Two Kinds of People = Two Kinds of Sales

Item number 6 in my top ten list is "two kinds of people." However, I've already blogged about what I mean by that here.

So today I'm going to add on a "if this is true, then what else is true?" If you accept my two kinds of people: those trying to get promoted and those trying to keep their jobs, then how about the idea that there are only two kinds of sales.

1. the hope-based sale
2. the fear-based sale

The hope-based sales is one where the buyer expects that purchasing will somehow help get them promoted (or, outside of the business world, achieve some other goal, such as impressing that girl in their one-person-show acting class who only seems to make it to every other session).

Hope-based sales tend to be for things that will increase the company's revenue--for example a directory of potential customers for the buyer's company.

Fear-based sales would be the exact opposite. The idea is that if you don't buy the product you will lose your job (or disappoint that girl when she finally makes it to class and you are the one dude without velvety smooth Puma sneakers).

Luxury good are often perfect examples of fear-based selling because, since they are "nice to have" and not "must have to survive the cold winter" the force to purchase said Puma sneakers (or, to go back to the business world, an example might be a fancy gold pen or expensive computer screen) can only come from implying that they are, in fact, necessities because without them you will be alone, cold, and perhaps unable to weather the cold stares of your co-workers.

Do the two kinds of people exactly equal the two kinds of sales? Absolutely, yes. And absolutely no.

If your company is to succeed, you have to figure out what kind of person your potential buyer is, and then how your product relates to their personal goals. Because sometimes you will sell fear to a person trying to get ahead and sometimes you will sell hope to someone trying to keep their job.

And you need to do this before you launch into your pitch. Otherwise they will either think you are a fool for making them fear the Puma, cause they are this season's must have to get ahead at work, or are alternately a fool insisting on Pumas, when everyone knows they are so last year that if I wear them, I will be fired on the spot.

A couple more points:

1. The fear-based sale is much more prevalent, because there are more people worried about keeping their jobs than trying to get ahead (witness the episode of Star Trek with the evil Spock who comes from an evil universe where the norm is to scheme to get ahead rather than do as your captain orders), and because even evil Spock worried about losing his position if he failed to advance.

2. The hope-based sale is, however, more fun, and it also somehow feels more "righteous," and therefore many companies (and especially the engineers at said companies) make the mistake of trying to do a hope-based sale. Sure, their competitors can get along by selling the customer using worry and fear, but our product is so wonderful that it makes the customer happy by just being in their desks. Don't bet on it.