeping tips, such as how to market and charge for freelance bookkeeping – and how to start your own freelance practice.”

Sounds good, right?

Well, you be the judge. They went on to hold up as a model freelancer one of their members who had started her own freelance bookkeeping business. Here’s how she did it.

She left her employer, but started doing their bookkeeping on the side at $500 per month while she pursued another full-time job. Then she took on another part-time job at night so she could save up some money to start her bookkeeping business full time.

She then created a flyer that simply stated the type of bookkeeping work she could do and sent it out to 20 local CPA firms, which she found in the Yellow Pages. She got one response and was interviewed. Thereafter she got a couple referrals. She stated, “That’s all it took…after that, it was all referrals and word of mouth.”

Her business grew and she went on to hire two “freelance workers”  and took on commercial office space. Her “freelancers” tended the office while she served her clients at their locations “sometimes because of the tasks (e.g. filling out payroll forms), sometimes because of the software (Peachtree and MAS 90), but mostly because she sees it as essential to good service. ‘If I owned a business, I would not want to wait to see my updated books until my bookkeeper delivered them,’ she says.”

She ultimately converted her freelancers into legal employees, paying them the same hourly rate as before, but with the added employment taxes and expenses. She acknowledged that “new IRS scrutiny of ICs who may qualify as employees was also a factor.”

The case study ended with the member stating how her business had caused her to become a different person because her clients’ depended on her so much that it had given her life new meaning.

While there are certainly some good lessons in this case study for new freelancers, does this strike you as an “up to date” example of how to start and run a successful freelance bookkeeping business?

Let’s take a closer look at the lessons that can be gleaned here. I’ll also make some suggestions for improvement. If you are just starting out (or need to update how you are growing and running your business) I can assure you that you can definitely work smarter and avoid some of the dangerous pitfalls you’d hit by modeling this case study too closely.

Good Lessons

She started her business part-time while still bringing in a steady income. Getting your business off the ground is a gradual process.

Getting your first client(s) from those who already know you. It’s the best place to start your marketing!

Marketed her services to local CPAs. They can be a good source of referrals, but they should certainly not be your only form of marketing! Most new bookkeepers will not be so lucky.

Updates for Service

She worked at her clients’ offices. There is still a market for this type of service, but it is the least profitable. Seek to work online for your clients wherever possible. Use web-based bookkeeping solutions (such as QuickBooks Online Edition), a hosted solution (such as RightNetworks.com), or at least a QuickBooks Accountant’s Copy and/or file transfer services for near immediate delivery. You will be able to serve many more clients in a day and it will be much more convenient for everyone involved.

The most popular bookkeeping software for small business now is definitely QuickBooks. Peachtree users are a dying breed, and MAS 90 is all but defunked. QuickBooks holds 95% (or more) of the market share for small businesses who use bookkeeping software. Join the QuickBooks ProAdvisor Program to stay up to date and get certification.

Pitfalls

DO NOT hire freelancers if you need employees. The IRS is very clear on this and it is not “new” for the IRS to scrutinize “ICs who may qualify as employees.”

If you do not want to hire employees but consistently have more work than you can handle, raise your rates and refer your overflow to colleagues. My sense is that our “model” freelancer was not charging enough for her services right out of the gate. Don’t make that same mistake.

And by the way, her freelancers were being underpaid too. She was paying them the same hourly rate as employees as she was when they were ICs! You should not be paid the same rate as an employee.

My conclusions: Start your business where you are, but make sure you do so professionally. Educate yourself about advancements in technology to keep your skills up to date and running your business most efficiently. If you’re serious about creating a business (not just another job for yourself), hire employees if you need to, but have a consistent marketing plan and charge professional rates.

What advice could you share with those just starting out as new freelance bookkeepers?

In last month’s post, I made reference to the importance of having a concise statement that communicates exactly what you have to offer prospective new clients and referral partners, especially in a networking situation.

That got me thinking.

