Strategies for handling sales objections

From: alexhormozi
The following is an ultimate guide to sales, focusing on strategies for handling objections and maintaining control in sales conversations through logical decision-making processes.

The Core Philosophy of Sales [00:00:05]

Selling effectively involves selling with logic to help prospects make rational decisions that stick, rather than relying solely on emotion, which can lead to buyer’s remorse [00:00:30]. Emotional buyers often get excited and make a purchase, only to regret it later [00:00:36]. A strong rational foundation ensures the decision endures even after initial emotions fade [00:00:51]. In business, particularly at higher levels, decisions tend to be more logic-first [00:01:17]. People inherently want to believe and buy; the salesperson’s role is to help their logical brain justify the decision they already want to make [00:01:42].

Key Beliefs About Selling [00:02:08]

• People want to believe you and buy from you. Your job is to help their logical brains justify the decision [00:02:14].
• Selling vs. Closing: Selling occurs throughout the entire process leading up to the ask, while closing happens after the request for sale [00:02:21].
• Expect “No”: Anticipate and plan for “no” as it is an expected part of the job, not a failure [00:02:51]. If a prospect could make the decision on their own, they wouldn’t need a salesperson [00:03:08].
• Power in Sales: Sales is the ability to direct or influence others, making it a form of power [00:03:24]. It is the first step in coaching [00:03:19].
• Pricing Strategy: If you don’t elicit a “gasp” from the price tag, you haven’t priced high enough [00:03:35]. Starting high creates a beautiful price anchor [00:03:48].
• Long-term Success: Selling properly, using logic, sets up both the salesperson and the client for long-term success and a strong relationship [00:04:20].
• Help Them Help Themselves: Sales is about helping prospects make decisions that help themselves, not just you [00:04:30].
• Prospect as Priority: Keep the prospect, not the sale, as the ultimate priority [00:04:44]. The more you magnify the prospect and vanish yourself, the better sales conversations will go, as prospects primarily care about themselves [00:04:54].
• Curiosity over Argumentation: Seek to understand, not to argue. Cultivate childlike curiosity when prospects raise concerns, asking “Tell me more about that?” [00:05:08].
• Closing as a Dance: Closing is a dance, not a fight. It’s about seduction, not beating them into submission, by selling from a position of wanting to help them [00:05:55].
• Belief and Trust: Selling is the transference of belief over a bridge of trust [00:06:21]. You must believe in what you sell, and the prospect must trust you [00:06:28]. Maintaining conviction is crucial; often, a cold streak in sales is due to a loss of belief, not skill [00:06:44].
• Genuine Help: Trust is built by genuinely wanting to help [00:07:27]. Humans are exceptionally good at sniffing out intention as a survival mechanism [00:07:30].
• Continuum of Belief and Trust: Belief and trust are not binary; they exist on a continuum [00:07:41].
• Hard Questions, Real Care: Closers ask hard questions because they genuinely care about the prospect’s transformation [00:08:07].
• Winning the Sale: The person who cares most about the prospect wins the sale [00:08:30]. If you are more convicted, prospects will question their own excuses [00:08:40].
• Record Sales: Always record all sales calls to review hot streaks and identify winning patterns, which helps in improving and training [00:08:48].

Why Focus on Closing? [00:09:52]

Closing skills have one of the highest predictors of success in business [00:09:58]. Just like top NFL Red Zone offenses are highly correlated with making the playoffs, the ability to close can compensate for many other deficiencies in business and life [00:10:07]. Out of 100 potential buyers:

• 10% will never buy, regardless [00:11:02].
• 10% will always buy; just don’t mess it up [00:11:13].
• The crucial “middle 80%” is where true impact is made and deals are won through effective selling [00:11:40].

The Onion of Blame: Sources of Resistance [02:07:07]

Resistance, whether from yourself or a prospect, often stems from “distortions of reality” rooted in three core areas, as identified by Dr. Albert Ellis in cognitive behavioral therapy [02:19:57]:

1. Circumstances: Believing one must get what they want when they want it, and that they “can’t stand it” if they don’t [02:21:13]. These manifest as external reasons [02:37:07].
2. Others: Believing others must treat them fairly and kindly, and are “no good” if they don’t [02:22:31]. This involves blaming other people [02:37:07].
3. Self: Believing one must do well, or else they are “no good” [02:22:41]. This is about self-doubt and internal beliefs [02:37:07].

