This Common Sales Mistake Could Cost You Capital
This conversation mistake will cost you capital. You may even be making this mistake and not realize it ...I'm back with another exclusive sales tip to help you nail your investor conversations and raise more capital!
So, let’s get straight to it - you may be talking too much in your conversations and it's a turn-off to your potential investors.
I've been teaching sales for over a decade and I've always referred to this as "product vomit" - the lack of awareness that leads to spilling all of your features and benefits all over your potential investor.
Why does this happen? We get excited about how we can help people - and we think if we just SHOW them how investing with us can change their life for the better, it’ll be a no-brainer decision and they’ll invest with us.
Thinking the way isn’t your fault - it’s how most people have been programmed to think about sales conversations. I’m here to show you a better way!
HERE'S THE PROBLEM WITH PRODUCT VOMIT:
❌ It triggers your potential investor because it’s typical salesperson behavior. Salespeople vomit features and benefits all over people - and consumers these days are sick of it.
❌ When they get triggered, their walls go up, but they’ll still act like they’re interested because they don’t want to hurt your feelings. They may even say, “this sounds great - let me know when you have a new deal and I’ll take a look at it” - but when the deal comes around, they’re nowhere to be found.
❌ When you product vomit features and benefits, you’re missing a MAJOR piece of the successful conversation puzzle. Features and benefits are logical reasons of why they should invest with you or make a change. People justify their decisions based on logic - but what actually gets them to say “yes” and invest with you are the emotional reasons.
❌ When you spend most of your time “pitching” them on features and benefits, you’re not giving them any time to open up and talk about what’s not working with their existing investments and how it’s affecting the way they feel about their money!
HERE'S WHAT TO DO INSTEAD -
✅ Qualify first, pitch later. You’ve first got to figure out if they have the problems you fix - are they less than satisfied with how their investments are performing? Have they lost money in their stock portfolio lately? Is skyrocketing inflation causing them stress? These are people you can help - but they have to verbalize it and show you there’s a reason for them to make a change in their existing investment strategy.
✅ Talk less, listen more. Your investor should be doing the majority of the talking in the conversation which means you need to be asking thoughtful and strategic questions. Getting them to talk and open up is what creates real rapport and trust.
✅ Don’t give a one-size fits all pitch. Once you know you’re talking to someone you can help and they’re willing to explore other investment options to fix their problems, tie each aspect of your solution directly to their pain points. For example, if their biggest frustration is losing major money in the stock market, explain why investors love the stability and steady performance of multifamily in various market conditions.
Building a successful business and thriving investor community comes from really learning people and refining your conversation skills. If you want people to like you and trust you, become a stellar listener and “asker” of questions. And I promise you, the less you pitch, the more you’ll raise.
Apply what you learned in this edition of Capital Raising Chronicles and you’re well on your way to bigger capital raises and making a bigger impact!
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