Logical and emotional sales strategies

From: alexhormozi

Selling involves a blend of logical and emotional approaches, though the focus should be on building a rational foundation for lasting decisions. Every individual is a single decision away from profoundly altering their life [00:00:00]. To gain more power in life, one must understand what power is and how to unlock it through actions and decisions [00:00:10]. In business, influencing others and helping them make decisions for their betterment requires understanding these dynamics [00:00:20].

Defining Power

Power, as defined in the dictionary, is the ability to influence or direct events or people [00:04:59]. It is a neutral force; one can be incredibly powerful for good or for bad [00:02:33]. Harnessing power amplifies who one is [00:02:40]. The goal in sales is to empower the prospect, enabling them to step into the person they aspire to be and make a decision to take ownership of their path [00:04:40].

Sales Styles: Logic vs. Emotion

There are various selling styles, including emotional, aggressive (“I’m not going to let you leave”), and logical [00:03:10]. The logical approach focuses on talking through the proposition and proceeding if it makes sense [00:03:42]. While emotions can decrease the action threshold and prompt initial steps, logic ensures the decision sticks, leading to a great customer [00:06:25]. More seasoned business professionals tend to prioritize logical, rather than emotional, decisions [00:06:36].

Most buyers exist on a continuum between being purely logical and purely emotional [00:06:59]. Emotionally, people want to believe and buy, but it is the seller’s role to help their logical brains justify the decision they already desire to make [00:07:05].

Core Beliefs About Selling

The following beliefs have significantly contributed to sales success:

• Justification for Decision: People inherently want to believe and buy. The salesperson’s role is to help the prospect’s logical brain justify the desired decision [00:07:39].
• Selling vs. Closing: Selling occurs before the ask for the sale, encompassing a longer period, while closing happens after the ask [00:07:45].
• Obstacles vs. Objections: It is easier to handle obstacles (disagreements before the sale is solicited) than objections (disagreements after the sale is solicited) [00:08:06].
• Expect “No”: Anticipate and plan for “no.” It is not a failure but an expected part of the process [00:08:15]. The salesperson’s job exists because the prospect needs help making a decision [00:08:33].
• Price and the “Gasp”: If there isn’t a “gasp” from the prospect at the price tag, the price isn’t high enough [00:09:00]. A higher initial price allows for a beautiful price anchor if reduction is needed [00:09:14]. This relates to high ticket sales.
• Selling as Coaching: Selling properly is the first step in becoming a coach, as it sets expectations and dictates the relationship [00:09:43].
• Helping Prospects Help Themselves: Selling involves helping prospects make decisions for themselves, empowering them [00:09:56].
• Prospect Priority: The prospect, not the sale, should be the priority [01:00:10]. Vanishing oneself and magnifying the prospect improves sales conversations [01:00:16].
• Seek to Understand: Approach conversations with childlike curiosity, seeking to understand rather than argue when a prospect objects [01:00:35]. This is a key aspect of strategies for handling sales objections.
• Closing as a Dance: Closing is a dance, not a fight; it is seduction, not force [01:01:19]. The goal is to sell from a position of wanting to help the prospect help themselves [01:01:33]. This contributes to overcoming sales objections and closing techniques.
• Transference of Belief over Trust: Selling is the transference of belief over a bridge of trust [01:01:47]. Belief in the product and the intention to genuinely help are crucial for building trust [01:01:53]. Trust is built if you genuinely want to help, as humans are adept at sniffing out intention [01:02:52]. This is a core part of sales tactics to build trust.
• Continuum of Belief and Trust: Belief and trust are not binaries but continuums; the depth of belief and trust matters [01:03:06].
• Asking Hard Questions: Closers ask hard questions because they genuinely care about the prospect’s transformation [01:03:32].
• Caring Most: The person who cares the most about the prospect wins the sale [01:03:55]. If the seller is more convicted, the prospect will question their own excuses [01:04:06].
• Record Sales: Recording sales calls allows for review of successful strategies during “hot streaks” to replicate them during “cold streaks,” and serves as excellent training for new hires [01:04:14].

The Significance of Closing

Closing is one of the highest predictors of success in business [01:05:23]. Like a successful NFL team in the “red zone,” the ability to close compensates for many deficiencies in other areas of business and buys time to learn [01:06:04]. While 10% of people will never buy and 10% will always buy, the crucial “middle 80%” are the ones sales professionals fight and train for to make a significant impact [01:07:06].

Overcoming Distortions of Reality

Decision-making is often hampered by blaming external sources, which are distortions of reality [01:08:10]. These distortions prevent individuals from becoming more powerful [01:08:23]. Based on Dr. Albert Ellis’s work on irrational beliefs, these distortions fall into three core categories [01:08:50]:

1. Circumstances: “I must get what I want when I want it; I must not get what I don’t want, and if I don’t get what I want, I can’t stand it” [01:07:42].
2. Others: “Other people must treat me fairly and kindly, and if they don’t, they are no good and deserve to be condemned and punished” [01:07:56].
3. Self: “I must do well or else I am no good” [01:08:06].

These distortions manifest as common excuses, moving from surface-level blame (circumstances) to blaming others, and finally, blaming oneself [01:08:32]. Understanding these principles, rather than memorizing scripts, enables effective navigation of high-stakes conversations [01:09:04]. This is a core aspect of effective sales scripting process.

Five Common Excuses/Scapegoats

1. Time:

   • Macro (Busy Season): If they desire long-term success and anticipate future busy periods, starting when busy teaches sustainability [01:10:01].
   • Micro (No Time in Day): A good program helps cut out 90% of non-productive activities, freeing up time [01:10:25].
   • “When… then” Fallacy: The belief that action can only begin “when” a perfect condition (e.g., more time) is met is a logical fallacy [01:10:35].

