For experienced marketers, this may be old news, but the Harvard Business Review found that people who were made to feel special were three times more likely to want to buy a specific item.

How, exactly, was this conclusion reached?

In an experiment that provided participants with an opportunity to buy a discounted coffee mug, those who were told they had been randomly selected to get the discount were 3 times more likely to want to buy than people who believed everyone got the discount. Researchers Jerry M. Burger and David F. Caldwell of Santa Clara University say such “special” opportunities may be appealing because people’s self-esteem is tied to factors that distinguish them from the crowd.

Naturally, prospects are more responsive when they feel special, singled out, part of a distinct group.

This is why so many successful sales pitches appeal to vanity.

Making prospects feel special is just good business. But do not be deceptive and do not cross the line into flattery.

I’ve found that flattery is the mark of a con man and nearly always precedes an effort to defraud.

-Ryan M. HealySimilar Posts:

• Flattery from a Stranger
• How to Spot a Con Man
• Five on Friday, Issue #5
• Copywriting Critiques: New Special Offer
• Product Creation Work Group

There are far more beggars in Florida than there are in Colorado.

It’s hard to go anywhere without being panhandled.

Not only that, the beggars in Florida are much more aggressive. They walk in between cars stopped at busy intersections doing their best to make eye contact. They make you uncomfortable.

Clearly, these men and women are professionals.

One man in particular stood out to me.

As he used body language to communicate with me through the windshield, he held up his index finger, raised his eyebrows, and mouthed:

“Just one penny? Just one penny?”

I gave him a dollar.

After all, who gives a poor man just a penny?

As I thought about this experience, I wondered:

• Am I being aggressive enough in my salesmanship?
• Am I asking for the sale more than once?
• Am I accepting the first “no” as the final answer — or am I viewing the first “no” as the first opportunity to get to “yes”?

Lesson: If your prospects don’t feel a little bit uncomfortable, you’re probably not selling hard enough.

-Ryan M. Healy

P.S. For more lessons hidden in this simple story, read the comments below.Similar Posts:

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In the book My Voice Will Go with You, the author Sidney Rosen recounts the teaching tales of Milton Erickson.

I found this one particularly interesting because of the sales lesson it teaches. It’s called “Scratching Hogs” (Milton Erickson is the one speaking).

One summer I sold books to pay my way through college. I walked into a farmyard about five o’clock, interviewed the farmer about buying books, and he said, “Young fellow, I don’t read anything. I don’t need to read anything. I’m just interested in my hogs.”

“While you’re busy feeding the hogs, do you mind if I stand and talk to you?” I asked.

He said, “No, talk away, young fellow, it won’t do you a bit of good. I’m not going to pay attention to you; I am busy feeding the hogs.”

And so I talked about my books. Being a farm boy, I thoughtlessly picked up a pair of shingles lying on the ground and started scratching the hogs’ backs as I was talking. The farmer looked over, stopped, and said, “Anybody knows how to scratch a hog’s back, the way hogs like it, is somebody I want to know. How about having supper with me tonight and you can sleep overnight with no charge and I will buy your books. You like hogs. You know how to scratch ‘em the way they liked to be scratched.” (p. 59)

Sometimes selling isn’t so much about selling as it is relating to the other person. People like to do business with people they know, like, and trust. They also like to do business with people they respect.

Knowing, liking, trusting, respecting — these are all byproducts of building rapport.

In the story above, Milton Erickson built rapport with the farmer because Erickson knew how to scratch a hog’s back. The farmer was more interested in hogs than anything else, and so Erickson’s simple act of scratching the hogs’ backs the right way built instant rapport.

When you build rapport with a prospect — genuine rapport — he or she will naturally be more inclined to buy from you.

-Ryan M. HealySimilar Posts:

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Boiler room scams are on the rise, so I feel it’s important for you to know how this type of scam works.

• Step 1: You buy an inexpensive product or accept a “Free plus Shipping” offer from an infomercial or similar marketing medium.

• Step 2: Get a call from a boiler room where you are pitched an expensive coaching or mentoring program.

Now comes a decision point. Do you buy what was offered in Step 2 or not? If you don’t, there is no Step 3. But if you do…

• Step 3: Lose a whack of money. Could be $2,000. Could be $30,000 or more.

