"When do you need it for?" — When Shark Tank's Barbara Corcoran revealed a key element she taught Esther Kaplan

In an interview on The Tim Ferriss Show on March 7, 2024, Shark Tank investor and entrepreneur Barbara Corcoran discussed key sales strategies she taught Esther Kaplan. Tim Ferriss asked her to outline the most important lessons she shared about sales. Corcoran explained that one of the most critical lessons was the ability to assess urgency. She stated,

"I taught her the golden question in all sales: When do you need it for?"

This question helped her team determine which customers were ready to move forward and which ones were not, allowing them to prioritize their efforts effectively.

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Shark Tank Barbara Corcoran's key sales strategy

The role of urgency in sales

Corcoran emphasized that urgency is the primary factor in determining whether a customer is worth pursuing. She explained,

"To rate your customers based on need only, don’t worry about another thing—just do they need it and get out with them if they need it."

By categorizing potential buyers based on their level of urgency, sales professionals can allocate their time efficiently. The Shark Tank investor outlined a rating system to classify customers:

"I taught all my salespeople how to do that—how to qualify customers, how to rate them A, B, and C. A: immediate. B: sort of immediate. C: forget about it, don’t call them back."

Further explaining the significance of urgency, she provided an example of a strong lead:

"The best answer of all is ‘I really have to find something within the month because I’m being transferred here.’"

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Structuring the sales process

Corcoran also described the importance of structuring the sales process in a way that aligns with customer behavior. She advised showing clients a less desirable option first or presenting the best option at the beginning so they could compare everything else against it.

Another element she taught Kaplan was how to handle different types of customers based on gender-specific preferences. The Shark Tank investor noted,

"If you’re showing it to a woman, make sure the apartments are close—limit it to three... but if you’re showing to a man, you could line up eight apartments."

Corcoran attributed this to the way different clients approach decision-making, and structuring the process accordingly increased the likelihood of a sale. She also mentioned logistical strategies to create a favorable first impression of a neighborhood, stating,

"I always approached 86th Street not from Lexington where my office came from, but I always went to York and East End Avenue—that was quiet with the birds."

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Closing the sale effectively

Corcoran highlighted a technique called the reverse close, which she described as one of the most effective closing strategies. She stated that the process begins by setting expectations with the buyer, making it clear that they will see multiple options and compare them against each other rather than feeling pressured to make an immediate decision.

The Shark Tank investor further elaborated on how the reverse close increased buyer commitment, she spoke about what she tells potential buyers:

"I want you to promise me right up front you will not buy anything today."

Additionally, Corcoran discussed the importance of post-sale follow-up, explaining,

"Every three months they got a postcard from the salesman, but it had my face on it, my brand on it, saying hello."

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