A former employee, who left on good terms (for family-related reasons), has contacted me and asked if I can provide a job reference for her. I’d like to help, but I’m not sure how much information to give out.
-Jeff Bloch media trainer, New York, N.Y.
Nowadays, the vast majority of employers refuse to provide substantive references for former employees. When contacted by a potential employer, the common practice is to confirm no more than the former employee’s position and dates of employment. Businesses have adopted this type of neutral reference policy in order to reduce their exposure to potential legal liability.
Providing a negative employment reference can expose an employer to a defamation suit. An individual is defamed when a false statement about him is published — either verbally or in writing — to a third party and he suffers injury to his reputation as a result of the publication. An employer who provides a negative reference to a third party runs the risk of causing the withdrawal of a potential job offer to the applicant. Should the former employee learn that a negative reference was provided, he could allege that the reference was a false representation of his work performance and threaten a defamation action against the former employer. Moreover, a statement that injures another in his or her trade, business or profession is considered defamatory per se. In such cases, the law presumes that damages will result, and they need not be specifically alleged or proven by the employee in order for damages to be awarded.
Truth is an absolute defense to a defamation action, so an employer can win such a lawsuit by showing that its representations were truthful. In addition, employment references are subject to a qualified privilege, so that the employee would need to show that the employer acted with malice in order to prevail in a lawsuit.
But while a successful defense can be mounted, unfortunately this will cost the employer a significant amount of time and money in legal fees. It’s better to avoid the possibility of a lawsuit altogether.
Believe it or not, although it’s rare, even a positive reference can lead to potential liability. For example, let’s say an employer mistakenly provided a positive review for a former employee who had a record with the employer of engaging in unlawful workplace harassment. If the employee was involved in similar misconduct in his or her new job, the new employer could charge the former employer with providing an incomplete or flawed reference.
For these reasons, and also because rarely is there any direct benefit to the employer in providing a job recommendation, I discourage my clients from providing substantive employment references.
However, it’s natural to want to help out someone who has worked hard and done a good job for you. If you do want to provide a positive reference to a former employee of yours, you should first satisfy yourself that the reference you intend to give is accurate. You can do this by first reviewing her personnel file and talking with her former supervisor and/or your human resources personnel. You should always convey the reference to the potential employer verbally, not in writing. While there is no legal distinction between the two methods of communication, I think it is generally a bad idea for an employer to distribute written opinions about a former employee’s work performance to third parties. However, you should also take careful notes of your conversation with the potential employer and permanently retain a copy of those notes in the former employee’s personnel file. That way, should the content of your representations some day become a troublesome issue, you have an accurate record of your conversation.
Leonard Colonna (lcolonna@seyfarth.com) is of counsel in the labor and employment practice group of the law firm of Seyfarth Shaw, LLP, in New York. Colonna specializes in defending management against employment discrimination claims.
January/February 2006
Nisha Sawhney, Owner SnS Design, Inc. When you’ve been selling to small companies, making the move to larger corporate sales is a significant leap. The sales process is more complex, with larger companies having a more involved approval processes, due to the number of decision- makers involved and often more stringent purchasing policies.
However, with a keen understanding of your target market and a sound strategy for “infiltrating” these companies, you can be successful in your efforts. The keys to success are focus, research, selling savvy and patience.
Set Realistic and Finite Goals First, make sure you have a very solid sense of your company’s strengths, especially as compared to the competition. Creativity alone will not make you a great resource for a new prospect. Collect all the positive testimonials you’ve received from past clients. If you don’t have many, ask your clients for them. Most satisfied customers are delighted to say something positive about a company that’s met or exceeded their needs.
Once you’ve refined the answer to the question, “What makes us better than other companies that do what we do?” put your answer to the test. Can your direct competitors make the same claim? If so, keep working on defining your unique selling proposition. Review your competitors’ websites and selling materials. Look for that special customer need that only YOUR firm can meet.
Then, define your target market by making a short list of the companies you want to reach. If you have been working with very small organizations, you should set achievable goals for the next step up. Look for companies that are similar in some ways to the market you’ve been successfully serving. Try to find out who their current suppliers are and, as noted above, establish a very clear idea of how you are as good as, if not better, than the companies you are competing against.
