The Science of Closing Deals in 5 Simple Steps
How Understanding Buyer Psychology Can Boost Your Success
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“How did your negotiation go?” I asked, curious despite his expression saying it all. We were sitting in Vienna yesterday, rain pouring as if the world was ending. For him, it had ended days ago. His dreams, shattered.
“They rejected us. We have the perfect solution, but nobody wants to invest,” he said, sounding defeated, not realizing he was repeating the same mistake.
Whenever someone shows interest, he overwhelms them with data and pressure, demanding a quick commitment.
Is it surprising that VCs don’t come back?
Deal-making isn’t about force-feeding a solution; it’s about understanding human psychology.
In this article, I’ll uncover the common misconceptions in deal structuring, walk you through the steps from first contact to closing, and back it up with scientific studies and real-world examples.
Let’s dive in.
The Common Misconception in Deal-Making
One of the most memorable scenes in A Beautiful Mind is when John Nash attempts to woo a woman with pure logic.
He bypasses any charm or small talk and bluntly says,
“Can we just get to the point?”
Her response?
A slap and a swift exit. (link to the scene on Youtube at the end of the article)
Many deep-tech entrepreneurs make the same mistake.
“I have the technology. You want to invest. Here’s my bank account. Wire me a billion, please.”
Logical, yes.
Effective?
Absolutely not.
Why? It completely overlooks human psychology.
Humans need time to build trust, to feel that their needs are understood, and to perceive your solution as a perfect fit for their problem.
Especially in high-stakes B2B sales, it’s not enough to present a product or service. Buyers go through a psychological journey that requires careful navigation at each stage.
Closing a deal isn’t about the hard sell; it’s about nurturing trust, likability, and urgency in the right order.
Research shows that following this structured approach can dramatically increase your success rate.
Expecting to meet a VC once and walk away with a big check in your briefcase is unrealistic.
It sets you up for disappointment and frustration. The same goes for consultants who think one call will seal the deal.
Both cases need a build-up phase, especially when the parties haven’t established a prior relationship. An introduction might help, but it doesn’t replace the necessary groundwork.
Let’s walk through the phases together and avoid being a “John Nash” in deal-making.
Understanding the Psychology of Deal-Making in 5 Steps
Closing a deal, particularly in B2B settings, is more than just a transactional process — it’s rooted in well-established principles of psychology and behavioral economics.
Each stage of the buyer’s journey is shaped by factors like
familiarity,
trust, and
perceived value.
To avoid the pitfalls of a “John Nash” approach and succeed in deal-making, it’s crucial to follow a structured process.
Here are the five steps I find most effective for guiding potential clients from initial contact to a successful close.
Step 1: Get to Know You (Awareness and Exposure)
The first step in any deal is simply getting to know the other party, and this is where psychology offers valuable insights.
The mere exposure effect (Zajonc, 1968) shows that people tend to develop a preference for things or people they’ve been exposed to repeatedly.
In deal-making, building familiarity through consistent engagement, whether through networking or thought leadership, sets the stage for trust.
VCs, like any buyers, need time to warm up, so repeatedly engaging with them helps shift the dynamic toward a positive outcome.
It doesn’t make much sense to engage in deal discussions without being perceived as familiar.
That’s why social media plays a key role in today’s world. Once someone gets to know a person and thinks there might be something, they get curious.
For instance, if you bump into someone at a conference, social media can leverage that process.
Having a strong presence increases the likelihood that another person recognizes you already. Or, remembers you when they see some of your videos and posts.
Major B2B players like IBM and Deloitte use consistent content and thought leadership to build familiarity long before a deal is on the table, paving the way for smoother negotiations.
Key Takeaway: Always start with getting to know people first, working on understanding what they need. This is not about you, it is about them. Listen, ask questions, take notes. Manage your expectations at conferences accordingly. It is not about making deals, it is about understanding people and the industry better.
Step 2: Likeability (Building Trust and Connection)
Getting to know someone is one thing.
Sometimes, though, you might wish you hadn’t.
Remember John Nash’s awkward bar scene?
He skipped over basic human connection, and it didn’t end well.
After his approach in the bar, how do you think the woman felt? Given the slap, we can safely assume she didn’t like him much.
In deal-making, even if you have the best solution, people want to work with those they like.
It’s as simple as that.
Likeability is key.
Simple habits like dressing well, being groomed, having good manners, showing gratitude, and smiling can make a huge difference.
