HOW TO RIP MONEY FROM THE HANDS OF BROKE PEOPLE... 🔥🔥🔥🔥🔥🔥🔥🔥 Ep 53

In this discussion, the host explores the misconception that certain markets are financially incapable, emphasizing the power of belief in sales success. Drawing from personal experience selling in low-income areas, the host asserts that perceived financial limitations are often mental barriers, rather than actual inability to pay. By instilling a belief that everyone has money for what they prioritize, the host encourages the sales team to reject payment plans and downselling, focusing instead on the value and life improvements offered by the product. The key takeaway is that effective sales hinge on the conviction that the product will significantly better the customer's life, coupled with an understanding that objections are not rejections, but opportunities to reinforce the product's value.

• Speaker A introduces their new walking desk and their excitement about it.
• They mention a provocative topic: "how to take money from broke people."
• The topic is chosen to be incendiary and to challenge common beliefs about sales and market demographics.
• Speaker A aims to discuss the misconception that their market is financially challenged and to share a story about overcoming this belief with their sales team.

"On everybody. I have my new walking desk and I'm super pumped about it anyway and hopefully you can hear me better from this mic."

This quote is an introduction where Speaker A shares their enthusiasm for their new walking desk, hoping it enhances the audio quality for listeners.

"But how to take money from broke people, which I apparently didn't finish all, I did that later. But anyway, how to take money from broke people."

Speaker A introduces the controversial topic of the discussion, which is about sales strategies targeting people with limited financial resources.

• Speaker A confronts a common belief among salespeople that their potential customers do not have money.
• They express their intent to share their personal experience and strategies that counter this belief.
• Speaker A emphasizes that perceiving a market as 'broke' is a belief, not a fact.

"So just let me know. But how to take money from broke people. And I want to use that title mostly because I figured it was incendiary."

The quote shows Speaker A's strategic choice of a provocative title to engage the audience and set the stage for challenging common sales beliefs.

• Speaker A shares a transformative belief that changed their sales approach.
• They recount an experience selling in a low-income area of Washington, D.C.
• Speaker A adopted the belief that people are 'broke' because they don't know how to manage their money, making them potentially easier to sell to.

"One, that is 100% a belief, right? For me, the belief that I adopted that transformed my life happened when I was selling in the ghetto."

This quote highlights the idea that the perception of a market as 'broke' is a belief system, and Speaker A shares the specific belief that revolutionized their sales approach.

• Speaker A narrates their strategy of selling done-for-you services to people in low-income neighborhoods.
• They discuss the pricing strategy and the distribution of revenue between upfront and backend payments.
• Speaker A's sales strategy involved increasing the price despite initial doubts about the community's ability to pay.

"And I mean, we're talking like downtown hood of Washington, DC. When I was selling as a done for you service, I would fly out to someone's gym and then I would sell 100 people at 500, $600 ahead."

The quote provides context for Speaker A's sales experience, detailing the service offered, the location, and the pricing model used in a low-income area.

• Speaker A describes overcoming their own mental barriers about the financial capabilities of their market.
• They detail the mindset shift that allowed them to see the opportunity in selling to people who are not wealthy.
• Speaker A concludes that this belief enabled them to increase their sales closures significantly.

"And I was in downtown DC and I was like, man, this is good. And I started getting into my own head. I'm like, man, no one here is going to have the money, blah, blah, blah, blah."

Speaker A recalls the initial self-doubt about the purchasing power of the market in a low-income area, setting the stage for the mindset shift that followed.

"The reason that people are broke is because they don't know how to hold on to their money, right? Which is true. The reason people are broke is because they don't know how to hold on to their money, which means that if someone's broke, they should be easier to sell because they're easier to convince, to depart from their money than somebody who is wealthy."

Speaker A shares the pivotal belief that people with less money are easier to sell to because of their lack of money management skills, which contrasts with the financial habits of wealthier individuals. This belief was key to Speaker A's increased sales success.

• The speaker reflects on their experience with pricing products and services.
• They note that consumer perception of price is not fixed and can be influenced.
• The speaker highlights that the biggest barrier to pricing is often the seller's own perception, not the consumer's.
• They share an anecdote where changing the price did not affect the number of people closed.

"We closed as many people at 600 as we did at 504 hundred. Because the biggest price that you have to break the chain is in your head, not in the consumer set."

The speaker explains that the mental barrier regarding pricing is often within the seller's mind rather than the consumer's, implying that sellers may undervalue their offerings due to their own misconceptions about what consumers are willing to pay.

• The speaker discusses the challenges faced when managing a mobile sales team.
• They encountered issues with the sales team adopting a 'broke mindset' and being too eager to get a 'yes' from customers.
• The speaker observed that the sales team was offering delayed payments and unfavorable payment plans to close deals.
• The realization led to a policy change where the speaker instructed the sales team to stop offering payment plans.

"And so after one of the months early on, I looked and I was like, man, I was like, why are these deposits small? I was like, what is going on? And I looked through all the contracts that had come in and 80% of them had delayed first payments, all sorts of horrible payment plans, that kind of crap."

The speaker recounts discovering that the sales team's approach to securing deals with delayed payments and poor payment plans was unsustainable and detrimental to the business's cash flow, prompting a change in sales strategy.

• Speaker B emphasizes the importance of word-of-mouth for the growth of their podcast.
• They mention that they do not use ads, sponsorships, or sales to promote the podcast.
• The speaker requests listeners to share the podcast in the same way they discovered it, whether through social media or personal recommendations.
• They suggest that sharing the podcast can generate good karma for entrepreneurs.

