This segment is on confidence. Let’s be confident. Let’s talk about confidence. Confidence is my personal favorite. It is no less important than enthusiasm or empathy as an element of the star seller’s persona; however, confidence has a wonderful ancillary benefit, an ancillary benefit that I have experienced day after day, year after year, and it’s a significant and major contributor to my success, and the success of those who I’ve trained. And it will be a major contributor to your success. Gaining mastery of confidence is very rewarding. When the light comes on and you get it and you have it, you will never lose it. Let’s face it. You, nor anyone else, would ever buy anything from anyone of any financial magnitude at all if they did not display confidence.
Let’s define confidence, first of all. Once again, we are working with an intellectual and an emotional state of being. We will use our intellect to develop control over and adjust our confidence. Confidence has its genesis in knowledge, knowledge of your own abilities, knowledge of your inner strength, your inner certainty. It’s a trust in yourself that use of your own abilities will result in your success. Additionally, the wonderful ancillary benefit that I spoke of, the wonderful ancillary benefit of confidence is comfort. Comfort…it’s the comfort we experience during the sales process, regardless of the pressures we’re under. And in every sales circumstance we’re under pressure. And if you’re not under pressure in a sales circumstance, then you’re not selling. Confidence is strength; it’s the strength of our persona. It allows us to speak and act with authority. Confidence, simply put, is the fuel of success.
We have already defined confidence. The remainder of this section will be devoted to evaluating your confidence and strengthening your confidence. We will utilize a wonderful technique of reversing the roles and a similar technique of role playing. We will engage in another very pleasurable and effective self-improvement exercise. We will also discuss fear, fear of rejection, and we will make use of your own tape recordings for purposes of evaluation and perfection. And finally, we will listen to tapes of confident selling stars at work, implementing this process, implementing this system. Learning how to project a proper level of confidence, will in itself, result in a sale many more times than not. Our technique for evaluating our persona, and thereby evaluating our confidence, is to mentally reverse the roles. Reverse the roles between yourself and an envisioned prospect. You want to know, you must know, when you walk into a fellow’s office, or you pick up the telephone and speak to a prospect, how your confidence is perceived. In other words, and pay attention here, what persona must a salesman have for you to write him a check? Another way of looking at this would be to say, how would you have to come across to yourself, to have yourself give you the order? Ponder that. It’s very simple, yet very effective. You must perceive that you are he in the circumstance, and you must be confident to persuade you to buy from you. Once again, you sort of have to ponder that, but it makes a lot of sense. As you place yourself in the role of the purchaser, and you look through his eyes at you, you approximate his feelings and his thoughts, well, obviously, you have to be confident. Once again, you are not going to buy from anyone who does not project confidence, and more specifically, self-confidence, not a cocky or a condescending demeanor, but a comfort, and a comfort with oneself that emanates as a consequence of feeling confidence. To reiterate one last time, how must you come across to you for you to purchase from yourself? When you develop this simple technique of placing yourself in the buyer’s shoes, taking on his personality, and being objective with respect to the way that you are perceived, you’re steps – no, no, no, you’re light years ahead in achieving the sales persona.
Let’s evaluate your present level of confidence. Use your tape recorder here. Record three or four actual sales calls, or enlist a friend or a business associate to role play with you. Ask your friend or business associate to assume the role of a buyer which would be typical of one of your customers, and record your sales presentation. As you play it back, brace yourself, and then evaluate your confidence level. And I say, brace yourself, because most of us don’t sound the way we think we sound when it’s played back on a tape. And there is the element of an electronic medium there, and so we must compensate for that. In other words, you don’t sound exactly like you come back on the tape, but it’s darn close. So as you evaluate, do you sound confident? Do you sound sincere? Or, perhaps, do you project an over-confidence? Save those tape recordings, and we’ll review them once again after we have learned what this section has to offer. A note at this juncture: we all experience apprehension in terms of being rejected. In terms of simply meeting the next prospect, in many cases, these emotions and feelings we all have; however, no one seems to discuss them, at least not in the sales world. Do you wonder why sales people don’t discuss such things? Could it be that they don’t want to appear weak or stupid, or for some reason, embarrassed? Do they not realize that others feel the same emotions? Or perhaps a critical look in the mirror for all of us creates a fear of what we might see? Well, whatever the reason, confidence is the comfort that allows us to overcome those types of emotions, those garbage emotions, those negative emotions. An analogy. I’ve known many pro boxers in my career. As the pro boxer approaches the boxing ring, as he’s climbing the stairs to step into the ring to participate in the manly art of pugilism, he’s not without doubt. He’s dealing with apprehension – even the stars, even the best, the world champions – the boxer could very well get his head knocked off, and so can you in the sales world, but it’s the fighter’s confidence in his own ability, his self-assuredness, which comes from pre-fight preparation. Weeks of training, road work, sparring, that’s what establishes his confidence. Our new confidence, in the sales world, will also come from preparation. This training will allow us to control our anxiety, to control the apprehension and the fear that is within us all. And it has a tendency to rise to the surface when we come into a situation when we must excel, when we must succeed. Our confidence gives us the comfort that makes us feel good and strong and able as we approach and sell the next prospect. I don’t care who you are or how much experience you have, the greatest sales persons with the greatest experiences, when they come forth, and they’ll sit down and tell you forthrightly, certainly, I have apprehension about virtually every sales call that I make. I get butterflies, I get nervous; however, it’s my confidence, it’s the knowledge of my own abilities that allows me to put forth the effort and put the fears aside. Self-confidence, as incorporated into our persona, provides the stability, the inner strength, the inner comfort, which allows us to overcome the inherent emotional fragilities we all as humans possess. We must successfully deal with those fragilities to succeed in the sales world. A reminder. We’re developing and refining a star seller’s persona. Confidence is an equal one-third of this persona, of the personality of someone who can go and make a big living selling.
When we began this segment, I said, let’s talk about confidence. Well, we’ve talked about confidence. We’ve defined confidence, we’ve discussed what it is, and we’ve touched on what it can do for us, how it can make us more successful in the sales world. It will also make us more comfortable and content in areas other than that of business. It will increase our comfort level personally and professionally. However, for now we’re concentrating on professionally. We’re now concentrating on the business world, the business arena, the world of sales.