As freelance bookkeepers, knowing how to network (both online and offline) is probably THE most important marketing skill we can develop. After all, bookkeepers generally get the vast majority of new clients through word of mouth, not from paid ads.

Networking is an extremely low-cost way to get a steady stream of new clients coming in. Even when you are fully booked, having more prospects coming in than you can serve helps build the confidence needed to raise your rates and/or make referrals to colleagues to build stronger strategic alliances. You should never stop networking.

But here’s the reason so many freelance bookkeepers have a real struggle finding enough clients on a consistent basis, even when they do make an effort to participate in networking events on a regular basis.

The Single Biggest Mistake Nearly Everyone Makes

In a word: Follow-up

Word-of-mouth marketing is built on relationships. To build relationships, you need to follow up with the people you meet! Hardly anyone bothers to do that. What about you?

Have you ever attended a conference with colleagues, or a Chamber of Commerce event, only to come home with a fist full of business cards and good intentions? What usually happens though?

That little pile of cards just ends up in your desk drawer, doesn’t it? When you eventually look at it again, you see the names and wonder, “Who the heck is this?” (Yeah, I’ve been guilty of that too.)

Even if you do follow up, are you doing it just once, and then dropping the ball after a little more time passes by?

Networking Done Right

The best real world networking expert I know, Ely Delaney of My Business Marketing Mentor, recently explained to me how the flow of networking should work, to result in a stream of new prospects and referrals.

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When you network consistently and correctly, your number of referrals and new customers should grow exponentially over time. And by building a simple personal networking system, it can be an easy process that will create a new problem – being booked solid all the time. (Wouldn’t you like to have that problem?)

Here’s the simple system I’ve been using in my own business:

Before a networking opportunity

Set a clear goal for how many new contacts you want to make at that event.

I will usually only give myself the goal of 3-5 new contacts, since I am focusing more on quality than quantity. While traveling to the networking event or conference, I think about the type of people I might meet there, and what I may be able to offer them for free to build a win-win connection.

During a networking event

Keep your Ideal Client and Benefits statement clearly in mind (as mentioned in last month’s post).

Here’s exactly what I do to make new connections:

1.  Get to know the people I sit next to during the event. This takes a little pressure off, since I’m not super gregarious in a crowd. I ask “tell me about yourself” type questions so I can learn about the person and their business. I’m looking for common ground and ways to build a friendship.

2.  Discern whether they would make a good referral partner, or if they themselves may benefit from my QuickBooks services. This will usually become evident during the conversation.

3.  Conclude the conversation with either an exchange of contact information and agreement to follow-up, or bid a pleasant farewell if we are not compatible and I do not wish to add that person to my networking contacts.

Immediately after a networking event

Start the follow-up process.

I send out an email to thank my new contact for the conversation and recap any key points we discussed. If I promised to provide additional helpful information, I include it with the email or mention that I’ll be dropping it in the mail to them right away.

I end the follow-up communication with the next step to be taken (either by my new contact or by me).

I then set up a task in Outlook to remind me to follow-up (even if the other person is the one who is supposed to take the next action) and stay in touch.

My system is not perfect, and admittedly, sometimes I’m not as diligent as I should be with following up. In fact, I recently found out that there are some easy ways I can substantially improve my system and even automate it. Ely Delaney will be doing a special webinar on this topic this Thursday called, “The Ultimate Prospect Follow-Up System” that lays it all out. Since it’s limited, I’m getting in on this class now! (If you want to improve your follow-up system too, see the link in the Resources section below.)

The results from steadily building and nurturing your networking contacts can bring you amazing new customers and friendships. (I know this from personal networking experience.) In turn, you will create a stream of new customers and referral partners on which to solidly grow your business for many years to come.

So what are you going to do this week to improve your networking system?

