Salesmanship – Be a “Shepherd”, Not a “Sheeple”
Most people would rather follow a strong leader rather than take the responsibility that comes with being a decisive leader. The “Sheeple Close” involves advising your prospects using third party examples. It’s most effective when your buyer or seller believes the suggestion is their idea.
The most common human behavioral response when faced with a difficult decision is to ask, “What is everyone else doing?” This response can be directly attributed to people meeting two important psychological needs (Maslow’s Hierarchy of Needs):
- Social Need – Sense of belonging
- Ego or Self-Esteem Need – Sense of self
Basically, buyers and sellers feel that if they aren’t sure what to do, it is much safer to just do what everyone else is doing. We call this behavior the “Sheeple” mentality because it’s easier to follow the crowd, even when the crowd is wrong.
According to Warren Buffet, “the best time to buy is when everyone else is selling”. In other words do the reverse of what everybody else is doing.
The best examples to use for the “Sheeple Close” are the real estate boom years and recent stock market swings.
Real Estate Boom Years – When values were skyrocketing, everyone wanted to get in on the easy profits. In fact, following the herd was the worst investment strategy that could have been used.
Stock Market Swings – When the market dropped to 6,500 in March of 2007, fearing even greater losses, most investors rushed to exit the market and took a beating. The smart investors were buying, and have since realized a 250% return.
In real estate, you must teach your buyers and sellers to have confidence bucking the trends. It’s also important to remind your sellers that if they wait too long, they could pay dearly. This is where the old cliché, “pigs get fat, hogs get slaughtered” applies. Conversely, the buyers and sellers that jump in before everyone else will secure the best prices and realize the highest returns. One final point that must be taken into consideration; your buyers and sellers will only follow the advice of a strong, confident leader.