Teaching

Persuade People Using Incentives

Persuade People Using Incentives

Eben Pagan reveals how to use incentives to persuade people by understanding their deepest motivators. Learn to align your influence efforts with what truly drives people's decisions and actions.

Persuade People Using Incentives

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Understanding the Hidden Power of Incentives

Eben reveals that incentives are the invisible drivers behind all human thoughts, decisions, and actions. Drawing on insights from Charlie Munger and neuroscience research, he explains how dopamine hits during anticipation create more motivation than actually receiving rewards, establishing the foundation for effective persuasion.

The Art of Incentive Alignment

The core methodology focuses on discovering people's deepest motivations through strategic questioning, capturing their exact words, and repeatedly connecting every request back to their true desires. Eben demonstrates this with specific coaching examples showing how to drill beyond surface goals to uncover what really drives behavior.

Value Translation and Premium Positioning

Advanced persuasion techniques include breaking down large investments into manageable terms and helping people understand value in their own currency. Eben shares real examples from his high-end training programs, showing how to justify premium pricing through hourly breakdowns and 'reducing to the ridiculous' strategies.

Sustaining Motivation and Preventing Buyer's Remorse

The final piece involves maintaining alignment after initial commitment through continued value addition and shared future visioning. Eben emphasizes having bigger visions for others than they have for themselves, creating lasting inspiration that goes beyond temporary motivation.

Questions This Episode Answers

How do you use incentives to persuade people effectively?

The best trick I've ever learned for persuading, for selling, for marketing, for getting customers, and it's aligning. Aligning the incentives and making sure that they're all lined up and they stay aligned.

Eben Pagan5:51

Discover what truly motivates the person, then align everything you say and do with those incentives. Use their exact words when reconnecting them to their motivation, and keep connecting the motivator with the desired outcome.

Why is anticipation more motivating than actually getting something?

We get a hit of it whenever we anticipate that a reward is coming. And it turns out that we get an extra burst of motivation and joy right before we get something that we want.

Eben Pagan3:25

Brain science shows we get dopamine hits when anticipating rewards, creating powerful motivation. Once we get something, the wanting feeling disappears because we now have it, which is why 'getting kills wanting.'

How do you prevent buyer's remorse after someone makes a purchase?

One of the ways that I do it is I try to keep adding value and adding surprises and bonuses and new great stuff to my customers' lives after they purchase things

Eben Pagan5:13

Keep persuading after the sale by continuously adding value, surprises, bonuses, and new benefits to customers' lives. This prevents them from feeling they made an impulsive decision they don't really want.

What's the best way to discover someone's true motivation?

I wouldn't just be satisfied with I want to be thin and fit into my wedding dress. I would ask deeper. I would say, why do you want to wear that wedding dress?

Eben Pagan8:59

Don't be satisfied with surface-level answers. Keep asking 'why' to drill down to their exact specific motivation. Get their precise words describing what they want and use those same words repeatedly.

How do you justify high prices for coaching or consulting services?

I said, is it worth it if you could hire me for about $20 an hour? What if you could hire me for $19.97 an hour? Would you do it?

Eben Pagan19:05

Break down the total cost into hourly rates or daily amounts to make it feel manageable. Also use 'reducing to the ridiculous' by comparing to small daily expenses like coffee.

How do you align your incentives with your client's incentives?

It is very valuable for you to see in your future a time and see in their future a time where your success and their success really overlap.

Eben Pagan13:17

Look for where your future success and their future success intersect and overlap. Find the shared future where you both win and talk about it so everyone understands what's in it for both parties.

How to Persuade Using Incentive Alignment

A systematic approach to discovering and aligning with people's true motivators for effective persuasion

  1. 1

    Discover the Surface Goal

    Ask what the person wants to achieve or their stated objective

  2. 2

    Drill Down to True Motivation

    Keep asking 'why' until you discover their deepest, specific motivation behind the surface goal

  3. 3

    Capture Their Exact Words

    Record the precise language they use to describe their deepest desires and motivations

  4. 4

    Align Every Interaction

    Connect everything you ask them to do back to their motivation using their exact words

  5. 5

    Create Visual Reminders

    Help them visualize their desired outcome and place reminders everywhere to maintain alignment

  6. 6

    Find Mutual Benefit

    Identify where your success and their success intersect in the future

  7. 7

    Translate Value

    Break down costs into manageable terms they understand, like hourly rates or daily amounts

  8. 8

    Maintain Post-Purchase

    Continue adding value after they commit to prevent buyer's remorse and maintain satisfaction

All Teachings 14

foundational_insightEmpowering1:31

Incentives are the hidden drivers behind all thoughts, decisions, and actions - understanding them gives insight into persuading ourselves and others

Eben references Charlie Munger's principle that whenever we're baffled by someone's behavior, we can always find incentives somewhere, even if they're obscured or hidden

ReframeEmpowering3:25

The anticipation of getting something is more motivating than actually receiving it - getting kills wanting

Neuroscientists have discovered we get a hit of dopamine when we anticipate a reward, and Eben observed in dating advice that people lose interest once they get what they wanted

TeachingEmpowering5:13

To prevent buyer's remorse, keep persuading after the sale by adding value, surprises, and bonuses to customers' lives

Eben explains that buyer's remorse occurs because getting kills wanting, so continued value addition prevents customers from regretting their purchase decision

TeachingEmpowering5:51

The best persuasion trick is aligning incentives - making sure everything about your influence efforts connects with what motivates the other person

