mediocre businesses outselling psychology

Why Mediocre Businesses Are Outselling You: The Psychology Behind It

joel_comm
By
Joel Comm
Joel is a New York Times Best-selling author – focused on cryptocurrency, marketing, social media and online business. An Internet pioneer, Joel has been creating profitable...
7 Min Read

I recently watched a fascinating video by marketing strategist Adam Erhart that left me wondering why so many average businesses consistently outperform better ones. It’s a frustrating reality many of us face in business – watching less talented competitors get all the clicks, customers, and cash despite offering inferior products or services.

The answer isn’t that these competitors are smarter. They’re simply tapping into powerful psychological triggers that make buyers say “yes” instantly – often without even realizing they’re doing it.

What truly separates successful marketers isn’t fancy tactics or tools – it’s understanding how the human brain makes decisions. As Adam points out, our brains haven’t evolved much over the last 10,000 years. While technology has advanced dramatically, the way we evaluate opportunities and threats remains largely unchanged.

The Marketing Hierarchy That Changes Everything

Most business owners focus on the wrong things. They obsess over tricks and tactics – when to post, what colors to use, or which trending audio to include. But this approach is fundamentally flawed.

The marketing hierarchy Adam presented shows why some businesses thrive while others struggle:

  • Level 1: Tricks (posting times, colors, trends)
  • Level 2: Tools (platforms, software, systems)
  • Level 3: Tactics (specific campaigns or approaches)
  • Level 4: Strategy (cohesive plans with clear goals)
  • Level 5: Psychology (understanding human decision-making)

We all start at the bottom with tricks, but the real money is made at the top. When you understand the psychology driving decisions, everything else falls into place naturally.

The Hidden Forces Driving Customer Decisions

Our brains use mental shortcuts (heuristics) to make decisions quickly without overthinking. These shortcuts happen subconsciously and instantaneously – and they’re nearly impossible to resist even when we know they’re happening.

Take the anchoring effect, for example. If you see a $27 coffee on a menu, suddenly a $5 coffee seems reasonable. This works even when you’re aware it’s happening! This is why smart businesses always lead with higher prices first.

Another powerful principle is the mere exposure effect – we tend to like things simply because we see them often. This explains why increasing touchpoints with potential customers dramatically improves conversion rates. The businesses beating you aren’t necessarily showing up once brilliantly; they’re showing up consistently.

The Persuasion Path Most Businesses Miss

Adam outlined a seven-step persuasion path that transforms marketing effectiveness:

  1. Pain – Acknowledge their problem and its full impact
  2. Hope – Show that solutions exist and they’re not alone
  3. Vision – Paint a picture of what’s possible
  4. Belief – Demonstrate they personally can succeed
  5. Proof – Provide evidence through testimonials and case studies
  6. Plan – Offer a clear path forward
  7. Reward – Show the transformation waiting on the other side

What struck me most is how few businesses complete this sequence. Many jump straight to their solution without establishing pain or building belief. This explains why even great products often go unsold – the psychological groundwork hasn’t been laid.

The Status Game You Can’t Afford to Ignore

Perhaps the most crucial insight from Adam’s presentation was about status. We are fundamentally status-seeking creatures, constantly evaluating where we fit in the hierarchy.

Your customers will never buy something that decreases their status. This explains why the same product (like a minivan versus a sports car) can be status-enhancing in one context and status-diminishing in another.

For a parent dropping kids at school, the minivan signals responsibility and care – status-enhancing. At a marketing conference, that same minivan might lower status, while the flashy sports car elevates it.

This explains why some businesses with objectively better products still lose. If their marketing doesn’t clearly show how the purchase enhances status within the customer’s specific tribe, it won’t matter how good the product is.

The Buyer Timeline Most Businesses Ignore

Adam shared a crucial statistic that changed my perspective on marketing: at any given time, only 3% of your market is ready to buy right now. Another 10% will buy within 30-90 days, while a whopping 87% will buy later (90+ days out).

Most businesses focus exclusively on that 3%, essentially flushing 97% of potential revenue down the drain. The competitors beating you likely have systems in place to nurture relationships with the 97% who aren’t ready yet.

This explains why consistent content creation and follow-up systems are so crucial. The businesses winning aren’t necessarily better at closing sales – they’re just talking to many more potential customers because they’ve been nurturing relationships for months.

Putting Psychology to Work in Your Marketing

After watching Adam’s presentation, I’m convinced that understanding these psychological principles isn’t just helpful – it’s essential for business success today.

The good news is you don’t need to manipulate anyone. These principles work because they align with how humans naturally make decisions. Using them ethically means helping customers make good choices by presenting information in ways their brains can easily process.

Next time you’re creating marketing content, ask yourself:

  • Have I acknowledged the full pain my customer is experiencing?
  • Does my offer clearly enhance my customer’s status within their tribe?
  • Am I building enough touchpoints to leverage the mere exposure effect?
  • Have I created systems to nurture the 97% who aren’t ready to buy today?

The businesses outperforming you aren’t necessarily better – they’ve just mastered the psychology of decision-making. Now that you understand these principles too, you can finally level the playing field and start winning the customers you deserve.

Share This Article
Follow:
Joel is a New York Times Best-selling author – focused on cryptocurrency, marketing, social media and online business. An Internet pioneer, Joel has been creating profitable websites, software, products and training since 1995.