Why People Really Buy and How Do Mercedes, BMW, Dell and other corporations REALLY Make Money...
Why People REALLY Buy Stuff
There's a popular misbelieve that people buy "needs" as opposed to "wants".
Here's the TRUTH:
People buy "wants" and they do it as soon as they can justify the "need" in their own minds.
Classic example of this would be Mercedes.
You don't buy a Mercedes because it's a necessity, you do it because you want the prestige, respect and luxury. That's certainly not a "need" that's a "want", however, people who want to buy a Mercedes bad enough find a million reasons why they really should do it.
They'd say that it's more reliable, that it's much more comfortable and that it's eco friendly etc. However, I can think of at least 5 cars who are much more reliable, cheap, eco friendly and probably comfy too.
My point here is that people will find a million reasons to justify a purchase if they really want what you're offering them.
How To Create a "Need"
There are only 2 reasons people ever do anything:
1. To experience pleasure
2. To avoid pain
Your job as a salesperson is to associate enough pain with not buying your product until the prospect simply has to buy it ...or the pain will eat him up! Of course, the pain is only emotional, there's no need in hurting people or scarring them for life
The reason you have to create associated pain as opposed to creating associated pleasure is because the majority of people are motivated more by avoiding pain vs experiencing pleasure. Not experiencing the pleasure is something the person can deal with for a long time and sometimes throughout the whole life, but having a nagging pain will drive him crazy-so eventually he's going to buy.
For better understanding, let's go over a simple example:
You're selling a traffic generation product. What are the main pain points for an average prospect? Simple. Not having enough traffic means not having customers means not having any money which means that their end goal of "financial freedom" is fading away. Now, imagine, how painful is that to tell someone who's dreaming of becoming independent and free that he has no chance in hell to fulfill his dreams unless he has boat load of traffic coming to his website?
It's painful. VERY painful. Therefore, if you manage to "drive this point home"-you'll close the sale 99% of the time.
How To Overcome Objections
Another breed of pain connected to selling is the pain prospect experiences when faced with a decision to pull out his credit card. What are some of the most common objections?
1. My friends and family will laugh at me
2. What if this won't help me and I'll look stupid
3. I am spending money I can invest in something else
Now, at this stage the prospect associates a lot of emotional pain with clicking the "order" button. In order to overcome these objections, you'll have to associates even more pain with not buying then if he buys. For example:
"You're afraid that you'll look stupid and your friends will laugh at you for believing some website on the internet and spending money on something as stupid as a "virtual book".
But imagine how stupid you'll look 10 years from now, when you're 30-still working in the same convenience store for a minimum wage having to lie to your kids that you're going to take them for a trip next month while you don't have any money to pay the electric bill?
What's more painful? Lying to your kids or taking a chance on looking stupid and being the laughing stock of the neighborhood for the next 2 weeks? If I was you, I'd probably took a chance of looking stupid because at the end I am getting much more than I am paying for anyway!"
Does that sound convincing? Did you feel what it's like being a failure? At that point in time, would you care what others think?
I hope this short article helped your realize the reason for why people are constantly buying things and how to utilize it to run a successful and rewarding business.
Igor
There's a popular misbelieve that people buy "needs" as opposed to "wants".
Here's the TRUTH:
People buy "wants" and they do it as soon as they can justify the "need" in their own minds.
Classic example of this would be Mercedes.
You don't buy a Mercedes because it's a necessity, you do it because you want the prestige, respect and luxury. That's certainly not a "need" that's a "want", however, people who want to buy a Mercedes bad enough find a million reasons why they really should do it.
They'd say that it's more reliable, that it's much more comfortable and that it's eco friendly etc. However, I can think of at least 5 cars who are much more reliable, cheap, eco friendly and probably comfy too.
My point here is that people will find a million reasons to justify a purchase if they really want what you're offering them.
How To Create a "Need"
There are only 2 reasons people ever do anything:
1. To experience pleasure
2. To avoid pain
Your job as a salesperson is to associate enough pain with not buying your product until the prospect simply has to buy it ...or the pain will eat him up! Of course, the pain is only emotional, there's no need in hurting people or scarring them for life
The reason you have to create associated pain as opposed to creating associated pleasure is because the majority of people are motivated more by avoiding pain vs experiencing pleasure. Not experiencing the pleasure is something the person can deal with for a long time and sometimes throughout the whole life, but having a nagging pain will drive him crazy-so eventually he's going to buy.
For better understanding, let's go over a simple example:
You're selling a traffic generation product. What are the main pain points for an average prospect? Simple. Not having enough traffic means not having customers means not having any money which means that their end goal of "financial freedom" is fading away. Now, imagine, how painful is that to tell someone who's dreaming of becoming independent and free that he has no chance in hell to fulfill his dreams unless he has boat load of traffic coming to his website?
It's painful. VERY painful. Therefore, if you manage to "drive this point home"-you'll close the sale 99% of the time.
How To Overcome Objections
Another breed of pain connected to selling is the pain prospect experiences when faced with a decision to pull out his credit card. What are some of the most common objections?
1. My friends and family will laugh at me
2. What if this won't help me and I'll look stupid
3. I am spending money I can invest in something else
Now, at this stage the prospect associates a lot of emotional pain with clicking the "order" button. In order to overcome these objections, you'll have to associates even more pain with not buying then if he buys. For example:
"You're afraid that you'll look stupid and your friends will laugh at you for believing some website on the internet and spending money on something as stupid as a "virtual book".
But imagine how stupid you'll look 10 years from now, when you're 30-still working in the same convenience store for a minimum wage having to lie to your kids that you're going to take them for a trip next month while you don't have any money to pay the electric bill?
What's more painful? Lying to your kids or taking a chance on looking stupid and being the laughing stock of the neighborhood for the next 2 weeks? If I was you, I'd probably took a chance of looking stupid because at the end I am getting much more than I am paying for anyway!"
Does that sound convincing? Did you feel what it's like being a failure? At that point in time, would you care what others think?
I hope this short article helped your realize the reason for why people are constantly buying things and how to utilize it to run a successful and rewarding business.
Igor