The Biggest Factor To Why Only A Few Are Successful, And The Only Reason People Spend Money.
First, I would love to address that this article will not magically give you the ability to sell anything you want no matter the product. What I would love to derive from these posts is the ability to teach people what I’ve noticed that made myself successful in sales, and what made others successful too.
It may seem redundant to you; sure. If you are already aware of the advice that I’m spending across, fantastic. This is for the people that I’ve seen with my own eyes (I currently work as a sales trainer that on-boards new hires for different companies) that may not know about how to tackle the realm of sales. What I’ve also learned is that you can always be learning. I believe anyone who takes the time to posts valuable advice (clearly relative if you know about it or not) can always add to your sales arsenal as both a salesperson and as an entrepreneur. To start, probably one of the most significant factors to what differentiates successful salespeople and unsuccessful salespeople. What are salespeople doing that you’re not doing?
Top Salespeople Are Goal-Oriented
For people who al goal-oriented, there is a direct relation to success. If you live a goal-oriented life, you will never lose sight of your goals and your dreams. The problem is, people are the only goal oriented when they are motivated. Right when they lose that motivation, Then you know what happens next? Eventually, they give up, “life happens,” or they [insert excuse here] and cave back into their comfortable routines, finding any rational through a series of mental gymnastics finding any hole they can. Then, they won’t readdress their goal until something motivates them again. “People with goals succeed because they know where they’re going.” – Earl Nightingale, You might say: “This is common sense.” However, I’ve seen the majority of the people give up pursuing their goals when it becomes to difficult for them, and I believe this makes up for the majority of the population. When you relentless purse a goal that a majority are not, your chances of ending up more successful is exceptionally high because your sharp shooting your target – rather than hustling six months there, a year there, one week there. “How do I live a goal-oriented life then?” Make goals, and attach deadlines with repercussions. I’m asking you to use fear to your advantage. Fear is primally profoundly rooted and etched into our brains. Once you move out of your comfort zone – you will scramble to find your way back.
Fuck all that bullshit of: “Make conscious decisions to step closer to your goal throughout the day.” “Write down your goals, and you’ll remember them.” Lot’s of individuals become entrepreneurs because of the fear of being controlled by a boss. The fear of wasting their life in corporate America. The fear that they will spend the rest of their lives doing something they loathe. Lots of poor individuals become so obsessed with success (and become successful) because of the fear of being poor again. The doubt that they won’t achieve greater things in life. The fear of that same pain of being so broke, they would skip multiple meals and suffer.
You develop a discipline for yourself that will make your hungry for your goals and to achieve them. Lot’s of artists use the fear of not being able to make a living from what they love doing, so they relentlessly pursue it until it comes to life. Former fat people become so fucking obsessed with becoming jacked because of that fear of being overweight, unwanted, and ugly and the dark side it comes with it. Now, I’m not saying that this is the only way to be motivated. However, this is the single want in my experience how a lot of successful people stay on their toes. This is considered “fear-setting.” You aren’t making the money you want to be because you are a lazy fucker, it is that simple. You aren’t making the money you want as a salesperson because you don’t want it bad enough. Lot’s of salespeople who first struggle to pay rent, in fear that their lives will continue being this constant struggle – so they develop strategies to get to the point of being comfortable (where your comfort zone is). Hint: your comfort zone does not exist.
Now I can make this entirely philosophical, and advocate always practicing misfortune so you’ll both still be comfortable with being uncomfortable – but that is not the point of this post. When making your goals, it is essential for you to know how much you will earn each year, or you’ll end up with nothing just like you did a year ago.
Now, ask yourself:
“How much do I intend to earn for the next 12 months?”Write this number down. This number is the target which you will orient all your activities throughout the year. Statistics don’t lie: A Harvard study found that the 3% of graduates from their MBA who had their goals written down, ended up earning ten times as much as the other 97% put together, just ten years after graduation. A challenging goal, but realistic. Remember, ridiculous goals won’t motivate you – they will demotivate you. You will quit at the first sign of adversity. For example, take the amount of money your making now: and increase it by at least 25%. Top salespeople know precisely what they are going to earn each year. If you were to ask any successful salespeople how much they are going to earn that day, they would give you that exact number. Low performing salespeople have no idea what they are going to make. Every day is a new adventure with no compass.
Now ask yourself:
“How much am I going to have to sell to achieve this annual goal?”
After you decide your annual sales goal, break it down over the months. Then, ask yourself:
“How much am I going to have to sell each week/month to achieve this annual goal?”
