One of my closest friends worked for a business forms company back in the 1970s. Working out of their Manhattan office alongside dozens of other salespeople, his "territory" was, literally, one square block. At the time, every business needed physical forms, making that single block a goldmine.
When I left my sales position at Jostens, also in the 1970s, I had to train my replacement before moving into management in Minnesota. I initially assigned him just one building: The Empire State Building. That was his entire territory until I could return to New York to finish his training.
That was 50 years ago. Today, the world has changed. Territories are no longer strictly geographic; sales borders now stretch from coast to coast and beyond. This has expanded revenue opportunities for everyone, regardless of where they live. Someone in North Dakota might tell you they have no Fortune 500 companies nearby, but today they do, not physically, but through the internet. In "biblical" sales language: Go forth and sell.
However, establishing a traditional, local sales territory still has distinct advantages. Five decades ago, "big box" giants like 4Imprint and Custom Ink didn’t exist, and there were few national distributorships like Proforma. Building a local territory within a three-hour radius gives you a competitive edge. I often remind my readers of the 15 reasons a local prospect should buy from you, and the among the most critical is proximity. Being local means you can deliver by hand if necessary. To the intelligent buyer, location still matters.
I now live in a suburb of Charlotte, NC, near the town of Rock Hill, SC. Suppose I wanted to be a distributor in that area and build an "old-fashioned" territory within a 50-mile circumference. Since "knocking on doors" is no longer the preferred method, how do I find prospects?
Every business must spend money to make money. Advertising is a core function of marketing. To develop a traditional geographic territory in a town like Rock Hill today, you should start with a nominal investment, around $10,000, in Geofencing.
Geofencing targets professionals via mobile GPS within a virtual "fence." To find buyers of promotional products, such as business owners and HR managers, you must target high-density commercial hubs:
- Business & Industrial Parks: Target the companies that constantly need "swag" for employees and trade shows.
- TechPark: Focus on the knowledge-based and tech firms located here.
- Knowledge Park & Old Town: Target the area around Winthrop University, home to many startups and administrative offices.
- Competitor Locations: Geofence local sign, trophy, and print shops to reach buyers already in the market for branding.
If you spend $10,000 across these areas, you can expect a Cost Per Thousand (CPM) of about $7.50 to $8.00 and a Cost Per Click (CPC) of roughly $1.00.
In real terms, a $10,000 budget delivers approximately 1.33 million impressions and between 7,500 to 10,000 click-throughs from serious prospects. Best of all, you'll know exactly who they are. The opportunity to build a thriving local business is better than ever; it’s just that "prospecting" now looks a lot like Geofencing.
Joel D. Schaffer, MAS is CEO and Founder of Soundline, LLC, the pioneering supplier to the promotional products industry of audio products. Joel has 48 years of promotional product industry experience and proudly heralds “I was a distributor.” He has been on the advisory panel of the business and marketing department of St. John’s University in New York and is a frequent speaker at Rutgers Graduate School of Business. He is an industry Advocate and has appeared before the American Bankers Association, American Marketing Association, National Premium Sales Executives, American Booksellers Association and several other major groups. He has been a management consultant to organizations such as The College Board and helped many suppliers enter this industry. He is a frequent contributor to PPB and Counselor magazines. He has facilitated over 200 classes sharing his industry knowledge nationwide. He is known for his cutting humor and enthusiasm in presenting provocative and motivating programs. He is the only person to have received both the Marvin Spike Industry Lifetime Achievement Award (2002) and PPAI’s Distinguished Service Award (2011). He is a past director of PPAI and has chaired several PPAI committees and task forces. He is a past Chair of the SAAGNY Foundation, Past President of SAAGNY and a SAAGNY Hall of Fame member. He was cited by ASI as one of the 50 most influential people in the industry.