Personal MBA: Risk Reversal

Nobody likes risk, and often we try our best to avoid it as much as possible. When we make purchases, especially large ones, it’s always nice to know that we can get our money back if we’re not satisfied. This “money back guarantee” or “lifetime warranty” is a strategy Kaufman refers to as “risk reversal.”

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Personal MBA: Barriers To Purchase

Why does your sales pitch end in a no? According to Kaufman, it’s because you’ve given up too quickly, and you haven’t sufficiently addressed your customer’s specific barriers to purchase. After all, Kaufman explains, they wouldn’t be talking to you if they weren’t at least a little interested. Kaufman points out five standard barriers to purchase:

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Personal MBA: Damaging Admissions

Trustworthiness plays a huge part when trying to persuade someone to your way of thinking or, in the context of business, to make a sale. When people don’t trust what you’re telling them, it doesn’t matter how persuasive and rational your arguments are. You've lost the battle.

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Personal MBA: Reciprocation

I found Kaufman’s section on reciprocation extremely helpful and thought-provoking. He describes reciprocation as “the strong desire most people feel to “payback” favors, gifts, benefits, and resources provided.” He went on to explain that this innate need to pay back favors or gifts has been one of the foundations of human cooperation throughout history.

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Personal MBA: Three Universal Currencies

At 27 years old, I’m sorry to say that I neither possess an abundance of resources nor do I have the expertise in any one skill to demand millions of dollars for my time. According to Kaufman, of the three universal currencies, I'm resourcing poor, but I’m also rich in time and flexibility.

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Personal MBA: Trust

Kaufman proposes a hypothetical deal between the reader and a contractor. He explains that you would never pay the full sum of money needed to build a lavish villa without some sort of guarantee that you would receive what you’re paying for. He goes on to state that, “Without a certain amount of trust between parties, a transaction will not take place.”

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Personal MBA: Reputation

I think reputation is one of the most significant factors of success for small businesses. Because small companies don’t have the marketing budget to continually inundate the public with positive messaging and millions of customer reviews or testimonials to draw from, they must rely on other methods for maintaining a good reputation.

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Personal MBA: Hook

It seems the average attention span these days is quite abysmal, so whatever message you’re able to get in front of a potential customer better be short, sweet and informative. These are known as hooks and are described by Kaufman as, “a single phrase or sentence that describes an offer’s primary benefit.”

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Personal MBA: Free

Giving away free products or services is a classic marketing strategy and a great way to gain attention. Kaufman notes, however, and this has also been true in my experience that you better make sure you're giving away something of real value.

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