To save future potential victims of the Institute of Commercial Real Estate (ICRE), I would like to pull back the curtain on how hucksters like the speakers of this "Institute" use subliminal pressure to get you to buy into their product or service.
I am a speaker and have taken speaker training that teaches how to sell from the stage. These skills can be used for good or evil, and tonight, I witnessed a VERY smooth operator from the ICRE (try) to snow an audience in Phoenix, AZ.
So I wanted to share the signs to look for in these free presentations to determine the validity of the speaker and product being pitched.
If the speaker uses these tactics in abundance, RUN don't walk to the exit:
1.Uses the same phrase over and over which engages subliminal programming. In tonight's case, it was two: "Enroll Tonight" and "As a member of the institute..." I counted over 80 (!!) times the speaker, Ed Lisogar, said these two exact phrases. He was basically programming the listeners to be members.
2. Hit on all potential objections before anyone asks a question, then rebuts them all in a very convincing manner.
3. Plays on two basic emotions: Fear, and Greed. He'll reference the poor economy, having to go to a real job, not having retirement income, AND hit on easy riches, giving you pretty pictures and balance sheets of deals that have made him rich.
4. He'll give too-good-to-be true testimonials. He'll show you photos of himself and pretty girl in a far-off land. Show cars, homes, property, income check, and tell you YOU too can live this life.
5. He'll ask questions throughout the presentation that only have one potential response - "Yes." He is basically training your brain to say Yes to whatever he asks, so when it comes time to ask for the sale, you are already programmed to say Yes. He'll ask things like: "Wouldn't you like to have $50,000 passive income a month?" (audience responds with Yes, unwittingly playing into his mental manipulation trap.)
6. Speaker will repeatedly TELL you to "Write this down." Another subliminal way to program you to follow his instructions. Watch how the audience all grab their pens when he says to write this down. (Think, Hitler).
7.He'll establish dominance from the get go by telling you all the reasons he's qualified to be talking ot you. It's called "Earn the Right." He'll brag about being nominated for an award (never having won it), and brag about how his system is patented. He's establishing his credibility in your eyes, and creating perceived value in the system he's selling.
8. He will start making personal connections, first with the entire audience ("because we're all neighbors in Arizona", etc.), then move onto individuals, calling them by name, shaking their hand, asking them to read things to the group, asking leading questions that he knows will be answered the way he wants it to. Beware... he's intensifying his close when he starts doing this.
9. His speech speed will increase when he's really going in for the kill. This is a method of hypnotizing the crowd.
10. He'll start offering too god to be true bonuses, slash the price of his package, use scarcity to get you to buy (only five packages available, only two seats left, etc.)
11. He will not take questions throughout his shpeel. This is his way of controling the crowd. Even when he does take questions, he is still in control by asking people not to come up to the stage for questions (his domain). He's maintaining dominance by keeping people seated while he remains standing.
If you know anything about NLP (Nuero Linguistic Programming) you'll recognize these tactics immediately. If you aren't familiar with NLP, and many people are not, you run the risk of being hypnotized into buying these guys stuff without doing your due diligence.
Would you buy a piece of real estate without getting ANY details? No. So ignore his attempts to guilt and shame you into buying right away. He will insult and deride those who do not follow his instructions, and use them as an example of a "loser" so he can get the people left in the room to believe they are NOT losers, if they only buy his stuff.
Think about it... if he is making $100,000 a month passive income from his real estate and other holdings, why on earth would he be up there selling a 3-day event for $3k? I'll tell you a secret... he's getting a commission which is normally 50%. But that's not all... at that three day I'm going to guess they will be "back-ending" you (that's insider term for selling you a higher-priced package). I'm guessing the price point for whatever coaching or software they will pitch you at the 3-day event will cost between $8k-$20k. And guess who gets a commission on that for putting you in the room? Yup, the guy giving you the free presentation.
So let's do the math: He does 8 presentations in his city, putting perhaps 400 people in the room total. A typical "Closing ratio" is 12%, so that's 48x$3,000=$144k. Then let's say10 of those folk go on to purchase the upsell offered at the event at $12k. That's another $120k. Add those two up and that's $264,000. He earns 50%, so that's $132,000 in the speaker's pocket, all for 4 days of work. Not bad, eh? So he has expenses... 2 staff, hotel room costs, advertising (which may be covered by the conference producer), so let's say he pockets $110k. In 4 days work. No WONDER he's not sticking to doing real estate deals, which actually require work.
And I'll bet the attendees who did NOT purchase get a followup phone call trying to close them on the 3-day event by offering them an additional discount.
There is ALWAYS another day, another package, another training course, another opportunity. Don't let these snake-oil salesmen goad you into making a financial decision. Go Google this guy, the so-called founder, Cherif Metowar, and the organization ICRF.
If you REALLY have to have their training manual and DVDs, check eBay for a copy of it from an ex-student.
And do you due diligence before forking over your education funds.
I attended a seminar and felt it was to good to be true. But, job loss, etc. sparked my interest to at least research it more, to discover consumer complaints. The speaker also lost all credibility when whe claimed to legitimately deduct living expenses, etc. through a Nevada Corporation. (Sounds more like tax fraud).
The guy is an liar! He profiles a building that houses my broker's office an tells the story of how an old couple buys this space for no money down to the tune of $90k profit a year from the NNN lease. Only thing is the entire stroy was BS as the building is owned by one person / builder who has not and will not sell any units. What a croc.
I agree with "Peter". I was at the same presentation. I saw what the $#@hole did.
To add to what Peter said... He slipped up and said that "the network is going to be unparalleled once we get members from all over Canada". Doh...he doesn't have anyone here yet to help us Canadians on their invaluable network.
Also...when he was talking about "Triple-Net Leases" he gave the indication that if you bought a building in another city or country that you would never be responsible for any repairs what so ever, and that in fact you would never even have to go look at your building because the tenant would be responsible for everything.
how easy can it get! Because of course businesses never fail, they always always always pay rent with no issues at all, ever...in fact you will never have any problems because all business tenants are perfect!!
I just attended an identical hypnotic huckster pitch in Edmonton Alberta. People arrived with an advert from the Financial News (a fake newspaper?) and a hand written sticky note all made to look personalized...too bad everyones was the same. Another odd thing was tat a couple of people went running to the back of the room to make the purchase even before the price was announced. After the sales pitch I went to the front and picked up the course binder to see what $3000 would buy me. Ed Lisogar came running over and told me to put the binder down and told me that I would have plenty of time at the 3 day workshop to review the course. I told him that I don't have much time, and he told me that I should leave. The people that witnessed his behavior thought he was a real *** and would not buy anything from these guys.
5. Written by Followup from poster, on 11-06-2008 18:54
As predicted, I did indeed get not one, but TWO phone calls from this organization 48 hours after the event.
I hit zero on their voice system and got a mailbox for a company called "Dynatech" likely the marketing company they are in partnership with the hawk their wares. i guarantee you, they get a piece of whatever money they bring in on these calls.
A quick google search confirms this.
The saleman's name who called was "Bruno" at 888-294-8276.
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