Break it down to the point where you are making daily sales goals. This step is the best way (personally) how I found myself making the annual sales goal I desired. If I wanted to make six figures (tax-free), I would make a goal for myself that would look like this: $100,000/52 weeks = $1,923/week. $1,923/7 days = $275/daily. I would then wake up every morning, relentless pursuing this $275 daily goal – and eventually, give me a yearly goal of six figures.
Then, you will need to develop strategies to get to that $275/daily goal.
“How many calls will I have to make to make this daily goal?”
“How early do I have to wake up to start prospecting to make this daily goal?”
“How much should I sell my product for, to make my daily goal?”
“Who do I need to talk too, where, and how long for each prospect to make this daily goal?”
“Whom do I have to hire and what marketing techniques do I need to make this daily goal?”
When you can document everything and look at it objectively, you’ll soon be able to predict (with accuracy) precisely what you’ll have to do each day to achieve your annual goal. Force yourself with this motivating factor to follow through doing everything you’ll exactly have to do each day. Think about this about yourself: is this you, or are you that person who tries to sell “as much as possible?”
The Law Of Averages
You will have dry periods, and you will make more than you’d thought. You will have your sales highs and your sales lows. Some days you’ll make nothing – and some days you’ll make x3 the amount. If you continue to make those necessary actions to achieve your goal in sales, you will eventually make that annual goal on schedule. As you make it a habit, you will train your subconscious mind – it will further alert you to new opportunities, and give you the “right” ideas to get to your goal quicker. Your subconscious mind will help you better read your prospects face, smell bullshit a mile away, and even further distinguish if an opportunity is also worth your time. Your mind will always help you perform at your best – in the pursuit of your goals. When you have a positive self-concept about yourself and are goal oriented – you will always have the right things to say, at the right time, in the direction of your goals. When you set goals for yourself, you will be amazed what’s possible.
How Setting Goals Outside Of Sales Will Further Lead You To Sucess
“I have a daughter, and I want to show her what success looks like. So, I’ll [insert all your actions here]” “I want my family to be happy finally.” “I eventually want to enjoy life a lot more than I am now.” Using additional facets of goal setting outside of sales will give you the motivation to bounce back and continue pursuing your sales goals. This is sort of like a system of checks and balances.
When you’re aggressively trying to sell your product; will the person with only one obligation/goal succeed, or will the person with 50 different goals/ commitments accomplish? More reasons, more desire. After you have your mental blueprint set up and have a goal that you will relentlessness pursue; you’re ready to further build on your sales foundation to become one of the top salespeople in your field. I firmly believe the biggest, number 1 rookie mistakes amateur salespeople make (and still are making) is…the inability to figure out their customer’s needs by asking questions for them to take action.
The Two Reasons People Buy
Desire for gain. Fear of loss. The desire for profit is the improvement within their life, of some kind. Your job is to help your prospect understand how much better his or her life would be with your product, to the life they are living now. Prospects are afraid of wasting their money. As prospects become familiar with the market which results in becoming more cautious of what they buy, they fear will lose if they purchase if there is no real value behind it. This is called Loss Aversion. People generally prefer to avoid losses than to acquire its similar gains.
It is better not to lose $5 than to gain $5. The Prospect Theory, which is research done by both Daniel Kahneman and Amos Tversky, found out the psychological value of losses and gains indicated that people might have a loss aversion ratio of between 1.5 and 2.5. This means a loss that is identical in money terms to a gain may be valued up to 2.5 times more than the benefit. People hate losing more than winning. What is the key that makes successful salespeople close more sales? Salespeople can demonstrate both. Your job will be to both: find if that individual will gain from the product or service (desire for gain), and how much worse off he or she will be if they don’t act (fear of loss).
The Psychology Behind Why We Take Action
Every action we take is based on a motivating factor to take that action. Simple as that. People buy products and services because of two main reasons:
1- They feel as if they’ll be better off in life after purchasing your product
2- They have so much “fuck you money” so they can spend all day and every day because money is no factor to them.
Rarely you’ll get the second reason. It’s happened to me a couple of times, but it probably made about under 5% of the sales throughout my sales career.
There are three actions a person can take in the realm of sales:
They can buy from you. They can buy from a competito. They can buy nothing. Understand, you are ultimately signaling to the prospect that they are better off with your product, than without. Your product must serve as a solution to their lives since they’re looking for one. They then will be willing to give up a portion of their freedom (money) to find whatever solution they are looking for.
The Human Desire For Freedom
Also, it will help if you understand that money does not exist. Money is a medium of exchange to buy people freedom.
Money is a fiat. Money has no value behind it. Most people traded their time and labor for their hard earned “money” which they will use to exchange for a product or a service that will help them give them a degree of more freedom or an improvement in their lives.