This kind of stuff happens every day in America and in the U.K.

Right now, boiler room scams are on the rise in the U.K. The most insidious scam involves persuading retirees and middle-aged investors to buy non-existent shares that are supposedly going to significantly increase in value in the near future.

Most boiler room scams in the U.S. involve capturing a person’s credit card information and then making unauthorized charges. Usually, there is a mysterious monthly charge that is less than $100. These charges can go undetected for months. Once noticed, it is difficult if not impossible to get the charges stopped without canceling the card.

Other boiler room scams use high-pressure sales tactics to get authorization, and then charge the card one time for a large four-figure or five-figure amount.

The victims of these scams almost never get refunds. A rare few are able to get chargebacks, but are forced to waste inordinate amounts of time and energy in order to do so. The majority never go to the trouble and just take the loss.

In Britain’s latest rash of scams, the marks are asked to wire money to a bank, usually off-shore, in order to buy the non-existent shares being pitched. Of course, once money has been wired to another bank, there is no way to get the money back. Once it’s gone, it’s gone forever.

The Telegraph reports:

DH, a Telegraph reader lost £400,000 to such a scam. He was conned by a company that appeared to be genuine – it had an FSA authorisation number and an HSBC bank account, albeit offshore. He has little hope of recovering a penny. [...] The average amount of money lost is £20,000, but the biggest individual loss to date recorded by the police is £1.2m.

The situation in the U.K. has gotten so bad that banks are now issuing letters to their customers warning them of boiler room fraudsters.

Are You on a “Sucker List”?

Boiler rooms usually work off compiled lists of people with similar demographic and psychographic traits. These lists are affectionately called “sucker lists.”

An easy way to get on a sucker list is to do what I described in Step 1 above: Buy an inexpensive product or accept a “Free plus Shipping” offer from an infomercial or similar marketing medium.

Of course, buying an inexpensive product from an infomercial is no guarantee you’ll be put on a sucker list. But it helps if that product is about a business opportunity or has something to do with making money.

This is because boiler rooms prey on vulnerable people who are desperate to make money. Greed is a common factor among those who get taken.

My Personal Experience with Boiler Rooms

I can say from personal experience that I’ve never had a good experience with a boiler room. I’ve spoken with a few, and even paid for some way-over-priced programs back in my early 20s when I was what they call a “hyper responder.”

In every case, the offer being pitched was a course, method, or opportunity for making money.

• The first time, I paid $5,000 for H. Roger Neale’s Fast Flip Real Estate Home Study Course. It was, in my opinion, nowhere near worth that much. I didn’t agree with the methods he taught, so I never used them. A complete waste of money.

• The second time, I bought into an MLM opportunity. It was an investment of about $2,000 or so. Again, I realized too late that I disagreed with the marketing tactics being employed. Fortunately, I was able to ship everything back for a partial refund. I think I lost a few hundred dollars on this deal.

• The third time, I made the biggest financial mistake of my life: I paid $30,000 for five vending machines. Although a boiler room was involved in the initial steps of the marketing funnel, the sale was commenced in a one-on-one meeting after a live presentation.

I began to wise up after this third episode.

So when I sat down to discuss buying the Denver, Colorado, territory for the Glazer-Kennedy Inner Circle business franchises that were first offered at the 2006 GKIC SuperConference in Chicago, I decided against the opportunity. (I have never regretted that decision.)

Why You’ll Give Thousands of Dollars
to Somebody You Don’t Know

Because of these experiences (and a handful of others where I said “no”), I began to catch on to how they were getting me (and many others) to part with large sums of money.

And while there are multiple persuasion tactics being used (authority, social proof, and urgency chief among them), the single biggest persuasion tactic is the use of consistency.

Humans want to be consistent — and congruent — in their behavior. Marketers know this. So the sales scripts they use rely on building small commitments in the beginning so that it’s difficult for you to say “no” in the end.

If you agree in the beginning, you can’t say “no” later without contradicting yourself and making yourself look bad.

So pride gets the best of most people and they plunk down a bunch of cash for an opportunity or coaching service that is not going to improve their life in any way.

Fraud: An Inside Look

If you have a few minutes, I highly recommend you watch this video. It covers many of the tactics boiler rooms use to manipulate their marks.

