How to Talk MONEY Without Killing the SALE | The Futur Podcast Ep 354

Key Concepts

• Sales cycle length depends on the engagement size and complexity.
• Importance of upfront budget discussion to avoid wasted time and ghosting.
• Value-based pricing (advanced strategy, not for everyone).
• Assessing client fit beyond budget (scheduling, expertise, chemistry).
• Power tip: Framing budget discussion as respecting the client's time.
• Importance of observing body language in addition to verbal responses.

Closing Clients: Time, Budget, and Fit

The video addresses the question of how long it should take to close a client, emphasizing that "it depends" on the scope and complexity of the project. A toothache (simple problem) requires a quick solution, while a potential cancer diagnosis (complex problem) demands thorough investigation before action.

• Engagement Size: Larger engagements (mid-six to seven figures) naturally require longer closing times due to extensive due diligence, reference checks, and client verification.
• Ideal Scenario: Ideally, client needs and budget are assessed on the first call.

The Budget Conversation: Overcoming Fear and Avoiding Ghosting

A significant portion of the video focuses on the importance of addressing the budget early in the sales process.

• Creatives' Struggle: Many creatives struggle with discussing money due to self-worth issues and fear of rejection. They delay the budget conversation, leading to wasted time on proposals for clients who can't afford their services.
• The Ghosting Phenomenon: This delay often results in "ghosting," where the client disappears after receiving the proposal, leaving the creative feeling rejected and frustrated.
• Buyer's Perspective: The video urges sellers to consider the buyer's perspective. Buyers are constantly thinking about affordability and value. Delaying the budget discussion makes them uncomfortable and can lead to them mentally setting a price point. If the proposal exceeds that unspoken number, they may avoid the awkward conversation and simply disappear.
• Real-World Example: The speaker shares a personal anecdote about a pool repair where unexpected additional costs ($7,500 on top of $9,000 already spent) led to him delaying the decision, illustrating the client's perspective.

Taking Control as a Seller

The video emphasizes that while you can't control the client's behavior, you can control your own approach as a seller.

• Clarity is Key: Be upfront about what you do, how long it takes, and, most importantly, how much it costs.
• Value-Based Pricing: While mentioned, value-based pricing is presented as an advanced strategy not suitable for everyone. The speaker suggests starting with a standard price and building in flexibility.
• Scope, Budget, and Outcomes: The goal is to discuss scope, budget, and desired outcomes on the first call, even for large projects. This prevents wasting time on clients who are not a financial fit.
• Knowing When to Walk Away: If it becomes clear that the client is not a good fit (budget, scheduling, expertise, or even chemistry), it's best to be honest and refer them to someone more suitable.

Power Tip: Addressing Budget Upfront

The video provides a specific phrase to use when initiating the budget conversation:

• Framing the Conversation: "Out of respect for your time and mine, I'd like to discuss the budget upfront so that if it's not a good fit, we don't have to waste time knowing that it's not going to work out anyway."
• Presenting the Price: State the ballpark price (e.g., $5,000, $15,000, $50,000) and then pause for their reaction.
• Attentive Listening: Pay close attention to both their words and their body language.

The Importance of Body Language

The video highlights the importance of observing body language, citing Vanessa Van Edwards's statement:

• "The body lives in reality; it's only the mind that lives in imagination. So when we say something that's not true, our body will communicate that knowing that it's not a true thing."
• Trust the Body: If someone says "yes" but their body language indicates "no," trust the body language.

Conclusion

The key takeaways are that proactively addressing budget early in the sales process is crucial for avoiding wasted time and client ghosting. It's also important to assess the overall client fit beyond just the budget and to pay attention to non-verbal cues to gauge true interest and alignment. By being upfront and observant, sellers can improve their closing rates and build stronger client relationships.