Imagine:
It's April 2009 and your company is having a meeting for a 2009
benefits plan....
Still
stinging from the market crash of 2008, everyone is tentative
at best and terrified on the other end of the spectrum.
"OK
everyone, a show of hands...how many of you are going to want
to be part of our new 2010 benefits program? Corporate is matching
up to 50% of your contributions to your 401K. That means if
you put $15,000 in your 401K, the company will put in $7,500.
Do understand that you can't begin this until January 1, 2010!"
"Sure
thing, that's still 8 months off and by then I'll be able to
make a big contribution to my 401K plan!"
From
a simply rational perspective, if someone trusts their company,
the company that is setting up the program and the markets....(play
along with me here) and there is a "safe" money market
fund, this is a no-brainer.
Every
person should say "yes," contribute at LEAST the maximum
amount that will cause the company to kick in....and chalk up
a tidy $5000 return on investment.
(Read
that as, "Yessiree, I'm smart enough to take all the free
money I can get.")
Of
course!
"Just
write down whether you want to put in 4%, 6%, 8%, 10% for your
401K."
If
the guy is making $100,000 per year and he puts in 10%, he can
put down 10% and get a $5000 return for his money from his employer.
Can't
beat that.
Makes
sense and it is an instant snap, "Yes!"
Now,
imagine that meeting never happened...and move it nine months
in the future. It's now January 3, 2010.
The
same meeting with pretty much the same purpose is about to transpire.
The difference is the employee contributions begin immediately.
Starting
this week, money is going to be "taken" from their
"check."
The
research is abundantly clear.
Where
the majority of people say "yes," back in April, they
say "no" in January. In the first instance, they focus
on what is in it for them. In the latter, they are thinking
about having money "taken" from "their check."
KEYPOINT
ONE: If you can make the sale today and take payments beginning
on January 1, NEXT YEAR, you are much, much, more likely to
make the sale.
In
fact, research shows that when you ask people if they intend
to do just about anything *next year*, they will affirm that
they are going to give the OK and say they will participate....
What's
interesting in the above scenario is that many of the people
in the first group...the one in April, say "yes,"
and then they don't think about it again...
They
get to December when it's time to fill out the paper work which
amounts to a signature that affirms that the employee wants
FREE MONEY and........many of the employees will not pull the
trigger and watch all that money "taken" from their
pay check. They opt out of the big 10% completely, ...or only
ask for a little free money from their company.
But
remember, people don't think rationally.
Think
about it.
Why
are they working at a job they don't like in the first place?!
They
will refuse to take FREE MONEY; which is the ONLY reason why
they are working there!!!
Or
worse, they don't connect with the notion of getting FREE MONEY
and refuse to take any of it! Why? What is wrong with this picture?
They
get SO upset when they get a 2% raise instead of a 3% raise
(that would be a difference of $1000 with an income of $100,000
annually, but they REFUSE to take $5,000 with no strings attached.)
They DON'T have to work harder or longer hours. They simply
say, "can't do it."
Zowie.
[And
do understand that the world has changed in the last 12 months
and if someone believes that at some level investing is extremely
risky, and it probably is, then they shouldn't be at a job in
the first place. They really need to be at work for themselves
to dramatically increase their income. All this for another
day.]
Another
example of influence
and the perception of time....and how it can make you money...
Influence
and the Perception of Time
Let's
look at another example of how the mind works and the "yes-es"
and "no's" you give, as far as time in concerned.
A
friend asks you to do something next week that you only marginally
want to do. It would be OK but it would be just as OK not to
do it. You say, "Yes."
As
the time approaches, you feel more and more like you would rather
get something done around the house or go shopping, or just
go to sleep. It now seems like work to do what you previously
said "yes" to that possibly might have been fun.
"My
kids are sick and I've got to stay home and take care of them."
And
you stay home or go shopping.
Sound
familiar?
Or
your wife/girlfriend/you has this experience:
She's
at a Tupperware party and she knows the moment is coming...
"Now,
if you want to receive a bunch of free gifts like this container
that an elephant can stand on and still not break... (She demonstrates)...you
can host a party at your house...but I'm really booked for the
next 60 days so it would have to be in July. Jane, do you want
to do one?"
"Sure."
(She thinks, "July is summer time, I am so glad she didn't
ask me to do this next week!")
"July
17?"
"Sure,
that's fine."
