Human Nature Will Never Change. And. How to Profit From It.

Back in 2012, we used to believe that giving out the truth would lead to more competition. That people would wake up, realize their mistakes and take action. After realizing this belief was wrong we started writing here as a hobby (originally to troll the internet which later changed). The reason for this? Human nature will never change. You’re not supposed to use words such as “never” and “will”… But. We don’t care because it is the truth. At the end of the day people are simply animals and the vast majority will fall into the same traps over and over and over again. Fixing a person from the inside out takes a lot of time, effort, thinking and will power. All items that the typical person lacks.

Human Nature and How to Profit off of it.

Unwilling to Take Action: Pick me up motivational seminars will be around for decades. This is a natural human flaw. 95% of people are unwilling to take action and people get emotionally charged when watching ridiculous things from a Michael Jordan commercial to a Tony Robbins seminar. This is why 95% of people will never succeed. They need someone else to get them to do work. This is also why 95% of people want to be employees and believe it is “less risky”. This is the biggest lie ever sold.

Since we know this human flaw will exist as long as we are alive (at least the next 100 years) we should take advantage of it. If you have a business it will be easy to hire employees and underpay them. You can justify underpaying them by treating them nicely (the exact reverse of most business models). Since you know that they don’t have the capacity to work for themselves you can pay them below market but tell them they are amazing employees. This reduces churn and you get to increase your profit margins. Importantly, if you think this paragraph is “mean” this is exactly how the top companies operate. Even the biggest most important companies will fire a person instantly if they break this mold of higher profit margin per employee. Big companies are fixated on profitability and protecting operating margins.

Obsession with Homeruns: People will constantly flock to anything that could be a “life changer”. This means any investment vehicle that has wild swings up and down (they will ignore the underlying fundamentals). If you see any large cap stock, crypto currency or real estate market suddenly go up 100%+…. You’ll begin to hear “stories”. They are all the same. Some guy someone knows gets rich off of the space and suddenly everyone is interested in investing tons of money into it. We have gotten to a point where people will focus on “what happened to the price” instead of asking “why did the price move”.

This is yet another human flaw and is why the lottery exists. It is the same concept. Any “chance”, no matter how slim, will attract humans looking for some sort of immediate solution to their lives. The answer of course is to start a casino if you can. If you cannot start a casino the next best thing is to sell things such as sweepstakes and contests. Set up the sweepstakes such that you’ll never actually lose. For every $100 that come in say $98 go out. People will sign up. They believe in luck instead of creating it themselves.

Need for a Quick Fix: Building on the items above, since we know humans are unwilling to fix things themselves and are in love with “quick riches”… we can surmise that they are also quite interested in “quick fixes”. This is why the skin care, diet and testosterone boosting industry are all alive and healthy. These industries target massive pain points since the typical person is not in shape. They will look for “remedies” for their fat loss, their muscle gains and their deteriorating skin. As our readers know, there are no quick solutions to any of these since they are all solved internally.

Now onto the more important part, since people are searching for quick fixes you should sell products that do work *temporarily*. Anything that will slightly help them will be seen as a godsend. Telling someone to overhaul their diet, exercise and work routine is just not feasible so go ahead and sell Band-Aids instead. As long as the Band-Aid works and helps stop the bleeding you’ll get rave reviews. If you don’t believe Band-Aids will work we’ll go ahead and pose a question “What would you call the cosmetics industry?” Billions of dollars are spent on products that temporarily help the appearance of women. Cosmetics do not improve skin (in fact they cause damage in most cases) and yet look at the sales. If we really want to open Pandora’s box, ask yourself… is the fashion industry there because people want to look better without actually changing their bodies? You know our answer to that one.

They Are Never Wrong: Now you’re probably wondering, well all of this stuff makes sense but wouldn’t they eventually realize they are wrong and take action? Not to worry! They won’t. Why? Well they are never wrong. Instead of sitting and thinking most people backward rationalize all of their decisions. If they buy a motivational book and do five push-ups the next day because someone inspired them to do so… they’ll think the purchase was worth it. This is how the human brain operates. Since they are never wrong, once they’ve been sold on one purchase of a meaningless product they’ll justify the action later.

