Understanding sales objections and obstacles

From: alexhormozi

Effective selling involves not only presenting a product or service but also skillfully navigating the concerns and hesitations of potential buyers [00:00:05]. This process is crucial for converting leads into satisfied customers [00:01:07] and maintaining control in sales conversations [00:05:25].

Distinguishing Obstacles and Objections

A key aspect of handling objections and maintaining control in sales conversations is understanding the difference between an obstacle and an objection:

• Obstacle: A barrier that arises before the sales professional asks for the sale or mentions the price [02:24:26]. These are disagreements that occur early in the conversation, often within the first few seconds [01:09:40]. It is easier to confront and resolve obstacles proactively [01:17:19].
• Objection: A disagreement that surfaces after the sales professional has solicited the sale [01:17:24]. These are often more time-sensitive and require a more immediate response, as “the time is ticking on the bomb” [02:29:29].

It is paramount to address these issues up front to prevent them from blowing up later in the sales process [02:29:42].

Sources of Resistance: Distortions of Reality

Many objections and obstacles stem from fundamental “distortions of reality” that people use to upset themselves [02:21:07]. These distortions often involve casting power to external sources outside of one’s control [02:22:04]. Drawing from principles of cognitive behavioral therapy (CBT), these core distortions manifest in three main areas [02:21:48]:

1. Circumstances: Believing one must get what they want when they want it, and that not getting it is unbearable [02:21:15]. This often involves blaming external factors like time, money, or the perceived “fit” of the solution [02:23:15].
2. Others: Believing others must treat them fairly and kindly, and if they don’t, those individuals are “no good” and deserve condemnation [02:22:31]. This translates to blaming spouses, children, employees, or business partners [02:23:20].
3. Self: Believing one must do well, or else they are “no good” [02:22:41]. This often manifests as self-doubt, fear of failure, or avoidance of decision-making [02:25:21].

These three areas form an “onion of blame,” with circumstances being the outermost layer, followed by others, and finally, the self as the core [02:23:07]. Sales professionals can use this framework to understand how deeply rooted a prospect’s hesitation is [02:23:33].

Common Manifestations and Strategies for Handling Sales Objections

The core distortions often manifest as five common excuses:

1. Time (“I’m busy,” “Not a good time,” “Maybe in the future”) [02:25:01]

• Macro (Seasonal/Always Busy): If a prospect plans for a future “less busy” time, they should consider that they will likely be busy again [02:27:31]. The best time to start is when they are busy, so they learn to integrate the solution into their real life, ensuring long-term adherence [02:27:46].
• Micro (No Time in My Day): Prospects may claim to lack time, but often, it’s about reallocating existing time [02:29:01]. Frame it not as adding tasks, but as removing ineffective activities that currently consume their time [02:29:16].
• “When-Then Fallacy”: This is the belief that “when I have X, then I will do Y” (e.g., “when I have more time, I’ll start”). This is a distortion, as the solution often provides the desired “X” [02:30:10]. Highlight that the program is designed to create the time or money they desire [02:30:42].

2. Money/Price (“Can’t afford it,” “Too expensive”) [03:05:05]

• “Why a lot is good”: If the price feels “a lot” to the prospect, it’s often a positive sign, indicating they will commit more fully [03:32:44]. The higher the personal stake, the higher the likelihood of success [03:33:01].
• Relative Value: The absolute cost may seem high, but the relative value can be immense if it achieves the desired outcome (e.g., “$10,000 a month in income” or “getting into a bikini”) [03:35:25]. If the value proposition is clear and believed, the price becomes secondary [03:35:57].
• Cost of Inaction: Prospects will “spend this money either way” through opportunity cost [03:35:21]. They can “pay for it in money or pay for it in time” (e.g., “12 weeks or 12 years”) [03:35:30].
• Resourcefulness vs. Resources: Emphasize that success comes from being “resourceful, not resources” [03:38:17]. Remind them of past unexpected expenses they managed to cover, proving their ability to find solutions when necessary [03:40:09].

3. Fit (“Not sure if it’s for me,” “I’m a special snowflake”) [02:24:25]

• New Identity, New Priorities: Connect the solution to the prospect’s desired future identity [03:41:19]. People vote with their dollars for the identity they want to embody [03:42:24].
• “Change the Change”: If the current approach isn’t working, a change in methodology or mindset is necessary [03:44:34]. The key question is whether “the pain of staying the same is greater than the pain of change” [03:45:14].
• Hypothetical Agreement: Ask, “If this were perfect, would you do it?” [03:46:42]. This uncovers underlying concerns beyond the perceived “fit” and allows for direct objection handling [03:47:14].

