Copywriting based on the science of persuasion

If you’re ever going to sell anything online, copywriting is a much needed skill.The conventional copywriting wisdom says that you should more or less try stick to the following formula:

1. Tell the reader you understand their need,
2. Tell your prospect why your product is the best solution they can buy,
3. Offer all kinds of proof like testimonials, charts and so on,
4. Explain all the ways the product will benefit the customer,
5. Present the price in a way that makes it sound like a great deal,
6. Give a (better than) money-back guarantee,
7. Add bonus products to really motivate the customer to buy,
8. Make it a limited time or quantity offer,
9. Ask for the sale and tell them exactly what steps to take.

Is the exact sequence that persuades people or why should this work? What scientific data is available to use about persuasion? Which research can we rely on to make our writing more persuasive?

Here’s a summary of the most prominent books and publications on the matter.

The work of Robert Cialdini

Mr. Cialdini is undoubtedly the biggest authority on the field. His books are bestsellers and have been in the “must-read” list for marketers and copywriters for years.

Cialdini came up with six scientific principles of persuasion that will help guide you to become more effective at getting people do what you want. In case you have no idea what those principles are, then here’s the summary:

Principle 1: ReciprocityPeople feel obligated to give back to others who have given to them.
How to use it: teach your prospect something useful in your copy, give away free stuff and better yet – add value to your prospects long before you even start to sell them something.

Principle 2: LikingWe prefer to say “yes” to those we know and like.
How to use it: talk/write like a human, connect with the reader, share details about yourself. Blog. Be friendly and cool (like Richard Branson).

Principle 3: Social proofPeople decide what’s appropriate for them to do in a situation by examining and following what others are doing.
How to use it: show how many others are already using your product. Show off your numbers. Use testimonials. Link to 3rd-party articles.

Principle 4: AuthorityPeople rely on those with superior knowledge or perspective for guidance on how to respond AND what decision to make.
How to use it: Demonstrate your expertise. Show off your resume and results. Get celebrity (in your niche) endorsements.

Principle 5: ConsistencyOnce we make a choice/take a stand, we will encounter personal and interpersonal pressure to behave consistently with that commitment.
How to use it: Start small and move up from there. Sell something small first (a no-brainer deal), even if you make no money on it. They now see themselves as your customer, and will be much more likely to return to make a larger purchase.

Principle 6: ScarcityOpportunities appear more valuable when they are less available.
How to use it: Use time or quantity limited bonuses. Limit access to your product. Promote exclusivity.

SEOmoz has a great illustrated article on all of these principles. Naturally you can get the full picture of these principles from his book Influence. His other book – Yes! 50 Scientifically Proven Ways to Be Persuasive – builds on that and adds some practical ideas. See the list of these 50 ways here.

Robert Gifford and five elements of an effective message

Mr. Gifford is a professor of Psychology and Environmental Studies at the University of Victoria. He is co-author of a relatively recent American Psychological Association report that examined the interface between psychology and climate change.

He explains what makes people receptive and how to get messages across effectively:

• It has to have some urgency.
• It has to have as much certainty as can be mustered with integrity.
• There can’t be just one message: there must be messages targeted to different groups.
• Messages should be framed in positive terms. People are less willing to change their behaviour if you tell them they have to make sacrifices. If you tell them they can be in the vanguard, be a hero, be the one that helps — that works.
• You have to give people the sense that their vote counts and that their effort won’t be in vain.

While his work focused on the message of climate change, it will work in your sales copy too.

The art of persuasion by Angela Lee and Brian Sternthal

Research by Kellogg professors Angela Lee and Brian Sternthal offers insight into effective messaging. In a study in the Journal of Consumer Research, Kellogg professors say the key to an effective message is finding the fit between the consumers’ goals and the level of abstraction.

The researchers found that when consumers aimed to fulfill aspirations and satisfy achievement goals, more abstract messages — for example, those highlighting the freedom TiVo provides — stimulated favorable brand evaluations. On the other hand, consumers who sought to fulfill their responsibilities and satisfy their security goals were more persuaded by concrete messages, such as those emphasizing TiVo’s replay and slow-motion features.

So this means that first you have to figure out the emotional vibe of your prospect – or figure out what kind of motivations you’re targeting with your product. If you get it right and the level of abstraction fits the goal, people understand messages better and are more easily persuaded.

Messages that stick

Mark Twain once observed, “A lie can get halfway around the world before the truth can even get its boots on.”

