Informational Scarcity. The Jordan Belfort Way

Claude, I haven't watched the video yet but one thing popped into my mind regarding information shortage..

That idea aligns with what I've done with past clients
so that they become the only choice for a buyer.

As the buyer is going through the different options, not from just one supplier,
you give new information to consider that can make a dramatic difference in
the desired outcome you know that nobody else is giving out.

But not all of it, you leave a vital bit out, so that it compels them to ask other suppliers
if they do/have it, which they don't or they won't go looking elsewhere and they go
with you because you are the most helpful and most impactful on a very important
decision that could end up being very costly if getting it wrong.

Here's some quick and short examples...

For web design
"When you want to collect leads off your website,
make sure the the designer knows which side of the page it's placed.
Hyundai tested both sides and one side made a 101% difference in leads collected."

Mortgage broker
"Ask your broker the difference between low interest rates and lower monthly payments."

The web design example arms the buyer with new info that's very important
as it illustrates the cost of getting it wrong but doesn't divulge which side of the page
for optimal results.

The mortgage broker example plays into the most common question they get, what's the lowest interest rate.
The caller thinks the lowest interest rate will save the most money but not in many cases
is it true.

That stops them in their tracks and now the broker has a captive audience.

Both cases is new information is dropped into the prospective buyers buying criteria and you reshape it so that
you become the only choice because you have essentially removed the other options.

Obviously this won't work or best suited to all situations and will need tweaks to maximize the results.

But boy, I've seen it wipe out bigger competition in furniture movers in Texas, become the most ripped off ad for web design, stop price shoppers for mortgage brokers, fix the carpet cleaning ad by Joe Polish that stopped working.

Best,
Ewen

I hate to say this but that guy just comes off as a shyster.

I am sure that his whispering scarcity method could work in certain
situations, but not when he does it.

His whole demeanor is shady and he couldn't sell me a gumdrop.

Anybody can put anything on YouTube, I'm not buying it.

Sorry.

I'm on board with Claude here.. dont care about the personality or the "vibe" I care about the results. Was the man successful, not only at selling, but teaching others to sell? and the answer is yes - Even if we are not all keen on what he sold. The fact remains... he sold and sold tons. To have been floating A billion in equities, in penny stocks no less, is mind numbing.

His "Success" defied all logical sales norms... why sell a $.10 item when you could be selling a $1000 item? and yet a Billion dollar portfolio was built on stocks that were less than $1.00 per share.

I personally have taken a lot from this... there is no perceived risk at $1.00 a share. Even tho you are trying to sell 5000 shares right? its only $1.00 Selling 5 $1000 shares is a whole other discussion.

My latest sales model as an example, is breaking down a project into "modules" There are 10 modules to a project. each module is $250 or a total of $2500. I dont sell the $2500 project, I am selling 10 $250 modules.

The most that I pull from the an is exactly what this video is about, and thats tonality. Its not what you say as much as how you say it.. and changing inflection and tone and volume is a big deal!

I find some of the comments interesting...

people saying they wouldn't fall for this type of sales...but they did, they do, and they will.

Belfort wasn't the only one doing the "pump and dump", others were doing it, but he was the most prolific that took a big fall.

Back in the late '80s when I decided to get into car sales, I was blown away by some of the sales technics I learned.

I sat in class for a week with one of the best salespeople I've known (he could have been Belfort's brother) because he talked just like him.

As a matter of fact, the whole dealership reminded me of something out of the Godfather movie.

Expensive suits, gold bracelets, gold watches, and rings on every finger, fancy cars...

here I was a nerd that didn't have a clue.

I remember sitting in class and actually thinking, "Do people actually fall for this BS?"...

they did and they still do.

We were a dealership that didn't list any price on a used car. If a customer asked, we went into the whole spill about how the price didn't matter if it wasn't a good fit for them, blah, blah, blah.

We also used the 4 square method. Price, down payment, terms, trade. Price was sky-high, down payment was sky-high, trade was crazy low, and terms were way short.

The salesman's job was to get some kind of commitment and then turn them over to a manager. The manager would come in and close them.