4. Authority (“Have to talk to my partner/spouse,” “I don’t have the authority”) [02:24:27]

• Isolating the Objection: If the decision-maker isn’t present, isolate the actual concern they believe the absent party would have [03:48:53]. Address that specific concern, rather than the absent person themselves [03:49:15].
• Support vs. Permission: Reframe the conversation around asking for “support, not permission” [03:52:51]. Emphasize that the decision is for their life and dreams, not for the other person [03:52:58]. Failure to own the decision can lead to resentment [03:53:35].
• Humor and Guarantees: Use humor to lighten the mood and offer guarantees (e.g., “three-day no-sweat guarantee”) to reduce perceived risk and enable immediate action [03:58:17].

5. Avoidance/Self (“I need to think about it,” “What if I just don’t make the decision?“) [02:24:30]

• Not a Fast Decision (Sunk Cost): Reframe the “fast decision” concern by highlighting the long history of the problem the prospect has been trying to solve [03:55:51]. They have already invested time and effort; the decision is merely about acting on a long-standing desire [03:56:06].
• “Don’t Let it Burn You Twice”: If a prospect has had a bad past experience, emphasize that allowing that negative experience to prevent a good future investment means being “burned twice” [03:57:24].
• Tired of “Almost”: Ask if they are tired of “another year of almost” reaching their goals [03:59:16]. Highlight the “cost of inaction” and the regret of missed opportunities [03:59:44].
• Elements of a Decision: Guide the prospect through the logical components of a decision: Do they believe the product will help? Do they trust the sales professional? Do they believe it will work for them? Do they have access to the funds? [04:01:42] If all are yes, the path forward is clear [04:02:40].
• Informed Decision: Leverage guarantees or trial periods. Explain that a truly “informed decision” can only be made once inside the program [04:03:31].
• Indecision is a Decision: Confront the reality that “inaction is an active decision” [04:04:41]. Ask which future they are “killing off” by not making a choice: their dreams or their current struggle [04:04:45].
• Magnifying Pain and Considering Options: Project the current situation five years into the future to amplify the pain of inaction [04:05:08]. Present options (e.g., do the thing and get the result, don’t do it and get no result, do it and don’t get the result due to non-adherence) to logically show the best path forward, especially with a guarantee [04:05:30].
• Urgency: If they’re going to fix the problem eventually, they might as well do it now to enjoy the benefits sooner [04:06:27].

The overarching principle for all these situations is: “The reason you are telling yourself not to do this, is the reason you need to do it” [04:08:13].

Key Principles for Overcoming Sales Objections and Closing Techniques

• Seek to Understand, Not to Argue: Approach objections with “childlike curiosity” [00:05:15]. The goal is to understand the root cause of the hesitation, not to win a debate [00:05:08]. “If you win the argument in a sale, you lose the sale” [03:09:52].
• Selling is Helping Prospects Help Themselves: Position sales as a service where you empower prospects to make decisions that benefit them [00:04:30]. This requires genuinely caring more about the prospect’s well-being than about closing the sale [03:53:50].
• The Role of Emotion and Logic in Sales: Emotions drive the initial excitement and desire to take a step, but logic provides the “rational foundation” that makes the decision “stick” and creates a long-term, satisfied customer [00:00:53]. Salespeople must help prospects justify their emotional desire to buy with logic [00:01:42].
• Conviction in sales and its importance: Selling is “a transference of belief over a bridge of trust” [00:06:21]. Salespeople must deeply believe in their product and its ability to help others [03:02:27]. Strong conviction allows salespeople to “sell hard” because they genuinely want to help [03:02:24]. The most convicted person often wins the sale [03:04:57].
• Importance of asking questions in sales: “Closers ask hard questions” because they genuinely care about the prospect’s transformation [00:08:07]. The person asking the questions controls the conversation [01:36:00]. Salespeople should only answer questions with more questions unless they already know the statement aligns with the prospect’s desires [01:39:03]. Prospects believe what they say, not what the salesperson says [01:36:44].
• Preparation and Listening: The best salespeople research prospects beforehand, take meticulous notes during calls, and listen twice as much as they talk [01:35:53]. This allows them to tailor their recommendations and build rapport by showing they understand the prospect’s unique context [01:34:20].
• Own Deficiencies: Acknowledge and address potential downsides or past failures openly [00:09:00]. This builds trust and removes the prospect’s need to “sniff out” hidden intentions [00:07:28].
• Expect “No”: It is essential to “expect and plan for no” [00:02:51]. “No is the job” [00:03:08]. If prospects could easily decide on their own, they wouldn’t need a salesperson [00:03:11].
• Ask for the Sale (and Ask Again): Sales professionals must explicitly ask for the sale [01:54:35]. If a “no” is given, resolve the underlying concern and then ask again. This “looping” can be done unlimited times as long as a concern is genuinely resolved [01:55:17].

By mastering these improving sales techniques for closing deals and understanding the psychological underpinnings of resistance, sales professionals can significantly improve their conversion rates and foster stronger customer relationships [01:02:02].