01.28.2008 — It's a wonder that one of the industry's most successful loudspeaker companies hardly sells any product.

Instead, SpeakerCraft thrives by selling itself as a company, and ensuring that its 1,000-or-so dealers run successful enterprises.

The sales naturally follow.

"SpeakerCraft continues to educate dealers in all pertinent areas of running a business," said CEO Jeremy Burkhardt during a recent gathering of the "President's Circle," a group of loyal SpeakerCraft dealers.

During the three-day event, held near the company's Riverside, Calif. headquarters, about one dozen dealers sat through sessions regarding sales, management, operations and related business topics, presented, in part, by SpeakerCraft vice president of sales, Steve Hayes, a former integrator.

Aside from the few products sprinkled around the room, you would hardly know that SpeakerCraft was in the business of selling audio gear. There was hardly a mention of the stuff.

Hayes' sole sales pitch amounted to this: SpeakerCraft is committed to helping you succeed in your business; all we ask is that you return the favor.

As part of a marketing exercise, Hayes and Burkhardt rattled off dozens of ideas culled from their own experiences (Burkhardt himself started as an integrator) and quantitative research.

At the same time, attendees shared additional marketing tips.

The following are some of the hints shared at the SpeakerCraft affair:

Incentivize Installers

Hayes used to compensate installers $25 for each sale they brought to the company.

The flat fee is far simpler than traditional compensation schemes and also encourages associates to sell smaller items that can add up over time.

Ask For Referrals

"Almost everyone in the industry says they're in the referral business," Hayes says, "but there are mechanical things you have to do to get the process going."

That means, he says, that a company still must implement traditional marketing and advertising campaigns, regardless of how important referrals may be.

"Most folks don't advertise, and then they lament that no one knows who they are," Hayes says.

The referral business begins immediately upon the completion of a job. If the customer is happy, Burkhardt suggests, ask for leads right away.

Here's one possible script: "We may seem like we're a bigger company, but we're actually small. Would you mind giving me the name of three of your friends?"

He also recommends asking for letters of recommendation.

Later, be sure to reward customers for their referrals with, for example, NetFlix subscriptions or iTunes gift certificates.

Get Involved in the Industry

With thousands of integrators vying for business, "How do you rise above the noise?" Hayes asks.

Getting involved with industry magazines and associations can help boost your profile. "We tracked about half of our business from referrals that came from Electronic House [magazine] or associations," Hayes says.

He and former partner Ken Smith both were active in CEDIA and engaged with the industry's top trade and consumer magazines.

Being a willing resource for these entities provides exposure that feeds on itself, generating new leads throughout the trade and consumer establishments.

Charge For Partner Training

Many integrators offer training for allied trades, such as homebuilders and architects.

It's a great way to bring these potential customers into the fold. Several dealers go an extra step, providing CEU credits for the training. This is yet another incentive, effective in luring more traffic.

David Wogsland of Enhanced Home Systems, Eden Prairie, Minn., has another tip for getting partners to attend training sessions in his showroom: Make them pay.

"When we charged nothing, no one came," he says. "When we charged $75, everyone came."