Hold an internal team meeting to talk about the types of companies you want to reach. Find out if anyone at your company has contacts you can leverage.
The Internet, industry publications and industry trade shows (and their directories) can be great sources of information about prospect
companies. For example, if you want to sell to appliance companies, use business search engines and trade publications to find all the appliance manufacturers that meet your criteria. Then further segment this list, based on parameters that make sense for your business.
Selling in your local geographic area may be more practical, especially initially, because making face-to-face presentations is less costly and resource-intensive. Or, you might set company size as your criterion,
aiming at those companies that are one or two revenue levels up from your current market.
Get Out There!
Although many small companies have a tough time getting staff out of the office for industry functions, this interaction with decision-makers can be essential in opening new doors. Find out which industry events are commonly attended by your prospects and make a point of being there. You don’t need to exhibit at a trade show to have a presence. Attending conference sessions or social functions could give you great exposure too.
Make sure your company is listed in directories or Internet sources that your client prospects might consult when they are looking for your type of product design.
Cold Calling… Aim High
To save your company from the whirlpool of corporate bureaucracy, establish a very clear sense of your ideal “buyer” within a company. Unlike very small companies, where you can easily identify the decision-maker, larger companies are sometimes fraught with purchasing protocol. Start at the top.
I recommend calling prior to sending an e-mail or paper mailing. Once you’ve established your shortlist of prospects, contact the head of the companies you’re targeting and simply ask the question, “Who
is responsible for hiring the companies that do your product design and reviewing new design concepts?” If you can get that person on the phone and introduce yourself, fantastic! If not, direct a short introductory letter to your lead and then follow up with a call. Although this is labor-intensive at the onset, you will be assured that your message is reaching the right prospect.
Staff Your Business Development Effort Properly
A great product designer can be a less-than-effective salesperson. Unless you have a person on your team who truly enjoys selling, consider outsourcing the sales function, perhaps even hiring a part-time staff member to help prospect and make preliminary calls. But be absolutely sure that person is well trained in your business, history, case studies and philosophies. Or simply limit his or her activity to prospecting and have any “warm” leads turned over immediately to a principal of your company.
Be Realistic
Landing that first big client might be tough. Give yourself a realistic timetable for closing the deal. Stay focused. Listen to feedback as to why your company may not be the right “fit.” Experiment with different prospects, approaches and sales techniques.
If you can afford it, consider engaging a consultant for help with your prospecting or sales strategy. Calculate how many sales you’d need to cover the cost, and measure progress carefully.
And don’t be shy about making noise when you close a new deal or develop a new product. Make sure you send a press release to relevant trade publications and post your success on your website. Larger companies are sure to check you out before they hire you. They’ll want to know you have a track record with companies of their size. In no time, you’ll be building on your successes and have more confidence and case studies to continue to “step up” to the next level of sales.
Nancy A. Shenker is the founder and principal of theONswitch (www.theonswitch.com), a business/marketing company specializing in start-ups and business transformations. She can be reached at nancys@theonswitch.com.
Steve Birnhak, Inwood Outdoor Advertising The termination of a sales rep is often cause for alarm, with many executives fearing that despite the reasons for the separation, the company might lose some clients. While that is certainly a possibility, this potentially negative situation can be easily turned into one that is more positive. Here’s how: Be Proactive- The very first and most important step is to proactively reach out to the terminated sales rep’s accounts and alert them that their rep is no longer with the firm. (Be prepared for the possibility that the rep has already informed some of these accounts.) Make certain to connect with ALL of the accounts — including those that are inactive and marginal, since these accounts often represent potential future revenue for your firm — and do so very quickly. Don’t Drop the Ball- Follow-up and follow-through are extremely important at all stages of client interaction. The new sales rep should be prepared to stay in close contact with all of his or her “inherited” accounts and be certain to address all needs as they arise. For larger accounts it is often best if a senior manager partners with the new sales rep until the client is comfortably eased through the transition. A client that is successfully handled will often turn into your biggest advocate and provide you with some excellent “word-of-mouth marketing.” We recently fired a salesperson and hired someone else for the position. How do we handle the transition given that the former employee’s abrasiveness may have damaged some important relationships?
