Master the Art of Business
A world-class business education in a single volume. Learn the universal principles behind every successful business, then use these ideas to make more money, get more done, and have more fun in your life and work.
Without Trust, no Transaction will take place.
Building a trustworthy Reputation over time through honesty and fair dealing is the best way to build Trust.
The easier both parties can verify that the other party is trustworthy, the easier it is to make a Transaction.
Here's a proposal: send me a certified bank check for $100,000 right now, and in ten years I'll give you the keys to a brand-new, 10,000-square-foot villa on Italy's Amalfi Coast. You can't see any example villas, you won't hear from me again until the villa is ready, and there are absolutely no refunds. Deal?
Unless you're an extremely trusting soul with cash to burn, probably not. After all, how can you be sure I can actually build you a seaside mansion for such a paltry sum? How can you be sure I won't just take the money and disappear?
You can't, which is why you shouldn't cut me (or anyone else) a check for a villa on the Mediterranean you've never seen.
Let's reverse the situation: let's assume I'm capable of building this villa, and you're interested in purchasing one. Would it be smart for me to purchase land, break ground, and start building before I'm sure you actually have the money to pay for it? Probably not-if the deal falls through, I'd have to find another customer or eat the cost.
Without a certain amount of Trust between parties, a Transaction will not take place. No matter what promises are made or how good the deal sounds, no customer is going to be willing to part with their hard-earned money unless they believe you're capable of delivering what you promise.
You can also take steps to signal you're trustworthy: organizations like the Better Business Bureau, credit and background check services, and financial arrangements like escrow accounts exist to help overcome the lack of Trust between parties in a transaction. These offerings break down an important mutual barrier to completing a sale: without escrow and reputation services, many Transactions would never take place.
The easier it is to demonstrate your trustworthiness and verify the other party is trustworthy, the greater the chance of a successful transaction.
"The secret of life is honesty and fair dealing. If you can fake that, you've got it made."Groucho Marx, comedian
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Master the Art of Business