This is from the “Accounting Makes Cents” podcast episode #90 released on Monday, 2 June 2025.

---

Today we’re diving into a topic that every business student—and honestly, anyone in the professional world—should really know about, and that is persuasion. Now, before you start picturing sleazy sales tactics or mind games, let me stop you right there.

This isn’t about tricking people into doing what you want. It’s about understanding how decisions are made and how we, as humans, are naturally influenced. And who better to teach us this than Cialdini, the guy who literally wrote the book on persuasion? His six principles of persuasion explain why we say ‘yes’ to things, and once you understand them, you can use them ethically in business.

Jump to show notes.

So, let’s break these principles down and talk about how we can use them in business and accounting.

AUTHORITY

Let’s talk about authority for a minute. Ever notice how we tend to trust people in lab coats, business suits, or anyone with ‘Dr.’ in front of their name? That’s because we’ve been conditioned to respect authority. When an expert speaks, we’re more likely to listen, right?

But in business, authority isn’t just about having a fancy title. It’s about being seen as credible. If people don’t trust you, they won’t want to do business with you. It’s as simple as that.

So, how do you build authority? Well, it starts with getting the right credentials and making sure people know about them. If you’re a certified accountant, don’t be shy about it. You should also share your expertise—whether it’s posting insightful content online, giving presentations, or writing articles. And above all, be confident. If you come across as unsure, people won’t believe in your expertise, even if you actually know your stuff.

The bottom line? People listen to experts. So if you want to be taken seriously, position yourself as one.

SOCIAL PROOF

Next up is Social Proof—basically, the idea that people tend to follow the crowd. If everyone’s doing it, it must be good, right? Think about it: when you’re choosing a restaurant, do you go for the empty one, or do you pick the one packed with people? Most of us go for the busy one because we assume it’s the better option. This same mindset applies to business.

Businesses use social proof all the time—things like customer reviews and testimonials, because people trust what others say. The ‘best-seller’ labels work the same way—if everyone’s buying it, it must be good. And celebrity or expert endorsements? If they trust it, we’re more likely to trust it too.I’ll walk through the equity method in more detail toward the end of today’s episode.

If you’re an accounting student applying for jobs, even something like LinkedIn recommendations or internships at well-known firms can serve as social proof. The more people trust you, the easier it becomes to convince others to trust you as well.

LIKING

Now, let’s talk about Liking—because let’s face it, we prefer to do business with people we like.

If you have two accountants—both equally qualified—but one is warm, friendly, and actually listens to you, while the other is cold and distant… who are you going to hire? Exactly.

So, how can you become more ‘likable’ in business? First, find common ground. People connect when they share interests or experiences. Be genuine—nobody likes a fake smile or forced charm. And don’t underestimate the power of positive body language. A simple smile and making eye contact can make a big difference.

At the end of the day, people say ‘yes’ more often to those they like—so building good relationships is key.

RECIPROCITY

Alright, on to Reciprocity. This is the classic ‘I do something for you, you do something for me’ principle.

Ever noticed how free samples at a store make you feel a little obligated to buy something? That’s reciprocity in action. When someone gives us something, we naturally want to return the favour.

In business, this works in all sorts of ways:

• Offering a free consultation makes potential clients more likely to hire you.
• Sharing valuable advice or resources makes people trust and appreciate you.
• Even small gestures—like helping a coworker—can come back around when you need a favour.

The key here? Give first. And give genuinely. It builds goodwill and strengthens relationships. Reciprocity doesn’t have to be big. Even small gestures can create a sense of obligation that works in your favour.

COMMITMENT AND CONSISTENCY

Next up: Commitment & Consistency. This principle says that once people commit to something—even in a small way—they’re more likely to stick with it.

Think about how signing up for a free trial makes you more likely to become a paying customer later. That’s because once we say ‘yes’ to something small, we like to stay consistent with that decision.

In business, this is why getting a client to agree to a small service first can lead to a long-term contract. It’s why companies ask for tiny commitments—like signing up for a newsletter—before asking for bigger ones—like purchasing a service.

So next time you’re trying to persuade someone, start with a small, easy ‘yes’ before asking for something bigger.

SCARCITY

And finally, we have Scarcity—a.k.a. FOMO (Fear of Missing Out). I’ll tell you, the FOMO is real.

People naturally place more value on things that seem limited, exclusive, or rare. If something is always available, we assume it’s not that special. But the moment we hear ‘Limited Stock!’ or ‘Offer Ends Tonight!’—suddenly, we feel the urge to act fast.

This is why luxury brands limit production, why concert tickets sell out in minutes, and why airline prices seem to rise when you check the same flight multiple times. Scarcity makes us feel urgency, and urgency makes us take action—whether it’s buying a product, signing up for a service, or making an important decision.

Businesses strategically use scarcity in different ways:

• Limited-Time Offers – When companies say ‘This deal ends in 24 hours,’ people are more likely to act. Without a deadline, they might procrastinate.
• Exclusive Memberships – Think about clubs that have a ‘waiting list’ or stores that only offer certain products to VIP members. When access is restricted, people want in.
• Low Stock Alerts – Ever seen ‘Only 2 left in stock!’ on a website? That makes you want to buy before it’s gone.

Moral of the story? Scarcity makes people act fast. Use it wisely.

CONCLUSION

So there you have it: Cialdini’s six principles of persuasion. Remember, persuasion isn’t about tricking people; it’s about making your message more compelling. When used ethically, these principles help create win-win situations, where both sides feel good about the decision.

Show notes simplified

In this episode, MJ the tutor breaks down Cialdini’s six principles of persuasion and how they apply to the world of business. Whether you’re working with clients, presenting in class, or building your personal brand, understanding these principles can help make your business interactions more convincing and effective.