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Resources:

“The Ultimate Prospect Follow-Up System” online training by Ely Delaney of My Business Marketing Mentor

“Fearless Networking” – simple, no-fluff book that lays out a solid and do-able networking system for new business owners or the shy and not-so-aggressive self-promoter

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Please note, some of the links in this post are affiliate links

Even though you may consider yourself a freelance bookkeeper by profession, marketing must be one of your top priorities as a business owner. That’s because building your business is not something you do once and you’re done. It’s not static. Your business is constantly in the process of either growing or dying.

That’s why it’s important that we keep an eye on our marketing efforts, even in busy times, so business is always moving in the right direction – growing and attracting more clients.

To that end, I’ve become an avid student of marketing methods and even psychology. In truth though, like many freelance bookkeepers and QuickBooks consultants, I hate playing the role of sales person. But I do love to help people. So I’m always looking for great ways to market my business that focus on helping people, and having fun in the process.

That’s why I enjoy watching a weekly web TV show (something we will see more and more of this year, by the way) put on by Andrew Lock, an Internet marketer who likes to help all kinds of small businesses learn how to effectively use marketing strategies and tactics, both online and offline. His show is called, “Help! My Business Sucks!”

Catchy title, huh?

In a recent episode I found two golden nuggets that are especially important for attracting prospects to our kind of business.

1.  The importance of communicating clearly what you have to offer.

Our services are intangible and people often misunderstand what it is we actually do. This causes them to undervalue our services.

Our best solution is to educate our prospects. This can be done with your website, a brochure you provide about your business, or even in one-on-one conversations while networking.

Here’s the formula for effectively educating your prospects:

• Use a one-line statement to clearly communicate what you provide from a big picture standpoint.
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Include a specific benefit, wherever possible. For example:

“ABC Bookkeeping will bring your books up to date so you can manage your business profitably, and minimize your tax bill”
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• Give examples of all the problems you solve. This demonstrates the value of having a professional bookkeeper and helps them envision how your services benefit them personally.
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People think in terms of solutions (results) not in terms of tasks. So it is not necessary to list off the accounting functions you know how to do. This has little practical value to your clients. Don’t speak your language, speak theirs. They want to know whether you can solve their problems.

2.  Use a limit to helps people make a decision more quickly.

The video gave the example of how Disney does this with how they sell videos of their classic movies. They periodically offer them for only a limited time, and then pull the videos off the market. They do this to create urgency for buying.

This marketing method is known as “scarcity” and is a powerful tool for helping people to make decisions quickly. When someone says they want to “think about it” and make their decision later, 9 times out of 10, they will not buy. Procrastination kills sales.

The famous book among marketers, Influence: Science and Practice by Robert Cialdini, includes scarcity as one of the 7 most powerful factors when it comes to influencing people.

Unfortunately, it is commonly misused by manipulative marketers, and we are all pretty jaded because of it. But used sincerely and ethically, scarcity can nudge a prospective client in the right direction.

The two usual ways to create urgency are…

• limited time
• limited quantity

By adding some kind of special time or quantity limit to the services you offer, you encourage potential clients to make a decision more quickly and not procrastinate. And as we know with bookkeeping, clients just love to put if off. Of course, that only hurts their business! So giving them a nudge to engage your services is actually beneficial for them too.

Give a real reason for limiting your services, such as, “We can only accept five more clients until April 15th due to high demand for tax season deadlines” and you will automatically attract more business.

It’s a psychological thing. None of us wants to miss out on an important opportunity.

The caution here is to not use scarcity with negativity. Encourage action in a positive way so clients are benefited positively by working with you. Scarcity does not mean using scare tactics to bring in more sales.

There are several ways to use these golden nuggets in your bookkeeping business, with much success. In fact, in my brand new Cash Flow Mastery course, there is an entire lesson devoted to specifically putting these principles to work at pulling in more sales on demand.

Sadly, most bookkeeping services I’ve seen don’t pay much attention to their marketing efforts. That’s why they struggle. But you can make yourself stand far above your competition when you learn how to communicate clearly the benefits of your services. Show your clients why they need you now with a limited offer of some kind, and you will become irresistable.

Hmmm. The irresistable bookkeeper. Has a nice ring to it, don’t you think?