Since we’re getting into more complex territory here is how it would work from a money making perspective. We know people don’t want to do anything by themselves. If they try and fail then their ego is destroyed and they can’t have that. So… how do you make money from it? Well your average person is going to ask for a lot of “help” and by help all you need to do is figure out what they want to do anyway. They don’t want help they want to justify what they have decided they are going to do anyway. So you repeat this back to them. If they succeed they’ll remember you as the supportive guy. If they fail… then you can help them rationalize by saying “it was the right risk adjusted thing to do it just didn’t work out”. Under no circumstances do you give them an actual opinion or any advice. If you operate like this in your everyday life you’ll notice that you have a ton of people who believe you’re a great guy. And. All you did was tell them what they wanted to hear.

They Have Minimal Diversity in Skills: Continuing to build on all of the above, since human nature is to value “stability” which they believe revolves around working for another person (a job) the typical person will have minimal skill diversity. They will be pigeon holed into a single set of niche tasks that may or may not be useful in the future. This is an important distinction because we’re not saying that people should juggle tasks. That also leads to failure. Instead one should focus on a single broad direction and learn all of the necessary tasks involved. Why? Well we can’t think of a single business that operates with only one person for sales, product development, supply chain management, etc. The CEO or head of the company will certainly be well versed in the majority of those tasks.

Now to the making money part. Since most people will rely on one source of livable income, you already know what we’re going to say, you’ll need several. Having one source of income that pays for all of your expenses is like putting your entire life into one stock. It’s just not smart. We’d say a good starting point is around four streams of livable income. If you have living wage coming from say 1) real estate, 2) your career, 3) your online business and 4) stocks/bonds… You’re in good shape. If you only have a career/job… you’re essentially in emergency mode. Now, if you want to hear the cynical side as well, you can also use the minimal skill diversity to improve automation. As we move into the future process oriented jobs will be taken over by AI (this has already happened and anyone in online sales knows exactly what we’re talking about). If you’re looking to cut costs and run a large team, you’ll try to make a process out of each group. Once it’s a process just have AI do the rest and cut the piece that has now been automated. If people believe the prior few sentences were “bad” this is how the majority of billionaires will operate over the next several years. Remember in any large company people are just line items and the goal of the managers is to cut that line-item without hurting the top-line… Use AI.

Three Ways to Save Time

We’ve now given away five ways to profit off of human nature knowing that people are: 1) unwilling to take action, 2) are drawn to big moves, 3) are looking for quick answers to problems, 4) believe they are never wrong and 5) lack skill diversity. The more important part is how to save time. Time is more important than money and knowing human nature will save you a lot of headaches. We cannot change human nature so the next best thing is to save time.

Changing an Opinion: No point here. Unless someone is completely new to a topic there is no point in changing their opinion. It won’t happen and if you’re right they will simply dislike you because their ego took a hit (you were right and they were wrong). This is not a good way to win at life. Instead of trying to change opinions make a decision on if the person has already made a strong opinion. This is the real trick. If someone is 100% new to a topic then feel free to provide an opinion. If they already have an opinion, just agree with it and take their side of the argument. Besides. In order to have your own strong opinion you should be able to argue the other side with ease… This will save you a large amount of time and we can’t over state that enough: 1) figure out if they have a strong opinion – takes a few minutes, 2) then decide to either agree *or*give an actual opinion (if they have an opinion just agree). In addition, if you read this paragraph and disagree, we think you have a good point and things aren’t black and white so there are definitely grey areas (see if you catch the joke).

The Never Ending Search: In our book, Efficiency, we covered practically every major scam there is from “T-boosting” pills to magic brain pills that make you smarter to affiliates to gym advice etc. The reality… people will *still* look for magic tricks! You can spell it out and even teach them how to spot the scams and they will still fall for it because they are driven by emotion. So when someone comes up to you with some new “fad” just agree with them. If someone wants to do cross fit and injure themselves don’t tell them the truth. Tell them it’s cool they are “getting out there to try and experience something new”. This is probably the best phrase to use. “It’s all about experiencing different things, just get out of your comfort zone!” and other such cliché phrases. This will make them feel good and you won’t have to explain that they are on a never ending search for things that don’t exist. As always logic doesn’t sell so save yourself the time and get used to that standard line!

Find the Flaw and Ignore the Advice: If you find a guy who thinks he has it made, be careful. Most guys with money fail in many other categories. Don’t take fitness advice from the overweight guy with $10 million dollars. Sure he made money, but he sure doesn’t know anything about fitness. Similarly, you wouldn’t take dating advice from a guy with an overbearing wife or someone you would never talk to in a social setting yourself. So on and so forth. This will save you a lot of time. Since we know most people only succeed in one category (niche) you’ll tell them you want “advice in the other categories” to boost their ego and eventually work your way into the information you want. As they say tell an overweight guy you think he lost weight since last time you saw him and tell a smart nerdy guy you want dating advice. Once rapport is built you’ll all set to get the more valuable information.