So, how do we develop this confidence? How do we gain control of it? And then, how do we use it in the sale? Confidence, keep in mind, is another emotional and intellectual state of being. We will again use our intellect to control our emotions. All through this course, we will utilize our intellect to control what we feel, to control our emotions. We will utilize a different method from the behavioral sciences now, which is extremely pleasurable, and most who practice it find it fun and very revealing.
Okay, stick with me here. Pay attention. Grab your workbook and turn to the confidence section. Now, don’t use this section for any other purpose. Okay. Sit down somewhere; be physically comfortable. There’s no need, in this exercise, for a lack of distractions. In other words, you don’t need dim lights or silence or that sort of thing. This is an exercise that you will continue on taxi cabs and buses and airplanes and that sort of thing. It’s something that you will add to continually. Now the first run at it will be very revealing and very successful. On the first page of your section, enter the date. This will give us a reference point. We’re going to take an inventory, a personal inventory, of personal, interpersonal, and professional strengths and assets. Now as you become comfortable, as comfortable as you can be with distractions, allow a stream of consciousness. Let your thoughts flow. Be creative and list everything about you that comes under those headings. Concentrate and attempt to state each positive thing about yourself. There’s no room here for constructive criticism; we’re not interested in constructive criticism. We’re not interested in negatives. We’re actually interested in how great you are. Each positive thing about yourself that you can identify, list in short sentences. State it in two, three, or four words – five at the most – so at the end of the exercise, you will have a long list of all the many things that you can come up with about yourself that are good. As I say, list them in simple order, not in order of magnitude or importance to you. Do not restrict yourself. Anything and everything about you that is positive, list it. For instance, number one might be a degree from Princeton, if you’re fortunate. Number two might be a good parent. Number three, good health, number four, hard worker. Number six, exercises three times a week, and on and on and on. Those sorts of statements, we’re going to list and list and list. Turn off the tape at this point, and come back after you feel as though you’ve exhausted all of your good points.
Welcome back. I told you, you had one heck of a lot going for you, didn’t I? And that’s not just idle flattery. The people who bear the expense and they go to the effort of taking this course always prove to be exceptional people. As we return, you have listed and hopefully exhausted, to the extent that you can at this point, all of the good things about you, all of your attributes, all of your assets, all of your good points. Keep your workbook nearby during the next few days. Put it in your briefcase, put it on the seat of your car, carry it with you. Additional positive aspects will come to you, and you must take just a second to write them down as they do. Continue the list. Take the time to do this. These good points occur to you as you go through your daily business. Enter these additional good points in your confidence section. You may also wish to seek the input of a close friend or a business associate or significant other. Explain the project to them. Explain that you’re in the process of listing your attributes, your strengths, your abilities and potential. Once again, we don’t want any constructive criticism; however, it’s amazing how sometimes close friends or associates or significant others can see things in us that we may not recognize, and I’m referring to good points as well as negative. But we are only interested in the good things that they can recognize. To repeat, we’re interested in the good things that our significant others or good friends or business associates can tell us about that we might not have seen in ourselves. Let them know the parameters of the project, and let them know you are not asking for criticism, constructive or otherwise; you just wish for them to look at you, try to be objective, or try to be interpersonal, and tell you the best qualities you have, and then you list those things in your confidence section. If you don’t agree with what they have to say, then don’t enter them. Take whatever time it requires to review all of your positive aspects, all of the things you have just written about. You have just written about you. I have had experiences with some very accomplished, super sales people. I have worked with them, and upon participating in this exercise, in each and every instance, they have been pleasantly surprised at the sheer volume of their strengths when written down. It’s only when we focus, when we make ourselves concentrate on specifics, that we realize all of our qualities, all of our good things, all of our positive assets and strengths and attributes. And when we realize these things, we have a good idea of all the wonderful things we have going for ourselves. Now we are going to segregate these attributes, these positive aspects of your personality. The things that you have listed, that we have with us right now, the things that make you what you are, we’re going to separate those into a business vein and a personal vein. Refer to your workbook here; it’s been formatted to make this easy. Here it is very important to identify the strengths that could help you in a sales presentation, in the sales world, for that matter. That doesn’t necessarily mean segregating everything that you’ve listed as personal or business right off the bat. Take some time to think about it. For instance, if you’ve listed that you are a good parent, analyze that statement, as well as all of the others, to the extent that you may say, well, I am a good parent, but why? Well, I’m instructive. My abilities of logic are taxed to the maximum when dealing with my children, but I persevere. And those things, even though they fall under personal headings initially, actually fit very nicely into the business world. So carefully analyze the statements you have made in your confidence section as we segregate into business forum or personal forum. Now, go through and segregate in your workbook, each of those things that would be business and those that would qualify as strictly personal. So pause the tape here and return after you’ve accomplished this task.
Welcome back again. Let me see how many hands in the audience of those who did the exercise. Ah, most of you did. I’ll tell you, the folks that did not do the exercise – now, listen, if you’re listening to the course from front to back for the first time, that’s fine – but if you’ve re-begun to listen to this tape series, and you’re not doing these exercises, you’re not going get it. As simple as they may seem – I told you that up front – they seem simple, but they’re extremely powerful, subconsciously, subliminally, and consciously, they’re fun. If the chiefs of multimillion dollar corporations can sit down and do these exercises to improve themselves, should you be so arrogant to believe that you should not? So come on, get with the program; let’s make some change. Let’s have some fun. Okay, you’ve been adequately scolded. Having completed the segregation between business and personal, you should have a number, indeed a plethora, of strengths that would apply to business. You have segregated them all; now we must assign a hierarchy to them. Now is the time, and it’s going to take a little work, but it’ll be worth it, follow your workbook. Assign a number equal to the level of importance that you place on each of these attributes, each of these assets. If utilizing logic is your greatest strength, of course, that would be number one. If, on the other hand, if you’re a great listener, that might be number one for you. This is a subjective exercise. You are responsible for the ranking. All of the business qualities, all of the positives, about you, about yourself, that you have listed in the business vein, take them and assign an importance to them. The most important, the strongest attribute, you’ll have to be number one, and so forth. Take as much time as necessary. This should be a relaxing exercise; this should be something that’s fun. You must go through and read them numerous times to obtain the proper order. You want the strongest things at the top of the list, and the weakest things – perhaps those you don’t have a full command over – near the end. And even if this exercise spans a couple of days intermittently, that’s fine. Have a good time thinking about it, thinking about yourself. It’s a fun thing; you’re talking and thinking about yourself. This simple exercise has increased your awareness of all the great things that you are. Now, look at this list. It may be several pages. You’re looking at your confidence. You have a list before you that is voluminous, in terms of your business prowess. These are the things that separate you from the pack, in terms of the attributes that make you strong and make you different from other people, things that you can be confident about. You would not have written the things down unless you were confident about them, unless you were confident that that’s you. These are the reasons all of these strengths that you have listed, that you have reduced to print and put before you, this is your foundation for your confidence. This is why you should be confident in what you’re doing. These things, these reasons, these attributes, these strengths, are what you will use in your next sale.
