What? You didn't know that? If you truly want to succeed in business, you need to learn and understand how using psychology can set you apart from rest of your competition and take your business to next level.

Psychology can be applied to all aspects of your sales and marketing efforts and will give you that all important "edge" over your competitors.

When you write an ad or sales letter, seek first to understand, then to be understood. In other words, first strive to understand what's going on in readers mind, and attempt to allay any fears or doubts.

When you do this, reader will have perception that you understand and care about him and he in turn will begin to care about and understand you--thus greatly increasing your chances for making sale.

People desperately want to feel cared for and understood more than anything else, and businesses that understand this vital pyschological factor will gain a major advantage over their competitors.

Also, when writing your marketing materials, bear in mind, people respond more to what they are going to lose than to what they are going to gain. It's called "fear of loss."

Ask yourself: What will my customers stand to lose if they do not buy my product or service?

In your sales letter, mention to your readers that it will only take a few minutes, to show them how they can benefit from what you're offering. This will mentally slow them down and partially alleviate any hesitation on their part.

In addition, reward them for taking time to read your letter. Offer to give them a free gift. For example: free reports or gift certificates work extremely well as freebies. Why? Because they're low-cost with a perceived high value--and perception is reality. Did you know you can increase your sales by using pictures of attractive people using your product or service? It's true.

Why is this? Well, first of all, it humanizes your product or service and prospects perceive you to be more professional and trustworthy. Again, perception is reality.

Secondly, people like looking at attractive people. Big business has known this for years. Just look at how attractive those people are in magazine ads and on television commercials.

You can also use this knowledge to your advantage on your business cards, brochures and website. This is especially true for small "mom and pop" businesses. If you're reasonably attractive, always include your photo on your website and marketing materials.

The reverse also holds true. If you're not attractive, you're better off not using a picture. You risk losing customers and turning people off. The same rule applies if you're a minority. You're better off not using your picture, regardless of how attractive you are.

You can do this by creating what's called an Unique Selling Propostion or USP and then effectively convey that USP to your target market via your marketing efforts and business performance.

This is particularly crucial if you're operating in a highly competitive market.

What Is An Unique Selling Propostion?

Your USP is one thing or idea that sets your business favourably apart from your competitors'. It's a statement of Advantages you bring to your customers that differentiate you from your competitors.

It's focal point around which success and profitability of your business is built and so you must be able to state it and fulfill it honourably and effectively. It's always stated in terms of benefit it delivers to your customers.

Think about this:

"What's one thing that makes your business unique and distinct? Why should people buy from you and not from your competitors? Do you promise great value, benefits or service?"

Advantages could include factors like a broad range of product selection, superior customer service, highest quality, best prices, and so on.

Effective USP Components

When formulating and implementing your USP, it's crucial that you bear in mind following components:

1. Your USP must be truly unique

2. It must be strong enough to excite your target market and get them talking about it.

3. It mustn't be easily imitated or copied.

Look, anybody can claim that they provide best service in town - "We're The Number One Service Provider In America". Do you think this is credible? Of course not, people can see right through it; it's lukewarm and is an empty promise because you can't measure it and you can't hold them accountable. USP such as this can in fact harm your business instead of helping it.

Your USP really needs to pack a punch.

Now, let's take a look at good example:

"Your Parcel Delivered To You The Very Next Day, or It Costs You Nothing!"