The competition is tough … or so they say.

Now, does it mean it’s bad?

It depends on the perspective.

The good thing when there’s high competition it means that there’s a high demand for what you’re offering. Now, as for the bad…

What if what is actually bad is not knowing what the competition is doing to stand out above you?

In this article we’re going to show you 4 steps that will allow you to know exactly what your competitors are doing online, and how to take advantage of it to turn your competition into your biggest source of prospects.

Step 1: Identify who your competitors are.

Ask several of your current clients what other competitors they know, and also search on Google what your main competitors are (by typing the keywords of the product or service you offer; for example, if you sell real estate in San Diego you can search for “main real state companies in San Diego”). Asking your colleagues might also help.

Step 2: For each of your main competitors, check out their Fan Page and their website.

By doing this you are more likely to start seeing more ads from them. Why? Because it’s common that these companies run ads targeting those who visits their site or engage with their fan page, since these people are the easiest ones to turn into clients (after all, they have already shown a certain degree of interest in those companies).

Step 3: When you start to see their ads on your Facebook newsfeed, find out why those ads are appearing.

On Facebook there’s an option (usually in the top right corner of each ad) that says “Why am I seeing this ad?”. Here are two possibilities: 1) that the ad appeared because you are following that Fan Page or have visited the advertiser’s website, or 2) that the ad has appeared for some other reason.

If the ad appears for another reason (let’s say that you see it because it is targeting 25-35 year old men in California), then you’ll have an idea of what is the audience that your competitor is focusing on.

By the way, when you open the box, besides selecting “Why I am I seeing this?”, it’s good to also click on the “This ad is useful” option, since this way you’ll be able to see more ads like these more frequently.

Step 4: Analyze what your competition is doing.

Take a look a the engagement that the ads are getting. If you see that a post has a lot of Likes and Shares, then that means that it is very likely that your the page owner has spent a lot of money on that ad, and if that’s so, it’s probably because he’s making a good return of his investment (after all, who would want to spend a lot of money on something that is not profitable), which indicates that they’re doing things right.

Also, analyze their message that appear in their ads, and above all, what is what they’re offering. Doing this will help you to be able to create a good combination of message that will put you on a very good spot.

Extra Tip:

Do not try to sell to everyone. Just because you see that a competitor is targeting a specific audience, it doesn’t mean that you necessarily have to do it as well. Keeping your integrity is key, and trying to see to unqualified people could be a headache for both, you and your client.

If you see someone who you see that is not a good fit for you and that you can’t help in the best way, the refer that person to one of your competitor that can actually help them. That way, after said competitor has closed the sale, contact him/her explaining what is it what you sell and what type of prospects you’re looking for. Why? 2 reasons:

1) By doing this your competitor will be more than happy to start a business relationship with you, which might help you to get an additional source of high quality referrals in the future.

2) Your prospects will be grateful to you for doing what’s the best for their interest, which could make them want to reach out to you in the future to either get your help for another problem, or get you a referral from someone who might be your idea client.

So, in other words, if instead of seeing your competitors as enemies, you collaborate with them and turn them into allies, you’ll be able to close more sales and everyone will benefit from it.