The last episode I did was standing here as well… I had two big thoughts on my mind so I wanted to do another one here.
About two or three weeks ago I hosted an event called OfferMind.
- I sold 650 tickets
- We sold about $1.9 million on stage
… Which is awesome!
It was a screaming success and it was a lot of fun. We’ll continue to sell that program which is exciting.
It was interesting because the ONE skillset you guys can go learn that will massively improve your wallet is MARKETING.
The better marketer you are, the less amazing at sales you have to be.
One of the principles that I like to talk about the most, is this whole concept of sales psychology.
One of the things that made the events so unique is: I don’t really want to teach people the newest thing on Facebook.
What I do care about is, what is true marketing?
HINT HINT: We’ll probably gonna have an MLM event soon called Hack MLM Live.
WHY DID PEOPLE LIKE OFFERMIND?
One of the reasons why people like OfferMind events so much is that I have an obsession with marketing history.
I actually wanted to be a 10th-grade history teacher for a long time. I love studying American history and world history.
I’m 31 now and what it’s turned into is an obsession with marketing history.
At the event, I said to everybody, “The purpose of this event is for me to remove the Internet. I wanna remove today’s modern distribution channels”.
Let’s take those away…. What’s that to do with MLM?
Just hold on tight and I’ll show you.
Let’s go back to 200 years ago… To the time when the printing press was starting to come around in 1750. The printing press came around and suddenly we could have duplicatable messages that they were sending out… That’s a BIG deal.
Before that, you had to one-on-one to tell everybody.
I told everybody at the event, “Let’s remove everything to do with the Internet, learn what marketers in that time used to go do, study their patterns and then add the Internet.”
That is powerful.
Otherwise, the Internet can be a distraction.
We think that posting on social media is marketing… IT’S NOT… It’s posting on social media!
The purpose of the event was to teach what marketing actually is in the context of old school times and then add in powerful Internet principles.
It was very, very successful.
THE PSYCHOLOGY BEHIND THE REFUND
One of the things that people like the most, is studying this whole bio-psychology.
I know I’ve talked about this a little bit in the past, but there’s a certain key point to this.
QUESTION: Have you had anybody refund on you?
You do the whole phone or hotel meeting or you three-way him, or you spend time with that individual, and you can tell they’re not all about it.
Vice versa. There are other people where you show them the product and they’re like, “This is the best thing since sliced bread, I love the product.”
Imagine you’re talking to somebody and they’re not loving it. You walk away, and you got the sale but it’s kind of shaky.
And you’re walking away and let’s say you got them on auto shipper. You walk away from him, and that dreaded text comes to you (cause they’re not confident enough to actually call you) and they say, “Stephen, we were talking about this and I know I’m within my three day refund period and we just really want the money back.”
And you’re like, “Ugh! Oh my gosh.”
We have ALL had that experience. Don’t act like you haven’t. If you haven’t, you need to sell harder.
Refunds are normal. There are very famous marketers that believe if they DON’T have a 10% refund rate, they’re not marketing hard enough
Refunds are normal.
Let’s say you have that experience… Why does that happen?
There’s a principle that I wanna walk you guys through on why that happens.
There are four hormones in the brain that causes us to feel good. They’re naturally produced by the brain.
The first chemical is Dopamine.
Dopamine is the chemical of DISTRACTION. We love to get distracted.
It is statistically proven that you check your phone 72 times a day. WHY? Dopamine.
Mark Zuckerberg said on film to Congress, “Yes, we brought in addiction specialists to make Facebook as addicting as possible.”
I’m not here to argue whether or not that’s right or wrong. That’s the statement. They engineered addiction into it.
Dopamine is the easiest chemical for our brains to produce out of the four hormones.
The next chemical is Oxytocin.
Oxytocin is the chemical of connection. Of the four, it’s the one that we want the most.
I need a connection. I need to connect with people.
Seth Godin teaches that right now, there’s never been a time in history where we have de-tribed so much. We are de-tribing as a society.
But funny enough, it’s the chemical we seek the MOST.
We’re not relying on each other like we used to, but we desperately need to feel a connection, which is caused by the chemical oxytocin.
We will give up our:
… In order to get a connection, even if it’s fake connection.
We need connection as a species.
The next chemical is Serotonin.
Serotonin is a chemical of status. I don’t mean like, “I’m better than you.” That’s not what it is.
