Reciprocation: A Natural Human Behavior that Sparks Superhuman Persuasion

In his book, Influence: The Psychology of Persuasion, Robert Cialdini explores the power of reciprocation. He mentions, "The rule possesses awesome strength, often producing a 'yes' response to a request, that, except for an existing feeling of indebtedness, would have surely been refused." In other words, if you give something to someone, that person is more likely to be persuaded because he or she feels like the favor should be returned in some way. Let's look at a few examples that Cialdini presents:

1. In 1985, Ethiopia sent monetary aid after Mexico experienced massive earthquakes. Ethiopia sent the money despite major internal problems to include famine, disease, and starvation. Upon further investigation, Ethiopia sent the money because Mexico sent aid in 1935 when Ethiopia was invaded by Italy.

2. In a study, a University Professor sent Christmas cards to a list of perfect strangers. To his surprise, many of the strangers sent a Christmas card in return without even questioning the identity of the professor.

3. "During the 1992 presidential campaign, actress Sally Kellerman was asked why she was lending her name and efforts to the candidacy of Democratic hopeful, Jerry Brown. Her reply: 'Twenty years ago, I asked ten friends to help me move. He was the only one who showed up.'

In the business world, reciprocation plays a major role. The "14-day" free trial on a website subscription or "free samples" at a grocery store are eliciting the power of reciprocation. The customers are far more likely to purchase the product due to the natural human behavior of giving back and avoiding the feeling of indebtedness.

The moral of the story is not to shamelessly try and ensnare people and make them indebted to us. We should use this power wisely by naturally giving in times when we do not necessarily need anything in return. This leads to an organic growth of "giving stock" that we can cash-in naturally throughout our lives.

Tony

Source: Influence: The Psychology of Persuasion, Robert Cialdini

The Original Elevator Pitch

In 1853, Elisha Otis demonstrated to a skeptical crowd in a New York convention center, that his elevator would revolutionize the safety of vertical lift conveyances. Up to 1853, elevators were dangerous, rickety contraptions that had zero fall-back measures if the cable snapped. Otis, however, solved the problem by attaching a wagon spring and ratchet bars into the shaft so if the rope snapped, the spring would activate and arrest the elevator. He built a 3-story high elevator shaft in the New York convention center and hoisted himself high above the crowd. To everyone's amazement, he cut the rope holding up the elevator with an axe, and his braking system brought the plunging elevator to an abrupt halt. Instead of plummeting to his demise, Otis went on to found the world renowned Otis Elevator Company. How passionate are you about your idea? How do you plan to move people and convince the skeptics that your revolutionary idea should change the status quo?  Fascinating stuff!

Tony

Source: To Sell is Human by Daniel Pink

The Lighthouse

As we are setting the stage for our company, I have found that one of the most challenging aspects of starting a business is trying to determine what information in the vast sea of good ideas, tips, and suggestions is actually pertinent. It is easy to get overwhelmed by the never-ending "Top 10 lists" guaranteed to change your life forever! I am learning early on that a critical skill required in a startup is the ability to process amazing amounts of information and determine which applies best to your business. My co-founder, Glen and I were reading countless books all with great ideas and advice. At times it felt like we were constantly changing directions subjected to the directional winds of the current book. Then, one day, Glen mentioned that I needed to order Steve Blank and Bob Dorf's The Startup Owner's Manual. While I was still on the phone, I promptly took advantage of my Amazon "one-click" purchase and the book was on its way. While I love to absorb all things "lean startup," admittedly, I was thinking that it will probably be good but just another startup book that will serve as a good beer coaster. It turned out though, that this book has become THE LIGHTHOUSE that we turn to when the rough sea of everyday information becomes too dense. We both made the commitment after reading the book that this will be our primary reference. In our fledgling startup, to this day, this has been the most important and liberating decision we have made. Now, we can absorb online information, read other books, and peruse "Top 10 lists" without being tossed about in a wayward direction. After all, we simply have to look up, and off in the distance, THE LIGHTHOUSE shows us the way! Oh yeah, hope you were impressed with all the sea analogies :)

Tony