"Great
Honey. How about you Jessica? I can do one on the 4th of August."
"Sure,
I'll do that." (That's LATE in the summer she thinks!)
And
so on and so forth.
Now,
having a Tupperware Party isn't a bad thing. It's probably a
very good thing indeed! With a good hostess, the women will
probably have fun and everyone will spend just a little money.
But you do have to obligate your friends and family to come,
which is a bit uncomfortable for just about anyone. But hey,
it's three months out!
In
a society where people are very, very in the moment, these "decisions"
are EZ to say "YES!" to.
As
the party approaches, she feels torn as she prepares to send
out the invitations. She wonders why she said "yes,"
in the first place. She still hasn't SENT the invitations. It's
probably going to be fine, but part of her doesn't want to do
the party. Life is busy and this really wasn't necessary. But
she said she'd do it...in front of a lot of HER FRIENDS...and
she's going to have a Tupperware Party.
When
Jane was asked, it didn't seem like that big of a deal, certainly
not an obligation that entails a bit of work. As she approaches
the date, though, it does seem as though this is an all day
project....
I
was watching TV the other night and an annoying commercial came
on for a furniture company.
"2010,"
the young suburban housewife says as she sits on her new couch.
"This
week only - you have no payments til 2010," the
young husband parrots.
"..no
payments and no INTEREST til 2010!"
"Wow,
no interest?!" the husband feeds the line back and so the
commercial goes.
Shoot
you get stuff NOW and you don't have to pay (with 21.99% APR)
until January 2010....do that math on a living room set...
Is
the commercial effective?
You
bet.
The
furniture store isn't selling a recliner or sofa, they are "selling"
FREE FURNITURE...for 2009, at least. 2010 is 9 months away and
that means that you can have new furniture for free! You look
around your house and you think, "you know, we DO need
new furniture."
And
you probably do. This is not only an effective promotion, it's
also ethical.
What's
particularly savvy is that after 9 months, furniture is no longer
new and not returnable....you get it...
Keypoints
and the feelings that matter in the persuasion
process...
KEYPOINT:
When an event is a long way off, it's easy to say "yes."
The human brain is TERRIBLE at calculating stuff that will transpire
in the future.
KEYPOINT:
In fact, the further an event is in the future, the easier it
is to say, "yes."
In
each of the above examples, you discover how easy it is to say,
"yes" today.
Influence
and the Feelings of Loss & Regret
In
the case of the retirement account, the funny thing is that
people consistently FEEL REGRET as they approach the
new year that they have agreed to participate in something that
is completely in their best interest without exception.
Unfortunately,
people perceive the 401K as an expense(!), when of course, it
is a RARE and crucial asset. But UNDERSTAND THIS: it
does represent money that the person doesn't get to use today.
And
that "feeling" of loss of freedom plays a role in
the person's "feeling" that they now don't feel as
certain about the program. (Remember: when feelings come into
play, rational thinking departs.)
In
the case of the Tupperware Party, the person says yes today,
partially because they feel obligated to do so because they
are asked in front of a group. It's not unethical, but there
is a "feeling" of pressure involved. Who wants to
look bad in front of the group?
In
this real-life scenario, a person's future isn't on the line.
It's a Tupperware Party and it is helping this woman earn a
living. It's a good thing to do. Nevertheless, as the day approaches,
the desire to participate dramatically reduces because it takes
away the freedom of choice for the party day. In part, because
you are obligating your friends and family to do something that
will be fun but uncomfortable for some.
The
furniture store is the easiest to say "yes" to today
because getting new furniture TODAY, will be FUN, and that you
are spending no money (for almost one year) is more than tempting,
it's downright delicious.
You
feel like you MUST do this. The company puts off the payment
so far into the future that most people can't even get "there"
in their mind.
Now,
you think this is pretty amazing stuff?
Obviously
it's easy to get
people to say "yes" to something that is going
to happen far in the future. Now...Just wait til you begin to
utilize this powerful information in your business and your
practice and your life.
Influence
and When to Ask
And
speaking of time...what happens when you ask for an answer at
different points in a conversation (early on, in the middle,
at the end)?
Does
it matter when you ask for agreement? Does it matter when you
ask for the date?
And
when you do ask for something, should the event happen quickly
(do you take her out tomorrow night or in two weeks?) or do
you put it off?
It
all makes a BIG difference and I'll be showing you just how
big of a difference...and specifically how to handle all the
variables.
