PSYCHOLOGY OF THE SALE
THE SECRETS FROM THE SCIENCE OF PERSUASION
And other assorted mind games
Objectives of this class
1. To help you identify the psychological principals
surrounding the buying process
2. Help you develop an understanding of how to become
a “Decision Guide/Counselor”
3. Learn how to implement modern
psychological influence and
persuasion techniques
Why Do People Buy?
There are two main reasons people buy depending on
their Psychological Mind Set
People buy on Impulse
We want what we want when we want it.
People buy to Satisfy a Need
There are lots of needs vs. wants in the world
Buying from a Need Mind Set
6 step process before buying
1. It starts with a problem
2. Become conscious of the problem
3. Look for a solution to the problem
Need Mind Set
4. Find a product or service that will solve the problem
5. Ensure product or service will solve the problem
6. Check to see if they have money
Buy
What are the implications
for your business?
• Look for the real “needs” behind the obvious needs
• Comfort
• Safety
• Economic gain/loss
• Keeping up with the “Jones”
• Fear of loss
• Peace of mind
Impulsive Buying
Leads to momentary satisfaction…happiness….bliss
Leads to temporary state of euphoria
Leads to fat dumb and happy
Leads to second thoughts
Leads to doubt
Leads to regrets
BUYER’S
REMORSE
No Sale
Unhappy and a “broker” Broker
Implications for your Business
Always validate impulsive buyers
If there is no real need,
Refer them to your competitor!
Happiness and Success Mindset
The Happy Secret to a
Better Work Life
Shawn Achor
One of the World’s leading experts on the connection
between Happiness and Success
Positive Psychology
https://www.youtube.com/watch?v=-rK_1iEvxiY
Old Happiness Formula for Success
Work harder…… be more
successful…… be happier
Positive Psychology
says….
New Formula for Success
Happiness fuels success,
not the other way around
Positive Psychology
If you can find a way to get your brain to
become more positive your success rates
will increase dramatically
10 Proven ways to become more Positive
Start a Gratitude Journal
Smile more often
Say please and thank you more often
Consciously walk with your head up and shoulders back
Consider every problem an opportunity
Write notes with positive messages
Read/Watch less news and read watch more
uplifting books
Exercise More
Spend time in meditation - reflection
Perform Random Acts of Kindness
Be thankful in all things
Becoming the
“Decision Guide/Counselor”
“Game Changers”
by Steve Murray, President Real Trends Inc.
Lorne Wallace CEO & Founder of Lone Wolf
Real Estate Technologies
Lon Welsh CCIM, CRS
Greater Denver Area:
What % of agents
had ZERO sides a year?
44% No
sales
Game Changers
10 Possible Coming Trends
• Technology enables the do-it-myself
generation
• Ratings and reviews begin to matter
• The not-so-safe harbor
• The homeownership rate declines
Game Changers
• Competition drives commission rates
to new lows
• Consolidation of MLS’s and Associations
• The listing portals lock up the consumer relationship
• Which brokerage services do clients value?
• Challenges for brokerage owners today---tomorrow
#1 Game Changer
Counselors vs. Facilitators
The segmentation of Sales Agents and
the psychological attitude of peak
performers
Counselors vs. Facilitators
Common Attributes of Counselors
• An intense focus on activities that produce more business
• Quick to adapt technology that will enable better business
practices
• Mastery Expertise and Knowledge in housing markets
• Mastery of the complexities of the buying and selling process
Counselors vs. Facilitators
Common Attributes of Facilitators
• They have access to technologies that enable easier deal
navigation for their clients, but have not adopted them as
extensively as high-volume agents.
• They lack transaction experience. These agents are not skilled in
the details of either the market or the transaction
• Generally, they have far less experience overall. Facilitators are
not in a position to offer much as much in the way of true
guidance to their clients and customers.
