Unlock the Power of Reciprocity & Commitment in Your Business

Sep 09, 2024

Reciprocity

Reciprocity is a powerful principle that suggests people feel obligated to give back to those who have given them something of value. It’s a fundamental human thing. As Jesus Christ said, “Give, and it shall be given unto you.” This isn't just a statement—it’s a law ingrained in us.

As an entrepreneur, your job is to leverage this principle to your advantage. When you provide potential or existing clients with something of value, they often feel the need to reciprocate, which can lead to a purchase.

Consider this: What can you offer your clients that costs little or nothing but provides value?

Think of examples like reading a couple of free chapters before deciding to buy a book or tasting a sample before purchasing a bottle of wine. That’s reciprocity in action.

Practical Applications of Reciprocity:

Freebies & Trials: Offer free samples, trials, or valuable content (eBooks, webinars, guides) to build a sense of obligation and encourage future purchases.

Commitment and Consistency

People naturally strive for consistency between their actions and commitments, especially when those commitments are public.

Humans care deeply about how they are perceived and want to appear consistent with their words and decisions.

That’s why some people who treat their workers badly, act like good people in front of other people because their friend group see them as nice people.

For example, when someone makes a public pledge, they are more likely to follow through.

Public doesn’t always mean in front of a crowd—it could be as simple as asking a client to make a deposit for a product they’re interested in. That initial commitment dramatically increases the likelihood of closing the sale.

When I bought my first property in Lagos, the company asked for a N5,000,000 deposit. However, I negotiated to pay N1,000,000 as a commitment fee. That initial investment drove me to complete the full payment, and today, to the glory of Jesus Christ, I have a tenant in that property.

Practical Applications of Commitment and Consistency:

Small Initial Commitments: Ask for small commitments first, such as signing up for a newsletter or downloading a free resource. Once they’ve made a small commitment, they’re more likely to make larger ones, like purchasing a product.
Subscription Models: Encourage customers to sign up for subscriptions, auto-renewals, or memberships. This keeps them committed to your product or service long-term.
Customer Reviews: After a purchase, encourage customers to publicly review or share their experience. Publicly expressing their commitment makes them more likely to stay loyal.

Assignment:

Create a lead magnet (a free offer) that requires an email signup. Use automated follow-ups to upsell them on your primary product.
Offer a low-cost “starter pack” to get customers committed to your product before introducing higher-priced items.
HOW I HELPED A CLIENT MAKE $180,000 IN SALES
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