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 BuyingLeads 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’SREMORSE

No Sale

Unhappy and a “broker” Broker

Implications for your Business

Always validate impulsive buyersIf there is no real need,

Refer them to your competitor!

Happiness and Success Mindset

The Happy Secret to a Better Work Life

https://www.youtube.com/watch?v=-rK_1iEvxiY

Shawn Achor

One of the World’s leading experts on the connection between Happiness and Success

Positive Psychology

Old Happiness Formula for Success

Work harder…… be more successful…… be happier

New Formula for Success

Happiness fuels success, not the other way around

Positive Psychology says….

Positive PsychologyIf 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 TechnologiesLon Welsh CCIM, CRS

Greater Denver Area: What % of agents

had ZERO sides a year?

44% No sales

• Technology enables the do-it-myself generation

• Ratings and reviews begin to matter

• The not-so-safe harbor

• The homeownership rate declines

Game Changers 10 Possible Coming Trends

• 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

Game Changers

#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. FacilitatorsCommon 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.

“Since they bring a lot of value to the transaction, Counselors are

better able to justify----and receive—high

commissions”

Counselors

Another Name for Counselors isDecision 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.”

YESNO

Sales CallGet out of the way and let them buy

“The Psychology of Modern Persuasion” by Robert Cialdini

Employing these rules in an ethical manner significantly

increases the chances someone will be persuaded by your

requests

We all need guiding rules or shortcuts to help with the

overload of daily living

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 LossThe 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”

Social psychologists think they have found the answer:

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.

What produces the click that activates the whirr of the powerful

consistency tape?

Commitment

Once a stand is taken, there is a natural tendency to behave in ways that are stubbornly

consistent with the stand.

So the question is, what are the factors that cause people to like us?

It has been proven that once

they like us, then they will feel more

comfortable accepting our influence.

• 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.

“Disciple is the bridge between

goals and accomplishment.

” Jim Rohn

“Ideas can be life-changing. Sometimes all you need to open the door is just one

more good idea.” Jim Rohn