Okay, now developing a proper confident persona, it takes practice. Use your tape recorder here. Once again, let’s get the tapes out that we listened to in the beginning. Let’s not use those just yet. Let’s practice a little bit. If you can find another friend or a business associate who will assume the role of a buyer, and you have to tell them what the buyer is and who he is. He’s the purchasing agent for XYZ company, his salary is approximately thus and such, he may have three kids, he’s a slender man, very bright, has steely eyes – all of the information that you can give to your friend who’s going to portray the buyer, the better, especially hints about his attitude, the buyer’s attitude, and his demeanor. Tell the fellow, tell your friend, or the gal for that matter, what you want him or her to be as a buyer, and then practice. Practice being confident. You wish to sound confident, but not cocky, you wish to sound comfortable in your confidence with your product and with yourself especially. You’re going to practice portraying self confidence. So, and even if you don’t have a friend, you can talk to the wall, you can talk into the air, and this will be immeasurably helpful. Make a few tapes with your sheet in front of you, with your confidence section open in front of you. And I’m sorry, I get excited about this. This exercise is so very effective. Let me slow down, because I do – this is some neat stuff. The changes that this will bring about might very well amaze you. Your tape recorder is your best friend; use it generously. My stars tape role playing, reversing the roles, as you were doing, recording actual sales conversations, and they continually analyze and improve their performance, as well as from time to time, reestablishing their own performance. In fact, if someone’s sales are lagging, a star will spend a few hours with his tape recorder and bounce back to the top. The same will happen to you as you begin to practice use of your tape recorder.
Now, this is going to be fun. Let’s listen to some of the experts, some of the actual sales conversations, excerpts from those conversations. Now, the content, the technical aspects of all of these conversations are going to be related to an investment in drilling for oil. Well, you can disregard the specifics, the technical aspects. What you must do, however, is listen carefully to the persona. Listen carefully for confidence and enthusiasm – we’re familiar with both of those to this point – and empathy as well. We’re getting a feel for how the stars make the money that they make. Now, the first fellow that I’m going to put on the tape, very frankly, was not a star. This is not someone that you wish to emulate; this is not someone that you want to sound like. He’s very hesitant, um, he doesn’t sound confident. There is very little, if any, empathy during the next couple of excerpts, and this is the sort of salesman that gave it effort, yet did not practice this training. I repeat, he did not practice this training. He went through the regime one time, and then got off the path. He didn’t continually come back to the training, he wasn’t very proficient or enthusiastic about using his tape recorder, and you will hear the result. He’s a fine fellow, a good man, and as I said, he gave it effort, yet he strayed from the training. Now, after we listen to several minutes of the fellow that I’m speaking of, then I will introduce you to some of the stars that adhered to this training, and that revisited this training time after time after time. Okay, let’s listen in on some of these sales conversations. Shhhh.
SELLER: When you get it open, in the right hand side, there’re two things to pull out. One of them is a conversion table, which is a financial spreadsheet.
PROSPECT: Got it.
SELLER: There’s also a Terastat Report; it’s a reserve evaluation.
PROSPECT: Got it.
SELLER: All right, that’s from a third party here in Dallas, he just gives his estimates on the same information that we come up with. And then, John, in the very center of this folder, it’ll, from the center portion, open it to the left…
SELLER: There’s several maps stapled together.
SELLER: All right. That’s where the 3D Seismic is. First of all, let’s go to the conversion table. I want to explain something on that.
PROSPECT: All right. I’m there.
SELLER: The top half is obviously, breaks it down into monthly income, bottom half is over the life of one of our programs. And it’s an if/then scenario, being that we calculate the oil at $20.00 a barrel on here, and we also plug in $10,000 a month on lease operating expense. John, we don’t believe it will cost us near that much on a monthly basis to run one of these wells, but to keep this conservative, you know, because we don’t have the exact figure, you know, on a month-to-month basis?
SELLER: And by the way, oil is closer to $22.00 right now, than it is $20.00, but that fluctuates.
SELLER: And you said that you had been in oil before and not done very good?
SELLER: John, if we drill a dry hole, then you’ll lose every penny that you invest in the program. You understand that side of it.
SELLER: Okay. Now, having said that, we’ve hit six out of seven using 3D Seismic in this part of this field this year. And on the production rate on the top – on the monthly income on the left – on the top column, you’ll see zero to 750?
SELLER: I’m going to work 500, and then I’ll show you some wells that we had that will do a lot better than that. But let’s go to the center column on the one unit, to keep everything even.
SELLER: You’ll see that the one unit position is split into before conversion and after conversion.
PROSPECT: Right, I see that.
SELLER: All right. 500 barrels a day would return a fellow roughly 900 or $1,977.00 in gross revenues monthly income until we hit conversion point, which is when we back in – Kinlaw Oil Corporation, with the original lease owners out here and start sharing in the revenues. In other words, we will not back in, in sharing the revenues, until our partners get over 80% of their investment back in their pocket.
SELLER: Which, on one unit, you’ll see that it’s $20,000. That’s the drilling and testing, that’s the money we use to go drill the well. Once we’ve tested it and run the logs and got the information back, we’ll determine whether we try to complete the well or not.
SELLER: If we do, then obviously, the 26 will be called for.
