Grant Cardone said "People Don't Buy From You Because They Like You"!
Today, I was listening to Grant Cardone on sales closing techniques. In his video, he made the statement "People don't buy from you because they like you?". This statement kinda surprised me because normally, I hear people say the opposite. They say, "People only buy from those they know, like, and trust".
Is he right or has he lost his mind?!!! What do you think?
Who is Grant Cardone?
Before getting too deep into his theories, let's first talk about who Grant Cardone is for those who may have never heard of him.
He has one of the most interesting rags to riches stories I know!
A Quick Grant Cardone Bio
Grant Cardone grew up in a family who was very familiar with financial distress: mom, dad, and 3 siblings (including an identical twin). At age 10, his dad had finally accomplished some level of success--getting them to the middle class and buying a house. A few months later, he passed away, and his mom was so overwhelmed by the financial burden, she sold the house and went into a life of frugality.
By 25, Cardone was a drug addict. He says he tried every drug that was available (mostly out of boredom not emotional distress). Cardone says he tried quitting drugs nearly every 30 minutes, but he was so addicted, he kept breaking the promises to himself and everyone else.
After reaching the lowest point of his confidence, he went to rehab and they diagnosed him with ADD, ADHD, and said he's never live normally. They suggested he go from an addiction on his drugs of choice to an addiction to "healthier drugs".
He chose to doubt them and quit everything cold turkey 30+ years ago. After quitting, he chose to run as far away from boredom as he could, and to work his butt off to stay busy. No one would hire him, but he was able to get a sales job.
He hated sales, but he had no choice. He made it work.
Today, he's known as one of the top sales trainers in the world. He owns 6,000+ apartment complexes (mostly with 300 doors or more), his net worth is publicly recorded at $300 million, and he's set the goal (at 60+ years old) to hit more than $1 billion in net worth!
I think he's a pretty admirable guy even though he can be vulgar, and he's definitely a disruptor of common thought leadership.
Back to His Closing Advice...
He said, "You'd be foolish to think, you can close deals simply from being nice?". Wow! Really?
Is being likable, nice, and building trust enough to close deals and convert potential customers into buyers on a large scale? This question is important to ponder if we want to truly excel online.
Going further, he said, most people who are nice don't close deals. He said "closing is a service" and "most people need help making the buying decision".
Some other points he made
- Most people will procrastinate and need a push to make a growth decision
- When you're selling them something that will compromise their normalcy, it will require some pressure to push them past procrastination and putting it off into action.
- Pressure isn't rude, it's required to help others grow
I Had to Think About What he was Saying and Here are My Thoughts...
After pondering his statements a bit, I can see how pressure is required. I've seen those who excel at sales conversion also master applying pressure by doing things like:
- Limiting the time for action
- Enforcing commitment by setting up a value ladder of purchases
- Limiting the amount of product sales
- Making one-time only offers
- Or, requiring calls to close the deal
Up until now, I saw those acts as manipulative because I saw them abused so much, but I can see how this pressure could be necessary (when used properly) to push people towards the best decisions in their lives. Now, I'm not condoning those people who misuse these things and underdeliver AT ALL, but I can see how these things could be effective in some situations.
If I feel like I can introduce people to the best decision in their lives, what's wrong with a little pressure or commitment, right? Why would I recommend something that I can't stand behind or believe is sub par?
That would be a different issue.
Some of my Real-Life Examples
As a parent, I know I have to apply pressure when I'm trying to encourage behaviors like implementing new habits or reinstating healthy habits even if my kids know the habits are good for them.
I also remember several times while I was in leadership in the military and this pressure just seemed like a part of the culture, but it worked! People weren't given so much time to procrastinate or be indecisive, and as a result, they built the muscle to make quick and healthy decisions.
There is a place for soft encouragement, a place for education and trustbuilding, and a place for pressure.
Closing a sale requires a little pressure: whether in the written word, by video, or face-to-face.
According to Cardone, this phenomenon isn't only normal for my kids or in the military, but this is a common human trait. People have skill levels with their ability to make decisions. Some people are more challenged than others and need applied pressure to excel.
Some example scenarios would include scenarios like:
- If we don't want to clean our houses and someone is suggesting we clean the house
- If we don't want to eat healthy, but we know we should
- And, if we want to grow a successful company, we're struggling to make the sacrificial decisions it takes
The Call to Action vs. The Close
Most of us know we have to say things like "click this link for more info" or "learn more here", but if we have a landing page where we require more risk incurred like an email signup or a product sell, could it be possible we need more than a call-to-action?
Grant Cardone says "Absolutely".
In scenarios (like the ones I mentioned above) where we're encouraging people to improve their lives, implement new habits, or become more disciplined, we need someone who is strong enough that they don't back down and they can apply the pressure to challenge us to grow. I know I've done this on several occassions for members here by creating training for annual members only.
Some people hate me for that decision and I know, but if they truly want to make a business, they need to get comfortable with buying their necessities, and $359/yr is going to be at the small end of the scale for real entrepreneurs.
Some things probably won't get done without pressure EVEN when we agree it's the best thing to do. Similarly, if we are requiring buyers to make tough purchasing decisions, we may need to offer the same push (as a service) even if the buyer is convinced the buying decision is the right thing to do.
The part of the sale most people don't like is the close, but it's the most part of the equation. As affiliates, we have to close the buyer to the decision of clicking on our affiliate link and evaluating the buying decision, but we'll only make good money if we do our part AND choose partners who are really good with closing the deal on their side.
My Questions for You
- What suggestions do you have for us to close more deals online?
- Do you agree that people don't buy from people who are simply nice?
