How to Win Deals and Influence People?
"Influence is not merely an accessory in decision-making; it is the spine of it." 🧭
This compelling insight is not just a nice-to-have concept but a vital understanding that weaves through the very fabric of the investment world. It accentuates why mastering the art of influence
There's a profound and multifaceted psychological basis to influence. Its domain isn't restricted to convincing someone to agree with your viewpoint; it stretches to understanding the core motivators that drive human decisions, offering a unique advantage when it comes to steering investment choices and building meaningful relationships
🧠 Robert Cialdini, the seminal expert in the field, elucidates:
"Influence is grounded in psychology. The greater our understanding of its psychological underpinnings, the more adept we become at using influence strategically and effectively." 📘
But why stop there? When exploring the power of influence, we also delve into the deep waters of individual and collective human psychology, navigating through concepts of trust, persuasion, ethical manipulation, and impactful communication. It's about mastering the yin and yang of human interaction to not only understand what makes people tick but to align those motivations toward shared goals and mutual benefits. This is what sets apart great investors and investment strategies from the merely good ones. 🌟
🔍 Quotes that Shed Light on Influence:
📘 Robert Cialdini: "People prefer to say 'yes' to those they know and like."
📗 Jordan Peterson: "The capacity to influence and to lead is in direct proportion to the capacity to make things better, not worse."
📕 Zig Ziglar: "People don't buy for logical reasons. They buy for emotional reasons."
🔑 Key Highlights:
The Six Pillars of Influence According to Robert Cialdini 📘
So, what makes influence work?
What are the psychological triggers
Robert Cialdini has meticulously researched these questions, culminating in his famed Six Principles of Influence. By understanding these principles, you can not only improve your ability to influence others but also become more aware of the influences acting upon you. Let's dissect each of these principles and look at their applications in the realm of investment.
🏷 1. Reciprocity
The urge to give back when you receive
Cialdini asserts that humans have an instinct to repay in kind. In the investment world, this can be seen when investors provide valuable market insights to their network, and in return, gain exclusive opportunities or crucial information. It's the 'you scratch my back, I'll scratch yours' mentality at play.
Example: Suppose you share an insightful research paper on an emerging market with your investment club. Months later, a member might reciprocate by tipping you off about a promising startup in that market.
🤝 2. Commitment and Consistency
People like to stay true to what they’ve said or done
Once an investor publicly commits to something, psychological factors compel them to see it through for the sake of consistency. Investors can utilize this principle by making public commitments to ethical investment or specific investment goals, making it more likely that they will follow through.
Example: Declaring in a shareholders meeting that you are going to diversify into green technologies will likely keep you focused on that commitment.
👫 3. Social Proof
The tendency to see an action as more appropriate when others are doing it
In the investment sector, social proof can manifest in the form of testimonials, case studies, or the sheer number of investors rallying behind a particular investment opportunity.
Example: If several seasoned investors are moving towards tech startups, it makes that sector appear more appealing to others.
🏆 4. Authority
The thought that people in the know can't be wrong
Investors are more likely to be influenced by someone who is seen as an authority in the field. That's why CEOs, renowned analysts, or investment gurus hold such sway when they offer investment advice.
Example: A recommendation from Warren Buffett about a certain stock or sector could potentially move markets.
💌 5. Liking
People are more likely to be persuaded by people they like
Likeability can come from physical attractiveness, similarities, or even just spending more time together. This principle is often the underlying psychology in networking events and investor relations.
Example: You're more likely to invest in a friend's startup than a stranger's because you like them and want them to succeed.
🚪 6. Scarcity
People are drawn to things that are exclusive or hard to come by
In the investment landscape, the principle of scarcity can be seen when there's 'limited-time' access to a particular investment opportunity. The fewer the slots, the more valuable the opportunity seems.
Example: Saying "only 5 slots left in this exclusive investment opportunity" can create a sense of urgency and exclusivity, driving more investors to commit.
By incorporating these principles, investors can refine their strategies and interactions, fostering an environment conducive to better deals and more impactful relationships. As you contemplate your next investment move, remember Cialdini's wise words: "It’s easier to look wise than to be wise. The difference is in knowing how the game is played."
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🌱 Influencing Others Starts with Influencing Yourself: The Inner Work 🌱
After thoroughly delving into the mechanisms and principles of influence, it’s time to circle back to the root of all influence: yourself. Jordan Peterson, a clinical psychologist and professor, eloquently states, "Set your house in perfect order before you criticize the world."
In essence, before you can effectively influence others—whether it's your investors, partners, or even your family—you need to understand how to influence yourself. Here's what that entails:
🤔 Self-Awareness
Understand your own biases, strengths, and weaknesses
Before you can influence anyone, you must know yourself. This includes an honest assessment of your personality, your strengths and weaknesses, and your emotional intelligence
🌟 Credibility and Integrity
Be someone others naturally want to follow
Your actions and decisions need to mirror your words for anyone to take you seriously. Being a person of your word will naturally attract others to you. As the saying goes, "Your actions speak so loudly, I can't hear what you're saying."
🎯 Goal Setting
Clear objectives form the roadmap of your influence journey
Setting clear, attainable goals for yourself acts as a guiding star for your influencing efforts. It provides you with a roadmap and sets a standard that others can get behind. When people see that you’re directed and successful, they are more inclined to be influenced by you.
🌈 Emotional Intelligence
Mastering the art of emotional self-regulation and empathy
Being in tune with your emotions and those of others will enable you to navigate conversations and negotiations more effectively. As psychologist Daniel Goleman emphasizes, "Emotional intelligence is not the opposite of intelligence, it is the intersection of it."
Never rest on your laurels; always be in the pursuit of growth.
The world is dynamic, and standing still is akin to moving backward. Make it a habit to continually invest in yourself through education, experiences, and networking. As Tony Robbins aptly states, "The only limit to your impact is your imagination and commitment."
The beautiful thing about influence is that it's an ever-evolving skill, deeply connected to your personal development journey. As you grow and mature, so does your ability to influence. Take it from Cialdini himself: "People’s ability to understand the factors that affect their behavior is surprisingly poor."
So, before you take your next step on your journey of influence, take some time to invest in understanding and improving yourself. It's in mastering self-influence that you truly become an influential person.
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Human Biologist | Founder: OPP Neuro SPA | VP of Science and Technology for The ICA | Peak Human Performance, Healthy Aging, Quality of Life & Accident Prevention
5moQuality content! Thanks for the share. Informative.
Business Advisor | Entrepreneur | Investor
5mo💯💯💯
Aleksei Dolgikh CVO Scout Investors Venture Capital Funds 2025 PE FO LP GP. TEXT: +971551704781 Botim/WA. GLOCAL SEO: International Search Visibility Transactional Traffic - 24SIX9, ITIL, CNCF, ICANN, GITEX, BANKS, OSINT
5moDunno 🤷♂️
GTM & Enablement Services. Husband & Cook.
5moSolid thoughts here that works well... Thanks Lachezar! Part of our SMB b2b outreach work includes doing Pre - Influence messaging & positioning. Cheers! 🙌
Founder, CEO, Trained Fundraising Expert @ Family Office |
5moNoted. Thank you