Status meaning validation. Meaning, I’m okay in my eyes, and I’m okay in those people’s eyes over there too.
It’s one of the driving forces we have as entrepreneurs.
I love this stuff man, I really go into this.
The next chemical is Endorphins.
Endorphins are the chemical of work reward.
Let’s say I’m gonna go jog around a track. The first three or four laps are gonna suck… They always do.
But what happens once you get past that first mile is you get the runner’s high. That’s a work reward. That’s endorphins.
It’s not dopamine, it’s not oxytocin, it’s not serotonin, it’s endorphins.
Endorphins come as a response to work reward. It comes in as the response of pain… The pain of growth. I might feel some growing pains as I’m sprinting around the track, but I’ll start to feel some endorphins feel goods and it makes me keep going.
WHY DO PEOPLE REFUND
There are different ways to cause these chemicals inside of the buying process.
And there’s something I’ve discovered and learned how to do quite well. You consuming this right here… I’m giving you dopamine ’cause I’ve distracted you from something else today.
Status in terms of it’s very much US versus THEM, new MLM versus old MLM.
I try to be as vulnerable as possible with this show, which actually gives a semblance of oxytocin.
Endorphins are gonna be very hard for me to give you while you read this right now because you’re not doing much. If I was to have you go do two or three things and check a box, it would start to give the chemical of endorphins and the feel-goods.
I wanna tell you guys why the refund happens.
Let’s say you’re pitching somebody and they’re buying from you… They’re getting dopamine because they’re getting distracted.
They’re getting oxytocin, one of the easiest ways to get oxytocin is through purchases. You get that buyers high.
Let’s say there’s a brand involved. They know it’s an amazing brand. There’s a sense of status that comes with it, serotonin.
There’s a little bit of work reward. The work they did is they pulled their credit card out and they’re buying, they’re feeling endorphins, man they’re on a high.
You’re getting home all four hormones during the purchasing process.
LOGICAL REASONS FOR A REFUND
So why do they refund?
What’s happening in the brain?
What happens in the brain is the purchase is not over. Buying is emotional. As I start to purchase, the right side of the brain is really where a lot of those emotions happen, and it overrides the left or logical side of my head.
So I stop thinking logically. And when I start saying, “Hey, buy now. It’s buy one, get one free right now.” Guess what happens?
What happens in the brain is they start to justify the purchase. “You know what, it makes sense for me to buy this right now because it’s buy one, get one free”.
They think it’s logical… It’s actually emotional though.
As they walk away and those hormones start to burn off, the left brain starts to pop back in and go, “Oh crap. Oh my gosh. Why did I just buy this?”
They start to freak out a little bit, like, “Oh my gosh. I wasn’t planning on buying this thing today.” And the left brain has to start justifying the action.
I know I’m spitting a lot of stuff here, but understand that *THIS* is where the key is. If you wanna drop your refunds, this is how you do it.
REASONS WHY PEOPLE REFUND
The other reason why somebody refunds is because you have not armed the logical side of the brain during the sale.
You heard what I just said?
That’s a BIG statement right there. You might wanna go back up and read that sentence again.
One of the BIGGEST reasons why you get refunds is because you did not arm the left side of the brain during the sale.
MEANING: You didn’t give logical closes.
Let’s say that you go into a grocery store and you’re like, “All I’m gonna get is eggs.” How many times you actually walk out with just eggs?
Why? Beause you like to buy. Everyone likes to buy. “You know what, I should get some bread while I’m here”, “You know what, I’m gonna go ahead and get the orange juice while I’m here.” “Since I’m here… “
What are you doing? Logically justifying.
What happens when the first loved one walks up to you and says, “I thought you were just getting eggs?”
You panic and think, “What do I say? What do I say?”
What I say is the CLOSES.
(I’m going way more tactical, far less story than I should on this podcast episode, but I’m hoping that you guys catch this.)
LOGICAL REASONS AND CLOSES
What happens is as the customer walks away and confronts their first loved one, they cite logical closes.
A logical close is nothing more than a reason to ACT NOW.
What are they gonna cite?
- It was buy one, get one free
- It was half off
- If I did it now, I got in my buddy for half off
Do you know what I’m saying?
They start citing logical reasons to act now. Not the stories that you told them.
Go watch the last podcast and what I’m saying will make more sense.
People DON’T cite the stories, they cite the logical reasons to act now to save face in front of loved ones who asked why they bought something.
