7. BUDGET

Written on 17/05/2020

7. BUDGET

OVERCOMING FEAR OF MONEY

Why people are uncomfortable talking about money:
• Parents tell you not to talk about it because its rude
• People like they either have to little or too much
• Overall negative connotation (money is not important, etc)
• It is important because if you can’t pay for something..then what are you doing!
• You have to break away from the sigmas of money, it’s a cultural thing. find the courage to do it now and it will be easy later

Transitioning into the budget phase:
• Summarize all the pain and make sure you got everything
• at least 3-5 critical pains
• then you go in for a transition to talk about the money

ASKING FOR THE BUDGET

• Discover if prospects have money available:
• Subtle Questions
• Third-party Stories
• Use info during the pain phase to ask the right questions
• Expense may not just be money (turnover, time, etc)
• Help the prospect put a price on how much they are willing to pay to make their pain go away

Subtle Question Examples:
• John, have you thought about how much you’ll need to invest to bring this project back to life.
• Sally, I’m guessing you haven’t put aside a budget for this, have you?
• Jim, any idea on how much resources you’ll need to figure this out? – Using another word not money or budget

Third Party Stories:
• John, usually when I work like companies like yours they’ll usually have a monthly budget set aside for digital
marketing. I was curious to know if this was something you already thought about too.

Discover how much money prospects have available:

• Ranging
• Third-Party Stories
• Combination (Ranging & Third-Party Stories)
• Historical or Future Expectation
• Metaphor
• Direct

Ranging:
• Hey Wilson, if we were to ballpark what you’re looking to invest in solving this problem, what would that look like?
• Hey Wilson, usually when we work on a project like this, the total investment is somewhere between $10,000 to
$20,000. Do you think you’ll be able to invest that amount?

Third-Party Stories:
• Sarah, I was working with a client a couple weeks ago who was experiencing the exact same challenges you
were. And they were committed to taking care of the problem. They invested close to $10,000 to have us take
care of the challenge. Would you invest as much as $10,000 if you felt confident we could help you here?

• Combination (Ranging & Third-Party Stories)
• Hey Jimmy, I appreciate you telling me you can’t reveal your budget for obvious reasons. But maybe you can
help me out so we don’t waste each others’ time. Typical when we work on projects like this, the clients’
investment usually falls around $10,000 to $20,000.
Which end of that range should we focus on? Or is it over before its even started?

• Historical or Future Expectation
• Hey Tim, last time you overhauled your entire system, what size of investment were you looking at? Do you
expect to spend more or less this time around?

• Metaphor
• Jonathan, when you’re thinking about a budget for this project, are you thinking of little league, college level, or
the major leagues?
• What do you consider a little league amount?

• Direct
• Tom, I get the feeling that you’ve been burned in the past by revealing your budget to a salesperson before. Is this accurate?
• If Yes: I appreciate you telling me that. Is there something I said that made you feel the same thing?
• If No: I must have said something that made you feel like you can’t trust me or would take advantage of that information. If
that’s how you feel Tom, maybe we should stop here. It might be too difficult to do business with someone you don’t trust.
What should we do now?

LAND AND EXPAND

• Sometimes people are not read to buy everything you got
• If they can not, start with something small. For example a 1 day consulting, a free trial, etc
• Then once they try your stuff and like it, sell them the rest later
• Use Oracle Story
• Same concept applies when trying to get critical information, start small (land) and expand. Like if asking for budget for
digital advertising. Get FB then everything else later

Negotiating Price

People LOVE to get a good deal, so you’re job as sales person is to
make them feel like they are getting a good deal (even if they are not)
• Example: You want $15,000 for your services
• If you start at $15,000 they will keep pushing you down
• Start with $20,000 and make it hard to go lower and lower
• “I go up if you go down”
• Or you can play dumb and have to ask for approval
• If you lower the price, try to get something in return like a yearly
contract