2. Money/Value:

   • “A Lot” is Good: If the price feels significant, it indicates a greater commitment to making the investment work [01:10:41].
   • Relative Value: Compare the cost to the potential return (e.g., “$10,000/month income” or “getting into a bikini”) [01:10:50]. If the value is perceived, the price is not the real issue [01:10:59].
   • Paying for Time or Money: Prospects will inevitably “pay” for the solution either with money (by buying the program) or with time (by figuring it out themselves over years) [01:11:04]. Money allows buying time by leveraging others’ mistakes [01:11:38].
   • Resourcefulness, Not Resources: Self-made millionaires and billionaires started with nothing, proving that success is about resourcefulness, not existing resources [01:12:19]. People often find resources when external demands require it (e.g., unexpected bills) but fail to be resourceful for themselves [01:12:34].

3. Fit:

   • New Identity, New Priorities: Current priorities align with an old identity. Stepping into a new identity (e.g., someone who is rich, or fit) requires new priorities, such as investing in education or health [01:12:47].
   • Change the Change: What has been done produces what has been gotten [01:13:00]. Change is uncomfortable, but the question is whether the pain of staying the same is greater than the pain of change [01:13:00].
   • Hypothetical Close: Ask “If this were perfect, would you do it?” [01:13:42]. This reveals underlying objections if they say no, or confirms agreement to move forward if they say yes [01:13:51].

4. Authority:

   • Isolate the Objection: If a spouse or decision-maker isn’t present, redirect the conversation to what the prospect believes the partner wouldn’t like. This often reveals the prospect’s own fears, which can then be addressed directly [01:14:18].
   • Support, Not Permission: The prospect is asking for permission instead of support [01:14:49]. By not owning their decision, they set themselves up to blame their partner for unfulfilled dreams [01:14:52]. Emphasize that making this decision is crucial for their personal well-being and prevents resentment [01:15:13].

5. Avoidance (Self):

   • Not a Fast Decision: A decision that seems “fast” on a call has often been years in the making for the prospect [01:16:09]. All the steps taken to reach this point indicate its importance [01:16:11].
   • Pattern of Indecision: If the prospect has struggled with making decisions in the past, or previously said “no” in similar conversations, acknowledge this pattern as the very reason to change it now [01:16:20].
   • Cost of Inaction: Highlight the cost of inaction – another year of “almost” hitting goals [01:16:43]. The question is not what the program costs, but how much not deciding has already cost them [01:17:03].
   • No New Information: People often believe they need more time to make a decision, assuming they will gain more information [01:18:46]. If the seller is the primary source of information, waiting provides no new data [01:18:52].
   • Three Decisions to Confront: To help someone decide:
     1. Do they believe the product/service will achieve their goal? [01:19:11]
     2. Do they trust the seller to fulfill their word? [01:19:46]
     3. Do they believe it will work for them? [01:19:55] Provide proof until it’s unreasonable not to believe [01:20:01].
   • Informed Decision/Guarantee: An informed decision can often only be made once inside the program [01:20:53]. Offer guarantees (e.g., 30-day money-back) to lower pressure, allowing them to “decide” without fully buying [01:20:56].
   • Etymology of “Decide”: The word “decide” comes from Latin “d cadere,” meaning “to cut off” or “to kill off” [01:21:40]. Therefore, making a decision means killing off one future path to commit to another [01:21:47]. Indecision is itself a decision [01:22:05].
   • Magnify Pain: Help the prospect visualize what another five years of inaction or continued struggle will look like [01:22:58].
   • Consider Options: Present the logical options:
     1. Do the thing, get the result (ideal).
     2. Don’t do the thing, don’t get the result (guaranteed failure).
     3. Do the thing, don’t get the result (covered by guarantee). The choice is between risk-free options, one guaranteeing failure and the other offering potential success [01:23:44].
   • Urgency: If they will eventually fix their problem, they might as well start now to enjoy the benefits sooner [01:24:46].
   • Closer to Goal: Reframe the decision not as achieving perfection instantly, but as taking a step that gets them closer to their goal than their current actions [01:25:35].

Bonus: The Reason to Act

The very reason a prospect is telling themselves not to do something is often the exact reason they need to do it [01:29:40]. The excuse (e.g., “I can’t afford this,” “I don’t have time,” “I’m dependent on my spouse”) represents a chain holding them back. Breaking that chain returns power to them [01:29:40].

Final Thoughts on Entrepreneurship and Selling Strategies

Fortunes are created by taking a lot of risk with a little money and maintained by taking little risk with a lot of money [01:31:37]. Investing in one’s own education and skills yields far higher returns than traditional investments [01:31:55]. Knowledge and skills cannot be taken away by external forces [01:32:09].

Life’s journey is like building a bridge, one brick (skill/experience) at a time [01:34:09]. The key question is whether a decision gets one closer to their goal, even if it’s not a complete solution [01:34:42]. Improving sales techniques for closing deals is one brick.

The speaker’s personal journey illustrates this: From sleeping on a gym floor to owning a successful company [00:00:32], driven by a decision to invest in a mastermind despite having no money or a gym [01:38:03]. This initial investment, though not a “savior,” set him on the right path [01:38:52].

The number one tax people pay is the “time tax of ignorance” – the cost of not knowing how to achieve their goals [01:46:17]. Therefore, one should always be willing to invest money to increase their capacity for income and life, as this capacity pays dividends forever [01:46:49].