Take note of how the manipulation occurs. Jim Vitale, the former boiler room sales person in the video above, explains how it works:

• Authority – Authority is established right up front. “Hey, how are you Jim, the first thing I want to do is to grab a pen, I want you to write my name down. (Now I have control. I’m already telling you what to do).” If a person asks too many questions, the authority is reinforced later through the use of what Jim calls a “slap take-away.”

• Social Proof – Jim says that after setting an appointment to talk with a prospect, he’ll give the person references. This is the use of social proof. If other people have had success, then you are more likely conclude that you can, too. Unfortunately, many so-called “references” are being paid by the company. In other words, they are fraudulent.

• Urgency – The phrase “ground floor opportunity” has urgency built into it. If you don’t get in fast, you might get in too late. Urgency is also built into the take-away. It’s common to mention a limited number of areas or territories, and that other people are “waiting in line” for the opportunity to get one. This is urgency created by scarcity.

It’s not that authority or social proof or urgency are inherently bad. But they can be used to manipulate people into making irrational and harmful decisions. This is why they are tools of the trade in every boiler room’s toolbox.

How to Protect Yourself
from Boiler Room Scams

If you find yourself tempted to buy into an expensive business opportunity or coaching program, please protect yourself by keeping these tips in mind…

• Tip #1: Always do your research before making an investment. Search Bing for negative/positive reviews and see what you can dig up.

• Tip #2: If it sounds too good to be true, it probably is. Don’t let yourself be manipulated by promises of easy wealth.

• Tip #3: If you must use a credit card to pay for the opportunity, then do not proceed. Say no and hang up.

• Tip #4: If you must take out a second mortgage to pay for the opportunity, then do not proceed. Say no and hang up.

• Tip #5: If the sales person asks for your credit card limit or how much credit you have available to use, then do not proceed. Say no and hang up.

• Tip #6: Do the math! Figure out how much you could realistically make in the next 3 months. Then cut that number in half. Then halve it again. Does your investment still make sense?

• Tip #7: Plan for the worst case scenario. If you none of the income claims are true, and you never make a penny, will you be able to recoup part of your investment? Can you resell whatever it is you’re buying? If so, what is the going rate on eBay right now?

• Tip #8: Talk to trusted friends and family members about the opportunity or coaching program you’re considering. Get their honest feedback — and take it seriously. The people who love you most are interested in protecting you from making a bad decision.

• Tip #9: Last but not least, never make a decision the same day or even the same week. Give yourself at least two weeks to consider any big investment. After you’ve “cooled off,” you’ll be more rational about the decision.

These tips, combined with the information above, should provide you with a good defense if you ever find yourself on the receiving end of a boiler room scam phone call.

Oh, and one last thing…

Do you have a story or experience about getting scammed by a boiler room? Please share by leaving a comment below.

-Ryan M. HealySimilar Posts:

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There’s a great article in the March 2011 issue of Inc. Magazine.

It’s called “What I learned from selling shoes, computers, tennis rackets, weaponry, radar detectors, books, conferences, and software OR How I Got Good at Making Money” by Jason Fried, the founder of 37signals and creator of Basecamp.

Long title, I know. But it’s a really good article.

I recommend you get the magazine and read the entire article. It’s packed with a whole bunch of real-life marketing and business lessons. Here’s one lesson that stood out to me:

Understanding what people really want to know — and how that differs from what you want to tell them — is a fundamental tenet of sales. And you can’t get good at making money unless you get good at selling. (p. 57)

Building a successful business is a lot easier when you know how to sell. Do what you can to learn how to sell… and… the sales will follow.

-Ryan M. HealySimilar Posts:

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Zoe Keating is a cellist.

She makes music, and she sells it on her web site.

Here’s what that looks like:

You can sample her music. If you like it, you can buy it.

You can get her music digitally for $8.

You can get the CD + digital download for $14.

Or you can get the Deluxe CD + 4 bonus tracks + digital download for $20.

Three options make it easier for people new to her work to buy. Plus, the Deluxe option gives her true fans a way to spend more money with her.

As her fan base grows, Zoe will have direct access to all of her customers. Which means, over time, she should be able to sell more of her music with every new release than she has sold in the past.

And the best part is that she gets to keep a greater percentage of the profit for herself. Even when she sells less, she makes more.