PROSPECT: Okay, all right.
SELLER: After the conversion, when our partners have over 80% of their money back, then and only then, do we back in – that’s where the $1,900 will be cut in half to the, just under $1,000 a month. Do you see that on 500 barrels?
SELLER: Okay. Bottom half of this, if the well produces over, you know, the life of it, we’ve – the first five wells that we’ve drilled, the largest one and the potential
SELLER: And that’s…
PROSPECT: Okay. That was a couple…and also, when the well is done, time to be capped, who pays for removal of equipment and all that type of thing?
SELLER: That’s Turnkey in the completion. That’s done by the partnership.
PROSPECT: Right. I’m saying, say once the well is dry, say 10 years from now, whatever, and evidently somebody’s going to tear down the facility. Who has to pay for that removal?
SELLER: Well, now that – on the offshores, that’s a good question, because we haven’t run into it, but it would be the same, I believe, as what we’ve seen in South Texas. If the part…in the drilling and testing on the contracts at Turnkey…on the drilling and testing and the completion…
SELLER: That is covered in that…I mean, when the partnership is over, the money, you know, to dismantle or whatever, is, would be handled by the, in the contract. The only thing…
Well, are you glad to have me back? Those excerpts, two short excerpts, were taken from two different presentations, about a month apart, same fellow, and as you heard, there was no appreciable improvement. And there was no appreciable improvement because he did not adhere to this training. He did not revisit the training. He didn’t practice the exercises, and consequently, he was not that successful. Now, though, let’s listen to some of the stars. Let’s listen to empathy. Let’s listen to confidence and enthusiasm. Let’s listen to some fellows who really know what they’re doing, that make the six figures, and more. The first fellow that I’m going to bring up, the first star, is a fellow who came to me many years ago. He was young, I think he was 28 when he joined the firm, and he was selling some sort of bond or something like that. He applied himself – as a matter of fact, he sounded very much like the fellow that we just listened to, prior to the training – this fellow really practiced the training. He did the exercises, he took what was taught to him, and he made himself a small fortune. And depending on your perspective, possibly a large fortune! We’re going to listen to several more minutes of this fellow, because this is what I want you to listen to. This is something, perhaps, to strive for. Now, I don’t want you to copy these fellows. You have your own style, your own personality, your own persona. So as we go in, this is someone who’s good, and someone you should listen to, and you may wish to emulate, but don’t copy. We’re going to use your own style when you begin. Okay, let’s give a listen. Shhhh.
SELLER: …one and two of them, and a half in one, and the biggest one is the one that you have a half in.
PROSPECT: That figures.
SELLER: [Laughs] Doesn’t it, though? I’ll tell you what, you can still be happy. It’s the same percentage rate of return. It’s too bad you didn’t have 10 units in it, though. I’ll tell you, be…yeah, it’s six, six million barrels of oil – it’s just a, it’s a number so big, I even have a tough time comprehending that, because we just look, Jack, you were saying we doubled it…we just about tripled our reserve estimates going in that well.
SELLER: I mean, it is really, really big time, what we’ve come across in that one.
PROSPECT: Well, even the half unit will pay off as big as the full units in the others.
SELLER: That’s about right. Yeah, if they do around 3 million, which would be a darn good return, you’re exactly right. Just to give you a feel on the dollar amount, if that well gets the full six million barrels of oil out, it’s about $300,000.00 on your $25,000 investment.
SELLER: I mean, big, big money. But what I’m telling everybody is don’t look for six million. Let’s just cut that in two right now, so we don’t get carried away. And if we just do three million barrels of oil, that is still a very big well, and we’d still be real pleased with the returns we get off that.
SELLER: And if we end up doing more than three million, well, then that’s great, too. But as it is now, let’s just assume the experts are half right, okay?
SELLER: …not yet go through with you, and it’s called the application agreement. And there are a couple questions we get out of that real commonly when fellows look that over, so go ahead and grab that, and I’ll get those answered for you, so it’ll make more sense when you do look it over. And you’ll find it at the very back of that folder…
SELLER: In the pocket on the right, the first, top of the page, says, application agreement.
SELLER: All right. And just so you know, this is a summary of a lot of the information in our confidential information memorandum, which gives every detail of the program.
SELLER: It shows you how we have set it up and, to get the tax deductions, for starters. And it also shows you how, what our responsibilities are as the managing joint venture in the program.
SELLER: A side-track there, on the tax deductions, are you familiar with how those work?
PROSPECT: I don’t know. I don’t think I’m quite clear on that yet.
SELLER: Okay. Well, I’m glad I’m talking to you then, because I can clear that up for you.
SELLER: It’s real simple. And so I can get the dollar amounts right, what size position are you looking at?
PROSPECT: He was doing the one unit.
SELLER: Okay. For the aggregate of 51,000?
SELLER: Okay. So a $51,000.00 investment, you get to deduct $51,000.00, ultimately, against active income.
PROSPECT: I see.
SELLER: All right. That’s your salary at New Corps. And that makes it the best tax deductions in the market, because those tax deductions actually come on top of producing wells.
PROSPECT: I see.
SELLER: So even with a profitable well, for instance, a well that had just 500 barrels a day, can make $2,800.00 a month, fellows still get to deduct the entire $51,000.00.
PROSPECT: I see.
SELLER: And of course, on a $51,000.00 position, we’re set up there at a million and a half barrels, that’s $170,000.00 return right there.
SELLER: And there’s a – do you mind if I call you Bill?
PROSPECT: That’s fine.
SELLER: Okay, call me Brad. There is a lot of information here, documented both from our in-house geologist who has years of experience with Oryx, and a third party consulting geophysicist in petroleum engineering. In other words, these fellows are experts, that show potential returns much in excess of a million and a half barrels of oil.
SELLER: That’s $170,000.00 right there.
SELLER: All right. Flip in that application agreement to page four.
PROSPECT: All right.
SELLER: And look in Section G.
SELLER: What this shows you, is that we operate under what’s called a Turnkey Drilling Contract. So we have 70 units in the program at $24,000.00 for each unit. By the way, it’s two-phased, $24,000.00 up front, to drill and test the well.