Eben describes this as his best learned trick for selling, marketing, and getting customers, emphasizing the importance of keeping the motivator connected to the outcome

TeachingEmpowering6:40

Visual alignment with goals creates powerful motivation - putting your face on your desired outcome image and displaying it everywhere keeps you aligned with your incentive

Eben gives specific example of a bride wanting to lose 30 pounds: scan a model in wedding dress, put your face on it, display on refrigerator, office wall, and car to maintain visual connection to the goal

TeachingEmpowering8:59

Drill down to discover the exact specific motivation behind general goals - don't be satisfied with surface-level answers

Eben explains that if 10 different women want to fit into wedding dresses, asking 'why' reveals 10 different specific motivations - some want to look good for husband, others for photos, others to impress friends

TeachingEmpowering11:26

Use the client's exact words when reconnecting them to their motivation - if they say 'so my family can grow up comfortably,' use those precise words repeatedly

Eben provides specific coaching example: client wants larger home 'so my family can grow up comfortably and my children can avoid living in a bad neighborhood' - coach must use those exact words when making requests

TeachingEmpowering13:17

Align your incentives with the other person's by finding where your future success and their future success intersect and overlap

Eben explains that if you help a business owner grow their business, they'll keep hiring you and might hire you for their team - creating shared future where both parties win

TeachingEmpowering14:46

A person's motivator acts like a tractor beam pulling them into the future - connect everything to what they want and want to avoid

Eben describes incentives as invisible tractor beams that help people have the thoughts, make decisions, and take actions that get them closer to their desired outcomes

TeachingEmpowering15:52

People will only do something in the real world that they've first seen themselves doing in their minds - get them to imagine the future outcome

Eben advises saying 'imagine a future where this outcome is happening' or 'tell me about what will happen when this happens' to increase persuasiveness

TeachingEmpowering16:31

Most people can't figure out what things are worth - help them translate value into terms they understand using their private currency

Eben explains that people are horrible at figuring out value and only think in terms of money, but each person has their own private currency that's valuable in particular situations

TeachingEmpowering18:08

Use 'reducing to the ridiculous' to make large investments feel manageable - break down big numbers into small daily amounts

Eben gives real estate example: $50,000 extra for perfect home becomes 'Is it worth $9 a day - the cost of two cups of coffee - to get the home you really want?'

TeachingEmpowering19:05

Frame high-priced programs in hourly terms to demonstrate value - $1,997 for 100 hours of training equals $19.97 per hour

Eben shares his actual sales video approach: '$1,997 course with 100 hours of training equals $19.97/hour - would you hire me for that rate?' showing it's a bargain compared to 15 minutes of his time

TeachingEmpowering20:47

Have a bigger vision for the other person than they have for themselves - this is one of the most persuasive and inspiring things you can do

Eben credits Jay Abraham with this insight and explains that when you can see a bigger vision for someone and tell them about it, it becomes incredibly inspiring and persuasive

Episode Tone
2 foundational6 intermediate6 advanced

Key Teachings 14

Incentives are the hidden drivers behind all thoughts, decisions, and actions - understanding them gives insight into persuading ourselves and others

1:31

The anticipation of getting something is more motivating than actually receiving it - getting kills wanting

3:25

To prevent buyer's remorse, keep persuading after the sale by adding value, surprises, and bonuses to customers' lives

5:13

The best persuasion trick is aligning incentives - making sure everything about your influence efforts connects with what motivates the other person

5:51

Visual alignment with goals creates powerful motivation - putting your face on your desired outcome image and displaying it everywhere keeps you aligned with your incentive

6:40

Drill down to discover the exact specific motivation behind general goals - don't be satisfied with surface-level answers

8:59

Use the client's exact words when reconnecting them to their motivation - if they say 'so my family can grow up comfortably,' use those precise words repeatedly

11:26

Align your incentives with the other person's by finding where your future success and their future success intersect and overlap

13:17

A person's motivator acts like a tractor beam pulling them into the future - connect everything to what they want and want to avoid

14:46

People will only do something in the real world that they've first seen themselves doing in their minds - get them to imagine the future outcome

15:52

Most people can't figure out what things are worth - help them translate value into terms they understand using their private currency

16:31

Use 'reducing to the ridiculous' to make large investments feel manageable - break down big numbers into small daily amounts

18:08

Frame high-priced programs in hourly terms to demonstrate value - $1,997 for 100 hours of training equals $19.97 per hour

19:05

Have a bigger vision for the other person than they have for themselves - this is one of the most persuasive and inspiring things you can do

20:47

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Counterpoint 4

Claim:Focus on the product or service features when selling

Reframe: Focus on aligning with the customer's deepest incentives and motivators

Claim:Getting what you want is the most motivating part

Reframe: Anticipating getting something is more motivating than actually receiving it

Claim:Stop selling once the customer buys

Reframe: Keep persuading after the sale by continuously adding value to prevent buyer's remorse

Claim:People understand the value of what they're buying

Reframe: Most people can't figure out what things are worth and need help translating value into their terms

Quotable Moments

The best trick I've ever learned for persuading, for selling, for marketing, for getting customers, and it's aligning. Aligning the incentives and making sure that they're all lined up and they stay aligned.

Eben Pagan5:51

Getting kills wanting.

Eben Pagan4:34

We're really horrible at figuring out the value of things.

Eben Pagan16:31

Have a bigger vision for the other person than they have for themselves.

Eben Pagan20:47

A person will only do something in the real world that they've first seen themselves doing in their minds.

Eben Pagan15:52

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