Isn’t that true? Some stories – especially urban legends, conspiracy theories, and scandals circulate effortlessly. Meanwhile, people who really try to spread their ideas – businesspeople, scientists, politicians, journalists, and others – struggle to get anyone to remember what they said.

Two brothers, Chip Heath (a Stanford Business school professor) and Dan Heath (a corporate education consultant at Duke) found after extensive research that the ideas that ‘stick’ all share the following six principles:

1. Simplicity – Your message has to be simple – stripped down to it’s core intent. You must come up with a profound compact phrase that would summarize your whole premise.
2. Unexpected – In order to capture someone’s attention, you need to break a pattern – in other words to present the unexpected. You need to understand and play with two essential emotions – surprise and interest. Surprise gets our attention and interest keeps our attention. Got a conventional product? Get a new one.
3. Concrete – People won’t remember vague stuff. What helps people understand new concepts is concrete language. Concreteness is an indispensable component of sticky ideas. Don’t say ‘fast acceleration’, say 0 to 60 mph in 3 seconds.
4. Credible – You need somebody who people trust to confirm your case. The trustworthiness of your source makes all the difference. People need something / someone credible in order to believe you.
5. Emotional – Feelings inspire people to act. If you story does not invoke any emotions, you’ve lost.
6. Stories – How do you get people to act on your idea? A credible idea make speople believe. An emotional idea makes people care. Put both of them together into an idea as stories have the amazing dual power to stimulate and to inspire.

Remember to read their excellent book ‘Made to Stick‘.

Buy buttons in the brain

Research in neuromarketing (put together in this book) reveals interesting things about our brains. As it turns out, we have 3 brains. Well, not really, but the brain does have 3 layers. Each layer has it’s own functions: the “New Brain” thinks, the “Middle Brain” feels and the “Old Brain” decides – it reviews input from the other two brains and controls the decision making process.

The ‘Old Brain’ is the part that humans (and it’s predecessors) have had the longest – like 160 million years or so. So the part of the brain that controls decisions is pretty primitive and mostly concerned with survival.

We’re usually trying to talk to the ‘New Brain’ – the sophisticated one – but it’s the brute that makes all the decisions, so we need to dumb it down. Here’s the formula:

Selling probability = Pain x Claim x Gain x (Old Brain)³

First you need to identify the prospect’s pain (the greater the pain, the higher the chance of sale) and make sure they acknowledge the pain before you start to sell them anything. Second, you’ve got to differentiate your claims from your competitors. The strongest claim is the one that eliminates the strongest pain.

Next you have to show convincing proof of these claims. The ‘Old Brain’ is resistant to new ideas and concepts, so your proof must be very convincing. Show tangible evidence, data, testimonials, case studies.

And finally – deliver to the ‘Old brain’. You need to start with a ‘grabber’ – something that really gets the  attention (‘if you’re selling fire extinguishers, start with fire’, like Ogilvy said). Second – the ‘Old brain’ is visual, hence start with a big picture.

Remember – the ‘Old brain’ is concerned with survival. So it only cares about itself and not anyone else. Your message needs to be entirely about the prospect.

Get the book to find out about all the other ways to push the right buttons in the brain.

Last but not least

You can find lots of good stuff from a book that is now freely available (as it was written in 1923) – Scientific Advertising by Claude C. Hopkins. Here’s the link to the free pdf download.

6 Ways to Make Your Own Luck BY NICOLE CARTER

While luck isn't an exact science, there are certainly ways to make yourself more open to opportunity. Here are six easy ways.

Many entrepreneurs believe their success is in part due to a little bit of luck-- that chance meeting with a potential investor or that dinner conversation that sparks a new idea. In fact, a new study by networking site LinkedIn found that 84 percent of 7,000 professionals they surveyed say they believe in career luck.

But let's face it: There isn't an exact science to luck. You can't predict it. However, there have been plenty of successful entrepreneurs, authors, and even researchers who've tried to map out just what makes someone lucky.

Here are a few of the top tips for cultivating your own luck. 

1. Be humble. Part of cultivating luck, writes author and venture capitalist Athony Tjan for Harvard Business Review, is increasing your influence. And the best way to do that is through cultivating something counterintuitive: humility. He added: "People can mistake humility for weakness and avoid it so as not to lose perceived power...You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you."