Seems like a better option than letting music producers hold all the cards.

-Ryan M. Healy

P.S. Hat tip to Jason Leister for telling me about Zoe Keating.Similar Posts:

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Well, now I’ve done it.

I probably offended half my list last week by using Hitler to make a point. Lest there be any confusion…

I made a simple comparison with an infamous person to make a point:

Marketers should keep their promises.

No more, no less.

And yet I got critical comments, emails, and even unsubscribes from long-time “formerly loyal” readers.

Which is why I thought it would be a good time to talk about Jesus.

Why?

Because Hitler and Jesus have at least one thing in common: Anytime you mention their names, you’re bound to offend somebody.

And since I already offended half my list, I figured it wouldn’t be fair to not offend the rest!

All kidding aside, I would like to clear up some misconceptions…

1. I’m firmly against murder. (The Man Himself says, “You shall not murder.”) I think we’d all be better off following Jesus’s example of turning the other cheek.

2. I don’t condone what Hitler and the Nazis did. It still stands out as one of the darkest periods of history in the last 100 years.

3. I’m sympathetic to anyone or any family who had to suffer through the Holocaust (or any other violent regime or military occupation).

A Reader Sounds Off…

Now, one long-time reader who unsubscribed was quite upset that I said the U.S. had killed at least 8 million people between 1951 and 2001 and tens of thousands more in the last decade. He writes:

Now, to get attention for your blog, you bring up Hitler. OK, but your reference to… “well the US has killed millions, etc” as if the killing of millions of unarmed innocents in WWII by the Nazis was remotely similar???

Yes: What the U.S. has done to other countries and peoples *IS* similar — only with less efficiency.

What was the bombing of Hiroshima and Nagasaki but the merciless killing of about 500,000 “unarmed innocents”? (About a quarter million the first few days and another quarter million over the next 50 years.)

I’m NOT okay with what the U.S. did to Japan, just as I’m NOT okay with what Germany did to the Jews and other minorities.

How about the Trail of Tears? The U.S. forcibly removed a nation from its land and killed thousands of innocent women and children along the way (about 4,000 people died).

Or what about our invasion of Iraq in 2003? Saddam Hussein did not attack us. He did not threaten us with war. And yet we invaded Iraq anyway.

Since then, more than 120,000 innocent civilians have been killed as well as some 30,000+ Iraqi soldiers, “insurgents,” and “combatants.”

Furthermore, during our time at war, we’ve had well documented cases of torture, sleep deprivation, psychological abuse, forced sexual acts between prisoners, etc.

If you try to argue that the U.S. brand of murder and torture is somehow better or more “righteous” than the Nazi brand of murder and torture, then you seriously need to get your head checked.

Murder is murder, no matter which country commits it.

Torture is torture, no matter which country carries it out.

Both are wrong. Period.

“Death of one man is a tragedy, death of a million is a statistic.”

I can see why certain people would be offended by the mentioning of Hitler or using him to make a point (as I did).

When events are yet fresh in our memories, emotions run high. But let a hundred plus years pass and objectivity comes back into focus — along with a fair dose of amnesia.

Can there be any other explanation for why nobody is offended by Stalin or Mao?

Although researchers can’t agree on how many people died during Stalin’s regime, the low estimates say that 9 million people died — about as many as are attributed to Hitler. And if the higher estimates are true, then Stalin puts Hitler to shame with 60 million deaths.

For Americans who say, “Ah, the A-bomb wasn’t that bad. It only killed half a million people — Hitler killed 11 million people!” then we could, by the same logic, also say, “Ah, Hitler wasn’t that bad. He killed only 11 million people — Stalin is responsible for 60 million deaths!”

And yet in American culture, Hitler is Satan; Stalin is a footnote.

And let’s talk about Mao Zedong for a second. Your average American has never even heard his name. And yet even he — a relative unknown in America — is responsible for 40 million to 70 million deaths, possibly more than Stalin.

Perhaps this revulsion for Hitler, yet apathy toward Stalin and Mao, is because many of us know Jewish families or have close Jewish friends who have some connection to the Holocaust.

At the same time, very few of us have close Russian or Chinese friends whose families lived under the vice grip of Stalin or Mao.

