No, it's not "Do you make more than 6-figures a year?" That would be impolite. It's a simple question backed by the Government of Canada's statistics department.
Frankly, when I tell you, it'll make perfect sense, and you may wonder why you hadn't thought of it earlier.
But what's so important about the 6-figure barrier?
It's not so much about those making over 6-figures; it's the number of people who aren't breaking that barrier.
Because if you know where a prospect falls on the revenue scale, you can align your offers with their ability to purchase.
Would it shock you to learn that the latest data suggest ~70% of the business prospects you meet make under $100K/year?
It gets "better." Approximately ~50% of business prospects you meet make under $50K/year.
Put another way, any new prospect you meet is likely making less than $100K/yr (and there's a 50/50 chance they're making less than $50K)
Want to know the question that reveals people making over 100K/yr?
Ask them how many full-time employees they have.
Why? Because the Government of Canada stats department says, those businesses with 1+ full-time employees make over $100K/yr. Usually much more.
Why do we care?
Because if they can't afford it, you can't sell it to them!
A <50K prospect's budget (of 5-10% of revenue) ranges from $2,500 to $5,000 for the year. That's about $200 to $400 in monthly terms. Conversely, the 6-figure+ prospects can afford upwards of $500-$1000 a month for services and products.
In conclusion, there's a good bet the next person you meet at a small business mixer can't afford more than a few hundred bucks a month for whatever you're selling.
If you discover they have more than one full-time employee, you're good. But remember, you'll likely only win a portion of their annual budget, so adjust accordingly!
What seemingly innocent and indirect question reveals whether a prospect makes more than 6-figures a year?
A place for casual conversations (that don't fit anywhere else.)
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