2. Roll up your sleeves. This seems pretty obvious to those who consider themselves lucky. According to the LinkedIn survey, a whopping 70 percent of those surveyed said a strong work ethic was the number one thing that makes someone lucky. But to work hard, you also have to be skilled. Nearly half of the respondents in the same survey said that skills were another contributor to career luck.

3. Be generous. Tjan also writes, "Never lose the spirit of generosity; instead, allocate it appropriately. Remaining a mentor to others, connecting with community activities, simply saying more 'thank-yous,' and doing more things without over-thinking the potential 'value-exchange' equation, is a pay-it-forward attitude that in the long-run usually pays off in spades. Plus, it just feels good to be generous."

4. Be ready. Good to Great author Jim Collins has said that if one cannot predict luck, the question to then ask is: "Do you have a high return on luck?" In a New York Times essay he revealed this concept using Bill Gates as an example. He wrote: "Thousands of people could have done the same thing that Mr. Gates did, at the same time. But they didn't...How many of them changed their life plans--and cut their sleep to near zero, essentially inhaling food so as not to let eating interfere with work--to throw themselves into writing Basic for the Altair? How many defied their parents, dropped out of college and moved to Albuquerque to work with the Altair? That’s not luck--that's return on luck."

5. Go with your gut. Who better than the late Steve Jobs to describe why trusting in your gut instincts may be the best way to ensure your luck in the future? In his famous speech to a graduating class at Stanford he said, "You can't connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something—your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life." Add to that, according to the LinkedIn survey, nearly half of the respondents said that "using your intuition" has been an important factor in their career luck.

6. Simply believe that you are lucky. A recent study from psychologist and University of Hertfordshire Professor Richard Wiseman found that simply believing you are lucky can create positive outcomes. He took two groups of people: one that considered themselves "lucky," and another that considered themselves "unlucky." He gave both groups newspapers and asked everyone to report back how many photos were in the issue as quickly as possible. The lucky people came back with the answer in seconds, much faster than the unlucky group. Why? Because on page two of the paper, there was an ad that read "Stop counting. There are 43 photographs in this newspaper."

Wiseman concluded: "Unlucky people miss chance opportunities because they are too focused on looking for something else. They go to parties intent on finding their perfect partner, and so miss opportunities to make good friends. They look through the newspaper determined to find certain job advertisements and, as a result, miss other types of jobs. Lucky people are more relaxed and open, and therefore see what is there, rather than just what they are looking for."

Raising Money On AngelList: 21 Tips From Two Active Angels

The following is the result of a collaboration between Ty Danco and Dharmesh Shah. Ty is an angel investor and startup mentor (you should be reading his blog). Dharmesh is founder and CTO of HubSpot, runs OnStartups.com and is an advisor to AngelList. [Note: All the smart useful stuff in the article is Ty, all the feeble attempts at humor are Dharmesh]

AngelList (AL) connects promising startups to a sterling network of early stage investors. AL has been getting a blizzard of well-deserved press of late after Venture Hacks released the networks 18 month statistics. But not a lot has been written for startups on how to best use the service. Here's our take in small, bite-sized pieces.

1. The Fundamentals Still Apply As Time Goes By

AngelList may be a game-changer, but most of the same rules are still in place. Angels still look for the same elements in a startup as always: a strong team; meaningful milestones; a differentiated product in a big potential market; capital efficiency and so on. Therefore, the excellent advice listed inOnStartups, Venture Hacks, AVC, Ask the VC, Both Sides of the Table, and the like still applies. What for now is unique to AngelList is the speed and efficiency with which they can harness an all-star network of active investors in front of a breathtakingly large, qualified stream of startups. Whereas B.A.L. (Before AngelList) you could mess up a presentation in front of an investor group and not worry too much (there's always another potential investor around the corner if you look,) putting in a half-baked effort on AngelList is a cardinal sin. First impressions count, so make sure you crush it!

2. There's a great primer already

"How to Hustle with AngelList", by Brendan Baker is the definitive how-to guide discussing how to make it onto AngelList, how to set up profiles, etc. It covers all the basic mechanics and throws in a few proven tactics. If you have time to read only one article on AngeList, that's the one.

3. Talk to People Who Have Had Success

With over 400 companies having raised money on AngelList in its first 18 months, this is easy. As Alex Cook of Rentabilities mentioned in this Boston Globe article, there's a learning curve involved, so make a point of talking to entrepreneurs who have previously used the site before you list. Who has been successful? Here are a few notable companies.