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Recommended Resources

Referenced episode of “Help! My Business Sucks” – Episode #91

Cash Flow Mastery – online training for cash-crunched entrepreneurs

Influence: Science and Practice by Robert Cialdini

No, I’m not talking about your future hopes and goals for your bookkeeping business. I’m talking about all the buzz surrounding what’s called “cloud computing,” and how it is affecting the way we work with our clients.

Technology is moving quickly, and since the vast majority of freelance bookkeepers perform their services using a computer (as opposed to manually with pencil and ledger paper), this is important to understand  and prepare for, because it’s coming fast. In fact, it’s already here!

What Is It?

In reality, you are probably already using cloud computing yourself, if not using it with your clients.

Here’s a simple definition: “The term cloud is used as a metaphor for the Internet…Typical cloud computing providers deliver common business applications online which are accessed from a web browser, while the software and data are stored on servers.”  (If you’re the techie type, you can read all the gory details on wikipedia.org)

In practical terms, this means software applications that are web-based are what’s known as a SaaS (software as a service) and/or virtualization. QuickBooks Online Edition is an example of a paid SaaS, and Gmail is an example of a free online application.

Here’s a 5-minute video that explains how cloud computing works.

How Does This Affect You?

We’re going to see more and more “cloud” software and services everywhere, and for good reason. More and more people are working together virtually, whether they are physically located across town, or across the globe.

Having anytime access to vital software applications is not only convenient, it is especially practical for business owners who do a lot of traveling. They can work on cloud-based software from any computer with Internet access. This is more productive and efficient. It is also a great way for you to work with your clients when keeping their books.

But it’s not without it’s downside too.

Cloud Resistance

When first introduced to the concept of using a bookkeeping program (such as QuickBooks) as an online service or on a hosted server in the clouds, most small business owners are initially afraid. They fear that their sensitive financial data is not safe and secure if it is residing “out there somewhere” on the Internet.

While care should be taken when choosing an application hosting service (when using QuickBooks desktop softare on a virtual server), generally speaking, hosted applications are far more secure than what our clients currently have in place on their own in-house computers.

Some clients are comfortable moving forward with new technology. Some will resist it for years to come.

What To Do About It

There are opportunities to be pursued, depending on how you want to position your business and the clients you want to serve. Cloud computing will continue to grow. Decide on how you will provide your bookkeeing services, and then pursue the clients who are in sync with your business goals.

Here are a couple choices:

1. Embrace the new technology and work virtually (or more virtually) with your clients.

If you’re not already working with clients on a virtual basis, but instead, are shlepping to their office to work on their computer to get the books done, you will find that you will become much more productive working from your own office. You save time and travel expenses, and you can serve more clients in a day or week than you can if you work on-site.

You may also be able to raise your rates, as you act as consultant and guide your clients on how to work more efficiently and conveniently by not only using QuickBooks (or other bookkeeping application) in a hosted environment, but also other key business applications if they have workers who are telecommuters or physically located elsewhere. You’ll be educating your clients on how taking advantage of cloud technology reduces costs and increases productivity in a convenient way. That’s a valuable service you can charge for.

(Can you guess which side of the cloud I’m on? )

2. Stick with the “old fashioned” way, and specialize in what is most comfortable for less tech-savvy clients.

There is a significant segment of the small business market (mostly small mom and pop type clients) that is rather leary of new technology and will not want to have their financial records anywhere else except “safely” in their own office.

By catering specifically to that type of client, you can build your business quite easily, since there will always be some who will prefer the lower tech option and the relationship-building face-to-face service provider.

Make Your Choice And Run With It

Providing bookkeeping services through the Internet is only going to expand and grow with time, as more and more small businesses will become dependent on the clouds to handle more and more operations.

You just need to decide how much you want to get involved and be ready to seize the opportunities that emerge either way. There are plenty of opportunities to go around. You just need to pick one and run with it.

So tell me, will YOU be taking your business to the clouds?

