Oil and Gas Investment opportunities
Sales Assessment Results by Austin Philpot
74
Professional Closer
10 questions
Maximum score: 100
Completed in
You've shown a solid grasp of consultative selling, particularly when addressing the prospect's financial concerns and acknowledging their apprehensions about risk. Your ability to ask probing questions demonstrates genuine curiosity and a desire to understand your prospects better, which is commendable. However, there's a noticeable pattern where you often miss opportunities to dive deeper into the specifics and provide more compelling examples or data that could reinforce your credibility. This is especially evident in situations where you discuss investment risks and market trends.
To elevate your game, consider honing in on storytelling techniques and the value proposition selling method. These tools will help you illustrate past successes and articulate the unique benefits of your offerings more effectively. Also, embrace the idea that sometimes it's not just about asking questions but also about sharing impactful stories that resonate with your prospects' experiences.
Remember, the power of sales lies not just in what you say, but how you make your prospects feel. As you engage with potential clients, think of yourself as a trusted advisor who is there to guide them through their financial journey. Make it your mission to exceed their expectations and provide insights that could truly impact their decisions. Keep pushing yourself to dig deeper and provide more substantial evidence of success; that's where the magic happens.
Question Breakdown
1.
4
/ 10Question:
"I need to stick to my budget, is there any room for negotiation on the investment amount?"
Answer:
I completely understand that you would want to stay within your budget. I would never suggest you to make an investment that is outside of your liquid capital. The main reason that one of my clients would lower their investment amount is typically because I havent shown enough value, or they dont think this would work for them. We have already discussed the benefits of this asset and how it could benefit your portfolio. So my question for you is, if this product did everything I said it would, how much would you be comfortable investing in this project?
Feedback:
Your response acknowledges the prospect's concern about their budget, which is a good start. However, you missed an opportunity to explore the value of the investment further and address specific aspects of their budget constraints. Instead of shifting the focus to your previous discussions, you could have asked questions to uncover more about their budget limits or financial goals, showing curiosity and understanding. This would help in developing a collaborative approach. Additionally, you might have benefited from offering potential flexible options or illustrating how the investment aligns with their financial objectives, rather than just asking about their comfort level without providing more context or solutions.
2.
7
/ 10Question:
"I'm worried about the monthly cash flow—how can I ensure this fits into my financial plan?"
Answer:
I completely understand that, you always want to make sure that an investment fits your financial plan. When it comes to your financial plan what cash flow would fit the best for you? I am confident in the assets that we are developing and their ability to create cash flow as we are in low risk areas and have proven results where we have generated cash flow like this on multiple occasions. The important thing is to make sure that this cash flow fits into your financial plan. So what level of cash flow would fit into your financial plan? The next thing we would want to look at is how do you think this cash flow would benefit your family? Lastly, do you have any specific problems that this additional cash flow could help solve? While this investment is here to provide cash flow, its real strength is solving problems, so what problem can this additional cash flow solve for you?
Feedback:
Your response does a good job of acknowledging the prospect's concern about cash flow, which is crucial in the oil and gas investment context. You effectively ask questions to gather more information about their financial planning, demonstrating curiosity and a consultative approach. However, you could strengthen your response by providing specific examples or data that illustrate how previous investments have performed in terms of cash flow, thereby building trust and showcasing the value of your offering. Additionally, while your questions about how this cash flow could benefit their family are insightful, you might have also explored their current financial situation more deeply to better tailor your response. Overall, a solid approach but could benefit from more specific value exploration and examples.
3.
7
/ 10Question:
"What if oil prices fluctuate? How will that affect my returns?"
Answer:
That is a great concern, you always want to make sure you understand the volatility that could be involved with an investment. All investments involve the risk of price fluctuation this case oil price is corelated to our cash flow, so its important to either A) understand oil markets or B) work with someone who does. In this case, I am very familiar with oil markets which is why most of my clients chose to utilize my knowledge. If we look back over the last 20 years oil has averaged $66 per barrel, today it is at $74 which means we are above the 20 year average. When we develop our assets we mitigate our overhead and expenses to give us a break even price of $15 per barrel. So even if oil prices come down some we will still be strongly in profit. The last time oil prices fluctuated we were able to acquire assets for very cheap to lower our operational cost and give us an even better return. How much price fluctuation do you typically allow in an investment? If oil price fluctuated would you still feel comfortable making this investment?
