I have been receiving an increasing volume of requests to provide greater insight into The Psychology of Buyers, so this is the first in a series of articles intended to provide improved understanding.

If you are going to help your prospects and clients succeed, you will need to gather lots of information from them. To obtain that information, you will need to ask questions.  The intent of your questioning will determine your effectiveness.  Despite a contrarian view from many of our egos, The Psychology of Buyers tells us that the majority of prospects do not trust salespeople, so prospective clients are continuously making decisions about what questions may be safe to answer.  So ask yourself honestly-is the intent of your questions to facilitate mutual discovery in a way that feels good for your prospect, or to help you feel good or get what you want via manipulation or cleverness?  Whose agenda are you really on?

The Biology of TRUST – Why Leading Questions Don’t Work

When a question is asked of a buyer, the question makes its first stop at the brain stem, to a tiny place on the stem called the amygdala.  The amygdala, or Old Brain, is the GateKeeper of Trust.  It determines flight, fright, and survival.  So when the question is asked, our Old Brain determines the trustworthy-ness of the questions and whether it’s safe or unsafe to proceed.  If, and only if, the amygdala determines safety will the question get routed to the New Brain, or neocortex.  The neocortex is the rational portion of the brain where we think, analyze and make determinations of whether or not something may be true.  So if clients don’t sense that your question is truly in their best interest, the “trust alarm” will be triggered, preventing you from facilitating mutually beneficial discovery and having "adult conversations”.  You will never get to second base.

Don’t Act Trustworthy, BE Trustworthy

The Old Brain operates primarily on pattern recognition.  Since most people have been programmed through past experiences to mistrust salespeople, this GateKeeper has become extremely savvy.  If you behave like a salesperson by asking “leading questions” or trying to cleverly “create value”, then the amygdala will determine that you are not trustworthy.  You will be guilty without a trial.  Asking for trust or acting interested will not get it done.  You must actually BE trustworthy.  Aside from the fact that faking intent is shallow and unethical, it is also quite transparent.

Detach Yourself from Outcomes

Here’s the deal.  The harder you try to “sell” someone, the less likely it is going to happen, and the more likely it is that the Old Brain will shut you out.  If the GateKeeper shuts you out, information flow is stymied, and your likelihood to arrive at a solution perceived to be valuable diminishes greatly. If you are sincerely interested and honestly want to help people succeed, they will be more likely to share their beliefs about what success looks like for them.  Your ability to find the right solution and win their trust increases.  Believe it or not, it is in your own most selfish interest to focus on the interest of the prospect before focusing upon your own.

Goals and expectations are important, but selling success relies on a discipline to remain detached from our goals and external pressures (like the prodding of your sales manager) before you engage with prospects and clients.  Check your ego at the door and actively listen to your clients with sincere interest and infinite, childlike curiosity.   The great results will speak for themselves…

Copyright ©   Joe Zente  2010.   All Rights Reserved.

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Paul Skeith, Managing Partner
Richard Rodriguez & Skeith LLP

Paul Skeith, the managing partner for Richards Rodriguez & Skeith, understands business.  When he’s not representing mid-sized businesses and nonprofits as their outside general counsel, he’s running a growing business himself.  Paul has served as managing partner for Richards Rodriguez & Skeith since he founded the firm with his partners in 2005.  In his spare time, he attends The Alternative Board of Austin peer-advisory membership organization to better his business acumen.  Even Paul’s commitment to the community reflects his dedication to business pursuits.  He serves on the board of Capital Idea, a local nonprofit which empowers working families by providing competitive professional skills to enable them to create life-long financial independence.

Mr. Skeith’s practice in business and corporate law includes negotiating mergers and acquisitions, drafting and reviewing business contracts, structuring business entities, real estate transactions, employment contracts, and business succession strategy.  Paul’s clients are busy CEOs, entrepreneurs, nonprofit directors and board members, which is why he often makes site visits to his clients’ places of business.  Site visits allow Paul to gain a better understanding of his clients’ business environment and staff.  He also finds that these visits offer him a chance to converse with business owners and managers on a one on one basis.  He believes attorneys must be attentive to client needs, which is one reason why the firm conducts a biannual client survey to obtain constructive feedback.  To encourage participation, client responses are matched with a firm donation to the American Cancer Society.

Paul is dedicated to giving back to his community.  He recently completed his service as an appointed member of the City of Austin Electric Utility Commission, and now serves on the board for Capital Idea, a local nonprofit.  His leadership role in Capital Idea underscores his commitment to helping low income working families in Central Texas by empowering them with professional training and networking opportunities.  His invitation as a board member came from his experience as a business leader and his participation in Austin Interfaith, an organization of congregations, schools, and other civic institutions devoted to creating a healthy dialogue between citizens, business, and local government. Paul also now serves on the Vestry (board) of St. David’s Episcopal Church.