Don’t dwell on negatives and voice complaints about the sales rep who has been terminated. A client does not like to feel that they have been sold and serviced by a problem employee. It is sufficient for you to state that there were “issues.” If the client gives voice to problems that they had with the sales rep, offer a sincere apology.
The Message- It is important to explain that the change in sales rep will translate into a benefit for the client’s firm. You want to make certain that the transition is as seamless as possible and that the client will not be inconvenienced or bear any of the burdens of the change. A personal introduction to the new rep might be extremely advantageous, especially for larger accounts; a telephone introduction to smaller accounts will probably suffice.
Explain to your client that you are eager for the opportunity to retain and grow their business. Be positive and project confidence that any negative experiences are in the past and that future dealings with your firm and your new sales rep will be positive and beneficial.
Bottom line, a change in sales personnel can present you with new opportunities and a fresh perspective with your existing clients. Approach the transition positively and the majority of clients should be able to do the same.
Adrian Miller is the founder and president of Adrian Miller Sales Training, a business development consulting and training firm that she founded in 1989. She can be reached at amiller@adrianmiller.com, or visit her website at www.adrianmiller.com.
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Morris Schlesinger SEGMENT YOUR MARKET Once you determine who your customers are, what they buy, when they buy, how often they buy and why they buy, you have a customer profile. For example, your customers for ladies’ cosmetics might include manufacturers, wholesalers and beauty salon and spa operators, as well as private citizens. Push your lists as far as you can — it might take multiple categorizations before you reach optimum segmentation. The trick is to determine where you can get the biggest bang for your buck in selling your cosmetics to overseas customers. Only when you know exactly who your customers are can you develop a strategy that targets their interest. FIND YOUR CUSTOMERS In addition to Export.gov, the International Trade Administration (www.ita.doc.gov) offers a plethora of useful tools to help you find overseas customers. Click on “U.S. & Foreign Commercial Service” (FCS) and then “Introductions” to put qualified buyers and distributors at your fingertips. For a nominal fee, FCS helps you find international partners, buyers or agents without traveling overseas. Whether you decide to do business in Africa or South America, remember that the world is your market. Third World Countries — nations in Asia, Africa, Oceania and Latin America that are considered economically underdeveloped — offer limited opportunities for companies, due to market barriers such as tariffs or import restrictions. Another powerful option is to explore BEMs —big emerging markets. According to the World Bank, the top 10 BEMs are Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea and Turkey. These markets might offer you the most promise for increasing exports of your cosmetic products. DO YOU HAVE THE RIGHT CUSTOMER? Also, ask yourself if you can adapt and adjust your offerings to the demands of your customers. Since cosmetics might be a new beauty concept to people in some countries, consider offering a Webinar workshop to educate them on cosmetic benefits and techniques to win them over for future purchases. There’s a whole new world of customers out there. Go and find them! Laurel Delaney is president and CEO of GlobeTrade.com and LaurelDelaney.com, firms that specialize in international entrepreneurship. Laurel can be reached at ldelaney@globetrade.com. Jan/Feb 2005 A reasonable time to give a client to pay is 30 days from the date of invoice, although invariably some will take 45 or even 60 days. Having a client stretch payment to 90 days or more is extremely worrisome: It seriously impacts your cash flow, and the risk that you will never be paid takes a big jump when receivables extend that long.
I assume that your current practice is to charge in advance for the first month’s service, like most other PR firms. This is an approach taken by many professionals, lawyers, architects, consultants and contractors to help improve their cash flow and reduce their credit risk. While the terminology (e.g., retainer, up-front payment, progress payment) and the details vary from one profession to the next, the intention is always the same: to protect yourself from doing work for which you never get paid.
The problem with sending out invoices that state “payment upon receipt” is that some of your clients may feel less accountable to comply if they never discussed this with you or knew about this condition before receiving your invoice. Unless you discuss your wish for payment upon receipt with clients at the same time that you agree on pricing, you are leaving the door open to slower payment, even if you mail out invoices promptly. Before beginning the work, the best practice is to have a written contract or letter of understanding signed by both parties, detailing the scope of work, deliverables, fee structure, payment terms and responsibilities of both parties.