Feedback:
Your response effectively acknowledges the prospect's concern about oil price fluctuations, which is essential in the oil and gas investment sector. You provide valuable context by referencing historical pricing data and explaining how your knowledge can mitigate risks, which builds credibility. However, while you do present the break-even price and potential for profitability, you could enhance your response by offering examples or data on how previous fluctuations have been successfully navigated, which could help reassure the prospect. Additionally, your questions about their comfort with price fluctuation are good for discovery, but it might be beneficial to explore their risk tolerance and investment strategy in more depth. Overall, this is a solid attempt but could benefit from more detailed value exploration and a stronger emphasis on collaboration to address their concerns.
4.
8
/ 10Question:
"Can you guarantee the projected returns? I don’t want to end up with a loss."
Answer:
That is a great question, as you know when it comes to life, investments included, nothing can be guaranteed. This is why it is important to make sure you are working with the right group of individuals. Usually when this question comes up it is because there was a bad experience in the past, have you had an experience that lost you money in the past? Most of my clients have which is why it is their priority to mitigate risk, to give them the best opportunity to not lose money. Let me share with you what we have done in the past to help our clients mitigate their risk, first we develop wells in proven areas, secondly we put them into multiple projects to evenly spread their risk out, finally we utilize the tax benefits associated with these investments to lower their taxable income. By doing this we have successfully turned a $100,000 investment into a $85,000 tax deduction, and $500,000 in income on more than one occasion.
What risk tolerance are you typically comfortable with in an investment?
Do you agree that spreading your capital in multiple assets and utilizing tax benefits to lower your cost would help you be more comfortable making this investment?
Feedback:
Your response effectively addresses the prospect's concern regarding guaranteed returns, which is a critical issue in oil and gas investments. You acknowledge the inherent risks of investments, which is important for building trust. By linking their concern to past experiences, you show empathy and a willingness to engage in a deeper conversation. However, while you do provide valuable information on how risk is mitigated through proven wells and diversified projects, you could enhance your response by including specific examples of successful past projects or testimonials from satisfied clients to reinforce your credibility. Additionally, the concluding questions are well-crafted; however, you might want to include a bit more depth on how risk tolerance could influence their investment choices, making it easier for them to share more about their comfort level. Overall, your response shows a solid understanding of the prospect's fears, but incorporating more evidence of success could further reassure them.
5.
8
/ 10Question:
"I've heard mixed reviews about investing in oil and gas lately. How do I know this is still a viable opportunity?"
Answer:
I completely understand that, there are many mixed reviews in the industry, this is why its important to know who you're doing business with. Firstly you want to make sure that the company you are working with is a licensed and bonded operator in the state of Texas, myself and my company are. I have many clients that have contacted the state to make sure I'm a real company that is really drilling wells, this is the best way to do due diligence on a company.
Next when evaluating the asset you want to look at past results, so for this instance we can look at the asset next door that would have turned a $100,000 investment into over $1.1million in income.
Other wells that I have drilled have produced millions of dollars in income to our investors as well. On numerous occasions it has turned $100,000 into over $700,000. These past results help show that we are developing proven areas that have viable returns.
When you look at opportunities is the return the most important to you or the company?
My company has been in business over 17 years, we are easy to find and aren't going anywhere.
Do you believe that working with a proven company in proven areas could also create a good opportunity for your investment portfolio?
Feedback:
Your response effectively addresses the prospect's concerns about mixed reviews in the oil and gas industry, which is crucial for establishing trust. You emphasize the importance of due diligence by highlighting your company's licensing and bonding, which is a good practice. Providing data on past investment successes adds credibility and demonstrates the potential for returns. However, while you mention specific examples of profitable investments, you could enhance your response by providing more context about market conditions that support the viability of the current opportunity. Additionally, your questions at the end are thought-provoking but could be more direct in exploring the prospect's specific concerns and preferences regarding returns. Overall, you've made a strong case, but focus on deepening the dialogue around their concerns and market viability would strengthen your approach further.