Paul earned his Bachelor of Arts degree from the University of Pennsylvania, where he was elected to Phi Beta Kappa, before moving to Austin to attend the University of Texas to seek a dual degree in law and Public Affairs.  His training at the LBJ School of Public Affairs offered him additional background in nonprofit management.  As a law student, he was a staff member of the Texas Journal on Civil Liberties and Civil Rights.  Paul was chosen after law school to serve as a law clerk to the Honorable Thomas M. Reavley, Judge of the U.S. Court of Appeals for the Fifth Circuit.

Richards Rodriguez & Skeith LLP provides outsourced general counsel services to businesses in Texas. They help clients resolve disputes, document key agreements, understand and comply with government regulations, protect their assets, raise capital, minimize taxes, buy and sell real estate, and protect ideas and inventions.

This month marks the fifth anniversary of the firm.  To celebrate, the firm is rolling out a series 90-second videos to give business owners a 10,000 foot view of hot button legal issues.  The links to these videos will be posted by the end of this month on their website and TAB Austin’s LinkedIn group and blog.  The first topic – how to get your business ready for health reform.

“I have been a TAB member since co-founding my law firm five years ago.  Law school did not teach me how to run a business – my TAB board members and facilitators taught me that.”
                                                                                                                                                              -Paul Skeith

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Today we are highlighting some great awards that have been received by Austin CEO’s and active members in The Alternative Board of Austin.  

Samantha Young: Texas Blazing Star Award

The Women’s Chamber of Commerce of Texas held their annual awards luncheon for Texas Business Woman of the Year (TBOY) on April 22nd. Austin business owner Samantha Young won one of the coveted Texas Blazing Star Awards! The Blazing Star Awards “recognize businesswomen on the success fast track who follow their own distinctive paths.”

Samantha owns Practical Care Continuum, a leading and innovative home care business, and has been a member of TAB Austin since 2005. Samantha was joined by fellow Austinite Mary Pat Mueller, owner of Door Number 3, and several other Texan women in winning a Blazing Star.

Kevin O’Brien: Rackspace Fanati Award

The Fanati Award from Rackspace for Outstanding Customer Service for the year of 2009 went to PetRelocation.com! The award was won with the help of PetRelocation’s own customers in creating a video sharing how they have been supported.

PetRelocation.com is a full service pet relocation company which specializes in the local, national and international transportation of live animals. It was founded by TAB member Kevin O’Brien and his wife in 2000.

Congratulations to Samantha and Kevin-Austin business leaders!

Jay Pearce, President
Reunion Ranch

Jay Pearce is a truly versatile entrepreneur.  He was born and raised in Austin, Texas and started his first company, J’s Roof and Gutter Cleaning Service, at the age of 20 (he still believes there is a huge market for gutter cleaning).  Three years later, Jay formed Precision Ground Care, maintaining lawns for small offices and apartment complexes.  He obtained his real estate license five years later in Georgetown, Texas, and was ranked #5 among 265 agents.

In 1986, Jay started the Reunion Ranch Event Facility, entertaining large corporate groups.  In August of 1991, he was cited as 1 of 3 outstanding entrepreneurs in the state of Texas by the Entrepreneur Magazine of California.  In 1998, he started Cowboy Cooked Briskets, offering pre-cooked briskets in grocery store chains.  He had never dealt with the retail industry before, let alone the grocery industry, and describes the experience as “tough,” learning some expensive and very valuable lessons.

Next, Jay returned to his passion of real estate and started accumulating property.   He was asked to teach real estate courses for a local real estate school in 2003.  For every 40 students taught, 3 to 4 wanted to work for him, so Jay started Jay Pearce Real Estate.  The company grew up to 58 agents in 23 months and in 2007 Jay was awarded the Realtor of the Year for all of Williamson County.

His family business of Reunion Ranch was still going strong, and when the president stepped down, Jay moved back to take over the position in 2006.   Today, Jay is very happy to be back in the saddle at Reunion Ranch and says, “life is good.”

“My initial idea was to join The Alternative Board of Austin (TAB) with CEO peers in order to increase my revenues.   However, I have now learned that the contacts are invaluable. The knowledge of the group and their business experience is very helpful in my own business and life.”

                                                                                                                                                     -Jay Pearce

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Most of us have heard of the 80/20 Rule.  Few of us have considered its practical use.

Test the following examples of the 80/20 Rules as they apply to Your Business: 

*80% of our business comes from 20% of our Customers.

*80% of our revenue comes from 20% of our products or services.

*80% of complaints come from 20% of our Customers.

*80% of our internal HR issues stem from 20% of our employees.

*80% of our sales are generated by 20% of our salespeople.

Sound about right???

It is important for entrepreneurs and executives to develop a clear understanding of their 20% areas.  It is also vital that they help their employees define the areas in each of their respective departments. 

These areas, your RESULT DOMAINS are where performance resides.

Result Domains are those areas where your greatest attention is required.  Focusing upon them with efficiency can lead to dramatic results.   The majority of your organization’s time and resources should be allocated to these areas.

Accountability metrics should be derived and driven around Result Domains.

Focus on your 20% areas and watch your business grow.

Copyright ©   Joe Zente  2010.   All Rights Reserved.

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