Quora has many dozens of questions on AngelList, as does OnStartups Answers and of course Venture Hacks, whose founders run AL. By the way, there is a high overlap between people who are active on Quora and the community of investors you want to attract.

4. Get a champion first

The first anchor investor is the hardest. Always has been, always will be. And for Angel List, it is important enough to be ranked #1 in Nathan Beckfords excellent post entitled Hacking Angel List. For instance, Rentabilities already was a winner of the 2010 MassChallenge, but they waited until they had won over Dharmesh as an investor/endorser before tackling Angel List. Nivi of AngelList will argue that it is not necessary to have a champion if one has a great team and traction, and he has several examples of this. But we respectfully disagree: just as your odds of success drop dramatically if you pitch to an angel group without already having a champion in the room, the same applies here. So don't launch prematurely. And, even if Nivi is right that you don't absolutely need a champion if you have enough traction and an awesome team, it can't hurt.

5. Don't wait too late in your rounds fund raise before you apply

Localmind is a company I invested in which had no trouble raising money, but they wanted to attract a few more angels with domain expertise and geographical diversity. Within days of listing on AngelList, they had identified 8 strong, deep-pocketed angels, all of whom could have strengthened the company. With only limited $dollars left in the round space left, they could only squeeze in 2. When I asked Lenny Rachitsky, the CEO about what he learned from the experience, he said he had wished he had started working with AngelList earlier.

Whens the best time? Others may disagree, but Id suggest getting your application in when your round is anywhere from 20% to 40% subscribed. With that head start, it should attract interest pretty quickly. If you get oversubscribed, thats a good problem to have.

6. Before launching on AL, mentally assemble your dream team of investors

If you cant dream it, you cant build it. Your ideal team may be 100% angels, you may wish to have some local micro-VC or it might be as simple as a pair of massive VCs and an industry insider. But rRegardless, the majority of investors should already have complementary holdings in your sector.

More importantly, assess what elements you need besides money, because the AL membership has their tentacles everywhere. Knowing what you need but dont yet have not only helps you get it, but it also sends a strong positive signal to angels that you understand your needs. Approaching investors who clearly dont invest in your sector is the telltale sign of a rookie.

7. Research the network, and target your angels

You can use filters to look for angels who have invested in your sector or in complementary companies. I invested in HealthRally because its CEO did just that and found me. While I don't always monitor the AngelList feed (just as you might not stay current with Facebook traffic or a Twitter stream), I got a very targeted letter from Zach Lynch, the CEO of HealthRally. He noted my investment in GreenGoose and other health tech firms, and then made the connection that one of the other GreenGoose co-investors, Esther Dyson, also had committed to HealthRally. Besides showing excellent progress to date on a shoestring budget, Zach demonstrated to me the type of targeted, "rifle not shotgun" marketing discipline that his company will need to land a few strategic partners and megaclients.

8. Get Personalized Intros

Ask all of the angels who are backing you to endorse you to their own followers. If they are not already on AngelList, ask them to sign on and do so. Helping syndicate a round is what angels do, and AL has found that personalized intros from an AL investor get opened far more than a generic profile. This is the original angel skill, (after all, Howard Lindzon calls his fund "Social Leverage" for a reason,) but now it's so simple it can be done to all of an investors AL followers with one mouse click. Using the Rentabilities example, Dharmesh has many people watching his recommendations, and when he gave the company a thumbs up, more than 100 people followed the company, and over 30 asked for introductions. Clout (and Klout) matters.

9. Spend a few calories (and maybe dollars) a good name.

For many of you, AngelList might be one of the biggest initial exposures your startup will have. And, theyre some very powerful people. Its worth spending a little bit of time and energy getting it right (it gets harder to change it later). This is particularly true if you have a consumer (B2C) startup. I guarantee you that folks like Jason Calacanis care a lot about your brand and domain name. I do too. Here are some quick tips on naming a startup. Dont obsess over the name, but its worth investing a little time on this.

10. A video is worth 1,000 slides

No one can tell your story better than you. Make a short killer, video and include it in your profile. I made my first AngelList investment in UpNext after I saw the link to the companys interview on Untethered.tv. If you can, include one. Especially if it can showcase a quick demo.

11. Get your website right first

This should be obvious. Even if you just have a well-done landing page with a good design and a good URL name, it's a plus. Every angel is going to click through, and most won't go further if your website sucks.

