An Example of a Cold Call from a Stock Broker - YouTube

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- [Michael] Hello, it's Michael.
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- [Cold Caller] Michael! Mike from (bleep) securities.
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How are you?
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- [Michael] Good. How are you doing?
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- [Cold Caller] Great. Does my name or affiliation
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still ring a bell?
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- [Michael] Hmm. Can't say it does.
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- [Cold Caller] It's been a little while.
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I wish I left you off with the better impression.
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(Michael laughs)
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The reason for the call.
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I have a recommendation I know you'll love.
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Give me 30 seconds, I'll be brief. Okay?
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- [Michael] Okay.
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- [Cold Caller] Great. The name of the company
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we're taking a very large position
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in is with (bleep) corporation.
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The ticker symbol is (bleep).
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The stock trades on the New York at
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(bleep) dollars per share.
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You are familiar with (bleep) right?
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- [Michael] Yes.
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- [Cold Caller] Great.
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The reason why we're buying the company is very simple.
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(bleep) is one of the major players
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in the 5G revolution.
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They provide the fiber optic lines
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that are necessary
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to run and operate 5G.
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Two of their largest competitors
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happened to be (bleep) both Chinese companies.
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- [Michael] I'm not looking to invest in anything right now.
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- [Cold Caller] Last time we spoke,
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you told me that you would
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at least listen to one good idea.
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Give me 30 seconds.
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- [Michael] I don't remember telling you that.
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I don't even remember talking to you.
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When did we talk?
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- [Cold Caller] We spoke a while back,
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I told you that I would get back to you
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when I had an idea that I knew you would love. So
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- [Michael] I have a very good memory
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and I don't remember that at all.
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- [Cold Caller] Buying aside, let me ask you this.
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Most of my clients, they do maintain at least 5 million
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in the market.
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Is this safe to put you in that same category?
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Simple, yes or no?
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- [Michael] It's a pretty personal question.
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Why would I share that information with you?
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- [Cold Caller] The only reason why I asked this question,
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we typically do not work with beginners.
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We typically seek out clients that maintain
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at least 5 million in the market.
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Is it safe to put you in that same category?
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- [Michael] Again, I don't want to share
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that personal information with you. So...
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- [Cold Caller] All right, well, let me say this.
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Let me leave you off with (bleep)
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that's my gift to you. Okay?
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- [Michael] Okay. Thanks a lot.
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- [Cold Caller] Have a good day. Bye.
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- [Michael] You too, bye.
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- [Narrator] All right. So I hope if nothing else
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you found that to at least be a little entertaining.
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I do think there are a couple
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of really good things to talk about.
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So first let's start out and look at
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what did he do well?
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And I think there are a couple of things.
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First of all, I think he had really good energy.
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You could tell that he definitely
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had a cup of coffee recently,
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or at least sounded like he did. And that's good.
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Another thing is I think the way he spoke,
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he had a lot to say
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but he'd really didn't rush it too much.
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I mean, even though he had good energy
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he took time in his responses and what he said
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I think his pacing was pretty good
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but that's about all that I can really say
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that I think he did well.
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So let's talk about what I think he could have done better.
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First of all,
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if you couldn't tell this guy fabricated a history
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of us talking before.
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He brought it up at two different times
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at the beginning of the call, he slightly hinted at it.
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And then he brought it up again at the end of the call.
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Now, when he first mentioned it, I was pretty
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sure I'd never spoken to him before
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but I wasn't quite sure.
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When he mentioned this again for the second time,
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I was positive I had never spoken to him before
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because he added more details
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about our previous conversation where,
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regarding what we discussed
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and what he was going to call me back with.
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And I know that I've never had this conversation with him.
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So I know that this is just a complete lie
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to be honest with you.
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So that's horrible in, in a couple of ways.
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Let's talk about that in a second first
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let's try to think about why would this guy do this?
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The only thing I can think of is
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that he did this as a way to maybe
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decrease my guardedness, establish rapport,
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maybe create some sort of history between us,
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now, first of all, using some tactics like that
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I think are kind of okay, when you're dealing
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with a gatekeeper and you can create this sort
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of fictitious history that you've met with people
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in the organization or the person that,
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the prospect that you're calling,
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is expecting your call or you're returning,
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you're calling again.
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I'm still not a big fan of that
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but that's a little bit better than this.
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And I'm kind of okay, using some of those tactics
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to get around a gatekeeper.
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When you're creating this fictitious history
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and you're telling it to the person
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that you're speaking with,
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most likely, they're going to know
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that they've never spoken to you, especially
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when you start adding the details he did at, at the end.
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So first of all, I mean maybe some people
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like that and, or are fooled by that.
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For me, if the person knows that that it's a flat out lie
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then that is totally damaging to credibility and rapport.
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You think I'm going to do business
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with this guy that just created this lie right here?
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I mean, I'm going to then invest
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with this guy that told me some lie about us talking before
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either he's a very dishonest person or he's a bit crazy
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or there's something going on there
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and I'm going to give my money to him to invest?
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So, I mean, I could go on and on
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but you get the point.