Prospects (and individuals) typically peel back these layers of blame like an onion, starting from external circumstances, moving to blaming others, and finally arriving at self-blame [02:21:07]. Understanding these layers helps identify where the prospect is in their decision-making process [02:33:05].

Obstacles vs. Objections: Timing is Key [01:16:10]

It is easier to handle obstacles than objections [00:02:40].

• An obstacle is something that blocks progress and arises before you ask for the sale [00:16:19]. They are easier to confront and destroy upfront [00:17:17]. An example is a prospect saying, “I just wanted to find out a little bit more about the program” when asked why they hopped on the call [00:16:44].
• An objection is when the prospect disagrees with you after you have asked for the sale [00:17:24]. At this point, the “bomb is ticking,” and it becomes a high-stakes closing scenario [00:17:37]. An example is, “I don’t want to buy right now” [00:17:41].

To effectively handle objections, the prospect must genuinely want the goal and believe three things:

1. The product will help them achieve the goal, and in the way they want to get there [01:18:11].
2. You and others will support them [01:19:03].
3. It will work for them, not just everyone else, even if they perceive themselves as a “special snowflake” [01:19:11].

Overcoming Common Excuses and Distortions [02:29:56]

Common excuses or “scapegoats” fall into five categories, which correspond to the layers of the blame onion: Time, Value/Price/Money, Fit, Authority (Others), and Avoidance (Self) [02:40:51].

1. Overcoming Time Obstacles [02:57:07]

Prospects may claim they are “busy” or “it’s not a good time.”

• Macro (Seasonal/Always Busy): If they want a long-term solution and expect to be busy again in the future, it’s best to start now. Learning to succeed when busy ensures sustainability [02:47:03].
• Micro (No Time in Day): Acknowledge their feeling, then reframe by sharing a personal story about finding time (e.g., screen time on phone) [02:50:56]. Highlight that a good program helps by cutting out unproductive activities, not adding more [02:59:58].
• “When I have time, I’ll start” (When-Then Fallacy): This is a logical fallacy where people assume they can only do Y when they have X (e.g., “When I have more money, I’ll pay for the program that makes me more money”) [03:10:10]. Empathize, then gently expose the fallacy by showing how it holds them back [03:10:20].

2. Overcoming Money/Value Objections [03:04:51]

Prospects say “I can’t afford it” or “It’s too expensive.”

• “Why a lot is good”: If the price feels like a lot, it means they’ll work harder, increasing their likelihood of success [03:19:00]. This is exciting because great success stories often come from those who had the most on the line [03:33:05].
• Relative Value: Frame the price in relation to the desired outcome. If the product delivers the promised value (e.g., $10,000/month income), the absolute cost becomes negligible [03:23:45]. The real issue might be a lack of belief that you can deliver [03:34:02].
• Cost of Inaction: They will spend the money anyway, either on this solution or on continuing to struggle [03:51:11]. The question is whether they want to pay in money for a faster solution or in time over years of trial and error [03:55:00]. Buying knowledge is how you buy time in life [03:06:06].
• Resourcefulness, Not Resources: Self-made millionaires started with nothing, proving success comes from being resourceful, not from having resources [03:56:51]. Illustrate with examples of finding money when absolutely necessary (e.g., unexpected bills) [04:08:00].

3. Overcoming “Fit” Objections [04:47:04]

Prospects are “not sure if it’s for me” or dislike a specific aspect.

• New Identity, New Priorities: Connect the purchase to adopting a new identity. People vote with their dollars and time for what they care about [04:24:25]. Aligning with a new desired identity (e.g., a “rich person” invests in themselves) creates new priorities [04:29:49].
• Change the Change: Highlight that current actions lead to current results. If they dislike their current situation, they must change what they’re doing [04:34:04]. The pain of staying the same must become greater than the pain of change [04:14:04].
• Hypothetical Agreement: Ask, “If this were perfect, would you do it?” [04:20:00]. A “yes” means the problem isn’t the product itself but a perceived imperfection [04:46:11]. A “no” reveals a deeper issue like lack of trust [04:49:50]. This helps pinpoint the true concern and address it directly [04:52:00].