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Recommended Resources:

QuickBooks Online Edition – not as robust as the QuickBooks desktop software, but useful for virtual businesses that have multiple users who need real-time access from remote locations (including a bookkeeper).

Right Networks – secure and stable application hosting service QuickBooks and other “off the shelf” desktop software applications

The most effective way to market your freelance bookkeeping services is by building relationships. Word of mouth and referrals are what supply almost all bookkeeping and accounting businesses with their clients.

So how does one build the kind of relationships that grow a strong bookkeeping practice? There are many ways. Of course, face-to-face, as well as online networking are key. But the vast majority of would-be networking bookkeepers make a BIG mistake and are wasting their time.

They aren’t getting results because they fail to follow-up!

If you’re serious about building your freelance bookkeeping business in 2010, make sure you follow-up with the people you meet at business mixers and seminars, or meet through online discussions.

One of the most effective, convenient and economical way to follow up with all of your business relationships (prospects, clients and strategic alliances alike) is simply through email.

Big surprise, huh?

When it comes to following up with prospects and referral partners, in fact, email is almost expected. Depending on whom you’re networking with, many small businesses no longer even bother to list their mailing address on their business cards – only their email address and phone number. Electronic contact has become the norm.

Yet as easy as it is, I am amazed at how many times I’ve met people at seminars or networking situations where we really connect, yet I never hear from them again. Has that happened to you?

Of course, email works both ways. I find in my own case, I may have a fistful of business cards of folks I intend on staying in touch with after connecting in person, yet time can pass quickly, and then it feels a bit awkward to send an email. Will they even remember who I am?

That’s why now I make the goal of contacting new prospects and alliances within only a couple days of returning to the office. It becomes a priority on my daily list. I also keep the first email short and sweet.

Of course, it can be more of a challenge if there is nothing specific to talk about in the email other than, “Hey, it was great to meet you and let’s stay in touch.” It’s a bit easier if there’s a more specific purpose for the message. So I try to ask a question based on what we spoke about when we first met. The idea is to continue the conversation and have a reason to stay in touch.

And that’s the point. The true value of using email is to build a relationship. And relationships are what will keep referrals coming your way.

A Word of Caution

The temptation in email, especially on a business level, is to attempt to get immediate business and directly sell your services. Be careful with that. It can end the relationship in a hurry if your in-person encounter had more of a social tone and business discussions were indirect. Keep your messages on that same level as your initial contact until you know each other better.

On the other hand, if the people you meet showed an interest in learning more about your bookkeeping services specifically for their own business, then by all means, arrange a phone call or follow-up meeting to take the conversation to the next level. Use your discernment here as to how hard or soft to sell, just don’t lose site of your objective – to build a relationship first. If you do it right, the referrals will follow.

Another way I’ve seen people use email as a follow-up tool from networking events is to add everyone they’ve met to their email newsletter list. While this may seem like a good idea, be very careful with it!

If you send out regular sales messages or newsletters via email, unless the recipients specifically asked to be put on your emailing list, you may be breaking the law! The FTC provides guidance on how “The CAN-SPAM Act” applies to sending out commercial email messages. Even if you are a sole freelancer, these laws apply to you too.

A better procedure would be to follow-up personally one person at a time via email after a networking event. Let them know about your online newsletter and ask them if they’d like to receive your messages. Giving them a choice not only puts you in compliance with the law, it shows respect and further nurtures the relationship.

How to Use Email to Get the Best Results

While email is a communication tool that can be very effective in building your business, it takes time to see results.

One email will not bring you a flood of new clients. As in any type of relationship, communication must be maintained on a regular basis, otherwise the relationship will eventually die. So be sure to stay in touch with the best contacts you have on a consistent basis.

As mentioned in the book, “Successful Email Marketing Strategies,” email marketing is more like farming than hunting. You are not trying to capture new clients, but grow them from your consistent efforts over time. If you stick with it, you will reap a healthy network of contacts that will send you a crop of new clients almost automatically over time.