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Don't lie or whatever this guy did, don't do it.
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So let's move on to some other stuff.
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I mentioned his energy was good, right?
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But I think that the way that he acted
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he acted like, in my opinion,
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a pushy, cheesy salesperson.
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And I want you to do everything you can to not
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sound like a salesperson.
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And this guy clearly sounded like
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someone trying to sell something, right?
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So if you haven't watched any of our training modules
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I talk about this almost in every training module.
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And I give tons of tips
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on how to not sound like a sales person.
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So I'm not going to get into that today.
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But the reason why I'm suggesting this is because
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on a cold call, I think you will make a better impression
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by sounding like a business person or a consultant
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or an advisor versus someone trying to sell something.
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So clearly on this call recording
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he was clearly somebody trying to sell something.
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I think that's the less optimum way to go, again,
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if you want more tips or explanation on that,
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just watch any of our other training modules
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and you'll get plenty more.
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And then let's go back to the beginning of the call
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which is where he said, give me 30 minutes,
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30 seconds of your time, I'll be brief.
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So I'm not a big fan of the, give me 30 seconds.
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I there's another call recording that I've posted here,
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on my podcast and on YouTube, where the guy says
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give me 27 seconds of your time.
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I don't like this, right?
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I mean, first, that type of language and approach
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is what salespeople that are trying to sell something do.
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I get it, you're saying
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the person you're talking to is busy
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and you're giving this small window of time
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and asking for that
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and you're going to deliver your pitch in that time.
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And then either let them go or you will have sold them.
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I see why a salesperson trying to sell something,
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will say, will think that's a good idea,
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and a good offer that I'll try to make.
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And that's what, that's what I'm going to do.
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Well, I don't want you to sound like a salesperson.
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I want you to sound like a business person.
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Let's look at it another way.
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Let's say you had a bag of money, right?
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Would you walk up to someone and say,
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"Give me 30 seconds of your time
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and I will explain to you
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why you will want this money
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that I can possibly give to you." You wouldn't say that.
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You might ask for permission to talk,
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you might say something to,
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before you just start talking about the money.
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I definitely want you to open
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with some sort of check for availability question.
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The question I like is,
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"Hey, did I catch you in the middle of anything?"
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So that's very casual, it's very informal.
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It's something that a coworker would say to another coworker
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when they're popping their head in the office.
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That's what I want you to say,
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"Hey, have I caught you in the middle of anything?"
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And by the way, that's something that you could say
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if you had a bag of money,
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"Hey did I catch you in the middle of anything? No?
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Hey, you're not going to believe it.
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I have something here.
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You're probably going to want to hear about this.
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Maybe it's for you."
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Now let's take a look at what objections
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came up on this call
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and that's something I would recommend you do
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after every cold call.
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And so the objection that basically I gave this guy was
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that I wasn't interested.
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And that can look a lot of different ways,
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but it's basically the same objection.
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But another way that can come up is
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we're not making any changes right now,
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we're locked into a contract,
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we don't have any budget.
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And a lot of those, you can actually respond
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to them in the same way.
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This guy actually responded
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in kind of the way that we recommend
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you respond to that objection.
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So if you get, "I'm not interested",
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instead of trying to make someone interested,
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what we recommend is
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that you just respond to that with another,
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with asking a question, to keep the call going
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and possibly move the call to a different subject,
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other than the subject of them not being interested,
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and possibly getting around that objection.
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Now, when I said I wasn't interested,
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or I'm not investing right now,
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basically this guy responded with a question
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and that's great.
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The problem is that he responded with a really bad question.
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But the main problem with the question is the type
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of question that he asks.
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And to explain that a little bit,
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let me share with you two categories of questions.
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There are what we would call pre-qualifying questions
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which are very soft probing questions
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to see what's going on with the prospect.
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And then there are hard qualifying questions
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that filter good prospects from bad.
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This guy basically asked me a hard qualifying question of,
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"are you below 5 million in investments or above 5 million?"
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This guy should not have asked me a hard qualifying question
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at that particular point in his sales process.
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The goal of his cold call should be to
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establish a dialogue between us.
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Maybe that's an appointment.
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Maybe it's a lot longer conversation
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right there on the cold call
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for us to talk more, learn more about him,
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so he can sign me up as a client.
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I don't think that his goal, or his goal should be
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to basically get my credit card number
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and sign me up and do a transaction right there on the call.
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Now, if that's not the goal of the call
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then why does he need to ask me a hard qualifying question?
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If the goal of the call is to keep the call going
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and establish a longer conversation or set an appointment
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then he should not have to filter me
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from the being a good prospect to a bad prospect.
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So that question should not be asked
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because it doesn't really align with his goal.
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Also I'm basically giving him an objection.
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I'm walking away from him.
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Why would he need to filter me from the good, from the bad?
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The reason why you want to filter a good prospect
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from a bad prospect is so that
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you don't waste your time
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continuing to try to sell to them.
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Let me give you an example to explain these two categories
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of questions.
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Let's say that you're a car salesperson
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and someone walks onto the parking lot
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on a Sunday afternoon of your auto dealership.