For the newer readers… if you’re interested in learning more about making money, staying in shape and doing so without choking off your personality… You’ll probably like Efficiency, Get Rich Without Giving Up Your Life. The benefits include:  1) How to get into the top 10% physically with one hour a day of exercise; 2) How to eat correctly to be in the top 10%; 3) How to figure out what type of intelligence you have; 4) How to use this type of intelligence to choose a career and the *right* company: Wall Street, Technology or Sales; 5) How to start an online business and sell (the basics and all you need to start); 6) Clear outline of how to create and start an online product business with correct copywriting; 7) How to go into affiliate marketing if someone wants to take a stab at the competitive space; 8) Overview of how affiliate marketing operates and how to do it, 9) How to do all of this and maintain a normal social life (avoid choking off your personality).

Comments

  1. AC says

    “They Are Never Wrong” this is very true in many cases and I just can’t get my head around that.

    How is it possible even where it’s obvious they are wrong? (rhetorical question)

    Funny thing, even the nerdiest people who run a successful business in the millions will start believing they are an expert in everything because their employees will listen with attention and nod in agreement because they are sucking up!

    Human nature is funny

      • Samuel says

        Lmao! This reminds me of those articles that came out a few years ago praising Steve Jobs and Barack Obama for the same reason. My brain has such limited decision power, better wear the same thing everyday to save my energy!” (proceeds to waste day *feeling* smarter than peers).

        What a Joke.

  2. Brent says

    I find it really easy to influence other people’s actions and how they live because most don’t learn and try enough skillets and activities things so they remain the same forever.

    The more academically intelligent people might not have much real word practical intelligence but they are more open to ideas and it’s easier to change their mind and influence how they live which makes it easy to have someone do what you want either for your benefit or for the both of you.

    Also yes it seems that just by using a few words, without any demonstrated proof you can emotionally influence the average person with big ideas to hop on board if you tell them about the big rewards that could possibly ensue.

  3. says

    They are never wrong. Doesn’t matter. Never. You can show them proof+proof and they will never be wrong. I simply cannot understand how a person can be so dumb and fall for simple traps.

    We show everything to them. They ”choose” to ignore. And fall again.

    And that’s the reality. And politics and sellers love it.

  4. Juggalo says

    How long did it take you guys to learn to laugh (smile and nod) at these types of people instead of get the visceral disdain reaction (its almost automatic)?

    Also, do sweeps still work?

    Loved the post, and agree!

  5. techsales says

    I was at the HQ of the largest financial publisher (you know them) last week. They use EXACTLY what you said to make a billion dollars a year.

  6. Iroquois says

    Love the blog! Here’s another one:

    Tribalism: People love to belong to groups/cults. For example: identity politics, “us vs. them” dynamics. It’s not just in politics either, look at Apple or Starbucks.

    People are easily manipulated into membership of a group.

  7. wayneredacted says

    “You’re not supposed to use words such as “never” and “will”… But. We don’t care because it is the truth.” Can confirm. As a recent college graduate using “absolutes” in opinionated essays will get your grade dinged as a result. To college kids: say what it takes to get an A and don’t make the same mistake I did – it’s just a game.

    “People will constantly flock to anything that could be a “life changer””. Confirmed. Friend’s mom asked me about bitcoin the other day. I had no idea how to respond.

    “Since they are never wrong, once they’ve been sold on one purchase of a meaningless product they’ll justify the action later.” This one hurts to type, even anonymously on the internet. A close friend who’s bled for me dropped $2K on scam MLM products. Tried to tell him, ended up in a very bad argument.

    As a recent initiate in corporate America (sales), it’s astonishing how pinpointingly accurate some of the points on motivation are as well. Our orientation session consisted of a week-long retreat into a corporate-sponsored location laced with great food, abundant motivational seminars, and company brainwashing (by pensioned sales advisors). Felt myself getting emotional spikes from all the fun events, but will use this post as a refresher/wakeup to maintain myself (mentally/emotionally).

      • wayneredacted says

        Sounds like I’ll have to get a copy of Efficiency! Currently flooded by sales school required readings but will check out after finishing those.

