Finding Gold

How Contrarian Logic Makes Sales for You

By Michael Lovas
August 1, 2009

I have an old (eccentric) friend who runs a contrarian website. Surprising to me, it's grown in popularity so that it now attracts millions of visitors each month.

Why is that important to you? Because of two things: 1) the numbers - millions of people see value in the content on that site. Millions! And, 2) the content is drastically different from what you read in the traditional media. It's drastically different from what you (probably) tell your clients. But, is it drastically wrong?

My wife and I endure a perpetual "discussion" about this. Is contrarian content just muck racking? Is contrarian planning wrong or ill-advised? She says, "Yes!" and I say, "Maybe not." Certainly not when it predicted the economic collapse. Not when it accurately predicts the market movement. And, not when the investing public has grown skeptical of traditional advice.

Let's look at a few recent contrarian headlines:

(Source: www.silverbearcafe.com)

So, who actually is a contrarian? If you take the American population and separate out the Democrats and Republicans, then just about everyone else - everyone who does not march to a pre-determined drummer - is a functional contrarian. Again, that's not important, what is important is that recent events in the American business environment have caused more and more people step back and look for other ideas, other advice. How do I know that? Again, numbers. My friend's site has nearly doubled in popularity since January.

There's surely more contrarian content being published and more people reading it than the mainstream media would have you believe. Is there really nefarious wheeling and dealing inside the inner sanctum? Is the Federal Reserve actually a pawn of a secret sect? Are there actually mobile prisons being moved covertly around the country in advance of the popular revolt?

Again, it doesn't matter. The point is more basic than that. Knowing that that millions of people read it should inspire you to pay attention to it and figure out how to use it. But how?

I guess it's one of those weird natural talents, but I have always been able to take off-the-wall information and see how to use it for a given purpose. Contrarian articles are excellent tools to show your prospects that you proactively look for information covering all sides. "Harriet, I believe in looking for the facts and the truth wherever I can find it. For example, some very smart people seem to think that gold is going to reach astronomical highs this year. It might be time to take a close look. What do you think?"

Otherwise, how else would you know that the truth was? Otherwise, it could look like you are limiting yourself to one "party line." And, THAT makes you look self-serving. And, at that point, you lose your credibility. "Harriet, I don't care if he does write for Barron's and Wall Street Journal, I'm telling you, the best advice is to buy and hold!"

In my own business, I look at the headlines, then figure out what consumers believe and what advisors need to do in order to connect with those beliefs. Trend is, consumers believe the financial industry has already lost its credibility. How could they not think that when they see a daily diet of headlines like these:

(Source: InvestmentNews Daily)

The important point is the cumulative message received by the investing public (your target market). Don't those headlines carry implications that the financial industry is infected with fraud and greed? Implications are vital pieces of information that you must have in order to understand what is inside your target market's beliefs. That's important because they will not buy anything they don't believe in. You need to learn what they believe. And, in order to do that, you need to know what they're reading.

For example, if you believe that American auto manufacturers sell inferior products, you will look for information that supports your belief. Likewise, if you believe that the financial industry is populated with greedy, self-serving people, you'll look for information supporting that. Enter those headlines above. Eventually, the consumer does a Google search for alternative ideas and finds contrarian websites.

Now, let's look at the implications. Please realize that these are not my opinions; I'm simply explaining how implications fit into the psychology at play right now in the minds of your target markets. The following are simply some of the more obvious implications - the messages that someone could discern from interpreting the headlines. And, the implications are:

Financial firms have no integrity and cannot be trusted.
Financial executives are self-serving and greedy.
Financial advisors are deceitful and cannot be trusted.
Consumers are becoming more skeptical of financial advice.

If you know anyone who might see plausibility in any of those, you will probably find that person reading contrarian articles. Now, picture yourself talking with that person when he expresses a contrarian idea. He says, "Aw, the markets are manipulated." Or, "Between taxes, commissions and fees, the whole system is stacked against the small investor." Or, "Why should I do tax planning? The IRS is illegal."

And, what do you say in response?

In Closing.

The economy has changed. The investing public is no longer comprised of trusting innocents. They've started thinking that maybe when the contrarian yells, "Wolf! Wolf!" there's actually a wolf out there. Isn't it your responsibility to find out? Shouldn't you understand all logic and arguments? And, shouldn't you be prepared to discuss them? After all, doing so can only add to your credibility.

Next Steps:

Learn everything you can about the contra-argument. So, when your prospect makes a contrarian statement, you can use it as a discussion to demonstrate your knowledge and credibility.
Offer contrarian ideas as an option. Say, "This idea falls outside the envelope, but it's worth talking about."
When someone quotes contrarian logic, explain that the most successful investors follow a different logic, and that's the logic you follow, too.

Your Reward. When you build your credibility with a prospect, your advice is nearly always followed. Even better, that person usually becomes a proactive advocate for you. But, when you can't (or don't) build your credibility, you will most likely lose time, energy and the client. So, you need to learn how to build your credibility!

My newest book (Axis of Influence) teaches you exactly how to build your credibility - step-by-step. Your reward is a big one. Buy Axis of Influence before September 30, and I will give you (FREE) an additional $2300 worth of bonuses donated by a Who's Who of success experts! Get the list and details at: http://www.axisofinfluence.com/PromoSummer2009.htm.

MICHAEL LOVAS is the author of ten books, three columns, and a thousand articles on Professional Credibility and the Psychology of Communication in the financial industry. He's the co-founder of AboutPeople and the founder of Credibility Marketing.

Michael speaks at conferences and seminars in Canada and the US. He is an inspiring trainer and coach who helps advisors improve their businesses. He holds three prestigious certifications: Licensed Master Practitioner of Neuro-linguistic Programming (NLP), Licensed Trainer of NLP; and Clinical Hypnotherapist. They make Michael an expert at helping financial professionals succeed at a higher level by building more meaningful business relationships.

AboutPeople Books:

(NEW) Questions Are the Answer! - A guide for using questions effectively in sales conversations
(NEW) Axis of Influence! - How credibility & likeability intersect to drive success!
(NEW) Words that Sell - The language of psychological marketing & selling
Face Values - How to read people and connect with them in less than 3 minutes!
The Boomer Report - The financial advisor's guide to understanding the boomer mind
Presentation Magic - How to gain a psychological advantage in your seminars and sales presentations
The 5 Levels of Rapport - How to create a meaningful connection with people who are important to you
Magnetic Connections - Consultative selling for financial professionals
IDENTITY - How to create and deliver the most important statement of your business life
Inside the Mind of the Senior Market
Beyond Wave Marketing - How to add credibility to your relationship marketing

Find AboutPeople books at: www.aboutpeople.com

Michael Lovas, C.Ht.
AboutPeople
(509) 465-5599
1503 E. Riverview Dr.
Colbert, WA 99005
www.aboutpeople.com

Finding Gold

How Contrarian Logic Makes Sales for You

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