The Most Valuable Dollar Bill
The story of a cruise ship, a bad habit, and the most
valuable $1 bill you will ever own
My business partner Terry Lodge and I attended the
recent National Real Estate Investors Association Cruise
Conference. Our goal was to bring back as much of the
investor education we received there to our members
as possible. But surprisingly, one of the most valuable
lessons we learned this year came from a random
observation made while Terry was searching for a
cigarette.
Let me back up and say, if you are in any kind of sales,
you know that your success comes down to a numbers
game. The more contacts you can create with people,
the more referrals you will get and the more sales you
will close. Having the courage to start a conversation
with a potential contact is the first battle you’ll fight on
your way to winning the sales war. But telling a nervous
salesperson that making new contacts is as simple as
saying “Hello” is like telling a teenage boy that this one
simple word is the trick to getting his crush to talk to
him.
“force” any sales agenda. It was easy, and it was fun.
Terry and I talked about it and decided to run an
experiment.
As a control group, we asked ten people in the smoking
section of the ship straight out for a cigarette. Our
success rate was about 50%, not bad, but not great
either. Even those who offered us one rarely invited us
to sit and talk.
Then Terry pulled out his dollar. We knew from
experience that it costs about ten cents each to add
contacts to a sales database. So, thinking scientifically,
we decided that not only did we need to see a better
than 50% success rate to beat our control, but we would
have to get ten or more cigarettes/contacts for every
dollar accepted. Challenge accepted!
We proceeded to offer that one-dollar bill to 50 people
on the ship. Our results: a 100% success rate both in
getting a cigarette and in being asked to sit down and
talk. Not only that, not one person would accept our
dollar.
Why did it work?
Back to Terry and the cigarette. Terry doesn’t normally
smoke, but after the drinks start flowing the old bad
habit has been known to take control. Rather than buy a
pack he decided to offer someone a dollar for one -- just
one -- cigarette. The very first person he asked not only
gave him one, but refused to take the dollar and invited
us to sit and talk while Terry smoked. We had a great
conversation with these complete strangers.
Terry and I own a company that provides sales, property
management,
vacation
property
management,
consulting, staging, and many other services aimed at
real estate investors. We also run multiple real estate
investor support associations, provide education and
training for our industry, and offer free advice to people
who handle their investment property portfolio on their
own. In fact, more than 50% of my “job” is work I do for
free helping people learn how to handle their business
without paying someone like me. We do this because
we have found that the fastest way to a long-lasting,
profitable, and mutually beneficial professional
relationship is to offer the other person more perceived
value than you will be receiving. If the person we helped
doesn’t need our services now, maybe they will later, or
they will refer a friend. But the people on the ship gave
us a cigarette and received nothing in return. So how
did they get more than they gave?
As we said our goodbyes and walked away I did what I
normally do: over-analyzed what just happened. We
found a way to get a stranger to invite us to have a
conversation! Our business, how what we do for a living
relates to their life, and the exchange of contact
information just naturally came up, without any need to
As you know the first impression is the most important
one. Their first impression of us was that we were
willing to pay five-to-ten times the value of something
they had. Because it was an item of very small value
they took the opportunity to be generous, feel good
about themselves and simply refuse our cash; because
Human beings are pack animals who want to develop
relationships, but we also have a natural tendency to
defend ourselves against strangers. Most often it’s
because of a previous experience with someone who
took advantage of us, or turned out to be dishonest, or
both. Have you noticed how these defenses are
practically non-existent when the person you are
engaging with believes you have a valuable reason to be
talking to them?
we showed them that we weren’t looking for a handout
they also felt inclined to invite us to sit for a
conversation. Then everything naturally progressed
from there.
Like many of you, we have spent thousands of dollars in
our lifetimes on lead systems, informational websites,
marketing campaigns, and cold call lists to try to
generate more contacts. We have “egg on our faces”
now that we see that with a one-time investment of
$1.00 we could gain as many contacts as we have the
time or energy to cultivate.
You can, too. We’re not suggesting you pick up an
unhealthy habit, but instead think creatively and try a
version of this out at the next networking event you
attend. Maybe ask for gum instead of a cigarette. And
while you’re chatting, remember that the most effective
way to lower a stranger’s defenses is to give them a
reason to believe that they will get more out of the
relationship than you will. Be willing to be the person
who gives away valuable advice or help without asking
for anything in return, and see your returns multiply.
And never leave the house without your dollar!
By Christian Bryant - President
IRC Enterprises & IRC Real Estate
West Linn, OR 97068
[email protected]