    • Giles says

      Not just in college. If you’re serious about anything on an academic level or professional level, don’t write anything aggressive or absolute under any circumstance. And if you have to sell your opinion, do it in a very diplomatic manner. I obviously don’t care (or I wouldn’t be reading this blog), but it’s clear that confident macho behaviour is now frowned upon by our entire society. So just stay out of trouble and keep the real talk for your buddies.

  8. Q says

    “Since we know this human flaw will exist as long as we are alive (at least the next 100 years) we should take advantage of it.”

    Are you saying that you expect to be alive for the next 100 years, or that average people will continue to not take action for that long?

    If the former, I didn’t know you guys were into Kurzweil’s predictions.

  9. techsales says

    Sales is the most valuable part of the company, put in your time to get passed the entry level positions and move accordingly.

  10. TS says

    Humans will never change because they do NOT want the change.

    Change takes

    self-responsibility,
    discipline,
    courage,
    determination,
    effort,
    guts,
    etc…

    You will be the “lucky” one to even find and meet one person (out of many 99 percent) who has at *least* one of the aforementioned positive traits.

    Look at these humans as potential sales target. Nothing more; nothing less.

    Of course, you [were/are] also included in those statistics of target list.

  11. Recent graduate says

    Unwillingness to take action is because people don’t want to take the wrong actions. They want to be certain that their action is 100% right, with testimonials to back it up.

    If you want to take action, think of it this way: the only purpose of making your first idea happen is to lead you to your second idea.

    To put it another way, when you have a problem, you should always try out a simple solution. The result of the simple solution will allow you to see and adjust your next solution and will most definitely inspire you into the right path towards the final solution, even if the first solution was garbage.

    Most people think their first idea has to be 100% right so they sit and dwell on it for ages (a few minutes more like) and then they just don’t even try at all.

  12. PA says

    I have to admit I do use 5 -10% of my portfolio to chase what I believe are “logical” Home runs or “multi-baggers”, which payoff some of the time. I wouldn’t say chasing is bad thing if fundamentals are aligned.

      • Anonymous says

        Every time I feel inclined do that – look at a chart of that ten-bagger that I sold out of with a loss or a small 30-50% gain – I force myself to look at the charts (and, er, sometimes the trade confirms) of the positions where I held past the stop I placed at entry, and my stubbornness turned a 10% loss into a 30-70% loss.

        And when that isn’t enough, I look at the ones where I had the discipline to get stopped out with 5-10% losses on the position, took the trivial loss, and looked back 3-4 years later and saw the stock bankrupt or trading for pennies.

        Confirmation bias is a bitch. The best antidote I’ve for it has been to pound into my brain the outliers in which doing the RIGHT thing produced a trivial 5% loss vs. a 100% loss. Because there are a lot more of those than there are “ones that got away.”

  13. OwnMyHood says

    “The vast majority will fall into the same traps over and over and over again”

    Learning this is key to understanding others as well as knowing and improving ourselves. The concept is simple, but to those who actually put in the work improving themselves and are introspective enough to learn from their mistakes, it can be a tough one to grasp.

    I think this is due largely to the human tendency to project ourselves onto others as well as use ourselves as a benchmark when sizing someone up:

    “I came to the realization exercise is good for me, so clearly my intelligent but overweight relative will do so as well.”

    “I’ve learned that working for someone else is wack as hell, so this kid who seems to have a lot of potential will in time figure that out for himself.”

    “Wow, this girl is hot, smart and has really got her shit together, finally I’ve found the total package.”

    Speaking from experience, until you learn to check these impulses it will lead to quite a bit of frustration with those around you. Not to say you won’t discover a diamond in the rough once in a great while (when you do, keep them around!), it’s just that the odds are so low you should never, ever bet on it.

    Being human beings, we are programmed to make the same mistake over and over, so even if we “know” that the odds of someone living up to our expectations are tiny, our emotions have a way of blinding us to this. My way of preventing it is twofold:

    1) Internal: Operate under the logical assumption no one will be as great as you hope they are. “Yeah this girl seems great, but so did that one you dated a few months ago until she tried playing those two bit mind games, then it was just annoying”

    2) External: Maintain an inner circle of trusted individuals who are aware of your shortcomings and can check you when you need it. “Slow down, yeah this new employee is bright, but let’s not give ’em too much responsibility right off the bat.”

    Though the emotional let down never totally goes away, having a few “circuit breakers” in place can greatly reduce the odds of allowing your emotions to lead to a poor decision.