[PAUSE FOR EFFECT]
People cite logical reasons to act now to save face in front of their loved ones.
WHY PEOPLE REFUND RECAP
Let me recap this real fast here and tie it in a nice little bow. I know that was a lot of stuff. Maybe watch this a few times too ’cause I know that’s thick. This is a pretty deep topic.
But just think about this…
WHAT THIS MEANS IS: When you’re selling somebody, you wanna give them as many logical reasons that they should be doing this as possible.
You wanna be telling them things like:
- “It makes sense.”
- “You’re smart to get this done now because it’s half off.”
- “It makes sense what you take action this now. I totally would too because it is buy one, get one free before midnight.”
- “I wish that I had this opportunity like you have now ’cause I didn’t have this when I started.”
QUESTION: What did I just do?
ANSWER: I just armed them with something that they can quote to loved ones when they try to save face later on.
Once those buying hormones die-off on the right side of the brain, the left side is left to fend for itself and unless you arm it, they start getting buyer’s remorse.
That was one of the pieces people really liked at OfferMind.
MY REFUND RATE
I really don’t have that many refunds on Secret MLM Hacks. In fact, with ALL the products I sell, I have an extremely low refund rate.
And it’s because I understand that part of my role when selling them is NOT to sell them ONLY on the decision to buy.
I’m actually arming them post-sale on how to save face in front of their loved ones.
That’s my role, not theirs.
The sale is NOT OVER until they can justify the purchase to loved ones.
Otherwise, what happens is people step back and they say, “Well crap. I think I got swindled.” because they can’t cite any of the logical reasons to act now.
Because of that, they start getting buyers remorse. They freak out!
The whole point of this episode is that ONE sentence right there: The purchase is not over until you have armed them to save face and status in front of the loved ones once they challenge the purchase.
And the way you do that is by arming them with lots of logical reasons to act now.
When people are like, “I don’t know that I like closing.” You’re killing your refund rate.
NEWSFLASH: You’re not closing hard, you’re helping them save face.
You’re giving quotables that they’re gonna go say to their loved ones.
NO ONE ASKS FOR A REFUND ON OFFERMIND
One of the reasons I did $1.9 million in sales at OfferMind is because I stacked closes.
I’ve NEVER had a table rush. That was the FIRST table rush I’ve ever had my entire life.
I hadn’t even sent the freaking price and people were standing up and slamming the credit card down.
BUT I DIDN’T STOP. I kept speaking.
There were 650 people and half the room was on their feet! Do you know how loud the room was?
I kept going like NO ONE was standing. I talked for another 15 minutes with everybody up, just doing my closers.
Dave Woodward, one of the executives of ClickFunnels, is a funnel freak. He paid for this program before he even knew what was in it.
He was the first one in the program and he was super excited about it.
He’s a funnel freak… Are you? He’s in the program and I want you to be as well.
You need to tell people WHAT to cite after they go back home and the emotions have died. Logically, they need to know that they should be in the program.
They’re NOT the salesman, and now they have to sell their loved ones on the decision they made.
If you haven’t armed them with those logical reasons, they’re gonna feel like you took them. You didn’t… But it just feels that way to them.
MASSIVE RANT OVER.
THE PSYCHOLOGY OF THE SALE
Hopefully you enjoyed this episode of Secret MLM Hacks Radio.
I love doing this show. If you could please leave me a review, that’d be AWESOME!
This stuff works. I love MLM, I love what I do, I love sales, I love marketing, I love funnels.
The opportunity we have right now is RIDICULOUS. There’s never been a time where distribution has been so easy. Where products are made so quickly. Where society discipline is dropping so much… Which means if you just do ANYTHING.
I know it’s tough to find people to pitch after your warm market dries up, right?
That moment when you finally run out of family and friends to pitch. I don’t see many up lines teaching legitimate lead strategies today.
After years of being a lead funnel builder online I got sick of the garbage strategies most MLMs have been teaching their recruits for decades.
Whether you simply want more leads to pitch or an automated MLM funnel, head over to secretmlmhacks.com and join the next FREE training.
There you’re gonna learn the hidden revenue model that only the top MLMers have been using to get paid regardless if you join them.
Learn the 3-step system I use to auto recruit my downline of big producers WITHOUT friends or family even knowing that I’m in MLM.
If you want to do the same for yourself, head over to secretmlmhacks.com.
Again that’s secretmlmhacks.com.