1A study by New York University's Management Institute asked the following question to sales and marketing professionals, "What is the best technique to find new customers?"
A 1-5 scale was used, where 1 equaled "not important" and 5 equaled "very important."
The results were as follows:
Marketing Technique............Average Score
One-to-One Marketing.............. 4.5
Direct Mail.............. 3.8
Trade Shows.............. 3.2
Cold Calls.............. 1.5
It makes a lot of sense why "referrals" is the winning technique. Clearly, if someone you know and trust vouches for a product or service, you will be most likely to give it a try yourself.
Interestingly, "referrals" is also a top way to find new investors. For example, having a consultant or lawyer introduce you to an angel investor or venture capitalist is a great way to get in the door to present your opportunity.
However, many entrepreneurs feel they don't have connections that can refer them to investors. But, when you think about it, it's fairly easy to gain these connections. Gaining these connections can be as simple as meeting the right people at an event, meeting them online on a site like LinkedIn or Facebook, or even just sending them an email or giving them a call.
The other marketing techniques, such as Direct Mail, are also extremely applicable when seeking investors. While I don't recommend physical mail, direct e-mail is highly effective. Like it is with traditional direct mail, the key is creating a great list; mainly to create a list of investors that have an interest in your type of venture. For example, if you need funding for a restaurant, clearly you shouldn't be contacting an investor who focuses on medical devices.
In summary, whether you are marketing your product to consumers, or your company to investors, the processes are fairly similar. You have to understand who your target market is, figure out the best way to contact them, and then deliver a compelling message that gets them to take the actions you want.
Venture Capital Pitch Formula shows you how to get referrals and numerous other ways to contact venture capitalists, how to create and deliver a compelling presentation to them, and how to close the deal and get your funding. Watch the Venture Capital Pitch Formula video here to learn more.
The Ultimate Marketing Plan Template allows you to leverage all the top marketing techniques to quickly and easily find new customers, compel them to purchase your products and services, and exponentially grow your revenues. Watch this video to learn more.