6.
8
/ 10Question:
"Are there hidden fees in this investment? I want to avoid any surprises down the line."
Answer:
I completely understand that, the last thing you want is unexpected expenses. Thankfully in our projects everything we do is at cost. This means that the price of the asset is the amount you invest, there is nothing hidden or surprising that comes with it. In our company one of our core values is Transparency, to act in transparency we show you our expenses monthly on the asset so you know where every dollar is being spent.
In past occasions I have set up individual meetings to go over your monthly statement to make sure you understand it and are fully aware of all the operational expenses. This would allow you to see the money flow and know that there are no hidden fees or expenses.
Do you think an asset that has no hidden expenses would be a value to your investment portfolio?
What fees do you usually pay when you're making investments?
After seeing a statement showing that there's no hidden fees do you think you would be comfortable adding this to your investment portfolio?
Feedback:
Your response effectively addresses the prospect's concern about hidden fees, demonstrating empathy and a clear commitment to transparency. By stressing that your projects operate at cost and by outlining your company's core value of transparency, you build trust. Offering to set up individual meetings to discuss expenses shows a strong consultative approach and dedication to helping the prospect feel informed. However, while your questions are good for encouraging dialogue, they could be more focused on understanding the prospect's specific experiences or concerns with fees in past investments. This could enhance the collaborative nature of the conversation. Overall, a solid response that builds credibility and opens up further discussion.
7.
8
/ 10Question:
"How does this investment align with current market trends in the oil and gas sector?"
Answer:
That is a great concern, you always want to make sure that investments you are making are aligning with market trends. The importance of this is to make sure you're not accepting an aggressive level of volatility, and making sure you're getting in at the right time to position yourself for the best results. The unique thing is, our position in the market today, oil and gas is trading at a stable level but has been trending upwards over the last 90 days. The last time we were in this position it allowed us to purchase assets at todays pricing and as the market continued to climb we made an even larger return on our investment. The last time market prices dropped allowed us to purchase assets for $500,000 that would cost millions to purchase today, meaning we got a 3-4x on our money.
Mainly you want to make sure you don't get in the market when prices are too high, and today they're not. Still allowing us to provide very attractive returns.
Do you believe that the market prices will be going up from here?
Do you think that if we got into an asset at todays pricing and saw a 10% rise in oil prices that you would be happy to have this in your portfolio?
Tell me about your current portfolios alignment with market trends, I also want to make sure this helps align your entire portfolio.
What market trends are you familiar with in your existing portfolio?
Feedback:
Your response effectively addresses the prospect's concern about aligning investments with market trends in the oil and gas sector, which is crucial for building confidence. You highlight the importance of timing and volatility, which is insightful. Additionally, referencing the recent upward trend in oil prices and previous successful investments adds credibility to your claims. However, it would strengthen your response to include more specific data or market analyses to reinforce your points. Also, while your questions are good for encouraging dialogue, consider being more direct about how these trends specifically relate to the prospect's investment goals. Overall, a solid attempt that showcases your understanding of market dynamics, but it could benefit from deeper exploration of the prospect's specific needs and concerns.
8.
8
/ 10Question:
"What if I encounter regulatory hurdles? How does that impact my investment?"
Answer:
That is a great question, you want to make sure your investment is safe regardless of any hurdles you encounter. Let me ask you, what regulatory hurdles have you encountered in the past? How have they impacted your investment?
The way we structure our projects puts myself and my company in control of the asset, this allows us to protect your position incase you have any hurdles. In the past I have had some clients worried about the same thing, what we did with them is put their investments in their own LLC, this protects the investment even further to help it not be exposed to your regulatory hurdles.
Do you have any investments that are already in their own LLC?
Do you think that putting the investment in an LLC would help your portfolio by keeping your investment safe?