If a potential new client takes issue with your payment terms, look on the bright side: You are finding this out at a point where you can resolve the issue or just walk away without being owed money. This is your chance to engage in a conversation with this potential client and find out if their objection is due to their cash flow situation or some other reason. You can then decide if you want to make an exception to your standard payment terms and take them on anyway, based on a combination of pricing, terms, how much you want them as a client, how you perceive their creditworthiness and your ability to finance the resulting account receivable.
Turning back to your slow-paying client, you are probably already trying to get a good explanation from them of what their problem is. The art to doing this is not to let yourself get bogged down in unnecessary details that are your client’s concern and not yours. Ultimately, what you want is a commitment from your client about how soon they can get the amount past due back below 30 days, or better yet, completely paid up.
Look for future deliverables as a means of obtaining leverage to get additional payments from your late-paying client. When possible, put a hold on deliverables, which gives you leverage, rather than stopping all work, which loses leverage and may put the relationship in a downward spiral and create ill will. There is a saying in chess that applies here: “The threat is stronger than the execution.”
If all else fails and you are still looking at an account with amounts outstanding to you 90 days or more, with no clear understanding or commitment from your client about how this is going to improve, there are tougher options to consider. You could consult with a lawyer to see how strong your claim is and what your options are to recover part of what is owed to you through legal means. In New York State, if the amount due is under $5,000, you might be able to file a case in small claims court, assuming you have the temperament and time to research the legal process. Collection agencies are another option for you to consider, but as with lawyers, you should be clear on the fee they will charge, which is typically a percentage of any amount that they are able to recover.
David Rudofsky is president of Rudofsky Associates (www.RudofskyAssociates.com), providing businesses with financial and strategic solutions. E-mail: David@RudofskyAssociates.com
I have been in the cosmetic business since 1993; we buy surplus products from various U.S. manufacturers. In the past we have sold to some locals who send these goods back “home” to their own country for resale. How can I get started exporting cosmetics to such countries as Africa and South America, and to whom else in these related fields can we offer these types of goods?
President, F.I.E. Merchandising Corp. 
To find an appropriate market niche in a specific overseas market, you need to do your homework.
Since cosmetics can encompass many different kinds of products, segment the market to determine the best place for your merchandise. For example, consider the type of cosmetics you are going to export. Men’s? Ladies’? Color cosmetics like lipstick, cheek color and eye shadow? Perfumes? Colognes? Under each product segment, list the categories of likely customers until you reach the end user for your product.
To find additional customers for your American-made closeout and surplus cosmetic goods, start with a visit to www.export.gov.
The U.S. Government Export Portal provides online trade resources and assistance for expanding your business internationally. Clicking on “Market Research” and then “Country & Industry Market Reports” reveals a hidden treasure: the Market Research Library. Here you can track your industry, region and country, choose a report type (market research report, country commercial guide or best market report) and even select a date range to narrow the results. For example, selecting Africa and typing the keyword “cosmetics” in the search box produced 14 results.
Now that you have completed your homework, you must ask yourself one final question: Will they buy?
It’s amazing how many people forget this important detail that can make or break their global sales efforts. For example, are the people in Africa prone to using cosmetics? Do they have the buying power to afford such items? For answers to these critical questions, you might check back with Export.gov and the International Trade Administration. Both can help you assess whether your target market is cosmetic-savvy.
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Brian Lutz
Founder, TennisTIP.com The most important thing to keep in mind here is that the media's sole agenda is to be a source of relevant news stories for its viewers, readers and listeners. The media is not interested in promoting a company for the sake of promoting a company; however, if you can craft a compelling story, the media will use it and the benefits of exposure and name recognition will be yours.
If you are going to be successful with a PR/media relations program, you must de-commercialize your pitch advertising and public relations are two very different mediums. Use your company to create exciting and provocative news stories. Here are three suggestions to get you started:
Cause Marketing
The media may not be interested in covering one of your tennis pros giving a lesson to an investment banker, but change the picture to a tennis lesson for underprivileged minority youths and you have yourself a media bonanza. Consider teaming up with a Boys and Girls Club or some other youth organization and make them a donation of tennis clinics and lessons. The gesture will be sure to attract media attention, not only for your commitment to the community, but also because you are giving underprivileged boys and girls a chance to participate in a sport that is usually reserved for the privileged. Be sure to schedule the press event for a weekday morning so that media outlets are working with a full staff and can dedicate a crew to cover the event, and send a media advisory to alert them of the who, what, where, when and why of the event.
