The Principles of Persuasion Ep 508

In this insightful episode, the host delves into the art of persuasion, a critical skill for entrepreneurs aiming to escalate their business success. He shares practical applications of Robert Cialdini's principles from the book "Influence," demonstrating how they've bolstered his own company to over $200 million in annual revenue. Key persuasion tools highlighted include reciprocity, where generosity fosters an obligation to reciprocate; consistency, which leverages people's desire to align with their commitments; social proof, emphasizing the power of communal validation; liking, which capitalizes on the natural gravitation towards those we favor; authority, where expertise commands trust and reduces skepticism; and scarcity, creating a sense of urgency that drives action. The episode is a masterclass in harnessing psychological triggers to drive business growth and customer engagement.

• Authority is persuasive not because of the content of what is said, but due to the reduced skepticism from the audience.
• People are more likely to accept statements as truth when they come from an authority figure.
• Authority figures' words have fewer filters applied by listeners.

"Persuasion tool number five is authority. The reason it's so powerful is not because what an authority says is actually more persuasive in terms of the actual words they say, but because people put up fewer filters and accept more things as truth."

This quote emphasizes the psychological impact of authority on persuasion. It suggests that the power of authority comes from the audience's predisposition to trust and accept the words of an authority figure, rather than from the inherent persuasiveness of the words themselves.

• The speaker is documenting their journey to build a billion-dollar business with acquisition.com, inspired by figures like Bezos, Musk, and Buffett.
• Persuasion is highlighted as a critical skill for achieving one's goals in life by influencing others to act on one’s behalf.
• Robert Cialdini's research on persuasion is acknowledged for its accessibility and practical application in business.

"I'm trying to build a billion dollar thing with acquisition.com. I always wish Bezos, musk, and Buffett had documented into their journey. So I'm doing it for the rest of us."

The speaker is sharing their ambition to create a successful business and their intention to document the process. This transparency is intended to provide insights and lessons for others to emulate.

• Reciprocity is the principle of giving to receive, leading to mutual kindness and increased likelihood of returned favors.
• Cialdini's example of waiters receiving higher tips with the simple act of giving mints demonstrates the power of reciprocity in business settings.
• The psychological basis of reciprocity lies in its activation of the brain’s reward system, releasing dopamine and fostering trust and cooperation.
• The speaker shares personal anecdotes to illustrate the effectiveness of reciprocity at various scales and in different contexts.

"Give that which you want to receive. When you show kindness and generosity towards others, they're more likely to return the favor and like you as a result."

This quote summarizes the reciprocity principle, indicating that generosity often leads to reciprocal acts, which can be leveraged in personal and business relationships.

• Consistency is about judging others by their actions and using this judgment as a basis for persuasion.
• Persuasion through consistency involves asking for public commitments to an idea or action, which can be in front of a single person or a wider audience.

"Tool number two is consistency. We judge people based on their actions, all right? Consistency can be used in persuasion by asking someone to publicly commit to an idea or action."

The quote explains how consistency is used as a tool in persuasion, highlighting that people are more likely to follow through with actions or ideas they have publicly committed to, thus making it a powerful strategy for influencing behavior.

• Encouraging small steps towards a commitment increases the likelihood of consistency.
• The concept is akin to "give an inch, get a mile" and "slowly boiling the frog."
• A study showed people were more likely to agree to larger requests (like yard signs) after agreeing to smaller ones (like window signs).
• The progression from small to larger commitments is effective in various contexts, such as charities encouraging donations.

"If you encourage someone to take small steps towards the commitment that they already made and reminding them of the commitment and asking them to remain consistent with it, then people are more likely to continue down that path."

This quote highlights the psychological strategy of gradually escalating commitments to maintain consistency in behavior.

• Humans desire to appear stable and consistent to avoid negative labels like "flaky" or "erratic."
• Public commitments are harder to back out from, which is why politicians struggle with changing stances.
• Voluntary commitments are key to persuasion, often achieved through questioning that leads to self-labeling.
• In sales, the discovery phase uses questioning to establish commitment and consistency, which is later used to reinforce sales pitches.

"No one wants to be known as inconsistent. It's a bad character trait among humans. [...] That's why switching brands is so hard for some people. And the only way for commitments to work is that they have to be voluntary."

This quote explains the importance of voluntary commitments in persuasion and the human tendency to avoid being seen as inconsistent.

• Sales conversations start with questions to understand the client's problem and to lay the groundwork for commitment.
• Positive labels are assigned to the client, which they are encouraged to live up to later in the conversation.
• The client's agreement to the label allows the salesperson to make requests consistent with the label, making it difficult for the client to refuse without contradicting themselves.

"So in sales scripting, you ask lots of questions during the discovery phase. [...] You say these statements because you're laying the commitment consistency that you're going to ask them to stick with later on in the conversation."

This quote describes the strategy of using the discovery phase in sales to set up a framework of commitment and consistency, which facilitates later requests.

• People conform to the actions and opinions of their social group for perceived safety.
• Observing others is a fundamental way humans learn behavior.
• Social proof is a powerful persuasive tool, as evidenced by product reviews on Amazon and the use of laugh tracks on television.

"Tool number three is social proof. People tend to confirm the actions and opinions of others in a given social group."

This quote introduces the concept of social proof as a mechanism where individuals mimic the behavior of a group, often used as a persuasive tool.

• Positive customer reviews and before-and-after pictures can be displayed to leverage social proof.
• Capturing visual evidence of a customer's initial state and the subsequent improvement can enhance the persuasive impact of social proof.

"One, I printed out every single five-star review I got online. [...] So I'd have every single person. And this is how you can weave this into your business."