The first couple weeks after getting a deal penciled from the desk, I would actually go out back and smoke a couple of cigarettes before I went back into the customer...thinking to myself my life was probably over, or, how in the world was I ever going to be able to give these people these figures and get away with not being punched right in the face.

Slowly, I began to realize that it took being brave and not being afraid to go past my comfort level to be successful...

once I got into the swing of things, it was nothing to have a commission check of $10K a month.

I slowly began to learn people will go for almost anything as long as you put on a good show.

After a few months, I became one of those sales managers that closed deals all day...

and it always, and still to this day, amazes me at what a good salesperson can get away with...and that people will actually thank them after all is said and done.

Yes, what Belfort did was wrong. But, people will still fall for a good line from a good salesperson...and they'll do it almost every time regardless of what they say.

I hear people say, "I would never be that kind of salesperson", well, guess what, you'll just be one of the other million that eeks by and sits around looking for a big secret.

I've taken the stuff I learned from my car selling days and used it in everything I've done...

I've got something you really need. Let me tell you about it and why you absolutely have to have it. Here's how it's worth your time and money. Here's what happens if you pass on the deal. What do you have to lose?

Don't be shy when you're selling something. Don't be timid about telling people how you've got the answer to their problem(s).

Thanks for bringing up this subject

Claude, it's popped into my mind how the use of information shortage
is a well worn path both in the fields of direct response advertising and ad agencies.

I used it years ago with a consulting client
selling the second most traded commodity in the world.

I'll come back in a couple of days when I have time to expand
on this topic with examples.

Best,
Ewen

Shortage Of Information

It seems like a well worn path used*by A List copywriters
in direct response copywriting, by ad agencies for their clients
and I've used it for a consulting client.

Here are some examples...

Direct Response Copywriters:

Selling investment newsletters and the free report on the profit potential for a company stock due to the demand*shortage gap of the traded commodity.
It could be an unknown company [info shortage]that is a vital*cog in the supply of the product and has new technology to capitalize on the*demand..

Carline Anglade Cole wrote*a winning long form sales letter selling a eye health supplement to a sophisticated market.

She brought in new and valuable information [shortage of info] why the two common ingredients don't work.

Ad Agency:

They did it for Shiltz beer. through an origin story.
The adman found out the process of making beer and was told all other beer makers*use the same process...mother yeast and steam cleaning bottles.

Of course those in the beer making industry thought it
was pointless telling the public this because they all did it.

However Shiltz agreed to run the ad campaign to be the first, therefore becoming the beer co no longer holding*back valued info to the consumer.

Improved beer sales resulted.

Copy Teasers by Direct Response Copywriters
You may have seen them in long form sales letters where the copywriter teases you with the two keys to the kingdom but then teases you need the third ingredient to fully get what you want [info shortage] and you gotta buy whatever it is to get the missing info.

It could read...

Bald 65 Year Old Ohio Vacuum Cleaner Salesman
Discovers How*To Grow His Hair Back

All by using three cheap ingredients: molasses, lemon juice and a $3.75 ingredient from the local drug store.
See page 26

My Consulting Client:

He roasts coffee beans.

Coffee beans, the second most traded commodity in the world means they have been devalued*so much because essentially there is very little difference other than their origin.
So using a origin story like boutique*wineries do is*fitting.

On the fly I got the client to research the*farmers and come back with a story in*these*key*areas...

Altitude:
High enough to give reliable*rainfall when the coffee plants need*it most.

Soil PH:
This makes a difference to the taste. Give an ideal range.

Humidity:
Find out what the air humidity is where the beans are sourced and why that is important.

Picking Beans:
Are harvested a number of times so that only the beans are at their best at harvesting time. Compare this to the common practice of strip picking where under-ripe and over-ripe beans are mixed in with the optimum ones leaving an inferior taste.

Time from picking to roasting:
Find out the optimum time between the two and why the roaster only uses the optimum time whereby the others buy in bulk to get cheaper then have the beans sitting around losing their optimum taste.

Shortage of info on what makes a good cup of coffee is highlighted*by an origin story like this.

Consumers are wanting to track the source of their food much more and will pay a premium for this shortage of knowledge.

There you*go,*some practical applications on how to engineer and fill the*void in information gaps your*audience has..

Best,
Ewen