12. Remember Inbound Marketing, baby!

Yeah, I know that going through AngelList qualifies as traditional outbound marketing, but sophisticated angels will check on their own to assess your knowledge of the basics. Do you show up in Google search results at all? Do you have mentions in social media? Do you own the company name on twitter and have you tweeted recently? Do you have followers? Do you have an engaging blog that tells your story and has a point of view? Have you checked out your traffic graph on Compete.com and made sure its pointing in the right direction? Face it: AngelList exists because of the Net. You may be able to get away with a sloppy web presence and strategy at a traditional angel group presentation, but that won't fly with the AngelList crowd.

13. Advisors are huge.

Social proof is hugely important in Angel List. I invested through AngelList in Saygent. Why? Not only did I like the schtick, I really liked that they had sought out and won Sid Viswanathan (co-founder ofCardMunch and a master at using Mechanical Turk) as an advisor. Currently Im doing due diligence on a company which landed Jason Calacanis as an advisor. Having an advisor like Jason, who is an indefatigable promoter of his portfolio companies (via his interests in the Launch Conference, Open Angel Forum, and This Week in Startups, he sees a TON of companies), shows instant credibility and is a harbinger of future success.

14. Clearly list your price

If you haven't figured out what you want to raise at what valuation, do so now. If you're going to raise convertible debt (although I'm personally not a fan,) say what your cap is going to be. There's no upside in wasting both your time and that of the investor if you're asking a price where the investor is unwilling to go. If you're unsure and you haven't already figured this out with the anchor investor, the AL team can help point to some comparables. Speaking of comparables, if this is your first startup and you're a rookie, try not to over-reach with respect to terms. Just because everyone you talked to so far thinks you are brilliant and your idea is spectacular, don't push for a really high cap on your convertible note. Going from a $4 million cap to a $8 million cap might seem like a 100% increase in valuation, but the math doesn't work that way. Such a move might decrease the number of investors interested in your deal.

15. Use a standard termsheet

Resist the temptation to introduce clever, non-standard terms into the termsheet — even if you think you can get away with them. Two reasons for this: 1) You'll come off as naive or greedy. 2) Even if you somehow manage to sneak these in now, you'll have issues when you need to do your next round. Save your creativity for your product and keep your termsheet clean. If you need an example, you could do worse than the standard financing docs that Y Combinator provides. But, there are others. Ask around.

16. Be ready to pitch on short notice via videoconferencing

This could be via Skype, Gmail video chat, Go2meeting, etc. But you should have perfected all of the logistics and have accounts and slide share materials ready on quick notice. With investors no longer being local, you need to find ways to let them see you and your pitch. Insider secret: Some investors have found a strong pattern that suggests entrepreneurs that respond to late night emails quickly have an edge over those that don't. Lets save the “but work-life balance is important” debate for another article. Meanwhile, you better be working your butt off.

16. Think one round ahead.

Listing on AL now will give you a giant head-start on your next round, as investors who aren't ready for this round may step up for next round. As Mark Suster says, VCs invest in lines, not in dots. Establish the connection for the next round now, and rethink if there are others you may wish to add to your initial target list.

17. Use the AngelList team

Who is more wired in than Nivi and Naval? Who's seen more pitches and knows what works? Once they accept you, get their advice and give it great weight.

18. Know how investors will use AngelList

Here's a similar list of techniques investors use that work especially well via AngelList.

19. Get your backers to register on AL

You want them to comment on you and endorse you. Any angel should volunteer to do this for the good of the company, and they get to build their brand too.

20. Don't game the system

You're smart and love to hustle. We get that. You should do all manner of hustling to make sure your startup gets the visibility it needs. But, don't abuse the community or take advantage of it. It's ashared resource. Just like you, there are many other entrepreneurs looking to connect with great investors on AngelList. Many of them are just as deserving. It's fine to stand-out, but make sure you are adding value to the group, not taking away from it.

21. The best thing you can do is get traction

You should invest time in your fundraising process — it's important. The basics don't take that long. But, don't get too obsessed. Your primary goal is to build a business not build this phenomenal profile and network on Angel List. The most helpful thing you can do to get the right angels on board is to make measurable, meaningful progress with your business.

I'm sure a few of you that are already in the Angel List process are likely reading this.  What other tips would you like to share with the community?  What questions do you have that haven't quite been answered yet?  

Posted by Dharmesh Shah