There’s no such thing as a “Missed Opportunity.”

24 08 2011

Many entrepreneurs and investors are approached with business deals which are pitched as a great opportunity.  This is no different than high-pressure sales tactics when shopping for a car, or when sitting through a timeshare presentation.  In all of these, the person doing the pitching (the salesman) is playing off of the other person’s FOMO… Fear Of Missing Out.

FOMO is a mixture of many basic human emotions.  But a sales technique utilizing this can always be spotted with the basic message of “act now or you will regret missing this opportunity.”  As a result, you will be given a tight deadline with consequences if you don’t act.  For instance, if you are running a business distributing widgets and a vendor says “the price is $X if you sign up for a year contract today, otherwise it rises to $Y,” you will not have the time necessary to shop for other widgets and compare price and quality.  If they really have a good product at a good price, they don’t mind you shopping around!

Making matters worse is that once the deal is closed and the money is invested, it is human nature to be blinded to a bad decision, and thus, make similar bad decisions in the future.