Reciprocity Creates Obligation
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The Rule of Reciprocity is a powerful psychological principle that can be leveraged in business and sales situations.
What is the Rule of Reciprocity?
- When you do something nice for someone, they will almost always do something nice back
- The return favor is often not proportional - people often give back something bigger than what they received
- People have a natural desire to "be even" in relationships and exchanges
- Even small gestures can trigger this psychological principle
How to Apply the Rule of Reciprocity
- Offer small, thoughtful gestures before asking for something in return
- Example: Bringing a Coke to a car negotiation creates goodwill
- Example: Providing free cookies to car dealership customers
- Position your offering as a helpful gesture rather than a transaction
- Frame the value proposition clearly - small investment for potentially large returns
- "This cookie costs you $1, but if it helps close one $35,000 car sale, it pays for itself"
- Target businesses where decision-makers have money and are less price-sensitive
- Local entrepreneurs, real estate agents, dentists, car dealerships
- These customers care less about price and more about the relationship
Business Strategy Considerations
- Sell to people who have money - they'll be less concerned about small price differences
- Focus on building relationships and stories alongside selling your product
- The experience and story you create may ultimately be more valuable than the product itself
- Use your unique story as leverage for future opportunities
- Position yourself as helping their business rather than just selling a product
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.