SELLER: And this tells you right here that if we have any cost overruns whatsoever in drilling the project, we pay for it.
SELLER: Not the fellows on the program.
SELLER: At the same time, if we come in under budget, we’re going to keep the extra.
SELLER: However, we cap that to 20% markup.
SELLER: Which is real darn reasonable. I tell fellows to look at it like a small insurance policy.
SELLER: And most fellows really do like it that we have it set up that way.
SELLER: And then go on over to page five.
PROSPECT: Got it.
SELLER: Section I, Allocation of Income or Losses in Distributions.
SELLER: This shows you that we are not going to touch a dime of the revenues from the sale of oil and gas until after everybody on the project breaks even.
PROSPECT: I see.
SELLER: At which time, we come in for our 10% of the joint venture revenues.
PROSPECT: I see.
SELLER: Do you follow me there?
SELLER: Okay, now go to page six.
SELLER: You will see down at the very bottom of the page.
PROSPECT: Got it.
SELLER: Turnkey Completion Contract. For a $1,890,000.00, we will complete the well. And having been in business for 11 years now, we know how much it costs to buy the equipment to bring this well into production. And that’s what the completion pays for. It’s $27,000.00 for each unit.
PROSPECT: I see.
SELLER: So you have the $24,000.00 to drill and test, and then $27,000.00 for the completion on it.
SELLER: And that’s the bulk of the questions I get. As you can see, it’s a real simple project. Flip on, now, to page 10.
PROSPECT: All right, got it.
SELLER: And up on the top line, write the word, one, and then put the numeral one in the parentheses.
SELLER: And on the next line down, write out longhand, 24,000, and then put the numeral
SELLER: …about this program. And I’m glad to be able to speak with you now, so go ahead and get it, and I’ll show you how it works.
SELLER: All right. Open the folder, all three folds. Before we even get into it, though, keep this in mind. You know already, it could be a dry hole.
SELLER: It could be a well that doesn’t produce much oil.
SELLER: With that in mind, though, there’s a lot of support information in there for this strong statement: $25,000.00 can very possibly return $75 – $100,000.00. Do you recall that I said that?
SELLER: Okay. Now, I’ll show you why I say it. As you look in the very middle of that folder, you’ll see a page that says, Memorandum. Do you see that one?
PROSPECT: Uhhh, memorandum.
SELLER: It’s a tri-fold folder, it’ll be right in the middle when you have it all open.
PROSPECT: I don’t think I see that one.
SELLER: Okay, do you have the folder open, all three folds?
SELLER: Okay, maybe you see at the top, Kenlaw Energy Partners Corporation? Has some maps stapled to it?
PROSPECT: Oh, here we go.
SELLER: Okay. Good deal. Keep that handy. We’ll want to look at that in just a minute. First, look in the pocket on the right. And just behind my cover letter, you’ll see a page titled, Monthly Income Conversion Table.
SELLER: And behind that, a sheet that says, Terastat at the top of the page.
SELLER: Do you see those?
SELLER: All right. Keep all those handy. In the monthly income conversion table, look at that first, and in the upper left hand corner, you’ll see it says production rate.
SELLER: Below that, barrels per day. And this is an if/then scenario. So as an example, look at 500 barrels a day. If a well produces 500 barrels a day, then it returns $1,400.00 month for each half unit on the well.
SELLER: If it does that for years, it’s a 67% rate of return. See that?
SELLER: Okay, the next number says $714.29. This – above that, it says, monthly income after point of conversion, and what this shows, is after the point of conversion, fellows on the project share the revenues with us and another oil company, which is how you want it, because what it means is, it’s our endorsement of the program, saying we’re going to wait until after everybody else breaks even to get our share of revenues, and it’s our vested interest to produce as much oil as we possibly can.
PROSPECT: I see.
SELLER: All right. Now, bottom half of that table, look on the left side. It says cumulative production. Target a million and a half barrels. That’s our goal here. That would be an $85,000.00 return on a half unit position.
SELLER: Okay, see how it works?
SELLER: Good. Now, let’s get to the fun stuff. Look at that memorandum. And you’ll notice it’s to Matt Aiken. It comes from Dave Seynor, and it’s important, because Dave Seynor was a geologist with Oryx, the largest independent oil company in the world for 11 years.
SELLER: And as you look down that bottom paragraph, what he writes about, is that Chevron stated the company was 22 for 25. Do you see that? Okay, follow it on. In drilling successful new wells utilizing 3D Seismic data. Well, Bill, 3D Seismic, we’ll look at that in just a minute. It’s a form of underground mapping. It’s deadly accurate. 22 for 25 times. That’s an 88% success rate.
SELLER: Do you follow me?
SELLER: Okay, and I’ll show you those tests in just a minute. Now, go to the next page. The very bottom line, says, bright spots.
SELLER: Okay. What those bright spots…
Okay. We’re back together again. Did you hear, did you feel the confidence that this young man put forth? And how about that level of enthusiasm? This young man is excited about what he is doing. He has a great style, and so will you. He began developing his confidence just as you’re doing now. He filled out a confidence section, he kept it at his desk, and he used those things in his presentation. He used those things to think about and build his confidence. So if you noted, confidence is not necessarily a stern or an aggressive state. All of the stars convey a good humor with their confidence, as did this young man. This next man is an ex-pro baseball player. He was on the roster for the Red Sox or the White Sox or some color sox – I’m sorry I’m not a fan – but this fellow implemented the training and converted his competitiveness into sheer sales exuberance. He’s one of the most confident, enthusiastic, and likable guys you would ever wish to meet. And he’s one of the best salesmen. These upcoming excerpts are indicative as to why he earns mid-six figures. Let’s listen in on another actual sales conversations. Shhh.
SELLER: …20,000 barrels of oil has a estimated potential of 2.8 million barrels of oil. When you look at your conversion table, conservatively at 2.8 million barrels of oil, a fellow that owns a one unit position is looking at $175,000.00 return. That’s what we’re looking for. That’s our goal. Now, when you go out here and look at what we’ve done so far as a track record, we’ve drilled six out of seven wells using the 3Dimensional Seismic, and my number five, which you see right above my number one there, the caption block? That has an estimated potential of six million barrels of oil! Now, six million barrels of oil is a very outlandish number, but conservatively, if we only do half o that, a fellow can return $216,000.00 on a one unit position. I mean, this makes sense to you, doesn’t it?