- Do you agree most people need more pressure to make the buying decision?
- Do you think we need to do anything beyond the call-to-action to get high sales conversions?
- What parameters will you put in place in your business to increase your conversion rates to a close?
Leave your comments and questions below.
Grant Cardone's definition of the close of the sale: "A service whereby you are aiding someone in making a decision to exchange something of value."
Recent Comments
17
Hi Tiffany,
The ad airways here in LA are filled with Grant Cardone pushing his website Tired Of Missing Sales . com over and over again. He unapologetically proclaims himself as the best sales trainer in America. So I am familiar with what he does.
I definitely had no idea of his background, so thanks for that bit of information.
While reading your article I tried to remember those occasions when I bought something I was not looking for from a sales person.
First they asked permission to talk to me for just a few minutes to show me a product or service that could save me time, money or both. They also gave me permission to tell them to go away if I didn't like what I was hearing.
It is amazing how doors can be opened with this opening approach. The middle section is where they find out related problems I have and how their product does such a great job in solving it. Or, they find out I need what they are offering that does not solve a problem, but has a make one happy aspect.
The close usually offers a big discount, with a deadline. Sometimes they throw in free stuff. Most if the time this deadline is set for the end of their presentation.
The fear of loss is more powerful than the joy of gain. That is one of the reason people who own stocks hang on to them after they drop in value. They hate selling them at a loss.
That is the pressure that is often applied. To instill the fear of losing out by not being decisive.
This works for me assuming that I need the product or want it for its coolness.
What do you think?
Edwin
I’ve experienced that situation, but it seems that example is one where the outcome is regret. What about when the applied pressure gives the outcome of happiness and satisfaction? What does that look like?
Hey Tiffany - that's a really interesting and thought-provoking piece.
Cardone's statement alone is a little out of context, I think, People won't buy from you SIMPLY because you're nice but people much prefer doing business with people they like and I think that's what we seem to concventrate on here.
Much is said of trust. Can you trust someone you don't like?
However, he's bang on when it comes to closing the sale. People do waver and shilly-shally when it comes to pushing the buyijg button. The problem, as you say, in the online world, is that all the snake oil salesmen use the same sales techniques.
We diferentiate by buying from people we like and trust.
Great article.
Ian
An apostrophe or comma can make a difference:
"Let's eat Gtandma."
"Let's eat, Gtandma."
:-)
I've spent most of my life in sales. I like to think of it as helping people to buy to solve a problem. You can be persuasive and you can push people to buy things they don't want or need, but they won't come back and I don't think that generates good karma.
I think the point here at WA is that we build trust.
People like to buy from people they relate to, that they feel are like them and that feel like them.
I agree with that. Do you think the extra push is necessary after the likability and trust is established?
Gosh, Tiffany. Intensive as always. Ive been in sales for a long time. Mine was done in the old school way. Face to face product sales presentation and close. I found that people buy from who they know and trust not because you’re nice. That I agree with. This is my first attempt with online digital world marketing. How do I present and close to a large digital online community that does not know me at all? To get beyond the call to action requires more efforts on our part to convert more sales. The tools I’ve learned so far are to use a sales funnel with a build an email list (autoresponders) to stay in contact with prospects. Others use methods different calls to actions (ppc ads, solo ads, mailing lists etc). Buying pressures that I notice are effective is a time countdown, this is something new Im learning about. Countdowns urges people to buy before its taken down or price goes up. I see that its effective as I bought a few digital products from that call to action to buy fast or lose my chance the price goes up and wont be able to afford it.
Thanks Brenda! You're shocking me with how much you're doing from the hospital bed. Online sales is definitely different than offline sales, but I think the traditional sales model is evolving more into affiliate marketing.
Countdown timers, landing pages, actual design and color, webinars, video, and studying analytics all help us to convert better. The copywriting, email followup, and effort beyond the CTA's is what separates good online marketers from great ones though.
Yes, by now you can see I am such a workhorse. You could figure out which personality type I am by now, thats not shocking. Yes, I can see that the traditional sales model now changing and gearing into affiliate marketing. That is evident from what we see happening all around us. Stores are closing in malls everywhere. They are going online, these stores offers affiliate programs where years ago, affiliate model didn't exist. I agree with your thoughts on that. Last thing to note, what makes a good marketer? It all depends on how do they choose to do their business via the ethical way or the unethical way (like Kyle discusses in his blog yesterday).
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HI Tiffany, this shows the difference between sales and marketing, with sales being a push strategy, and marketing a pull strategy.
I think you have to be respected before they will buy from you. If you are too agreeable, they may not. Nice and agreeable are two different things. One can be nice and pushy :) but being agreeable is the kiss of death in sales.
Most people need to be leveraged to make an emotional decision and rationalize it later. That's what marketing does, that's what sales techniques do, too.
A call to action is a pull strategy -- marketing is a series of call to actions. One might need to modify the call to action sequence if it is not working for an otherwise worthy product or service. cheers Marc
Great comment! I feel like Affiliate marketers have to do both: marketing and sales. Some companies have strong funnels but some don’t, and in order to get good and consistent pay, we need to be able to help close the decision regardless of the backend funnel.
What our mutual 'friends' Dave Sharpe and Roope say is that high end ticket sales will require some phone calling and salesperson-ship in order to make the sale. Stuff like annual premiums for WA isn't high end - -they seem to say the $3-5k mark is where some sales comes in.... with personal calls... not sure if that has been your experience, but it makes sense, as that is a large nut!
Keep on keepin on :) great stuff as usual, Tiffany! Marc
Interesting