"The only way this grows is through word of mouth. And so I don't run ads. I don't do sponsorships. I don't sell anything. My only ask is that you continue to pay it forward to whoever showed you or however you found out about this podcast, that you do the exact same thing."

Speaker B explains that the podcast relies solely on organic growth through listeners sharing it with others, and they ask the audience to help spread the word to support the podcast and the entrepreneurial community.

• The speaker sets a firm policy regarding the terms of sales and commissions.
• They provide a specific example of a sales condition, stating a payment amount and a timeframe.
• The speaker implies that commissions will only be paid if the sales team adheres to the new terms set out.

"I was like, it's 250, 14 days from now. I was like, or nothing like, if you sell them, great, but you're not getting com"

The speaker is setting clear expectations for the sales team, indicating that they will only receive commissions if they sell under the specified conditions, which is a payment of 250 in 14 days, and otherwise, they will not be compensated.

• Sales strategies should focus on maintaining firm offers without introducing unnecessary alternatives.
• Convincing oneself of alternative offers often does not impact the prospect's decision.
• Salespeople sometimes inadvertently offer cheaper alternatives without the prospect requesting them.
• Belief in the product's ability to improve the client's life is crucial for sales success.
• Transformative stories of clients can reinforce the value of the product and the salesperson's belief in it.

And then overnight, no more payment plans, same closing percentages.

This quote illustrates the effectiveness of eliminating flexible payment options without negatively impacting sales success.

Almost invariably, the only person that you're convincing in your own head is you.

The quote highlights the psychological aspect of sales where the salesperson may be more persuaded by alternative offers than the prospect.

I was going to say yes to the other thing. I was just asking a question.

This quote exemplifies how salespeople can misinterpret customer inquiries as requests for cheaper options, potentially losing out on higher-value sales.

• Belief in the product's life-changing potential is essential for ethical sales to financially constrained clients.
• Sales should focus on the long-term benefits and improvements to the client's life.
• Personal success stories can be motivational and justify the sales approach.
• A structured lifestyle change, facilitated by the product, can lead to significant personal transformations.
• Salespeople should view their role as providing a service that helps clients manage their finances better by investing in worthwhile improvements.

You have to genuinely believe that their life is going to massively improve by having fitness and discipline and consistency.

This quote emphasizes the need for salespeople to have genuine conviction in the positive impact of their product on a client's life.

I've had a girl come in, put the entire thing on a credit card, and then lose 100 pounds, get a new job, transform her life.

This quote serves as a testament to the transformative power of the product being sold, reinforcing the salesperson's belief in its value.

It became the cornerstone that she built her routine off of, was first thing she does, the more she comes to the gym.

The quote illustrates how the product (gym membership) became a foundational part of the client's daily routine, leading to broader life improvements.

First, you got to believe that they're going to be better off from it. Second, you have to believe that they're bad at managing their money, which is why it's going to be easy for.

The quote outlines two key beliefs necessary for salespeople when dealing with clients who have limited financial resources: the product's benefit and the client's need for assistance in money management.

• Objections from potential customers are often just questions rather than actual obstacles.
• Salespeople should not immediately offer lower prices or payment plans when faced with objections.
• The real challenge is to convince the customer of the value being offered and its potential to transform their life.

"Third, you don't need to make payment plans and always try and downsell stuff all the time, because a lot of times objections are just questions."

This quote emphasizes that objections during a sales process should not trigger an automatic response to offer discounts or payment plans, as objections may simply be inquiries for more information.

• People allocate funds to what they prioritize, regardless of their overall financial status.
• Observing the spending habits of seemingly "broke" individuals on non-essentials can illustrate this point.
• The concept of affordability is subjective and can be influenced by how much value the person sees in the offering.

"So just never, ever think that any of these people who walk in the door can't afford it. It's just an easy reminder for yourself to look at your own staff and think, okay, if these guys are doing it, everyone has the money."

The speaker is pointing out that people, including those perceived as not having much money, will find the means to pay for things they deem important, suggesting that affordability is often a matter of prioritization rather than actual financial capacity.

• The speaker suggests that people with poor money management are more likely to spend on products that promise life transformation.
• Sales strategies can focus on convincing customers that the product will not only be a good investment but also help improve their financial mindset.

"Broke people are the easiest to take money from because they don't have good mindsets around money."

This quote controversially suggests that individuals with poor financial literacy are more susceptible to spending, implying a sales opportunity if one can convince them of the value and potential life improvement from the purchase.

• The speaker encourages a positive mindset in sales, focusing on the potential to change customers' lives rather than their current financial status.
• The speaker expresses excitement about personal upgrades, such as faster wifi, and encourages sharing the message that financial limitations are often mental rather than monetary.

"Do me a favor. Shoot a, like, tag a friend, maybe your sales manager, about how no one's broke. They are just broke of mind and not of wallet."

Here, the speaker is advocating for a shift in perspective on financial constraints, suggesting that mental barriers are often the real issue, not the actual lack of funds.

• The speaker is celebrating recent improvements in their own life, such as faster wifi.
• There is an encouragement to spread the message that Monday is a day for motivation and overcoming the mindset of being broke.

"I'm just super excited. I'm celebrating my fast wifi. I'm pumped about it, and hopefully the audio is a little bit better with this mic."

The speaker shares personal excitement about improvements, using it as a segue to encourage others to embrace a positive and motivated mindset, particularly in the context of sales and financial self-perception.