PROSPECT: Oh, yeah.
SELLER: Well, flip over to page 11, I mean, I’ll cut straight to the chase for you. Figure 11, the last one in this section? I’m not going to bore you with the details, because, I mean, you know, that the field is very productive. There’s we…Gulf Oil has a well out here that’s still producing 900 barrels a day.
SELLER: Well, very simply, Charles, figure 11 shows you the sand. If you’re with the geophysical department – did y’all do the 3Dimensional Seismic when you were there?
PROSPECT: We began…we started it…
SELLER: Did you really? Well, all I can tell you is, thank you…
SELLER: …where the zones were. Well, that’s what this key well has done. Not only do we have the key well, but you see here on figure five? A picture’s worth a thousand words. Well, this is a general cross-section. This shows you where we went in and hit the T-6 sand in the number one well. All we’re doing is going underneath it, to hit the T-9 and the T-13. And if we do that, a fellow with a one unit position – I mean, that’s why the fellows, my number one, one are going absolutely crazy. Do you see what I’m saying?
SELLER: Now, when you flip over to figure 11, this is what’s even more exciting, Gary. This is absolutely phenomenal. I mean, I can’t guarantee an oil well, but my God. If you’re an engineer and a geologist and you’ve already drilled six out of seven wells, and you have an opportunity to look at this, and this is the same thing that you’ve seen six out of seven times – are you with me on figure 11?
SELLER: Okay, you see here? This is how – this is how fantastic – I mean, I couldn’t get that across to you in the number eight – but this is how phenomenal this 3Dimensional Seismic is, and I think this’ll make a better example of it for you. You see, this is the seismic, and you see the yellow…
Now, that’s confidence, and a sterling example of enthusiasm. As a pro athlete, this man has experienced psyching himself up for a game. He does the same thing for a sale. At the top of his confidence list are three words, faith in myself. Practice your confidence, have faith in yourself. Use your tape recorder, and use the wonderful techniques of role reversal and role playing. Keep doing your enthusiasm exercises, and we’re moving on to the third and final element of the star seller’s persona, that of empathy. We will listen to the sales conversations of many other stars a little later.
Have you ever met someone you liked right off the bat, and you felt as though they liked you? That’s an experience of empathy. We’re now moving to empathy, the third, final, and completing element of our persona. Empathy is actually the easiest element of our persona to master. Being interested in knowing more about a person you’ve just met, and even experiencing a feeling that a friendship is sure to develop from this introduction, that’s an experience of empathy. And when such a meeting occurs, nine times out of 10, your counterpart is thinking and feeling the same things. On the other hand, have you met people that you just couldn’t stand immediately? And had no interest in and would simply rather avoid and never see again as long as you live? Well, that’s also an experience of empathy. Also, surely at some time you have compared individual experiences which were similar with a friend, and have heard and said sincerely, I know how you feel. Of course, the ultimate in establishing empathy was established by Jean Rodenberry’s character of Mr. Spock in Star Trek. Mr. Spock, as I’m sure you remember, performed the Vulcan mind meld. That made his mind one with that of some other creature. He could feel what they were thinking and their pain and hear their thoughts. And the reverse was also true during the Vulcan mind meld. Those are all examples of empathy. Of course, we will not reach the level of Mr. Spock’s ability; however, when properly planned and developed and implemented in a sale, empathy proves to be a very powerful tool for a sale.
Many of the sales greats that I have worked with and trained, describe empathy during a sale as a sixth sense, an intuition, or a feel for the buyer and what the buyer is thinking and what he is feeling during the sale. In fact, empathy has a much more specific definition. However, it is intuition, it is a feel, it’s also a sixth sense, but it occurs for reasons. It’s not as though some of us can establish empathy during a sale and some of us cannot. To be more definite, establishing empathy in a sale is partially talent and partially skill. Empathy is the mental and emotional identification with the buyer which must be established by you during the sale. It is a link formed by you for the purpose of informing you in terms of split seconds. It’s like a feedback as the sale is happening, as to what the buyer is thinking and feeling principally about you and what you’re saying and what you’re doing. Well, it sounds a lot like mind reading, doesn’t it? Of course, if you could read minds, you would sell every prospect that you met. I must admit, I cannot teach you to read someone’s mind, but I can teach you to establish empathy during a sale, improving your performance, which will increase your sales dramatically. The how-to of establishing empathy is not to attempt the impossible and read the buyer’s mind, but rather, we will, to a significant degree, influence what he will think during the sale. And by doing so, we will create an intellectual and an emotional identification with him. Importantly, we’re not trying to make a new friend during this process. That’s something that often occurs when one is trying to establish empathy. Our objective is to make a sale, not a friend. We will develop a feel for the buyer, a knowledge of what he is thinking and feeling as a consequence of our actions and statements. Keeping the buyer thinking the thoughts that we wish him to think, provides us an instant common experience. That is to say, we will both, seller and buyer, be thinking similar thoughts, which will form a common experience, which is the basis of empathy. Feeling or thinking similarly as a result of a common experience, is empathy, and we will create the common experience as the sale occurs. You might even say the sale itself will end up to be the common experience. We will utilize our techniques of role playing with the prospect’s unknowing assistance to establish this empathy. A most effective method of establishing empathy during the sale is to enlist your prospect’s assistance in assuming his role, in placing yourself in his chair and estimating his thoughts and feelings. This is a simple method. It involves asking him what his product requirements are, all of the necessary functions of the product, his motivations and expectations for the result of the job that involves your product. And most importantly, ask or tell him how purchasing your product will result in a profit for him. Your possession of this type of knowledge will allow you to place yourself during the sale in his shoes, in his position, in his personality. It’s important that you obtain this knowledge. As you elicit this data from your prospect, let him know in your own words that you understand and appreciate his concerns. This heightens the sense of empathy.