The Best “Salesman” of All Time

If you want an “historical figure” from who you can learn a pile of hidden sales lessons, look no further than Jesus. He is probably the most influential man of all time — and, unlike infamous political leaders, he never lifted a finger against another person.

Here are just a few “sales lessons” Jesus illustrated during his life on earth:

• He clearly recognized his “market.” He didn’t try to please everybody.

• He used simple stories to deliver powerful (persuasive) lessons.

• He knew when to talk and when to shut up.

• He had an appealing sales message (salvation is for everybody).

• He backed everything up with plenty of proof (hundreds of miracles).

• And a whole lot more.

And what better way than to end on a high note with lessons from Jesus? After all, we celebrate his birth this week.

Merry Christmas,

-Ryan M. Healy

P.S. By the way, Jesus really wasn’t born on December 25. If you’d like to learn a little bit about the history of December 25 and the date Jesus was really born, check out Why We Celebrate December 25.Similar Posts:

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Mike Dolpies is an expert at using local PR to grow businesses of all kinds. And to promote his new program — The 7 Day Local Celebrity Course — he agreed to do an interview about local PR and how he’s used it to get new clients and customers. Enjoy!

1. What first made you interested in PR as a business growth strategy?

I started my first business when I was 18 years old. After a couple of years “putzing around” I got serious. I was always fascinated (and somewhat jealous) when I saw or heard another local business owner or even some virtually unknown author being interviewed on TV or the radio or written about in the newspaper. Not knowing much I chalked it up to what I thought was “luck.”

Then, I ran into a DVD that featured Paul Hartunian. He’s the guy who sold the Brooklyn Bridge in 1983. And he is sorta known as a Publicity Guru. He really opened my eyes to what publicity could do for just about any business owner. Then I found more mentors. And don’t get me wrong — all of the information I got from them was great — but for me — there was still a missing piece. For some reason I could not get it to work exactly like the courses taught.

2. Why is it so important to pursue a local PR strategy at first?

It’s funny because one of the flaws I discovered was trying to “aim for the stars” without first hitting the moon. What I mean is — if you want to get national publicity. I am not talking “flash in the pan” one-and-done type stuff — I mean sustainable — you must prove yourself locally first.

The good news is we are all “local.” Even though a lot of us can sell things and speak and do coaching all over, we all live somewhere. And where we live there is a local media market. Some markets are really huge too!

The good news is getting local PR (when you do it right) can be a heck of a lot easier. Then, that momentum can actually make getting national publicity easier. I’ll give you an example.

My core business is internet marketing for local business owners. I’ve been doing it for a while because I started as a local business owner. Anyway, I write internet marketing articles for a state business publication. Well those articles (about 2 that I’ve seen) have found their way to Entrepreneur.com. I didn’t even pitch them — it just went syndicated and now — “I’ve been seen on a major national website.”

Lastly — you can really “seal up” your local market by getting local PR first. You may not even care to do anything else because the local PR can keep you busy.

3. Can you think of any businesses where local PR would NOT be beneficial to them?

Really, NO! The truth is any business can really benefit. Again we are all local. Some more than others, but we have to live somewhere!

4. What inspired you to create the 7 Day Local Celebrity Course? And how will it help service providers like coaches, copywriters, and marketing consultants?

Actually the inspiration came from a Mastermind group I am in. I kept sending them the videos of TV appearances and article clippings. Finally they said “you should do a course on this,” so I did.

The hardest job any consultant, copywriter or coach has to do is actually make people believe they are qualified to help. A lot of prospects are skeptical of your claims about improving their life or business. There’s this “why should I listen to you?” thing.

But when you get publicity it’s a game changer — you’re not just someone marketing to them because now you’ve been “endorsed” by the TV program, Radio show or Newspaper you appeared in. It just makes selling so much easier.

5. How well have your PR strategies worked in your own business?

It has opened so many doors! As far as numbers go, I have one client who has paid me more than $20,000 over the course of 3 years and he came from a magazine article I wrote. Just last week someone contacted me after reading an article in a very small local newspaper and he became a client. There are countless examples.

One way to measure its success too is to think about how much, the air-time or space in the publication would have cost if you were advertising. For that I’m easily up 6 figures. Again, it also really takes the edge off selling.