This quote explains how displaying positive reviews and visual transformations can be integrated into a business to capitalize on social proof, encouraging new customers to engage with the business.

• Displaying evidence at the beginning of the sales cycle increases credibility and likelihood of belief.
• Providing ample proof can challenge and overcome skepticism about one's ability to deliver results.

And you can display those at the beginning of your sales cycle so that people are more likely to believe you when you say, can help you.

This quote emphasizes the importance of presenting evidence early in the sales process to build trust and credibility with potential clients.

• Testimonials are crucial for establishing proof of service effectiveness.
• Lack of testimonials may be due to poor service or failure to request them.
• Incentivizing testimonials can be done through offering higher levels of service or exclusive content.
• If a client is hesitant to give a testimonial, it's important to back off respectfully and identify any underlying dissatisfaction.

If you struggle to get testimonials, there's two reasons. One is that you suck. Second is that you don't ask all.

This quote highlights the two main reasons for not having testimonials: poor service or not asking for them.

If someone doesn't want to freely give you a testimonial, do not push it.

This quote advises respecting a client's reluctance to provide a testimonial and suggests using it as an opportunity to improve service.

• People are more likely to be persuaded by those they like or aspire to be like.
• Liking is influenced by physical attractiveness, similarity, and compliments.
• Genuine compliments have no limit to their effectiveness in increasing likability.
• The ACA (Acknowledge, Compliment, Ask) framework is a method to build rapport and likability in conversations.

And so the liking principle states that people are more likely to be persuaded by those that they like and want to be like.

This quote explains the psychological principle that we are more easily influenced by people we find likable or relatable.

You can literally compliment someone endlessly over and over again, as long as it's genuine, and they will continue to take it and like you more.

This quote suggests that genuine compliments can indefinitely increase how much a person likes you, enhancing your persuasive power.

• Keeping a positive and energetic demeanor can influence customer decisions.
• Unconventional methods like using a mini trampoline can keep spirits high during customer interactions.
• Creating a memorable and enjoyable experience for customers can lead to increased sales.

And so I would meet with people, and I was doing 20 plus consults a day in person, and I would be bouncing on this trampoline, and they would look at me like a psychopath, but I'd be grinning ear to ear.

This quote illustrates a unique approach to maintaining high energy and a positive attitude, which can positively affect customer interactions.

• Authority figures are persuasive because people accept their statements with fewer filters.
• Trust in authority decreases mental effort and speeds up decision-making.
• The persuasive power of a message is amplified when delivered by a trusted source.

The reason it's so powerful is not because what an authority says is actually more persuasive in terms of the actual words they say, but because people put up fewer filters and accept more things as truth.

This quote explains why authority figures are persuasive, highlighting that it's not the message itself but the reduced skepticism towards the message when it comes from a trusted source.

• Credibility is established through demonstrating authority and expertise.
• Showing diplomas, credentials, awards, industry recognition, and track records builds credibility.
• It's important to show past achievements rather than just make promises about future actions.
• Authority allows for command in specific settings, as illustrated by the proctologist and personal trainer examples.
• Establishing authority is not just about personal achievements but also about how one can convey their expertise.

"You establish credibility as an authority figure and expertise. You show diplomas, credentials, awards, industry recognition, et cetera. And your track record, which is if you followed my channel at all. All I talk about is building your life resume and having a track record to stand on rather than puffing your chest and having lots of charisma instead."

This quote emphasizes the importance of building a solid foundation of achievements and recognitions to establish oneself as a credible authority in a field.

"So the way that I establish authority is because of your track record, right? You show that you are good at this thing because of the things that you have already done, right?"

The speaker is reinforcing the idea that authority comes from a proven track record, not just from what one claims they can do.

• Third-party accreditation can enhance perceived authority.
• Certifications, even if not officially accredited, can increase the prestige of service providers.
• The speaker used a strategy of certifying their trainers to make them appear more authoritative.
• The perception of authority can be transferred to others within a business, allowing them to operate on behalf of the authority figure.

"And so I was able, because people would come in and be like, well, are your trainers certified? I would say, like, one, which ones do you want? They would never have any idea."

This quote illustrates the use of certifications to satisfy customer inquiries about the qualifications of the trainers, even when customers are not knowledgeable about the specifics of these certifications.

"I also internally certified them so that every one of my trainers was either double or triple certified, and that made them seem significantly more prestigious, so they had more authority, and so people would be far more likely to listen to me, and I could transfer that authority to my trainer so that they could run the business on my behalf."

The speaker explains how internal certifications were used to enhance the trainers' authority, making them more persuasive and enabling them to manage the business effectively.

• Scarcity and urgency are powerful tools in persuasion.
• Urgency relates to time constraints, while scarcity pertains to limited availability.
• People value scarce resources more highly, as with gold or diamonds controlled by De Beers.
• Creating a perception of scarcity can be achieved through limited-time offers and emphasizing product uniqueness.
• Using loss aversion language, such as "don't miss out," can be more effective than gain language.
• True scarcity, not just the illusion of it, can drive more sales.

"Persuasive tool number six, scarcity and urgency. Urgency is a function of time, so promotion ends tomorrow. Scarcity is a function of units. I only have 100 of them left."

This quote defines scarcity and urgency and how they function as persuasive tools by creating a sense of limited availability or time to act.

"The reason gold is inherently valuable versus a rock is that there's just less of it."

The speaker uses the example of gold to illustrate the concept of scarcity and why it makes certain items more valuable than others.

"So if you can handle 20 people a week in your business, or you have x amount of product right now, you probably have some sort of cap in units to be sold or ability to provide service. Tell people your limits and you'll increase their desire."

This quote advises on how to use scarcity in business by being transparent about limits, which can increase customer desire and urgency to purchase.