Two weeks after I started a new business, Frank, the person
that introduced the business to me, came to my home to explain
how the business worked.
Frank asked me to make a list of all the people that I knew
and all the people I had a relationship with. I was to list my
family, friends, neighbors, and the people that I worked with
and did business with. He called this list my “Warm Market.”
I had never heard the term before even though I was familiar
with the concept.
Trying to do business with people that know you has always
been easier than trying to do business with strangers. The
upscale department store, Nordstrom, would reasonably expect
greater success from a promotional mailing to a list of their
existing customers than they would get from a random mailing
to a list of people in a specific zip code that were unfamiliar
with the store.