Next Steps

While sending personal email messages one at a time can be effective, as your network grows, it can also become very time consuming. That’s why I do recommend having your own email newsletter or other way to stay in touch with all or groups of your contacts all at once in an automated way.

I’ve seen many small businesses simply attempt to do this using Outlook or their email address book. This is not the best way to do it, and can ultimately become a nightmare. An email service is a better way to handle this chore easily, economically and legally.

But there is a lot more to effectively using automated email marketing to really ramp-up your business relationships. And there’s lots of questions about best practices in this area too, to save time and frustration with the technical side of it all.

That’s why I’m going to be attending a webinar being held live next week by Ely Delaney of My Business Marketing Mentor. I know Ely personally (we met at a business seminar!) and he is an excellent teacher and quite passionate about automating as much as possible…instead of doing everything manually. That’s my weakness, so I know he’ll have some great tips, tricks and techniques to share for getting more done with less.

If you’d like to join me in attending this training, I’ve added a link to the sign-up page in the Resources section below. But be warned, this is a small online class with only 50 slots available (I’m not sure how many are already taken). So I’ve already signed up because I know it will sell out fast. It’s happening next Tuesday, December 29th at 5:00 PM Eastern Time.

In any case, start using email as your primary follow-up tool to build your referral network, and you will create a solid foundation for growing your freelance bookkeeping practice for years to come.

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Please Note:  Some of the links in this post are affiliate links and I may be compensated for my recommendations. However, I will never recommend anything that I don’t personally believe in or use in my own business. Your questions and feedback are invited.

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Resources:

Automated Email Marketing Systems webinar (Tuesday, December 29 at 5:00PM-Eastern Time)

The Complete Guide to E-mail Marketing: How to Create Successful, Spam-free Campaigns to Reach Your Target Audience and Increase Sales – recommended reading

Aweber – the email list management service I use (and love)

On December 1, 2009, recent changes to the Federal Trade Commission Act affecting online marketing, blogging and advertising will go into effect. The expanded regulations affect every US-based individual and business that sells or recommends products and services on the Internet. So if you have a website for your freelance bookkeeping business (and you should) or post on social media, you need to know about this.

What’s it all about?

“The original FTC act ‘prohibits deceptive and unfair acts or practices in commerce and misleading advertising of drugs, foods, cosmetics, devices and services,’ and these prohibilitions apply online and offline,” explains Richard Cleland, Assistant Director of the FTC Advertising Practices Division in a recent online interview.

The new guidelines expand on how the regulations apply to online marketing. With the ease in posting recommendations for third party products and services, such as using Amazon affiliate links, this change affects nearly everyone who has any kind of commercial dealings on the Web.

In which situations does it apply?

Specifically, the new rules apply to anyone who posts on a blog or website using affiliate links or where customer testimonials are used to sell a product or service. Any kind of reviews or recommendations online where compensation is involved are also included.

The fact that there is compensation involved now must be plainly disclosed. Where testimonials are involved, average customer results must be disclosed. It is no longer adequate to state that “your results may vary,” as has commonly been done by many.

What to do next

Since the new regulations go into effect next week, if you have a website where you use testimonials or affiliate links, you should figure out what needs to be revised on your blog(s) and/or website(s) to bring them into compliance and avoid getting snagged by the authorities. You may also have to change the way you post information with commercial connections on Facebook, Twitter and LinkedIn.

The rub is, the new guidelins are not especially clear on how they specifically apply to some situations. So the best advice is to check out the information available on the FTC website itself. I’ve also included additional resources below, including an interview just released this week by online business expert, Jim Edwards, and FTC official, Richard Cleland, which includes real life examples of online advertising and how the requirements for disclosure apply.

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Resources

The official FTC guidelines that take effect on December 1st.

Jim Edwards interviews FTC Official for clarification of the new guidelines

Interpretation of FTC guidelines by an Internet lawyer

How to use the new guidelines to your advantage with testimonials

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Have you heard all the hype about using social media to market your business online? How much of it is hot air and how much of it is true? Is it worth the time (because that’s what it really costs) to get out and mingle online?