The effective method to demonstrate your appreciation is, in your own words, repeat those things that he has told you. And these fellows love to talk about these sorts of things. They love to talk about their position with the company, their responsibilities, the number of people under their supervision, sometimes their superiors, and how they envision your product fitting into their scheme of things. Use a transitional phrase to convey to him your understanding of his perceptions. After you’ve elicited the data, after you’ve simply asked him the questions, as an example, you can go back and say, Jim – and that’s assuming the prospect’s name is Jim – I understand you to say…or, if I’m understanding you correctly, my product will fit into your plans…and then reiterate in your own words, what he has told you. This will demonstrate to him that you can relate to him and his perspective, his needs, thereby continuing to build the common experience, which once again, is the basis of empathy.
Also during this section we will learn to develop the type of actions and statements we have just touched on that will have an enormous effect on establishing empathy during the sale. We have already learned that intellectual and emotional states are contagious. As you project an appealing level of enthusiasm, enthusiasm will rub off on the buyer, and you will have added the commonality of experience as well as increased the degree of empathy. A positive, confident demeanor will instill a positive, confident demeanor in your buyer, again, increasing and enhancing the perception of a common experience, and gently increasing the degree of empathy. We must plan to establish empathy. Once again, and always as you work on any aspect of the sale, envision, picture in your mind’s eye, yourself, your delivery, your posture, your voice tone. Be sure you know what you will say, and we’re going to work on that just a little later in planning and executing. As you tend to create the empathy from your plan, objectively and acutely see yourself. Envision how you will carry yourself, once again, the tone of your voice, the statements you will make, and the probable responses and reactions of your buyer. Plan to create the empathy on a business level. I repeat also, your objective is to make a sale, not a friend, necessarily. Should a friendship evolve over time, well, that’s fine, that’s great. But don’t mix up your objectives, which would result in making a friend and losing a sale at this point.
Remember, do not change your persona from prospect to prospect. Earlier, when I said, assume the buyer’s personality, that’ doesn’t mean try to act like he does or be the type of person he is, it means, be calculating at determining what he is thinking during this sale. An attempt to change yourself to be more like the prospect is a mistake. You will appear transparently insincere. Your persona, the one you’re developing now, will always be the epitome of the person everyone wants to do business with, and most people would like to be friends with. The information that you have elicited from the buyer now gives you a feel for him. You can calculate his feelings. At least, give it a heck of a good guess until you’re experienced in this practice. A feel, in this circumstance, is actually knowledge of your prospect’s thoughts. You will have knowledge of what he is looking for in your product, using your predetermined competitive edges. And an insert here, a competitive edge is a feature of your product that is appealing to a buyer, and it’s generally a better feature than that of your competitors. We’ll get into a much more specific definition in planning and executing the sale. Sorry to put you off on this, but that’s where many of these things come up as we get into the nuts and bolts of actually doing the sale. Using your predetermined competitive edges will demonstrate to him how your product will fill his needs as he has described them, and he will produce a profit as he has described as well. Also, most effective in establishing empathy is to tell your buyer your motivations to sell him. His knowledge of your thoughts adds to the building of the common experience. Now, you’re only going to give him knowledge of those thoughts that you have that you want him to know. You may relate to him that he or his company is who you selected, who you want to do business with because of your standards. For example, should your standards include selling to a well-established, time-honored firm, allow him to know this. You want to do business with him because he’s well-established. He’s been around a long time, he’ll be around a long time, and you see potential for future business because of that. If, on the other hand, your standards allow for yourself to do business with brand new companies, relate that to him. Relate to him you wish to do business with him, because he represents a new company, and you see the potential for long term business, due to potential growth. Importantly, do not hesitate to let your prospect know that in addition to your overt desire for a long and mutually gratifying business relationship, or referral business he will send your way based upon your performance, or your feeling of personal accomplishment resulting from another satisfied customer, that not an insignificant aspect of your motivation, is your own financial reward. In other words, don’t couch your motivation for being there or speaking to him and selling him as based solely on lofty, unselfish motivation. So very often, in a sales presentation, seller and prospect both avoid the issue of money. Don’t be timid; that’s what you’re there for. Discuss your buyer’s budget parameters for your product. Neither be timid regarding the price of your product. Or if you’re asked, or only if you’re asked, your remuneration for the sale. His profit, in terms of dollars, in the majority of circumstances, will be off-limits to you. That is, of course, unless you are presenting a pro-forma, which will describe the type of profit he is to expect. Discussing money openly yet politely humanizes you and increases the confidence level between you and the buyer, thus building the common experience, that of the sale, and building empathy.
Now, let’s determine exactly what we want the buyer to think. Well, that answer’s simple. We want him to know buying our product will result in a profit to him, whether he determines that or you determine that. Generally that’s dictated by the type of product you sell. Equally important, we want him to think about the competitive edges of our product during the sale to support how he will profit. You will construct statements in your mind, that you will envision instantaneously as you receive more and more data from your prospect during the sales conversation. They will be statements demonstrating how the competitive edges of your product will fill the needs of the buyer as he himself has described them to you. You must make a conscious effort to think quickly during the sales conversation – not speak quickly, think quickly. Stay a mental step ahead of your buyer at all times. As you learn the aspects of the buyers’ perspectives, immediately scan mentally for a competitive edge that meets that need. Place it in a positive statement, and verbalize it. This requires planning prior to the sale. Utilize your role playing techniques here. Imagine, well prior to the sales engagement, what could possibly be said by you and the prospect. We will cover this in more detail in planning and executing the sale.
As the sales conversation continues, your side of the conversation will be comprised of describing how your product fills the needs of the buyer, needs you have determined from eliciting information from him. As an example, now this example comes from selling oil drilling investments. You might say, Jim – now, that’s assuming the prospect’s name is Jim – as you have described to me, your income is multi-hundred thousand dollars per year. You need tax deductions, you look for high profit potential, and you must have a degree of control over your investment. Jim, these are the requirements you have laid out. This investment, my product, is tax-deductible. The profit potential exceeds your minimum requirements, and the structure of the investment gives you the control you are looking for. This investment meets your needs as you have described them to me, and you are exactly the type of client that I am seeking.
