Be Cautious Of These Personality Types

How can you tell if someone is a smooth talker who won't deliver results?

“smooth talkers usually aren't smooth doers”

— Eben Pagan

Look for people with extra polish and charisma who seem way too together. They excel at drawing beautiful system diagrams and describing architectures but consistently fail to execute over 6-12 month periods.

What should you do if you hire a smooth talker for your business?

“get them an organizer to keep their eye on them”

— Eben Pagan▶ 1:36

Pair them with an organizer who can keep their eye on them and ensure results. This can be through direct reporting, partnership, or support arrangements to make sure actual work gets completed.

How do you prevent consultants from overcharging on projects?

“unless you can project how much it's going to cost then we probably can't do business”

— Eben Pagan▶ 3:07

Demand fixed budgets upfront and refuse to work with firms that won't project costs. Be a bulldog about estimates and require notification before any additional charges beyond the agreed amount.

What are sticky people in business and why are they dangerous?

“they start building the political system they start playing political games and building the political system they start building the black boxes and creating a giant Network thing that only they know how to run”

— Eben Pagan▶ 5:39

Sticky people are smooth talkers who build political systems and create black boxes that only they understand. They become dangerous because they make themselves indispensable by controlling critical systems, making removal difficult once problems are discovered.

Should you trademark your business name immediately when starting?

“unless you've come up with a name or an idea that really is a blockbuster and you've tested it out thoroughly and you know that it is then what are you doing thinking that you should spend $27,000 and three months of your time doing that”

— Eben Pagan▶ 5:09

No, only invest in trademarking after you've thoroughly tested your idea and proven it's a blockbuster. Don't spend thousands on legal protection before you've validated your concept and made sales.

How should you handle red flags with new employees?

“if you sense anything weird with a new person Dive Right In open it up spend some extra time working on it”

— Eben Pagan▶ 7:45

Investigate immediately and spend extra time working on any weird situations. Don't ignore warning signs as they can lead to serious problems like theft or fraud.

The Smooth Talker Problem: When Communication Skills Mask Poor Execution

Eben identifies the first dangerous personality type: smooth talkers who excel at describing systems and creating impressive presentations but consistently fail to deliver results. He provides the memorable phrase 'smooth talkers usually aren't smooth doers' and explains how entrepreneurs get mesmerized by their communication abilities while ignoring actual performance.

Managing Professional Service Providers: The Cost Control Challenge

The discussion shifts to consultants and professional service firms who operate on hourly billing models. Eben shares specific strategies for demanding fixed budgets and explains why these providers will even work for your opponents after representing you, using attorney firms as a prime example.

Sticky People: The Most Dangerous Business Threat

Eben warns about 'sticky people' who create political systems and dependencies that make them difficult to remove once problems are discovered. He shares a cautionary tale about an employee who went on a $30,000 shopping spree with company checks, emphasizing the need to investigate red flags immediately.