    Note: I believe WSPs and RE Guy have both said something along these lines in the past (undoubtedly with more depth and eloquence) , but couldn’t find the post, so I figured I’d throw it out there.

      • OwnMyHood says

        The busiest part of the year has just ended and we’ve entered slow season (in my hood at least). I always keep plenty busy, but it’s essentially a transition from a lot of short term projects (primarily managing a bunch of turnovers and grinding out as many small renovations as possible) to larger projects (major renovations, improving biz systems, repairing vehicles and equipment etc).

        The transition from the quick “think on your feet” pace of summer into the slower more contemplative pace of fall is always an interesting one.

        As far as RE in general goes, prices are getting a bit foolish in my area, not impossible to find deals where the numbers still work, but it’s getting tougher and margins are thinner.

        So is RE season over? My thoughts are: not yet, but for those neck deep in the game it’s as good a time as any to focus on diversifying into other income streams. Banks in my area can’t lend money fast enough. When I started it took quite a bit of effort to get a loan and I was turned down more than once, with the deals I’ve done this year I barely had to make a presentation. It’s essentially walking in, asking the banker how their spouse and kids are, sending them some quick projections for the underwriters to keep on file and bam, they make an offer. Though some of this is attributable to the fact that I’m much more experienced, my deals aren’t as leveraged and I have stronger relationships with lenders than I did in the early days, its still disconcerting.

      • OwnMyHood says

        I also want to respond to the comments made recently about Realtyshares vs hands on property management. Though I’ve made the bulk of my dead presidents doing things the old fashioned way in the RE game, I think Realtyshares make sense for the vast majority of this blog’s readership (young people). There are 2 reasons for this:

        1) Most of you will derive your primary income from non-RE related ventures. I’m of the mindset that most areas of hands-on RE investing are so involved that in order to swim with us sharks, you’ve got to do it on a full time basis to have a fighting chance and make that real money. Since most of you can’t commit the time necessary to RE, focus on making cheddah in your main hustle and let others do the dirty work for you by socking some away through Realtyshares.

        2) I honestly can’t picture the generation of kids who learned how to use a smartphone before they learned how to ride a bike even doing what it takes to make it. Most forms of boots on the ground RE investment involves getting your hands dirty (at least in the beginning). You gonna tell me that suddenly these kids are going to put down the iPads and brunch menus to pick up a reciprocating saw and respirator and demolish a plaster wall? Yeah ok… Y’all youngins better stick to making money online and investing it in Realtyshares, that way you can stay glued to your smartphones and won’t have to worry about getting calluses on your hands.

        Just kidding on the second point… for the most part…

  14. Anon1 says

    Re: find the flaw and ignore the advice

    Agree entirely. People get tricked or trick themselves by domain specific experts all the time.

    The following are all guys* I like and respect tremendously but I see this pattern again and again with fanboys and fangirls rating them for suggestions in areas outside their expertise.

    They listen to Jordan Peterson about advice on women (look at his wife)

    They listen to cernovich about ‘investing in Bitcoin’ (not his area of expertise, it’s third hand knowledge)

    They listen to Lauren southern* about relationships (she’s just past 20 years old and a hot blonde Conservative, there is no advice you could glean from her that would be useful in meeting someone like her, she’s never had to date a hot blonde female Conservative before)

    They listen to Nassim taleb about tech and healthcare reform (he’s clever in annoying academics and economists but no balaji srinivasan)

    They listen to Milo for anything about conservatism (he’s just about trolling feminists and sjws, nothing about him screams conservative other than he likes the free market)

    They listen to Stefan molyneux for advice about parenting (he has one daughter, anyone that knows people with multiple kids have advice that’s worth emparting, one is manageable without having to do much)

    They listen to Paul Joseph Watson talking about race relations like he has any relevant expertise or experience to be covering that topic

    *re: Lauren southern her drivers license says she’s a man

    • Engineering Student says

      Very true. The Lauren Southern/Tomi Lahren types are the ones that really get a chuckle out of me. Because they’re attractive and “conservative”, people (read: omega males) put them on a pedestal…in reality no different than any other women! Just really good at sales!

  15. Warren Buffett says

    Diversification is protection against ignorance. It makes little sense if you know what you are doing.

    • techsales says

      Part of the reason I went into sales. I will never be out of a good job.

      Even if I have to sell cars for a few months to get a new b2b gig that’s the worst it can ever get.

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