Informational Scarcity. The Jordan Belfort Way

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I have read over 2,000 books on the subject of selling. I have spent the last 40 years selling, teaching selling, and studying the subject of selling.

I'm not joking. I have never heard this before, and it blew me away.

Informational scarcity means that not only is your offer in short supply (Demand always exceeds supply in selling)...but the information that there is a short supply is also scarce.

And Belfort masterfully shows how to use the idea of informational scarcity when selling.

Start the video at 1:40. Everything before that is a pitch.

Belfort's voice is irritating (to me). He sounds like a guy selling stolen cars in Las Vegas.

But I've never seen anyone better at understanding the idea of "How to sound" when you are selling. His knowledge of selling is deep and profound.

And if you want to save a fortune on his sales training, he recently just put it all in book form. The Way Of The Wolf, On Amazon cheap.

Enjoy.

#belfort #informational #jordan #scarcity
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  • Profile picture of the author ewenmack
    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
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    • Profile picture of the author Claude Whitacre
      Originally Posted by ewenmack View Post


      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.

      Best,
      Ewen

      Damn Ewen...that's wicked smart. I'm stealing the idea.

      A related technique, when they ask about competition, is to praise the other company, and their offer as the ideal solution ....for a different problem than the one the prospect has.

      That way you are boosting the industry you are in, covering any loyalty they may have for the competition, and showing knowledge and class in the way you handle the question.

      For example, in local online marketing "Yes, that company is known as the best solution for national advertising, because they can get to all the national listings. And if you eventually decide to go nationally...I would recommend using them. Is that what you want, or are you thinking more about local business?"

      Something that may need to be said for other readers. What you say in selling has to be true. Not just for moral reasons, but you never know what the prospect already knows or believes. And you never know the relationships they have with the competition.
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  • Profile picture of the author Monetize
    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.
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    • Profile picture of the author Claude Whitacre
      Originally Posted by Monetize View Post

      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 know. His demeaner and voice are irritating, and I honestly find it hard to believe people would buy from him.

      But they did...by the thousands. And he trained a thousand or so low life youngsters to sell at high volume. And he did this for years.

      One of the things that struck me was that he sold so much, with his "sells stolen cars for the Mob" voice. It would be different if he had an announcer's voice. It would then be plausible to say that it was his voice that made the sale. But Belfort made thousands of high dollar sales...personally...even with that irritating voice of his,.....

      And what that means is that his methodology works, despite it being him calling on the phone.

      This isn't some Wannabe delusional Youtuber. This is Jordan Belfort, the Wolf Of Wall Street. His sales records are public record and are of nearly mythic productivity.

      And...I'm an expert salesmen and sales trainer in my own right. I'm not fooled by techniques that don't work. The technique in the video is sound, and works. I simply never heard it taught before. And it never occurred to me to use this myself in exactly the same way.

      Now that I've said all that. He does rub many people the wrong way. But I have listened to his entire course, and it's about the best out there, assuming you are selling over the phone.

      The fact that he's personally offensive should be beside the point. I've learned quite a lot from people I don't like or respect.
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      • Profile picture of the author Monetize
        Originally Posted by Claude Whitacre View Post

        The fact that he's personally offensive should be beside the point. I've learned quite a lot from people I don't like or respect.

        I always appreciate your thoughtful posts, and I know that they
        take awhile to type, edit and proofread.

        I was going to comment, before I watched the video, about you
        being an avid bookworm and how commendable it was that you
        read over 2,000 books about sales even though, as they say,
        there's nothing new under the sun.

        I am a bookworm also, and have read several books on sales,
        but not nearly 2,000. I even have one of yours, Selling Local
        Advertising, I bought it in April and I have it here on my desk.

        As to the shyster, I am aware he is the WOWS, and that the
        younger generation flock to him. I think that people are so
        misguided these days, wanting to rub elbows with the rich
        and famous. I could go on a rant on this topic, but I won't.

        As we mature, we become more discerning, and I am very
        particular about who I do business with or buy from or
        associate with.

        And he's just not my cup of tea.
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        • Profile picture of the author Claude Whitacre
          Originally Posted by Monetize View Post


          As to the shyster, I am aware he is the WOWS, and that the
          younger generation flock to him. I think that people are so
          misguided these days, wanting to rub elbows with the rich
          and famous. I could go on a rant on this topic, but I won't.