6. Would you be willing to “give away” a helpful PR tip that my readers can use even if they don’t get your course?

Sure thing…

I’d say to be sure you add Local PR to your list of how you want to market your business. Then learn to “Speak the Language of The Media” — which is explained in detail in my 7 Day Local Celebrity Course.

Obviously, since I don’t know the specifics of your business, this course may or may not be appropriate for you right now.

But if you’re a local service provider — for instance, a chiropractor, real estate agent, mortgage broker, web designer, marketing consultant, etc. — then Mike’s course could be a huge help to you.

Or if you serve a national client base and feel you could benefit from the increased credibility that local press could give you, then I recommend you check out The 7 Day Local Celebrity Course. (Just look at how many newspaper articles and media appearances Mike has gotten… amazing!)

And full disclosure… the links above are my affiliate links. If you try Mike’s course, I’ll get a commission. That said, the course is solid. I’ve already gotten some great ideas I plan to use myself. :-)

-Ryan M. HealySimilar Posts:

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Everybody in business always hears, “The fortune is in the follow-up.”

Nobody ever talks about why.

Is it because people are annoyed by you and are trying to ignore you? In a few rare cases, perhaps.

More likely, the people you’ve contacted are busier than a one-armed paper-hanger. They might be interested in your offer; they’ve simply forgotten about you.

That’s why follow-up is so critical.

People need to be reminded that they want to do business with you. They need to be reminded of the value you provide. They need to be reminded that if they don’t act quickly they may miss the opportunity before them.

So remind them.

-Ryan M. HealySimilar Posts:

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If someone called you today and offered to pay you to speak at their next meeting, would you be available to speak?

Here’s why I ask…

Public speaking is one of the fastest ways to grow your business and attract new clients into your business.

And right now there are hundreds of public speaking opportunities — both local and national — if you know where to look.

But here’s the rub…

If you’re not ready when the opportunity presents itself, you may miss out on potentially lucrative speaking gigs.

Attract Clients Through Public Speaking

Do you know copywriter Michel Fortin? When he was just getting started as a freelancer, he would host small workshops to attract clients.

This strategy worked very well for him. So well, in fact, that he eventually had to stop giving free talks!

If you’re a freelance copywriter… an SEO consultant… a business growth expert… or whatever the case may be — one of the fastest ways you can attract new customers and clients is via public speaking.

My First Public Speaking Gig

Even though I took speech classes in high school, I’m a bit timid when it comes to public speaking. For years, I’ve thought about doing it — but just haven’t taken action.

Thankfully, my friend and business coach Gogo Erekosima lined up a speaking gig for me in early March 2010. I’m happy to report that it went really well. And I enjoyed it more than I expected.

And yes — even though there were only about 15 people in attendance, I did get new business from it.

This new business happened in spite of myself; I didn’t even have a close or sales pitch!

Want Public Speaking Gigs? JP Maroney Is Your Man.

JP Maroney is a business growth strategist and a public speaking expert. You might even say that public speaking is one of his “secret weapons.”

A few years ago, I went through JP’s Speaker Formula program as part of a trade. I wrote copy for him; he gave me access to his speaker training program.

So I can vouch for the quality of the training material JP has.

Anyway, JP is currently giving away over $1,250 in free speaker training. When you opt-in, you’ll discover…

• How to get booked and start collecting speaking fees fast — even if you’re completely unknown in the speaking and meetings industry.

• How to build your celebrity status as the obvious expert in your industry so you can command top dollar for your services.

• How to write a speech people will pay to hear.

• 5 ways to create a profitable product income through speaking.

• How to break into the #1 speaking market in America.

• How to speak locally on a part-time basis and still earn a healthy five-figure income.

• The essential tools you must have for marketing yourself as a speaker.

• How to set your speaking fees, plus when to raise them.

• How to use public speaking to build your existing business — even if you have no desire to become a full-time professional speaker.

If you’re even slightly interested in public speaking, you’ll want to get this information. Opt-in to watch the video now:

http://www.public-speaking-secrets.com

Ryan Healy

P.S. There’s no charge for the stuff JP is giving away. If you like what you see and ultimately buy something from JP, he’ll reward me for making the referral. If you’re not okay with that — just enjoy the stuff he’s giving you. :-)

Here’s the link one more time:

http://www.public-speaking-secrets.comSimilar Posts:

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