4. Overcoming Authority Objections (Others) [04:20:00]

Prospects claim they “have to talk to my partner/spouse” or another decision-maker.

• Isolate the Objection: Ask what the decision-maker wouldn’t like. Address those concerns directly, as the decision-maker isn’t present [04:56:52].
• Current Situation vs. Solution: Do they approve of the prospect’s current struggle? If not, why would they disapprove of a solution to that struggle? [04:57:02].
• Role Reversal: Ask if they would support their partner if the roles were reversed and their partner needed the program to achieve their dreams [04:59:00].
• Support, Not Permission: Frame the decision as asking for support rather than permission [05:04:00]. Emphasize that not taking action out of fear of disapproval can lead to resentment in the relationship [05:06:00]. The prospect is choosing to own their own power [05:30:30].
• Guarantees & Humor: Offer a “no sweat” guarantee (e.g., 3-day refund) to reduce perceived risk [05:21:00]. Use humor to lighten the conversation and address underlying insecurities [05:28:00].

5. Overcoming Avoidance Objections (Self) [05:27:00]

Prospects say “I need to think about it” or stall. This means you’ve peeled back outside layers and are talking to the person in power [05:43:00].

• Past:

  • “This feels fast”: Reframe by showing this decision is the culmination of years of struggling with the problem [05:51:00]. Use “sunk cost” — they’ve already invested time/effort to get to this point [05:53:00].
  • “Don’t let it burn you twice”: If they’ve had bad experiences in the past (e.g., bought a program that didn’t work), don’t let that bad experience stop them from a good one [05:23:00]. Like a bad relationship, don’t let one bad experience prevent future good ones [05:50:00].
  • Past Indecision: Confront whether their current position is a result of past struggles to make hard decisions [05:55:00].
  • “Tired of another year of almost”: Magnify the pain of inaction. What has it cost them to not decide up to this point? [05:59:00].

• Present:

  • “Rocking Chair Test”: Walk them through what “thinking about it” looks like (i.e., nothing changes) [06:03:00]. Decisions don’t take time; they take information, and you are the source of information [06:11:00].
  • How to Make a Decision: Guide them through three core beliefs:
    1. Do you believe this product/service will help you achieve your goal? (Yes/No) [06:16:00].
    2. Do you trust me/our company to fulfill our word? (Yes/No) [06:18:00].
    3. Do you think it will work for you? (Yes/No) [06:22:00]. If all are yes, and they have access to funds, they should move forward [06:26:00].
  • Informed Decision/Trial: Explain that they can only make an truly informed decision by experiencing the product (e.g., with a 30-day guarantee) [06:36:00].
  • Etymology of “Decide”: “Decide” comes from Latin “decaedare,” meaning “to cut off” or “to kill off” [06:42:00]. Ask: “Which future are we killing off today? Your dreams, or your past?” Indecision is a decision [06:45:00].

• Future:

  • Magnify Future Pain: Project their current path forward. “How’s another five years of this sound?” [06:54:00]. If they don’t change, they’ll get more of the same [06:58:00].
  • Consider the Options: Present logical options, often with guarantees. If you have a guarantee, most options are “risk-free” except for inaction [06:54:00].
  • Urgency - Sooner vs. Later: If they’re going to fix the problem eventually, why not start now and enjoy the benefits sooner? [07:27:00].
  • Directional Right, Not Perfect: Reframe the question: Will this decision get them closer or further from their goal? [07:30:00]. Perfectionism is a trap; being directionally right is enough to make progress [07:39:00].

The “Bonus” Objection: The Problem Is the Solution [08:04:00]

The very reason a prospect is telling themselves not to do something is often the very reason they need to do it [08:12:00]. (e.g., “I can’t afford it” means they need the solution to solve their money problems; “I don’t have time” means they need the solution to gain time) [08:16:00].

The Diagnostic Sale: A Closing Framework [03:07:07]

The “Diagnostic Sale” process allows for a more custom and personalized sale even when selling a standardized product or service, often leading to increased revenue [03:07:07]. It aims to move away from purely transactional sales towards a custom approach [03:11:00].