          As we mature, we become more discerning, and I am very
          particular about who I do business with or buy from or
          associate with.

          And he's just not my cup of tea.
          I understand.

          He isn't my cup of tea either. And when I read posts on his Facebook page by other reps that follow him, they tend to be young aggressive, hyper, immature men.

          Also, not my crowd. Unfortunately, I get them calling me and messaging me...and when I sell my sales training course, they will be part of the market.

          But the two very best salespeople I've ever learned from were con men. Fortunately, I could see past the thought of them taking advantage of people (although the customers got what they thought they were getting) and saw that their strategy, methodology, and techniques were highly effective and advanced.

          I learned how to sell retail from a man that cut way too many corners. About 90% of what I learned from him was Gold, and the other 10% could eventually land me in jail.

          I kept the Gold, and ignored the rest.

          Jordan Belfort is a con man. He was a con man when he built his fortune. He's a con man now. I would never go into business with him. Although, if I were a much younger man, I'd work for him selling his training courses...just to learn a solid pitch.

          But I'll learn from anyone that knows.

          It's the knowledge that's important to me, not the person who teaches it.

          But I understand your take on it.


          Added later; What's incredible to me is that here...on the Warrior Forum...we have two or three other World Class salespeople....and a few others that aren't in sales but are world class thinkers.

          I'm grateful that they share their hard earned knowledge with the rest of us.
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  • Profile picture of the author savidge4
    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!
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    • Profile picture of the author Monetize
      Of course his personality does not faze you guys. You are men.

      And I don't speak for all women, but as a general rule, women
      don't want anything to do with some con man shyster that
      creeps us out.

      He's over there whispering, "Hey lady, I've got something in
      my pocket I want to show you."

      No! No! Thank! You!
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      • Profile picture of the author animal44
        Originally Posted by Monetize View Post

        Of course his personality does not faze you guys. You are men.

        And I don't speak for all women, but as a general rule, women
        don't want anything to do with some con man shyster that
        creeps us out.


        He's over there whispering, "Hey lady, I've got something in
        my pocket I want to show you."

        No! No! Thank! You!
        Not just women...!
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        What I do for a living

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      • Profile picture of the author Claude Whitacre
        Originally Posted by Monetize View Post


        He's over there whispering, "Hey lady, I've got something in
        my pocket I want to show you."
        Thank Goodness he never said anything like that.

        If he did, my urge to suggest ways to improve his delivery would have been overpowering.

        I just was thinking that the first time I heard his voice (after reading his first book or two), I kept thinking he was doing a parody. To me, he sounded like Joe Pesci in the Lethal Weapon movies.

        I've often wondered how a distinctive voice or manner affected sales. How strong accents or a "radio voice" would affect how people feel about you when you are selling.
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  • Profile picture of the author max5ty
    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
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    • Profile picture of the author Claude Whitacre
      Originally Posted by max5ty View Post

      I slowly began to learn people will go for almost anything as long as you put on a good show.
      it wasn't that you were putting on a good show.

      It was that eventually you acclimated to what you were doing and saying.

      You started to speak with certainty.

      Even the most clumsy sales "technique" will often work if it's delivered as though you absolutely believe what you are saying.

      The vast majority of people have no idea how selling actually works. They don't know what to expect. They don't know if what you are saying is true or not. They don't know how buying works.

      So....they have to depend on you, giving them clues....indications of how they are "supposed" to respond.

      When you are new, even if you are telling the truth and are completely sincere...your voice hesitates. You sound uncertain.

      With repetition, you get used to what you are saying and doing, and it starts being accepted as the way it should be (by buyers). You start sounding certain.

      And who speaks with certainty? People with authority.

      It's that certainty you project that keeps them from doubting what you are saying., accepting what you say. It's why you started making sales.
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  • Profile picture of the author ewenmack
    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
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    • Profile picture of the author Claude Whitacre
      Originally Posted by ewenmack View Post

      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
      I look forward to it.

      I should mention that the biggest leaps i ever had in income when selling to individuals, I learned while studying marketing, advertising, and copywriting...and applied what I learned to selling.
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    • Profile picture of the author Princess Balestra
      Originally Posted by ewenmack View Post

      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

      "Be a benevolent expert with a cliffhanger" sums up what I seen in this post.


      Define the missin' piece of the puzzle makes 'em wanna read the next chaptah.
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  • Profile picture of the author ewenmack
    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
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