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When someone first walks on and you want to determine
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if you should start showing this person a car
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or take them on a test drive,
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you want to ask them some soft pre-qualifying questions.
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Like "what kind of car do you drive today?
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What year is it?"
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Right? That's a really good probing pre-qualifying
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question to see what's going on with this person
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and let me learn a little bit more about them
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and you're starting to pre-qualify them.
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And you're starting to get a conversation going
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and learn some more information about them.
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A hard qualifying question
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that you might want to ask this person
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at some point is what is your disposable income per month?
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Or what is your W2 paycheck per pay cycle, right?
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That's a question that can help you determine
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can this person afford the car that
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I'm investing a lot of time talking to them about.
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Now, applying that example to this scenario
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that's like asking the person that walks on the lot
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and you're starting a conversation with them,
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you know, how much is your take home pay
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or what do you W2 every pay cycle or pay month, right?
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When someone walks onto the lot, that's a bit offensive.
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That's a bit personal.
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You want to save that question
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not only for a time when you build a little bit more rapport
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and you can begin to ask those personal questions
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but it's not even,
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it doesn't even make sense to ask that right away.
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You just kind of want to start to learn
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about the person and maybe show them around.
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It's when they start at wanting to take major portions
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of your time on Sunday afternoon
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that you want to start to ask those personal questions.
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Just to put a bow around that,
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the two main reasons that that was a horrible question was
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one, it was a bit personal
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and I'm not ready to share that information with him.
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And two, it's just not even an appropriate question
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in terms of that point of the sales process
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not only in terms of appropriateness
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but it doesn't even really make sense with the goal.
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I'm walking away.
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I'm telling him let's end the call
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and he's telling me, are you above or below this line?
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My answer doesn't even make sense.
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Even if I'm above the line
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I'm telling him I'm not interested.
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So why does it really matter?
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Now let's wrap this all up by trying to think
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about what could this guy have done in order to
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try to sell his service or secure me as a client.
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Which by the way is not something
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he can accomplish on this cold call.
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So let's think about what is the goal of the cold call,
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I've already discussed that,
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it's to establish a conversation.
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Maybe that looks like setting up an appointment
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or talking more right there on the call.
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So what could he have done to try to achieve that goal?
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He could have asked me different questions
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and that could have either been
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before my objection or after my objection.
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And some better questions to ask could have been,
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"Are you currently investing?"
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"Do you currently have a retirement plan in place?"
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And "What are some of your financial goals?
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Is it to, to invest more, to decrease your personal costs,
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improve your personal financial freedom?"
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"Are you currently working with a stock broker
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or financial advisor?"
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And so those questions,
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while the answers are, all that information is personal
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to me, it's not like asking me,
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"Are you above 5 million or below 5 million?"
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By the way, the way he asked that $5 million question,
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it was a bit like,
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are you a real player or not a player at all?
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So even the way he asked the question was a bit offensive.
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By the way, just getting back to that question.
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He could have asked if he genuinely wanted to know
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if I was over a $5 million investing limit
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he could have asked that question in a more diplomatic way.
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Like, "Hey, let me try to figure out where you're at.
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Are you investing in this range,
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this range or range number three,
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do you mind if I ask which range you would fall in?"
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And that way I don't really feel pressure on me to
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you know, try to qualify myself to be in a certain category.
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So I don't look like I'm too small for him.
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Not only would that be less offensive
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but he would get a more accurate, honest answer.
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But anyways, back to the questions that I suggested
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those are really good conversational questions.
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And I might give an answer to one of those
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that might give him a reason to say,
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oh that's interesting.
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I want to talk more about that with you.
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If one of your top goals is more financial freedom
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I want to share with you some ways
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that I've seen other people to do that.
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It's a longer conversation and you know,
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let's not call to you right now in the middle of your day.
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You weren't expecting my call.
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So if you want to chat
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about it now, it's, you know, it's probably
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about a 20 minute conversation.
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I'm free right now, but what I think would be much better
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is let's schedule a call tomorrow afternoon
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if you're free,
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I can actually share with you some slides.
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I think you'll find them interesting
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if your goal is more personal financial freedom.
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So that might've been an approach
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that he could have used, which is softer questions.
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By the way, those questions I just shared
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with you could have been the response to the objection.
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When I said I'm not interested, oh, well, let me ask you.
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And then he asked me one
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of his softer pre-qualifying questions.
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The goal of the questions is to find a reason
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for us to talk.
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If you design those questions right,
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they might, may look for pain points
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or needs for improvement.
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And when you find one of those pain points
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or areas for improvement
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then that becomes your reason to go for the goal
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of your call, which is to establish a conversation.
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You get one of those, then you close for the conversation.
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That's something he could have done.
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He kind of headed in that direction.
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When I gave him an objection
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he responded with a question.
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Was pretty good, was just the wrong question.
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Maybe if he asked the right questions there
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he would have found a reason
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for us to start the conversation.
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So anyways, I hope
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that example gives you some stuff to think about.
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I hope my feedback and analysis
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gives you some ideas to consider
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for your own approach and look for other call
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examples to help you to improve your sales efforts.