A Great Business Story Taking Advantage of Trends and a Spokesperson
Because the number of junior tennis programs and adult players is on the rise, send pitch letters to media highlighting the growth in the game and your company. Secure business stories, using your unique differentiators to win their attention. A prominent spokesperson will lend credibility and is essential in becoming a resource to media.
Media Events and Photo Opportunities
In order to capture the attention of the media, you sometimes have to capture its imagination. Staging quirky events, if done properly, is a great way to secure positive coverage. To offer one smart example, how about offering "singles" tennis lessons to Manhattanites and publicizing this as a unique way to meet other active people and potentially their match? Participants would be matched with a member of the opposite sex, given a tennis lesson, and perhaps play a match. This concept is compelling and relevant to a huge demographic in New York City, the singles set.
Whether you form a cause-marketing relationship, stage media events or use some other news hook, remember that the newsworthiness must be interesting and the commercial message somewhat subtle. The trick to utilizing the media as a marketing tool is consistency of message, persistence and layering. As more people see, read and hear about your company, sales will surely increase.
Chris Rosica is president and CEO of Rosica Strategic Public Relations, a national PR and marketing firm headquartered in Paramus, N.J.More information on his firm can be found by visiting www.rosica.com.
Fall 2004
Presents for Purpose is a small, two-person company that raises funding and awareness for charitable organizations by donating 25% of the proceeds from our watches, accessories and gift items. We have received national media attention and have achieved a fair degree of success in the tri-state area. We would now like to hire nationwide sales representatives to showcase our lines at home shopping events as well as boutiques in their area. How do we find and manage highly motivated individuals for this undertaking?
Alayna Kassan
Co-founder, Presents for Purpose The first step in finding the right salesperson is to define who that right person is which traits and experiences are required (the candidate must have them), and which are desired (it would be nice if the candidate had them). Since your salespeople will be working remotely, perhaps the ability to self-manage should be a required trait. But what about the number of years of sales experience, the kinds of products sold, knowledge of retail and/or not-for-profit aspects of this business? Since you may not be able to afford a seasoned salesperson with years of experience, an ideal candidate may be someone with, say, two years experience in a retail environment who is comfortable working on commission in a very small shop.
Find the right people
You can start the conventional way, by posting jobs in newspapers and at online job sites. Lastly, consider renting a booth at one of the many job and career fairs in the locales for which you'll be hiring. You should also get in touch with the charitable organizations for which you work. Board members, in particular, are typically well connected. And don't neglect your customers and suppliers, all of whom should be willing to help you locate talent. Finally, attend trade shows and conventions and look to meet sales reps of similar products.
How to manage them?
Once you've assembled your sales staff, your next challenge will be to manage them for success. First, you'll need to set goals and establish expectations. You'll also need to provide training and coaching, both in terms of the product and in selling skills. While all of your hires will need thorough product training, some of them will need less training on selling skills than others. Training for out-of-state employees can be cost-effective these days, thanks to conference calls and e-learning. If selling is not your forte, consider retaining an outside firm to work with those hires who will need more training. Selling skill is the one area in which you cannot afford to cut corners.
Lastly, you’ll need to implement a good reporting and performance measurement system, one that captures activity and tracks leads, deals in the works (your “pipeline”) and closed and lost business. Frequent and detailed reporting will be critical to your ability to get a handle on what’s going on in the field. You can do this on a spreadsheet or by using sales management software products.
Hiring and managing a sales team is an exciting step forward for your business. But one word of caution: Walk before you run! Start small, and stay close to home — say, two salespeople, one in Boston and one in Philadelphia. Observe what works, and fix what doesn’t. Then, once you feel comfortable that you have it figured out, you can expand to other cities nationwide.
Craig James is president of Sales Solutions, a sales productivity improvement business. He can be reached at craig@sales-solutions.biz.
