Why do people do business with people they know?

12 replies
Because they know them.

I don't know how many times people contact us about various kinds of business deals... without revealing anything about themselves.

Oh sure, we'll start selling your products or do a JV with you... even though we don't know the first thing about you!

My tip to anyone wanting to do a business deal with someone else - explain who you are, describe your background, and give as much information as possible in order to convey your credibility. The more credible you appear, the more likely someone will want to do business with you.

And if you receive offers or pitches from people you don't know and can't easily find out about... either don't do business with them, or tell them to come back when they have proof of who they are, etc.

Sad to say, there are scammers out there (I need only check my spam to be reminded of this...)
#business #people
  • Profile picture of the author SiteSeller52
    Kind words of advice, but how do you know someone
    online, I am weary of just about everyone online and
    for good reason.

    And everytime I have done business with someone
    I know offline it turns out bad.

    I guess you just have to use the sense that God
    gave you and never reveal too much to anyone.

    Thanks for the advice, just my 2c

    SiteSeller52
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    • Profile picture of the author Robert Puddy
      Originally Posted by SiteSeller52 View Post

      Kind words of advice, but how do you know someone
      online, I am weary of just about everyone online and
      for good reason.

      And everytime I have done business with someone
      I know offline it turns out bad.

      I guess you just have to use the sense that God
      gave you and never reveal too much to anyone.

      Thanks for the advice, just my 2c

      SiteSeller52
      Go meet them in person...

      Go to events workshops and mastermind groups, press the flesh still by far the best way to get on in any business, online or off

      This whole do business online in your undies is a metaphor not a reality, put some clothes on and go out and meet people

      Robert
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  • Profile picture of the author Michael Silvester
    Hi Anna,

    I completely agree...

    I get bombarded with emails and PM's all
    the time about this.

    The typical approach is this...

    ==============
    Hey, can you promote my product...its really
    good and your list will love it. And you get
    xx% commission.
    ==============

    Yeh, so what...I dont know them from a bar of
    soap and their first contact with me is to do
    something for them? Sheesh...

    Relationship + Trust + Great PRoduct = JV with me

    Take Care,

    Michael Silvester
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  • Profile picture of the author hugofortin
    Hi,

    Everything is base on trust. No trust = no JV.

    How simple is that?

    It almost impossible to trust someone in the first contact.

    bye

    Hugo
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  • Profile picture of the author BizBoost
    Waaaaait a second here. I respect the fact that people take the assumption in your question as fact but not all people do business with only people they know.

    I don't care how many people in here give you some version of a mother admonishing a child when they tell you that doing business with strangers can get you in trouble but, the fact is, people do business with strangers all the time.

    Just like some people do white hat seo, some do black hat seo, and, more often than not, some mix it up a little. It's like a microcosm of life.

    There are plenty of ventures that can be done with strangers as long as you know how to do your own due diligence enough to the point where, according to your tastes, the risk is tolerable.

    It's a pipe dream to think that everyone is doing everything in some perfect, goody-two-shoes fashion. Most people are opportunists which is why, for example, 100s of 1000s of otherwise good people will ignore huge signs to the contrary as they go plowing full tilt into a massive ponzi like a swarm of lemmings going over a cliff.

    Also, I once sold licenses to something that cost $2500 apiece. The leads which my friend and I worked didn't know us from a hole in the wall but we pitched it so effectively and offered them some unbeatable support so for the next 2 months we each pocketed about $12k...

    So, I think you need to step back and just observe more to see what really happens in internet marketing. This forum, for example, is just the tip of the iceberg. A lot of what's really happening just can't be told so openly here. I'm not complaining about that, it's just a fact...

    Good cheer to you,
    Eric
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  • Profile picture of the author Anna Johnson
    Waaaaait a second here. I respect the fact that people take the assumption in your question as fact but not all people do business with only people they know.

    I don't care how many people in here give you some version of a mother admonishing a child when they tell you that doing business with strangers can get you in trouble but, the fact is, people do business with strangers all the time.

    Just like some people do white hat seo, some do black hat seo, and, more often than not, some mix it up a little. It's like a microcosm of life.

    There are plenty of ventures that can be done with strangers as long as you know how to do your own due diligence enough to the point where, according to your tastes, the risk is tolerable.

