Rule 8/73 in Sales and Network Marketing

Have you ever heard about Rule 8/73? If not then you must read this blog because this rule 8/73 is connected to your communication used for convincing. In case you have already heard about this rule, here is a better explanation about it backed by a survey study. This blog will reveal the secret of why some people bring better results from their communication while others don’t. Understanding rule 8/73 will be useful primarily for sales and network marketing professionals. This will also be useful for those who are dealing with people, be it mentors, entrepreneurs, students, housewives or any other professional. 

Whenever we hear or read a word Rule or Formula, mathematical or science equations pop up in our mind. But we are not going to solve any equation of maths or science here. We will be discussing a rule that stands correct in almost all the communication used for convincing.

Let’s dive into a deep understanding of Rule 8/73

This rule was initiated and used for understanding the sales representatives & their client’s behaviours during the sales conversation. 

A survey was conducted on 100 sales representatives to understand why all 100 sales representatives don’t bring in the same number of sales. When the rest of the other things are the same for them. They underwent for same training, were equipped with the same sales tools and provided the same infra to work in etc. 

What is 8 in this rule?

Let’s understand it from the sales representatives’ point of view first. 

STAGE-1

When these 100 representatives approached their clients for selling their products. It was observed that they all were good with their sales presentations but when their client asked them their first question or raised their first objection about the product. 44 sales representatives out of 100 gave up on sales. Either they did not dare to face the objection or they made up their mind that this very client is not going to buy my product. 

STAGE-2

But the remaining 56 sales representatives handled the first objection well and took the conversation ahead. But when these 56 representatives faced their second question/objection about the offered product. 22 sales representatives out of 56 were not able to handle the second objection raised by their client. Either they were not equipped with the right knowledge to answer the question or they were not confident about what answer they should give. 

STAGE-3

However, the rest 34 sales representatives handled the second objection effectively and were able to win the client’s trust through their answers to the second question/objection. They took the conversation ahead and when their client asked them the third question/objection. 16 sales representatives out of 34 either got frustrated by these many questions coming from their client or they made a judgement that they are not talking to a potential client and these 16 sales representatives gave up on the third question.

STAGE-4

But, 18 sales representatives still were in conversation with their clients and were handling them patiently. They were still confident and aiming to close the deal but becoming a little anxious too by back-to-back objections by their client. When their client asked them the fourth question/objection. 10 sales representatives became shattered and gave up. But 8 sales representatives were still in the game and going ahead. Only these 8 sales representatives succeeded in closing the deal. 

This is how the 8 came into rule, but how this 73 came into the picture in this rule is yet to be disclosed.

What is 73 in this rule?

The number 73 shows that 73 clients out of 100 ask more than 4 questions/objections before they buy any product or service. This meant that only 27 clients out of 100 ask less than 4 questions for finalizing any deal while the majority of clients which is 73 ask for more than 4 questions.

This rule has been limited to sales only by a lot of people but if we look at it from an open perspective, we will find that this fits right in all the communication used for convincing somebody. Starting from convincing a kid to do something, to convincing your wife or girlfriend etc.

Asking questions is our conditioning. We get into this habit out of the curiosity to know about something. Hence, when a sales representative tells us about any product or service we tend to ask multiple questions before finalizing our decision about buying it or not and this conditioning works similarly when it comes to any other communication rather than selling or buying. It meant that 73% of us tend to ask more than 4 questions before we agree or disagree to a point. 

In the same way, only 8% of people from us are the better communicators who listen and handle all the conversation patiently and go ahead beyond the fourth objection to answer.

After reading this blog, I am sure that you must have understood human behaviour and its process of working especially when it comes to convincing someone or being convinced by someone. 

It is not always about being the best with your talk, it is always about having patience and going to the last objection of your client.

7 Points to become a better communicator:

1. Be enthusiastic while talking – Your enthusiasm shows your interest in the subject and your audience.

2. Listen more, speak less – Communication does not mean only speaking, good communicators are listening-focused.

3. Have patience – Patience is the key to winning. Your patience will take you to your end goal in conversation.

4. Don’t interrupt – Interrupting means insulting. When you don’t like insulting then why anyone else will?

5. Talk logics – Don’t talk only about participating in the talk. Your silence is much better than your illogical words.

6. Encourage others to speak – Let others speak and appreciate them for their talk so that they feel good in conversation.

7. Don’t be egoistic – Egoistic talk turns into an argument and good communicators don’t argue.

5 points to enhance your sales performance:

1. See every opportunity to build relationships -You should always focus on people. Your motive should be giving them a solution to their problem. If your product can solve their problem. They will buy it if you explain them well. 

2. Don’t force people for buying your point – Persuasion works in sales but force does not. Decisions made out of force give a feeling of cheating.

3. Don’t give product/service instead give them value – Don’t give your client only the product/service. Explain to them well what value they will be getting back if they buy your product/service. An explanation with calculation works better.

4. Don’t sell for one time – The experience of your conversation with your client should be long-lasting whether he buys from you this time or not. If he buys from you or not still your image as a person should hit him very positively so that if he or any person in his network needs your product in future so you should be the person coming to his mind. Your passion, enthusiasm and conviction about your work or product make your client most likely to buy from you in future or whenever they need the products that you deal in.

5. Don’t share knowledge, share experience – Don’t only share the knowledge about your product instead include the testimony and stories of the people who have benefited from it. Stories work better. 

Conclusion:

You have seen that sales are a game of rejection. Human is conditioned in such a way that we speak No so often. Hence, our maximum proposals whether they are personal or professional are bound to get No more often, however, Yes will also come but to them who will stand with patience.

Here is a summary of Rule 8/73 

• 100% of sales representative starts but 44% of them give up on the first objection
• Rest 56% of sales representatives go ahead but 22% of them give up on the second objection
• The remaining 34% of sales representatives go ahead but 16% of them give up on the third objection
• 18% of sales representatives go beyond the third objection but 10% out of 18% give up on the fourth objection
• Only 8% of sales representatives go beyond the fourth objection and they win maximum sales

You can also refer to these 5 qualities to master your Selling Skills.

Cheers!!!

MK Mauryavanshi