The last time one of my partners had some hurdles similar to what you mentioned their asset was in its own LLC and protected, the project continued on and generated cash flow even while they were overcoming those hurdles.
Do you think this approach would be beneficial to you?
Feedback:
Your response does a commendable job of addressing the prospect's concern about regulatory hurdles, which is crucial in the oil and gas investment sector. By asking the prospect about their past experiences with regulatory issues, you demonstrate curiosity and a willingness to understand their specific situation. This consultative approach is effective in building a rapport.
You clearly explain how structuring investments in an LLC can provide protection against regulatory challenges, which showcases your expertise and offers a practical solution. However, while your examples of past clients are relevant, including specific data or outcomes from those situations could strengthen your credibility further. Additionally, while your closing questions are relevant, consider rephrasing them to be more open-ended, encouraging the prospect to share more about their concerns and needs. Overall, a solid response that effectively addresses the objection, though it could benefit from deeper exploration of the prospect's specific situation and enhancing the credibility of your claims.
9.
8
/ 10Question:
"I have a competing offer with a different firm that's cheaper. Why should I choose yours?"
Answer:
That is a great question, and it is always smart to shop around to make sure that you're working with the right company. Let me ask you, after you saw their offer you and I talked and you agreed to look at mine, why did you chose to look at mine rather than going with theirs? Was there something you didn't like about their offer? What was that?
The main thing that separates myself and many companies is that I am an owner operator, meaning I am the largest investor in any of my projects, and I am the operator that is in charge of each project. I am licensed with the state of Texas and have been for over 17 years.
The last time one of my investors went and participated with another company for one project, they lost over $300,000. At the same time I had a project that would have made them over $700,000. After that $300,000 loss they opted to come continue working with myself. Do you believe saving yourself from a $300,000 loss would be a good reason to work with myself?
What is important to you when looking at who you should work with?
What are three main points you look at when evaluating companies?
If I accomplish those three points do you think I am the right company to work with?
Feedback:
Your response effectively acknowledges the prospect's question about a competing offer and demonstrates an understanding of the importance of comparing options. You successfully encourage the prospect to reflect on their decision to consider your offer and inquire about their specific concerns regarding the competing proposal, which shows curiosity and a consultative approach.
Highlighting your experience as an owner-operator and emphasizing your role as the largest investor builds credibility and trust. However, while the anecdote about a past investor's loss with another firm serves to underline the potential risks of choosing a cheaper option, including more concrete data or testimonials about your past successes would strengthen your case further.
Your closing questions are well-designed to elicit more information about the prospect's decision-making criteria, but they might benefit from being more open-ended to foster deeper conversation. Overall, a solid response that addresses the objection but could be enhanced by deeper exploration of the prospect's needs and the value of your offering compared to competitors.
10.
8
/ 10Question:
"I don't have much time to dedicate to this right now. How can you simplify the investment process for me?"
Answer:
I completely understand that, being a busy person like yourself I wouldn't expect you to have time for this right now. And not having time for this is the exact reason we should look at it. When I can show you how I can turn a $100,000 investment into over $500,000 in income this would create enough value to look at this right?
The process is quick and simple, you and I have determined this is a fit for you. I will send you a docusign and walk you through it, we can finish it in under 5 minutes. After that we just wire the money and put it to work.
In a past scenario I was able to have an investor fully onboarded and funded in less than an hour, if I could do this for you would this meet your time constraints?
Would the additional cash flow from this allow you to free up time for yourself in your business?
I can make this as quick as you would like, what is the ideal time you would like this done in?
Feedback:
Your response effectively acknowledges the prospect's time constraints, which is essential for showing empathy and understanding. By highlighting the potential value of the investment, you create a sense of urgency that can motivate the prospect to consider the opportunity. However, while you emphasize the speed of the onboarding process, adding a brief overview of the steps involved could further simplify the investment process for the prospect and clarify how you plan to minimize their workload. Your closing questions are well-structured to encourage dialogue, but you could also consider asking how they prefer to communicate during the process to tailor your approach to their needs. Overall, this is a solid approach but could benefit from a clearer outline of the process and more personalized engagement.