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Chapter 15: Handling Objections

Objections are a natural part of the sales process. Having prepared responses makes the conversation comfortable and effective.

What You'll Learn

  • Responses to common objections
  • Creating authentic urgency
  • When to use refunds strategically
  • The psychology of objection handling

The Four Common Objections

Objection 1: "We need to think about it"

Response:

"I understand this is a significant decision. What specific aspects would you like to think through? I'm happy to provide additional information that might help. Also, what would need to be true for you to move forward confidently?"

What you're doing: - Acknowledging their concern - Uncovering the real objection - Offering to address it directly - Giving them a path forward

Objection 2: "It's more than we budgeted"

Response:

"I appreciate your transparency about budget constraints. Let's talk about the ROI—you mentioned [problem] is costing [amount]. Our engagement would address this in [timeframe]. Would it help to explore a phased approach or different payment terms?"

What you're doing: - Reframing cost as investment - Referencing their stated pain - Offering flexibility without dropping price - Keeping the conversation open

Objection 3: "We're exploring other options"

Response:

"That makes sense for a decision this important. What criteria are you using to evaluate options? I want to ensure you have all the information needed for a fair comparison. What aspects of our approach resonate most with your needs?"

What you're doing: - Validating their process - Understanding their criteria - Positioning for comparison - Finding your unique strengths

Objection 4: "We might build this internally"

Response:

"Building internally is always an option. Have you calculated the full cost including salaries, time to market, and opportunity cost? My clients typically find that engaging an expert accelerates their timeline by 6-12 months. What would that acceleration be worth to your business?"

What you're doing: - Acknowledging the alternative - Introducing hidden costs - Framing your value as speed - Quantifying the difference

Creating Authentic Urgency

Urgency should come from their stated needs, not manipulation.

Use Their Timeline

"You mentioned needing this solved before [their stated deadline]. Working backwards, we'd need to start by [date] to meet that timeline."

Highlight Opportunity Cost

"Every month without this solution costs approximately [their number]. A three-month delay means [calculated impact]."

Reference Market Dynamics

"Your competitors are already implementing similar solutions. The window for first-mover advantage is closing."

Create Scarcity Authentically

"I have capacity for one new engagement next month. After that, my next opening is [date]."

The Key

Reference what they told you during discovery. This urgency is authentic because it comes from their stated concerns.

Strategic Use of Refunds

Refunds aren't about giving money back frequently—they're about aligning incentives and maintaining integrity.

When to Offer Refunds

Situation Refund Approach
Client won't commit to necessary work "Happy to refund and reconnect when it's a priority"
Boundaries violated "This isn't what we agreed to—let's refund and part ways"
Outcomes unachievable due to client "Without X, we can't achieve Y—here's half back"
Relationship isn't working "We'll refund the remainder, no hard feelings"

Why Refunds Build Trust

"A part of being able to charge more is you can actually take on that risk."

  • Demonstrates confidence in your approach
  • Shows you're invested in outcomes, not just payment
  • Often causes clients to reconsider and commit properly
  • Maintains relationships for future opportunities
  • Generates referrals even from "failed" engagements

Example: The Data Problem

A client wanted to train a model with only 22 examples. When they wouldn't prioritize getting more data:

"It's not a priority. I'm happy to refund the money, and you can call me when it is a priority."

The result: They either commit or you part ways cleanly. Either outcome is better than struggling with an uncommitted client.

Handling "We Need Internal Buy-In"

When they need to convince others:

Response:

"I understand you need internal alignment. Would it be helpful if I prepared a one-page executive summary focusing on [what's at stake] and the ROI? I can also join a brief call with your team to address concerns directly."

What to offer: - Executive summary document - ROI calculation one-pager - Brief stakeholder call - Recorded Loom video they can share

Handling "We've Had Bad Experiences"

When they're skeptical of consultants:

Response:

"That's understandable, and frankly common. Can you share what went wrong? I want to make sure we're structured to avoid those issues. Here's how I typically ensure accountability..."

Then explain: - Clear success metrics upfront - Regular check-ins and transparency - Refund/satisfaction guarantees - References from similar clients

The "What Would Need to Be True" Technique

For any objection you can't immediately overcome:

"What would need to be true for you to feel confident moving forward?"

This question: - Surfaces the real blocker - Lets them articulate their needs - Gives you specific targets to address - Often reveals the objection is surmountable

Example

Client: "I'm not sure the timing is right."

You: "What would need to be true for the timing to feel right?"

Client: "We'd need to close our funding round first."

You: "When do you expect that to close? Could we structure the engagement to start after that milestone?"

Objection Prevention

The best objection handling happens before objections arise.

In Discovery

  • Surface budget concerns early
  • Identify all decision-makers
  • Understand their timeline
  • Clarify what's at stake

In Proposals

  • Address likely concerns proactively
  • Include FAQ section
  • Reference their specific situation
  • Provide multiple options

In Delivery

  • Use Loom videos to handle objections preemptively
  • Anticipate questions and address them
  • Make it easy for them to share with stakeholders

Knowing When to Walk Away

Not every objection should be overcome. Sometimes the right move is declining.

Walk Away When:

  • The fundamental budget mismatch is too large
  • They want free work to "test you out"
  • Red flags about how they treat you
  • Scope keeps expanding without budget
  • They can't articulate what's at stake

How to Walk Away Gracefully

"Based on our conversation, I don't think I'm the right fit for this particular engagement. I'd recommend [alternative] for your needs. If your situation changes—particularly [specific change]—I'd be happy to reconnect."

This preserves the relationship while protecting your time.

Action Items

  1. Write your objection responses: Customize the four responses for your services and practice saying them aloud.

  2. Identify your urgency sources: What client statements can you reference to create authentic urgency?

  3. Define your refund policy: When will you offer refunds? What's your threshold?

  4. Create stakeholder materials: Build a one-page executive summary and ROI template for internal buy-in situations.

  5. List your walk-away criteria: Define the red flags that mean you should decline.

Key Takeaways

  • Prepare responses for the four common objections: timing, budget, alternatives, internal build
  • Create urgency from their stated needs, not sales pressure
  • Strategic refunds build trust and demonstrate confidence
  • "What would need to be true?" surfaces real blockers
  • Prevent objections through thorough discovery and proactive proposals
  • Know when to walk away—not every prospect should become a client

Next: Chapter 16: Engagement Models →