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Money

Money is arguably the best qualifier. Regardless of effort, or statements, or others, the person being willing to pay is the most powerful manifestation of interest and value.

It can be used when someone buys your product or service – which is the end goal in a sales situation – but it’s not the only method. Money can also be leveraged, for example:

  • When someone buys you a gift;
  • When someone takes you out for lunch or dinner (for example, managers with employees they will promote);
  • When someone invests to improve the relationship with you (joining a mastermind group, joining a trip with you, others);

Naturally, the harder it is for the person to invest that money, the more qualified they will be:

  • Charging both a rich and a poor person $20 will not have the same effect, as one has to work a lot harder to make that amount;
  • This is precisely why, for very important people that are very wealthy, asking for their time is actually harder than asking for their money. They will easily spend $1k in a product, but hardly book time with you;

Underlying Psychology/Biases

This principle works due to the simple fact that money is hard to obtain, and one of the most important assets in life nowadays. So, the more that a person is willing to part with it to give it to you, the more qualified they are.

Sub-Techniques

Examples

  • Co-worker gifts
    • When you buy co-workers gifts for their baby shower, wedding, or others, you subconsciously like them more because you’re spending money with them;
  • Memberships
    • Paid memberships are a great way to qualify people. While for many consultants, memberships themselves won’t make you rich (well, some might), the end goal is to qualify people further, which will buy high-ticket items;
  • Contributions
    • NGOs or causes ask for your contribution, and once you give a small one, you’re qualified enough to keep giving. It’s a devastatingly effective type of escalation of commitment;
  • Recruiter gifts
    • When a candidate is really desired by firms, they will spend money to fly them in, buy them gifts, and more, just to get them to come in for an interview;
  • Client quality
    • For any coach or consultant, the highest-paying clients are the most qualified ones. The people that spend the least amount of money are the ones that cause more trouble and doubt the consultant the most, and the ones that pay the most are the easiest clients to have;
  • MFN rights
    • For hedge funds (or other funds) raising money from institutional investors, the fees and provisions are usually the same;
    • Some investors request custom provisions that may give them an advantage, and some, to counter that, request MFN (Most-Favored Nations) clauses (which prevent other investors from being favored, giving everyone the same conditions);
    • Usually these MFN provisions are tiered based on investment size. In other words, you only gain the same advantages as a certain investor if you invest as much as them. You “buy into” them;

Commercial/Known Uses

Key Takeaways

  • Money is arguably the best qualifier, because for many people – especially those in scarcity – money is the hardest thing to obtain, and the hardest one to invest;
  • It depends on the effort made. If the person is very rich and abundant, money is not a great qualifier. If money is important to them, it is;
  • It’s not just leveraged by purchases. Money can be leveraged by anything that makes the person invest, and with the same effect;
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