In fact, a recent USA Today article noted a survey
about the most trusted professions, and sales came
in almost at the bottom, just above politicians.

And now I see a Wall Street Journal article titled:

“Don’t Get Hit by the Pitch: How Advisers
Manipulate You.”

The gist of the article is about how unscrupulous
financial salespeople can persuade even well-
educated people to invest huge money in bad
or fraudulent investments. However, what’s
interesting is that it doesn’t give any specific
examples or case studies of who does this, or
who has been “taken.”

My take is that the writer, Jonathan Clements,
simply decided to write an article to bash salespeople.

The article lists seven common tactics, which
are actually sound sales strategies and tactics.
The article says, “But here’s what’s striking:
Even ethical financial advisers use these tricks.”

Interesting how he uses the word “tricks,” again
giving the impression that these ethical salespeople
are out to deceive you, which seems to me like a
contradiction.

Let’s look at the “tricks” he talks about. Again,
these are all solid sales strategies that I have
taught, as well as have most sales experts.

-”In order to take somebody, you have to win their
confidence and trust.” He quotes Anthony Pratkanis,
a psychology professor at University of California-
santa Cruz, who says that the salesmen feign friendship,
ask about you, and pretend you have things in common.
Interesting how he uses negative terms such as
“feign” and “pretend.” Otherwise, it sounds to me
like building rapport.

-”As salespeople get to know you, they will hunt
for your hot buttons, whether it’s scoring big
gains or avoiding losses. That allows them to
craft their investment pitch.” Well duh, welcome
to Sales 101.

-To sell the deal, “Often they will tout an
investment’s scarcity, which makes it more
valuable and desirable.” He cites that advisers
point out that an investment’s bargain price
might not last. Some “trick.” Scarcity
is used by every marketer selling anything.

-He adds that the scarcity pitch is especially
effective when salespeople add that others are
also interested in the deal, and that other
investors have had great success with the
investment. Exactly. Again, this is a trick?

What struck me as funny is that he quotes Dr.
Robert Cialdini, the author of one of the greatest
books ever on persuasion, “Influence-The Science
of Persuasion,” although he only refers to
him as “a psychology professor at Arizona State
University.” Leaving out some relevant information
for your own purposes, are we Mr. Clements? You
wouldn’t consider that a “trick” to get someone
to think the way you want them to, would you?

-The next “trick” also quotes Cialdini, where
he explains how salespeople “exploit your good-
natured tendency to return favors,” such as
inviting you to a free lunch seminar, meaning
you then feel more obligated to “bite on their
pitch.” Again, he doesn’t mention that Dr. Cialdini
explains this strategy in great detail in his
book, calling it the Law of Reciprocation. In fact
a famous example of its use dates way back to when
religious charities would send out return address
labels as an enticement for donations. Should they
be accused of being unscrupulous?

-For the third time in a row, he takes a strategy
from Cialdini’s book, but doesn’t reference him
or the book when he mentions the principles of
Commitment and Consistency by saying that
“salespeople may take advantage of your desire
to appear consistent.” For example, if you say early
on that you are concerned about market declines,
and hesitate to buy later, the rep might counter
with, “I thought you said you were concerned with
market declines.”

Yes, it is a great sales principle. And also used in
Mr. Clements’ profession as well. A journalist, Tim
Russert of NBC’s Meet the Press is perhaps one of
its most high profile users. Almost every week he’ll
ask his guest a question, get an answer, and then
show a several-year-old “gotcha” video of the person
saying something contradictory.

-Finally, about closing, he quotes Pratkanis again,
who says that salespeople might skip over questioning
whether you should buy, and go right to asking
whether you want, “100 or 300 shares. In sales
jargon, that’s called the presumptive close.”
Actually, Professor, it’s more commonly referred
to as the “alternate choice close” and typically works
when the person has already decided in their mind
that they are going to buy. And by the way, the
“assumptive close” is the more common term to what
you think you meant.

Oh, and the author slips in another bonus “trick”
when he mentions how salespeople might suggest you
invest $30,000, and that when you resist, will drop
down to $15,000. He says, “Ordinarily you wouldn’t
agree–but now it seems reasonable because it was
preceded by the request for $30,000.” Gosh, that’s
not ever done by, let’s see, any person who has
ever listed a home or car for sale?

Mr. Jonathan Clements used his forum to take a
shot at salespeople, thinly masking his attack
as aimed at “unscrupulous” advisers, but mentioning
that “ethical advisers use these tricks.” My
guess is that there just might be a bit of professional
and financial jealousy residing within Mr. Clements,
since he likely knows the income obtainable by
good salespeople compared to journalists.

And, just wondering…will he ever do an article about
how some journalists use their own manipulative “tricks”
to pull information out of their interview subjects,
sometimes getting them to say things they don’t precisely
mean? Or perhaps pulling just portions of quotes out of
the context of an interview to spice up a story?
Just wondering.

Today was a bit of a rambling rant. Granted, there are
bad eggs in sales, perhaps even more so than other
professions. I just get tired of the bashing and wanted
to stand up for what I believe is one of the greatest,
important, and most lucrative professions around. Glad
you’re in it with me.

Go have your best week ever!.

Art

QUOTE OF THE WEEK
“Nothing happens until a sale is made.”
Thomas Watson Sr., founder of IBM

Here are interesting posts and news this week from the MoneyBlogNetwork members and beyond: Blueprint for Financial Prosperity is approaching $200,000 in net worth. Consumerism Commentary answers basic questions about income and taxes. AllFinancialMatt…

http://retiringearly.blogspot.com

First off, Happy New Year!

I noticed the same piece. About 8 or 9 years ago, I was teaching a perfsonal finance class. I decided to have a “scam of the week” feature to liven things up. In researching scams, I came across a book titled “The Big Con: The Story of The Confidence Man” (you can get in on Amazon pretty cheaply – about $12). It was written by a linguistics professor about 70 or 80 years ago.

He managed to work his way into the confidence (no pun intended) of the con community. He originally focused on their vocabulary, but eventually ended up writing the book not just about language but also about their customs and techniques.

What’s so striking is that the same general techniques con men used almost a century ago are still used (and work) today – only the products and the delivery methods (i.e. the Internet) change.

I’d recmmend it as a good read for just about anyone.