Want to get ALL the tips I shared on this podcast on the go? Check out the entire episode to learn why I spend $60,000 per year on gifts.
We all love receiving gifts; that’s no secret.
What most people don’t realize, though, is that sending gifts can actually be an effective business strategy.
Personally, my ROI for gifts has been ridiculous.
By spending $60,000 a year on gifts alone, I’ve found a return of upwards of five to ten times as much money.
And here's why.
The reason why gift giving is so effective is because people rarely do it.
Most people only reach out to others when they want something. Now, imagine if someone reached out to you simply to say hello.
Wouldn't that make you happy?
There's no replacement for relationships, and making deeper connections with people you do business with through gift giving not only helps increase your income, but it also helps build real and lasting relationships.
Let’s take a look at how a certain law has led me to spend as much as $60,000 a year on gifts alone.
The Law Of Reciprocity
In short, the law of reciprocity is the idea that if you do something nice for someone, they want to do something nice in return due to feeling a sort of social debt.
For example, say I buy a round of drinks for my table.
Chances are, someone at the table would then feel like they should (or feel inspired to) do something nice for me in return. Likely, someone would offer to buy the next round of drinks or to pick up my food tab.
And it's a powerful tool to keep in your business arsenal.
The law of reciprocity has led to me making millions of dollars in my business just by doing nice things for people. So, how can you ensure that you're getting the law of reciprocity working in your favor?
If you want to hone in on the law of reciprocity, you need to fine-tune your observation skills.
When I meet people, I pay close attention to them.
I observe what they like, what they speak about, and what their goals are. If there's anything, in particular, they're interested in I make a mental note.
I sometimes even write it down if I really want to remember it.
This has allowed me to send the perfect gifts and show I care enough to pay attention to what they have to say.
You’d be surprised how many people don’t pay attention.
My Gift for Robert Kiyosaki
When I think of gift-giving, I often think of a gift I got for Robert Kiyosaki, someone whom I looked up to for many years and finally got the chance to do business with.
After meeting Robert, I realized everything he had was brightly colored.
I asked his team about this, and they confirmed that he loves bright colors. Robert Kiyosaki is someone who pretty much has everything, so I had to think about how I could use this knowledge to get him a gift to show my appreciation for him.
I ended up coming across a red wallet I knew he would love.
The next time I saw him, we had a video shoot.
He was working with someone before me, and I could tell he was having a bit of an off day. Nothing was going right during the shoot, so I was obviously a bit nervous since we had a lot of videos we needed to get done.
Luckily, I had bought him a bright red wallet as a gift!
He was ecstatic when I gave it to him, and his mood improved instantly. We went on to shoot a whole series of videos, and those videos have since made me a couple of million dollars.
It’s not just about the gift.
Giving someone a gift shows that you were thinking of them and that you listened.
By giving someone a thoughtful gift, you go above and beyond and—trust me—they’ll notice.
Send Gifts When They Aren’t Usually Sent
People expect gifts on their birthday, on holidays and so on. Now, don’t get me wrong, it’s nice to send gifts on these days.
Nobody is going to be mad at you for getting them a gift on one of these days.
If you really want to set yourself apart, though, send gifts on days that people aren’t expecting gifts.
Also, send gifts that not only the gift receiver will enjoy, but something that they can share with their whole family.
For instance, instead of sending flowers, I may send a gift basket with chocolate and other treats that are fun not only for them but also for their spouse and kids.
Also, consider sending follow-up and “thank you” gifts when someone helps you out.
If you're grateful for something, send a gift to show how thankful you are!
Buy Gifts To Deepen Relationships (And To Be A Good Person!)
With all of this being said, you shouldn’t just send gifts for the law of reciprocity. Instead, your gifts should help you deepen your relationships with those around you.
This is why it’s so important to listen and figure out what people like.
Also, make sure that you don’t follow up a gift with a request. This can definitely come off as disingenuous.
Instead, send gifts without any expectations of anything in return.
I know this sounds counter-intuitive, but you'll end up getting a lot more by sending a gift without asking for anything in return.
If you don't know what to get someone, there's plenty of stuff out there for $100 or less that will brighten someone's day. Just go into Google, type in "gadgets under $100" and you'll come up with a list of ideas.
A few that come to mind are:
- Amazon Kindle
- Amazon Echo
- Gift baskets
The important thing is that the gift has a high perceived value to the person, regardless of what it costs you. For example, here a few things people have bought for me that deepened our relationship:
- A bobblehead with my face on it
- A cricket bat signed by a player my friend loves so I could give it to HIM as a present
Remember, the best gifts I've received are the ones where the person took the time to think about what would be meaningful to me.
Are You Ready To Use The Law Of Reciprocity In Business?
It’s hard to send gifts if you don’t have the money to purchase and send them.
Sure, not every gift has to cost a lot of money, but you're going to need to spend some money on gifts.
Because of this, you need to have a budget set aside for gifts.
If you need to, think about it as a business expense. Trust me, the ROI will be far greater than what you spent on your gifts. You don’t have to spend $60,000 a year, but make sure you have a reasonable amount of money put aside for gift giving.
Then, when you see something that someone might like or you simply want to show your gratitude, you can buy a gift and send it.
Start listening and paying attention to what people like.
Then, send gifts to deepen your relationships and show appreciation. You’ll find that the little bit you spend on gifts will pay off significantly!
(NOTE: Want to get ALL the tips that I shared on this podcast on the go? Check out the entire episode to learn why I spend $60,000 per year on gifts.)