If prospect buys a product that has no value to him or her, they’ve just traded a portion of their life away for a product that gives no value to their lives. For the majority of people who understand that they’ve worked hard for their money – there will always be some buying resistance. An individual always wants to get the most out of what they buy, so they look for a product that gives them the most benefit and satisfaction to their lives. In economics, this is called marginal utility. If you put a product out on the market, it is already assumed that your product is at it’s best price and quality. A mistake I’ve seen is when salespeople reinforce the product by saying: “Buy my product because of the price and quality!” Sure, you are a salesperson, but it it’s most literal definition. You are an individual who sells goods or services to other entities, but you’d probably not be a very successful one.
Finding Your Customers Needs
To help your prospect both not lose – and for you at the same time win; you need to see if your product or service will bring value to them at the point in time. How do you do this? You need to ask a plethora of questions – the more specific, the better, to dig out precisely why the customers want to buy your product or service at that current sale. Let’s put this is an example in simpler terms, using a scenario in car sales. Prospect A just graduated college, just signed a lease for a new apartment next to his work office and wanted a car that is both sufficient and economical to get to work every day. How did you know this? You asked about who he or she was, their background, and why they were shopping for a car at that time.
Do: ask questions.
Here is are two scenario that I’ve seen destroy salespeople, so you can better understand this concept.
In the first scenario, prospect A walks into the dealership. You, as a salesperson, make commission off the cars you sell and want to make as much money as you want: so what do you immediately do? Start asking the prospect questions and immediately show him or her the newest car out, substantially wasting time forcing information about a car (that they gave no indication that they were interested in it) down their throats. He or she looks at the price tag, sighs, and eagerly waits for an opportunity to tell you that they’re not interested. Then, after an hour of the salesperson talking, he or she stops and says: “So, what do you think?”
Little did you know, he or she just graduated college and isn’t looking for a big-ticket commitment like that car. He or she was looking for an economical vehicle that they could afford, to take them to and back from work each day.
You are out a sale and a precious hour of your time. What you could have done:
You could have shown him or her a used, cheap economical car which would have potentially got you a sale if you understood your prospects needs first. As addressed in Part 4, you have a daily goal to hit, and you only have 24 hours in one day. You just wasted an hour of it. What makes you think someone would want to buy your product? Because you like it? Because it’s nice? Because you are making a living off of it and you have no choice? No. People buy your damn product because it has to align with their goals during that given time. If a wealthy individual walks in and you used the same tactic and made a sale without asking a question, you got lucky, friend.
After that sale, you’ll subconsciously look for clues that signal wealth. When you make enough sales to wealthy people, you’ll start to be hyperfocus to prospects upon the way they dress. They way they speak. What that currently drive.
Then, through trial and error, you’ll (hopefully) realize to sell cars to people who can afford it and to sell other vehicles to people looking for cheaper alternatives. You’ll also understand people who are a waste of your time. In the second scenario, let says a salesperson is trying to sell car insurance.
That salesperson might spend the time to talk about its affordability, how it’s better than it’s competitors, the reputation of the company, or how cheap it is. Sure, this is all important. However, this is not the sole reason why a customer will buy car insurance. He or she will buy it, for peace of mind. A simple strategy you can use when identifying new prospects: “Do you feel the need to keep your car safe and secured – with a peace of mind and 24/7 support, spending as little as possible?” If the prospect does not say “Yes!” immediately, you will not spend any more time trying to convince him or her. If he or she is feeling relucted to secure their car, they won’t care too much in case of an accident. Learn to ask questions and discover your customer’s needs for them to take action, or to figure out if they’re worth their time.
Reasons Why People Purchase
Once you find the right motives to why they are purchasing your product, it is usually the individual:
- View a purchase of your product as an accomplishment or an item that represents their status
- The product your offering either makes or saves the individual money
- Security (to become safer)
- The appeal after the purchase to being liked, accepted and respected by others
- If your product can enhance health & fitness (high levels of energy and/or attraction)
- Gives the prospect power, influence, or popularity
- The desire to staying “up-to-date” (need the newest iPhone, etc.)
- The ability to give the prospect of love, attraction, sex, and companionship
- Personal growth (learn new skills or a permanent transformation)
People Are Ruled By The Sensual And The Visual; Logic Always Comes After All buying decisions are usually emotional, based on what they see and how it makes them feel. People justify their decisions logically and typically decide emotionally. Humans have an array of emotions – but the most important feeling operating at the particular moment will determine what that person will act upon at that time.
This post was originally published on reddit with permission from the author and is part 2 of 3 of his series. Fourteen Robots did not publish the first or third of this series as we think this packs the necessary tools to get things moving in the right direction. If you want to read the rest of it, click on reddit link above.