These are questions I’ve been investigating myself. And this video is something that got me to start paying closer attention.

Social media is definitely not a fad – but how can we use it to help grow our client base as freelance bookkeepers?

First, we must remember that the basis of social networking is relationships. It’s about connecting with people, not selling your services directly. It’s attractive because it’s social and interactive, not to mention fun. It’s about everyday life and connection.

The reason that social networking does makes sense from a business standpoint, however, is that wherever people tend to gather, conversation often turns to asking for recommendations when in need of products or service…or discussing what’s new, what’s been happening at work and at play, including unsolicited testimonials about products and services. Social media fosters powerful word-of-mouth referrals in a natural, softer sell platform.

Careful! It’s a Double-Edged Sword

While everyone loves to buy, they hate in-your-face sales pitches. That’s a no-no in social networking. They also don’t like to be manipulated. So if you try to work the system, the smell of sleaze will come through and hurt your reputation big time. And of course, negative gossip spreads like wildfire online!  So don’t give them a reason to spread the wrong message about you.

To make social networking work in favor of your business, you have to be a real person and build real relationships. If you hate the direct approach to selling your services, however, then this is music to your ears.

All you need to do is be conversational and enthusiastic in a genuine way about what you do and what your company has to offer. The idea is to attract clients and prospect. Not to sell directly to them. Telling stories about how you’ve been helping others is a great way to do this. (Just make sure you don’t disclose anything confidential!)

In time, social networking automatically builds your expert status and your brand using your name and face. Everything you do online will ultimately reflect on your image. So also be aware of the inherent transparency of your interactions online. Because you never know who’s watching you and the lines between personal and business will blur, make sure you don’t post anything you don’t want everyone on the planet to know.

Social Media Is Not a Marketing Quick-Fix

You will not build your business overnight with social netowrking. It takes time to build relationships. And social sites like Facebook and Twitter can suck a lot of your time without you even realizing it, if you’re not careful.

To make it work, therefore, schedule a set amount of time to spend consistently on your social marketing efforts. And be disciplined about it.

Similar to in-person networking, you need to do it on a regular basis. But the rocket fuel is that online networking has a much wider reach. So, if you work virtually with your clients like I do, this is an especially important tool in your marketing toolbox.

So far my conclusion is that social marketing does indeed make sense, when kept in it’s place. It appears to be an important, cumulative way to help stabalize and grow your business over time. But because of its seductive, time-consuming  social nature, discipline is needed to keep it productive.

I’ve been planning 30 minutes a day, and so far, the results have been good. Fostering solid relationships on a regular basis is what builds word of mouth referrals. And referral sources are a key to long-term success as a freelance bookkeeper.

I’m still learning how to hone my online marketing skills, so I’ll keep you posted as I learn the ropes more thoroughly. But here are my best suggestions so far:
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1. Be clear on who your target market is (Ideal Client) and find where those people hang out online. Then join in the conversation, being willing to share helpful info to build your expert status.
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2. Start with just one or two social networks, and grow from there. Twitter is the easiest place to start.
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3. Be yourself, but stay professional. Focus on building relationships and adding value. Don’t be afraid to let folks know what you do in a conversational rather than salesy way.
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4. Make your time count by setting a schedule and sticking to it.
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5. Track what you are doing and what the results are. Do more of what’s getting the best results.
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So if you haven’t jumped on board with social media yet, it’s time to get your feet wet and get some exposure and brand recognition online. The best way to learn how is by doing.

Have you already been using social media with good results? Let’s hear about it!

What tips can you share on the best way to build relationships and spread the word about outsourced bookkeeping services through social networking?

Leave a comment below and let’s get a productive conversation going.

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Gabrielle
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Resources

How to Market Your Busienss with Facebook – NY Times

Twitter Guide – courtesy of makeuseof.com