Finally, the technique that is very effective in heightening empathy during the sale, is to verbally place yourself and your buyer in a future positive profitable circumstance which results from buying your product. Once again, to draw from an example of selling oil investments, suggest to the prospect that, Jim, imagine next April 15th when you are writing the check to the government to pay your taxes, and you and I will be speaking on that very same day because you have made this investment. Having purchased my product, you will realize a significant tax savings. Now, even though related to oil drilling investments, you understand the concept. Verbalize a future circumstance that places both you and your prospect in a profitable situation as a result of his purchase of your product. You may suggest that at the end of his fiscal year, you and he will speak, and both will be pleased with the performance of your product relative to his bottom line. Such examples are extremely powerful in establishing empathy.
Sincerely obtaining data, knowledge and information tactfully during the sales process will vest you with proper knowledge to create, as the sale occurs, the common experience for both you and the buyer. You will feel the empathy develop, and as the empathy develops, you’ll feel an alignment with your buyer. But you must be sensitive to the arrival of this alignment. It’s an identification with your buyer. Keep the relationship on a business level. It’s okay to be friendly, but don’t push for friendship, nor push for empathy. Empathy will occur. Your objective is the sale. Sincere and open discussion increases the knowledge you and the buyer both derive from the common experience, the sale, which is the basis, and essentially, the development of empathy.
Establishing empathy in the sale primarily requires understanding of what empathy is and what is necessary to establish it. It is necessary to plan to establish empathy well prior to the sale. Concentrate on establishing a common experience, the sale itself. Don’t make it a lecture. Your sales presentation is an involvement of both you and your buyer. If you make your presentation without mutual involvement, it becomes a lecture, and the chance for real empathy is lost. Empathy is not difficult. It is a normally naturally occurring phenomenon among human beings. However, awareness of it and the knowledge of whence it comes and what it’s comprised of, empowers us to use it, and to use it well in a sale.
Now let’s listen to some actual sales conversations of the selling stars using empathy, establishing and using empathy. I’m also going to have you listen to some of the sales people that do not have a command of the implementation and use of empathy. The first fellow is one such salesman. He did not grasp the application of empathy. Actually, judging by his performance, he didn’t understand what empathy actually was. He rarely used his tape recorder to evaluate his performance, and only practiced the techniques of role playing and reversing the roles when management demanded it of him. Consequently, empathy escaped his grasp, as did confidence and enthusiasm. Unfortunately, he was not with the firm long. I selected this particular excerpt, because we can hear and sense the prospect trying to establish a relationship with the salesman. The prospect was interested. He wanted to buy, he wanted to feel comfortable, but the salesman was unable to give him that. The salesman was insensitive to the buyer’s overtures. Had the salesman been practicing the training that was given him, he would have picked up on it, he would have established empathy, and made a big sale. Okay, as we listen in, listen for the things that I’ve told you. This is not what you wish to sound like. This is not a star. That’s not to say he’s not a good fellow or a good man, he just didn’t practice the training, and this is the consequence of ignoring this training. Okay, now, let’s listen in.
SELLER: Okay, if you’ll grab that report and turn three pages back…
SELLER: And on the back side, where it says, risk and upside potential.
SELLER: And basically, the first paragraph there says, significant risk exists due to a number of assumptions that needed to be made for the study. In particular, the risk of unknown faults, reducing the drainage area is very serious. And that is very serious if we don’t know the exact size of the reservoir down there.
SELLER: And then it goes on to say, new 3D Seismic should greatly reduce this problem. Well, it has greatly reduced the problem. Not only is it one heck of a lot bigger than we anticipated, you know, we’re probably looking to recover considerably more oil, probably closer to three million barrels out of that one area, out of the one T-6 pay zone.
SELLER: And if you’ll turn to the front of that Terastat report, I found out another interesting little tidbit.
SELLER: It says in the bottom paragraph, it says the ultimate recovery of 488 barrels per acre foot is anticipated. Well, the vast majority of the wells out here, Gordon, are recovering anywhere between 700 and 800 barrels per acre foot. And so, you know, that again, is extremely – that number is extremely conservative.
SELLER: And then with the larger reservoir out in the T-6 pay zone, we’re looking to recover a whole heck of a lot more than 1,896,472. And then if you’ll – I’ll show you…
PROSPECT: Was that this guy’s estimate, or…?
SELLER: The Terastat, yes, this, uh, is Mark Mills, and he’s a third-party consultant, it doesn’t – whether he gives a good report, bad report, it just doesn’t matter.
SELLER: He’s just going to give what he thinks the well can do, realistically. And as far as we know, he’s the best in the business.
SELLER: One else – thing that I found out that we’re going to be doing, if you’ll turn to the memorandum, with all the maps attached to it, figure seven?
SELLER: And I didn’t know this, you know, when I first called you up, I just had the program in front of me, run over it a few times, so I was probably really not really prepared to try to translate the information, but something else has come out. If you’ll turn to page seven, you’ll see the key well.
SELLER: Okay, that went right through 31 feet of pay. Amoco did not have the mineral rights to produce the oil; we do. What we’re going to do, and another reason why this report’s very, very conservative, we’re going to take the drill bit and go right through the fat part of the well, of the reservoir, and we ought to be able to recover significantly more oil than if we just went through one, you know, right through the middle of it. And I don’t know how that work…
PROSPECT: You’re saying you’re going to use the key well also?
SELLER: No, we’re going to use the…what we’re going to do, is we know…with this 3D Seismic, Gordon, they can locate a dime underneath the earth
SELLER: And not only can we locate a dime, we also know what’s in the reservoir as well. And what we’re going to do, is take the drill bit and go right through the middle of it.
SELLER: Not quite horizontal, but just right through the middle of the fat part of the T-6 pay zone.
SELLER: And according to Matt Aikens, you know, we ought to be able to recover a significantly more oil, that’s a lot better than just going straight through it.
SELLER: And then we’re still, and if I’m moving too fast for you, but turn to the Terastat report…
SELLER: On the back of the first page. And this is not a true-to-life drawing, but it does give you a fairly good idea of what’s going on with the well.
PROSPECT: That what – the summary of calculations?
SELLER: In the back – Gordon, it’s the back of…it’s just on the back of page one.
Joe Kinlaw’s Superstar Sales Training Audio Book Disc 3 (Transcript) – https://www.mastersofmoney.com/joekinlawssuperstarsalestrainingaudiobookdisc3transcript/