I only do business on a handshake. Get
the upfront contract, you know, the verbal commitment. Put the agreement
together and send it over. I’ll give you the okay in an email; that should
suffice.
Over the past 20+ years of sales and
management I’ve heard it all. The deal. The agreement. The contract. And, sales
reps always ask me, what is the best way to proceed toward a close? Is a
handshake enough of a commitment? Do we need a written contract? Which is
better? And, my answer has never changed – You Need Both. That’s right, you
want to do business with someone because you’ve developed a relationship,
sealed with a handshake. But, you must also protect your interests and your new
clients.
Sales can be a tedious and emotional
process. In fact, it should be, emotional that is. Sales can take time and when
it does it tends to build a bond between the sales representative and the prospective
client. The relationship becomes emotional and when emotion is in play things
can be said that may sway the deal either in your favor or the prospective clients.
Emotion can be a great selling attribute. You want to develop trust and
respect. You want to engage on the services now or sell your product now, but
you also want to have a long-term relationship so you can sell more down the
road.
When it comes time to close the deal,
by now your inclination is to shake hands, maybe break bread, and exchange the
pleasantries that go along with the newly formed relationship. So what exactly
was promised along the way? What are the specifics of the project, the service
or the product sold? What payment terms were agreed upon? What guarantees or
warranties are in place?
A contract is a business tool and
should be used as such. Just as though every ‘A’ level sales person knows that
budget must be discussed very early on in a sales call, so must the topic of a
contract or written agreement. It must be made clear to your prospective client
that the contract is a tool that you’ll use to keep his and your best interests
and intentions clear. Your relationship is valuable and you wouldn’t want
anything misinterpreted.
You should be prepared to share your
contract language early in the process. If the prospective client has a contract
they’d prefer to use, request a copy, and make sure you can live with the terms
or negotiate. The worst feeling for a sales person, and the prospective client,
is to watch a deal fall apart because the contract process was not managed up
front. Trust me, I’ve seen this happen many times, when the contract is managed
early on in the sales call the handshake will still be there and the
relationship will be stronger.