Which came first, the Sales Pipeline or the Relationship Pipeline?

Common knowledge suggests that the Sales Pipeline came first, after all, how can you build a relationship with a client unless they’ve been in your Sales Pipeline, right? Common knowledge also suggests that to create a sale, we need to spend time, energy and money building a relationship with the prospect, to then convert them into a client.

The traditional sales pipeline consists of:
1. Some sort of acquisition activity (marketing, social media, networking)
2. Steps designed to build confidence in you, your product or service
3. An objection handling process
4. A closing or converting process

Of course, it is recognised as a fundamental truth that all of these things cost time, energy and money…and each time you go through the process, it costs you more.

So, what is the Relationship Pipeline?

The most important thing, as depicted in the image here, is that a Relationship Pipeline creates referrals…not sales. Sales is what your Sales Pipeline does (or doesn’t, depending on how much it costs you).

In a Sales Pipeline, it takes approximately 20 connections or leads, to create one client. In a Relationship Pipeline, it takes just one person to refer you forever. Put the right people in your Relationship Pipeline and you will have more referrals than you can handle. I know which one I prefer, and I know which one is my top priority.

84 is a scary number!

Did you know that, on average, it takes 8 hours of work to gain a client? Did you know that it takes almost the same amount of time to not get a client? Let’s say that in the traditional Sales Pipeline, your one client has cost you 8 hours of work. Let’s say that the other 19 leads you had, that didn’t turn into business, still cost you 4 hours each. The total cost in time, energy and money for one client is now 1x8hrs plus 19x4hrs. Total cost to your business = 84hrs

And this is why your Relationship Pipeline should come first;

Put simply, I invest in one relationship to generate referrals forever. For every person I have in my Relationship Pipeline, I have the opportunity to attract my ideal client at the right time and with the right budget. For every 8hrs I invest in my Relationship Pipeline, I have the opportunity for infinite referrals. Whereas for every 84hrs I invest in my Sales Pipeline, I have the opportunity for one sale.

Having an active and effective Relationship Pipeline is a perfect example of an “infinite game”. Do please read Simon Sinek’s book “The Infinite Game” for an in-depth study of the finite and infinite mindset.

The punch line (or the bottom line);

What if I told you that the referrals you are currently getting are not really referrals at all, they are just leads with a different name. Why? Because you still have to go through 90% of your sales process to convert that “referral”. And that costs you time, energy and money every time. Real referrals go into your sales pipeline 95% closed, leaving you just 5% of the work to do.

I’ll ask you this simple question, do you want to do 90% of the work, or 5% of the work? Do you just want more business or do you really want better business? And are you prepared to take action and do something about your life and business, forever.

Want to know more about the 5% solution?

Book a call with me here and let’s talk about the difference between working harder and working smarter.