Counselors
“Since they bring a lot of value to
the transaction, Counselors are
better able to
justify----and receive—high
commissions”
Another Name for Counselors is
Decision Guides
Your mind-set must be:
Help people make decisions they couldn’t have made without
you
Help people overcome the fear/anxiety of making decisions
Provide context and understanding to complex issues
Provide expertise and knowledge beyond the ordinary
Jill Konrath Author of
“Snap Selling” and “Agile Selling”
“……it’s important for you to stop selling and focus
on helping facilitate the decision process. When you
are a decision guide people trust you and will want
to work with you.”
Sales Call
NO
Get out of the way
and let them buy
YES
“The Psychology of Modern
Persuasion” by Robert Cialdini
We all need guiding rules or
shortcuts to help with the
overload of daily living
Employing these rules in an
ethical manner significantly
increases the chances someone
will be persuaded by your
requests
In the social contract we have with
each other, people are more likely
to say yes to people they owe.
It matters not
only what you
give but how
you give!
The Power of Loss
The research in Psychology is clear; People are more motivated by
the idea of losing something more than they are by gaining
something of equal value
OPPORTUNITIES SEEM MORE
VALUABLE TO US WHEN
THEIR AVAILABILITY IS
LIMITED
Science is clear: You must tell
people not only about the benefits
they’ll receive and the uniqueness
of your service but what they stand
to lose if they fail to consider your
proposal
What the science is telling us is to signal to others
what makes you a credible authority before making
your influence attempt
Authority is two things.
It is knowledge on the
one hand, and it’s
trustworthiness on the
other hand.
Science tells us that it doesn’t
matter if the person
introducing you is connected
to you and is“ likely to benefit
from the introduction.
One group of Realtors had their
receptionist introduce the caller to the
broker by telling about their colleagues
credentials and expertise.
Consistency is our nearly obsessive
desire to be (and to appear) consistent
with what we have already done.
“Once we realize that the
power of consistency is
formidable in directing
human action, an
important practical
question arises. How is that
force engaged”
What produces the click that
activates the whirr of the powerful
consistency tape?
Social psychologists think they have found the answer:
Commitment
If I can get you to make a public commitment…that is
take a stand, to go on record…I will have set the stage for your
automatic and ill-conceived consistency with that earlier
commitment.
Once a stand is taken, there is a natural
tendency to behave in ways that are stubbornly
consistent with the stand.
It has been
proven that once
they like us, then they
will feel more
comfortable accepting
our influence.
So the question is, what are the factors that
cause people to like us?
• Similarities: People like those who are like them. They
don’t just use those people as a reference for what they
should do….they also like those people and say “yes” to
their requests for that reason.
Hard to reject yourself!
•
Compliments and Praise: We like people who like us, and we SAY SO.
I know nothing that produces more return on the effort that it
requires….the cost it requires…than honest praise. Nothing is more
effective in terms of the costs benefits ratio.
Cooperation: Making people
recognize that you have similar
goals that you are working together
for a common purpose. Raise the
feeling that you are
cooperating…you are really working
together. We like those people who
are united with us toward our goals.
Raise ” the feelings of cooperation”
to the surface before you try and
influence.
Group of students were told
to negotiate sales online
First group told
time is money 55% success
2nd group told establish some
connection/similarity with
other person first.
90% Success
Produce greater results
Social Proof is
another way of
passing consensus
One of the ways people decide what is appropriate for
them in a given situation is to look at what other
people like them have done in the same situation
Since 95% of people are
imitators and only 5% initiators,
people are persuaded more by
actions of others than by any
proof we can offer.”
Cavet Robert
Watch what I do…..
Small incremental changes in
your approach and attitude;
Practical ideas put into
practice;
No cost changes focused on
developing skills; these make
all the difference.
“Ideas can be lifechanging. Sometimes all
you need to open the
door is just one more
good idea.” Jim Rohn
“Disciple is the
bridge between
goals and
accomplishment.
”
Jim Rohn