Research by Fiske, Cuddy, and Glick (2007) highlights that perceived warmth and competence are crucial for building trust. Cialdini’s liking principle also shows that people are more likely to do business with those they genuinely like.
Leaders like Richard Branson and Elon Musk actively cultivate their personal brands, leveraging warmth and likability to strengthen their business appeal.
Many modern leaders use social media to elevate their brand, compliment others, or share valuable content — all of which enhance likability.
Key Takeaway: Be a kind person and show some manners. Don’t criticize everything at a conference — complaining about the venue, weather, or people doesn’t help. And don’t pitch slap people. Don’t be a John Nash.
Step 3: Perceiving You as Solving Their Problem (Positioning Your Service)
Congratulations!
If you’ve diligently followed steps 1 and 2, your Rolodex — yes, the classic one that collects paper business cards, like the one shown in the picture — is steadily expanding.
This growth indicates you’re on the right path. However, there’s a crucial challenge to address:
having a large network of contacts is valuable, but it’s not enough to ensure success.
To turn these connections into tangible business opportunities, you need to position yourself effectively as the solution to their specific problems.
Simply having names in your Rolodex won’t automatically translate into deals. You must actively engage with your network in a way that aligns with their needs and pain points. This is where the concept of problem-solution fit comes into play.
Consider how B2B SaaS companies like HubSpot or Salesforce offer free trials to get customers initially committed to their service.
By allowing potential clients to experience value firsthand through a small, risk-free step, they create a sense of commitment.
As a result, these clients are more likely to upgrade to higher-tier services later. This strategy embodies the commitment and consistency principle, where securing a small initial agreement significantly increases the chances of a larger commitment down the line.
For fundraising companies looking to engage with investors and industry partners means are:
white papers
newsletters
podcasts
social media posts
Nurture your contacts to elevate your perception.
The buyer’s journey includes three stages:
awareness,
consideration, and
decision.
At the consideration stage, the buyer is actively researching solutions to their problem. Your goal is to position your service or product as the best possible solution.
By leveraging the commitment and consistency principle, you can guide potential customers through this journey.
If you can get them to take a small step — such as signing up for a newsletter, downloading a resource, or agreeing to a meeting — they are more likely to engage with your core offering later on.
This approach, supported by research from social psychologists Freedman and Fraser (1966), shows that people who agree to a small initial request are much more likely to agree to a subsequent larger request.
This “foot-in-the-door” technique helps build trust and commitment, making it easier for your contacts to see you as a solution to their problems when they reach the decision stage.
Key takeaway: In practical terms, this means nurturing your network by consistently providing value, such as insightful articles, relevant case studies, or exclusive invitations to events. These small engagements build a foundation of trust and commitment, making it easier for your contacts to see you as a solution to their problems when they reach the decision stage. And this is the hard post conference work that someone needs to do — aka follow ups.
By effectively positioning yourself as the problem-solver in your network’s buyer’s journey and leveraging the commitment and consistency principle, you’re not just growing your Rolodex; you’re turning it into a powerful tool for business development and deal-making.
Step 4: Negotiating the Deal (Details and Urgency)
Now you’ve reached the critical stage:
Negotiating the deal.
When people recognize that your solution is relevant to their problem, they enter the right emotional state to consider a deal. Signs of this readiness often include questions about terms and conditions.
So, preparation is key because a lot can go wrong at this stage.
Remember John Nash?
What would he do in a negotiation?
Most might think it’s as simple as:
“Now that you want the product, sign here, wire the money, and I’ll deliver the goods.”
But in reality, it’s not that straightforward. People have diverse negotiation styles and mindsets.
Some might even push for a free deal — not because they expect it to happen, but because they want to test the boundaries. Others might need to reconfirm their decision multiple times before committing.
Understanding and adapting to these different styles is crucial.
You need to go with the flow, addressing objections in a kind and friendly way. Jumping straight to closing the deal without acknowledging their concerns can seem abrupt and may cause them to back out.
Instead, this stage requires a blend of assertiveness and empathy.
For example, introducing a sense of urgency by mentioning that the product is scarce or that a special offer is available only for a limited time can help nudge them toward a final decision.
This approach taps into the scarcity principle, which posits that people assign greater value to things they perceive as limited in availability.