Seven Steps of the Diagnostic Sale:

1. Pre-Sale Questionnaire/Application: Gathers information to arm the salesperson and increases the prospect’s awareness of their problem [03:13:00]. It asks the same questions in multiple ways to agitate and elevate the problem’s importance [03:14:00].
2. Collect Info & Credit Card: Obtain basic information and a credit card upfront, before selling anything, as “standard procedure.” This avoids needing to ask for it later during the close [03:14:00].
3. Understand Current Situation (Current State): Ask “Where are you at today?” [03:15:00].
4. Understand Desired State: Ask “Where would you like to be?” [03:17:00].
5. Identify the Obstacle: Ask “What’s in between these two things?” [03:18:00]. The prospect’s perceived obstacle is often not the real one, as they haven’t solved it themselves [03:19:00]. Use their own words to reflect their pain [03:18:00].
6. Present Price in Relation to Goal: This is the core of the diagnostic sale.
   • Do not sell features or modules. Sell the “vacation,” not the “plane flight” (i.e., the result, not the process/work) [03:22:00].
   • Tie price directly to the outcome: Calculate the time or effort required to reach the desired state based on your methodology (e.g., “It will take 45 weeks to go from 200lbs to 140lbs at 1.5lbs/week”) [03:19:00].
   • Quote the full cost for the entire solution: Present the total price for reaching the goal (e.g., $4,500for45weeksat$99/week) [03:18:00].
   • Guarantee the outcome: Offer a guarantee tied to compliance (e.g., “If you show up and log your food, I’ll work with you for free until you reach your goal”) [03:22:00]. This transfers risk and ties the purchase to the desired outcome [03:25:00].
   • Shift Responsibility: By having the prospect identify their current and desired state, they take ownership of the “ugly” starting point and the aspirational goal. You, as the expert, provide the path [03:22:00]. This is similar to a yogurt store where the customer fills their own cup and sees the weight on the scale, owning the price [03:28:00].
7. Incentivize Prepayment: Offer discounts for paying upfront. This creates a price anchor and positions you as the “good guy” offering savings [03:30:00].

Bonus: Transition to Recurring Revenue [03:21:00]

Even if the core service is presented as a one-time solution to a goal, you can transition to recurring revenue through:

• Payment Plans as Programs: Instead of selling month-to-month, sell the entire program at a higher price point with extended payment plans [03:29:00]. This significantly increases Lifetime Value (LTV) [03:30:00].
• Automatic Recurring Payments: Structure the payments so that after the initial program is paid off, it automatically transitions to a monthly recurring payment plan at the same (or similar) rate [03:30:00]. The customer perceives it as a continuous payment plan, increasing stickiness [03:30:00].
• Sales Step-Downs: Always start with the highest option (prepayment), then step down to a discount with partial payment (e.g., half down), then a continuity payment plan, and finally, booking a single future session [03:32:00]. Every prospect should buy something [03:36:00].

Scaling Sales Teams: Building a High-Performance Department [03:39:00]

Scaling a sales department from zero to many reps requires specific strategies for hiring, compensation, and process improvement.

Maximizing Opportunities [03:52:00]

The best salespeople maximize their opportunities:

• Total Hours Available: Work more hours, including weekends, to be available when prospects are [03:58:00].
• Pull Up Calls: Drag appointments scheduled for later in the week to earlier available slots (today or tomorrow). Today/tomorrow appointments have higher show-up rates, increase sales velocity, and free up future slots [03:59:00].
• Manage Unresponsive Prospects: If a prospect hasn’t confirmed, push their appointment out and fill the current slot with a more responsive lead [04:08:00].
• Immediate Contact: Immediately call new appointments to qualify and, if possible, close on the spot. If not, rebook for later the same day [04:10:00].
• Off-Call SOP: Have a clear Standard Operating Procedure (SOP) for what to do between calls (e.g., follow-ups, lead nurturing) [04:23:00].
• Book a Meeting From a Meeting (BAMFAM): Never end a call without knowing the next time you’ll speak. Address any time obstacles immediately [04:29:00].
• Volume & Resilience: Don’t take rejection personally. The best salespeople reach out to more volume and work their leads harder [04:30:00].
• “Kill List”: Maintain a visible list of high-value prospects for extra attention [04:37:00].
• Generate Referrals: Actively ask for referrals from prospects, framing it as a compliment [04:41:00]. Referrals have significantly higher close rates [04:47:00].
• Personalized Reminders: Send personalized voice memos or video texts before calls to increase show-up rates and build rapport [04:50:00].