    It's a pipe dream to think that everyone is doing everything in some perfect, goody-two-shoes fashion. Most people are opportunists which is why, for example, 100s of 1000s of otherwise good people will ignore huge signs to the contrary as they go plowing full tilt into a massive ponzi like a swarm of lemmings going over a cliff.

    Also, I once sold licenses to something that cost $2500 apiece. The leads which my friend and I worked didn't know us from a hole in the wall but we pitched it so effectively and offered them some unbeatable support so for the next 2 months we each pocketed about $12k...

    So, I think you need to step back and just observe more to see what really happens in internet marketing. This forum, for example, is just the tip of the iceberg. A lot of what's really happening just can't be told so openly here. I'm not complaining about that, it's just a fact...

    Good cheer to you,
    Eric
    Well, 'know' is subjective isn't it? You might think you 'know' someone based on a few emails or even just visiting someone's website. Perhaps that's what gets people into trouble!
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    • Profile picture of the author BizBoost
      Originally Posted by Anna Johnson View Post

      Well, 'know' is subjective isn't it? You might think you 'know' someone based on a few emails or even just visiting someone's website. Perhaps that's what gets people into trouble!
      Very cute, Anna, but you didn't say that in your original post. But it still seems like it would be a good topic for deepening the discussion.

      But, for clarity sake, I wasn't referring to strangers we "know" subjectively... I was speaking to the fact that there are ALL types of people working all kinds of deals with all kinds of other people... even with some who are TOTAL strangers because, again, they do their due diligence and come to a conclusion where the risk-to-reward ratio is tolerable.

      As I'd stated, the people that my friend and I enrolled via LEADS did not know us at all, yet we convinced them to get involved and we all made a lot of money. I'm fairly certain that is a fine example of people doing business with people that they *don't* know.

      I'm glad you brought this topic up, though. There's a lot about human nature to be learned from it.

      Thanks,
      Eric
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  • Profile picture of the author Rod Cortez
    Anna, I could not agree more. I talked about thing before ( http://www.warriorforum.com/main-int...ht-my-eye.html ) . But here's the kicker, every JV partner I have right now started off as a stranger. Some of them I've met at seminars. Others I've developed a friendship / relationship with in a variety of ways. I became friends with a well-known marketer a few years ago by simply subscribing to his list, e-mailing him honest feedback on how his e-zine was helping shape my business, and ultimately he interviewed me for one of his teleseminars.

    I'm still amazed at people who think "sell my product and I'll give you a 50% commission" is going to stick out from the competition. Putting in the extra effort really pays off in the long haul.

    RoD
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  • Profile picture of the author Anna Johnson
    Absolutely, Rod! All friends, colleagues, business partners, etc start out as strangers at the start. At some point we reach a level of comfort - we know, like and trust - someone to do business with them. The point at which we reach that level of comfort will no doubt vary from person to person. It will also depend on how eager we are for things and people to be how we want them to be (rather than how they really are)! But I do think that the more you can do to give someone else that level of comfort, the better your chances of having them do business with you.
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  • Profile picture of the author artwebster
    Well, this is a question and a half and the wriggling has started already as one astute observer throws a wrench into the works!

    First of all, as a generalisation, the question just about takes the Gold Award and the OP doesn't help to clarify matters.

    As a true and simple generalisation, everybody does business with people that they did not know.

    Sometimes the type of business requires that a level of personal knowledge be acquired before any commitment can be made and this process converts an unknown person to a known person.

    At other times, the type of business to be transacted does not require any more than an exchange of value for value.

    The simple answer to the subject line question is "They don't, always."
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  • Profile picture of the author stalouto
    Hello Anna! The quality of our life is determined by the quality of our questions that we ask. The art of caring, loving and selling are based on questions and connecting with people and their values. I do business with a variety of people. Due diligence is good to do! That"s only prudent, wouldn't you say? People do business with people they like and connect with. There some friends I keep as friends and won't do business with, its better that way. I do business with people who have been referred to me by trusted people. In fact most of my business dealings on line are because of the affiliation they have with others I have done business with. Take care Anna.. stalouto
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  • Profile picture of the author rypher21
    yeah...i agree with what anna said...

    gaining trust is hard thing especially when you didn't know any information about the person your dealing with...
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