The scarcity principle, as demonstrated in a study by Worchel, Lee, and Adewole (1975), shows that people place higher value on items that they believe are scarce or exclusive.
When potential clients perceive an opportunity as unique or fleeting, they are more likely to act quickly to secure it.
This psychological trigger can be a powerful tool in closing deals, especially when paired with genuine urgency and limited-time offers.
Consider Tesla’s approach to launching limited-edition models.
The exclusivity of these launches, often paired with early-bird discounts, creates urgency and drives quick decisions from buyers.
This strategy accelerates the buying process and closes deals faster, capitalizing on the heightened perceived value of the limited offer.
Key Takeaway: At this stage, you’re not trying to sell something unnecessary at a high price. Thanks to the entire process, you’re talking to people who have a real problem and have realized that your solution is valuable for them. All they need is that final nudge over the goal line. Combining empathy, adaptability, and a sense of urgency can help you close the deal effectively.
By mastering the art of negotiation and understanding psychological triggers like the scarcity principle, you’re better equipped to convert potential clients into satisfied customers, ultimately making your Rolodex not just a list of contacts but a network of meaningful business relationships.
Step 5: Closing the Deal (Commitment and Payment)
John Nash started with closing the deal and completely neglected the first 4 steps.
This final stage is where all your previous efforts culminates and not the starting.
It aligns closely with the commitment and consistency principle. By now, your prospects have engaged with you through various smaller steps — reading your content, attending meetings, or signing up for a free trial.
Each of these actions has strengthened their commitment, making them more likely to follow through and close the deal.
Once a series of smaller, affirmative decisions have been made, the big decision to purchase or commit becomes almost a natural next step.
To make sure we are on the same page: These steps are not designed to talk someone into buying something they don’t need.
These steps help separating contacts who don’t need your solution from contacts who need it.
Behavioral economics and decision-making research by Thaler and Sunstein (2008) supports this concept.
Their work shows that people in need are more likely to follow through with actions they have already committed to, especially when the commitment has been built gradually through a series of smaller agreements.
This is the essence of their “nudge” theory, which suggests that structuring decisions in a way that leads people toward a desired outcome can significantly increase follow-through rates.
Consider subscription models like those used by Adobe and Netflix. These companies initially engage potential customers with low-risk free trials. Once people have committed to trying out the service and have experienced its value, they are much more likely to continue with a paid subscription. This gradual commitment process results in long-term customer loyalty and recurring revenue, while keeping people who don’t perceive the service as valuable away.
Key Takeaway: The final step in the deal-making process is all about consolidating the commitment your prospects have built up. At this point, the decision to close the deal feels like a natural progression. By understanding and leveraging the commitment and consistency principle, you can create a seamless and positive experience that not only closes the deal but also lays the foundation for long-term relationships.
How to Apply This Science to Your Deal-Making
Incorporating these psychological principles into your sales process ensures a natural progression from awareness to a closed deal. Here’s a step-by-step guide for applying them:
Awareness (Get to Know You): Build visibility through content marketing, networking, and consistent communication. Use social proof, case studies, and endorsements to establish familiarity before formal sales conversations.
Build Likability (Trust and Connection): Develop relationships based on shared values and goals. Personal connections matter — listen and understand the client’s concerns.
Position Your Solution: Present your service as the ideal solution. Use social proof to demonstrate your authority and track record.
Create Urgency (Negotiation): Frame your offer as scarce or time-sensitive. This prompts quicker decisions and highlights your solution’s value.
Close with Confidence (Commitment): As clients progress through these stages, their commitment grows. The final conversation should feel like a natural conclusion, not a hard sell.
For consumer goods, marketing science shows that brand repetition shortens decision-making.
In B2B sales, where stakes are higher and evaluations more complex, trust, authority, and value perception are crucial, as supported by Sheth’s research (1973).
This framework is particularly effective for navigating the complex buyer’s journey in B2B contexts, where decision-making often requires extensive trust-building, problem identification, and multiple touchpoints before a deal is closed.
Start Closing Deals with Psychology on Your Side
If you’re ready to close more deals and maximize the value of your services, it’s time to put these psychological principles into action. By understanding your client’s journey and using these strategies at each stage, you can guide them toward a confident ‘yes.’
Final Reminder: Mapping out the buyer’s psychological process — from familiarity to urgency — shortens the time to close and increases your chances of success, especially in complex B2B sales. Use these insights to turn potential contacts into long-term business partners.
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