Maximizing Conversion (On the Call) [05:00:00]

Once on the call, the best salespeople convert at high rates:

• Preparation: Do 5 minutes of research before a call to build instant rapport and demonstrate care. This immediately establishes trust and makes the prospect feel “known” [05:01:00].
• Take Notes: Meticulously take notes during the call and review them before follow-ups. Recalling details from previous conversations makes recommendations feel contextual and builds trust [05:09:00].
• Listen More Than You Talk: The best salespeople listen twice as much as they talk [05:14:00]. The person asking questions controls the conversation, and prospects believe what they say, not what you say [05:15:00].
• “Breathe the Script”: Know the script so thoroughly that you can deliver it without thinking, allowing you to be 100% present and listen to the prospect [05:17:00]. Conciseness is key; longer scripts or unnecessary additions reduce efficiency [05:17:00].
• Kill Zombies Up Front (Diffuse the Bomb): Address potential objections (obstacles) before mentioning price. This prevents them from blowing up in the close [05:27:00]. Use a “ghetto tone” or humor to lighten tough questions [05:39:00].
• Confront Hard Questions: Don’t shy away from uncomfortable questions. Ask “What are you most afraid of happening?” and “Let’s just play it out” to take away emotion and examine best-case/worst-case scenarios [05:46:00].
• Ask for the Sale Again: If a prospect says “no,” resolve their concern and then ask again. This can be done unlimited times as long as you are resolving new issues [05:52:00].
• Care More Than the Prospect: The best salespeople genuinely care more about the prospect’s well-being and success than the prospect does [05:58:00]. This intention is palpable and prevents appearing pushy [06:04:00].

Sustaining Performance (Meta Skills) [06:06:00]

Consistency and other “meta skills” differentiate champions:

• Consistency: Sustaining high performance over time is crucial [06:08:00].
• Enthusiasm: Maintain a high level of enthusiasm for the role and on calls. It’s a skill to cultivate [06:11:00].
• Kill for Sport: Like a tiger that hunts even when full, the best salespeople love the thrill of the close and treat every opportunity as valuable practice, regardless of lead quality [06:17:00].
• Track Data: Meticulously track metrics beyond just close rate (e.g., schedule rate, show rate, offer rate, cash collected percentage, average call to close) [06:29:00]. Quality and quantity of metrics tracked correlate with skill [06:33:00].
• Allocate Leads Strategically: Give the best leads to the best closers to maximize overall team close rates [06:38:00]. New salespeople should train on “worst” leads to develop their skills without bearing significant business cost [06:47:00].
• No Blaming Circumstances: High performers never blame external factors like “bad leads” or commission structure. They focus 100% on what they can control [06:58:00]. The worse the leads, the more opportunity to flex skill [07:11:00].

The Conviction Framework: Outperforming Seasoned Reps [07:28:00]

Conviction is key to effective selling. Words are only 10% of communication; 90% is how you say them (tonality) [07:29:00].

• Conviction Corrects Tone: If you truly believe in the product, your tone will naturally convey confidence and help the prospect [07:31:00]. This is the most important part of the sale: the product itself, as a good product allows ethical selling [07:32:00].
• Build Conviction:
  • Reread Testimonials: Read testimonials aloud daily to internalize client success and build belief [07:35:00].
  • Improve the Product: Continuously refine the product or service based on feedback, taking responsibility for customer success (or lack thereof) [07:39:00].
  • Self-Reflection: Honestly assess if your effort and product merit the price. This internal conviction is crucial for avoiding burnout [07:44:00].
• Belief is a Continuum: It’s not about if you believe, but how much [07:51:00]. The most convicted person always wins [07:57:00].

Sales Training [07:59:00]

• Daily Training: Conduct 60 minutes of daily sales training. Read scripts aloud, drill obstacles, and role-play specific scenarios [08:02:00].
• Focus on One Area: Improve one specific part of the script or skill at a time. Trying to fix multiple things at once is overwhelming and ineffective [08:08:00].
• Track Progress: Review recordings to analyze what went right/wrong and identify areas for improvement [08:09:00].

Ultimately, the goal is to equip salespeople with the mindset and tools to help prospects make powerful decisions to help themselves, leading to mutual success.