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Malloy Industries

The Psychology of Closing Deals: Master the PASTO Framework

Words I like: “An overabundance of choices often leads to a paralysis of decision.” – Barry Schwartz

Most CEOs pitch investors and rally employees all day, then go quiet in front of a paying customer, because selling from the top feels pushy. So they list a few features and hope the deck closes the deal. There’s a better sequence, one that answers the buyer’s questions in the order they ask them: PASTO. Shout-out to my dear friend and mentor, Joe Rojas, for teaching me all about PASTO…

  1. Problem
  2. Accentuate the problem
  3. Solution
  4. Transformation
  5. Offer

Here’s how to run it.

Illustration of a lock with five tumblers labeled PASTO, showing that a sale happens only when five buyer questions are answered in the right order: Do they get my problem? What is waiting costing me? Is there a way out? Will it work for me? What do I do next?

Problem: Open with their problem, in their words

What time is it right now while you are reading this? Did you look at the corner of your computer or the top of your phone screen to check the time? Fantastic! That’s an example of me asking you a question that directs your attention where I want it to go! So let’s apply this to your business and your future customers’ problems…what question(s) can you ask at the beginning of every conversation that directs your future customers’ attention to their problems? People need to be problem aware first and foremost. Don’t open with a ten-minute monologue about your company, your core values, or your services. Open with an insightful question that directs their attention to the problems, like “What’s your most expensive problem to solve?“

Pro Tip: Keep a running list (or AI transcript) of every prospect’s exact phrases from discovery and reuse them word for word in the proposal, and in your Frequently Asked Questions page.

Illustration showing how to reflect a buyer’s problem back more clearly. The buyer describes a tangled problem in vague terms, while the seller organizes the same words into a clearer explanation that highlights the core issue and builds trust.

Accentuate the problem: Put a price on the consequences

By now, the buyer agrees the problem exists, but it still isn’t enough for them to act because doing nothing feels free. You need to “twist the knife” and show them that waiting costs real money. Do the math together on the call. You can ask questions like:

  • How much does this part of the business bring in today, and how much should it bring in? (Ex. the answers are $5K and $15K. The gap is $10K, and that’s what the problem costs them every month it stays unsolved.)
  • Have you thought about what would happen if you don’t do anything to improve this area of your business…and your situation gets worse?

Don’t just use adjectives to describe the problem. Instead of saying it’s “frustrating,” “expensive,” or “holding the business back,” show that it costs them $10K a month.

Pro Tip: Put a number on waiting before you put a number on working with you. Whichever figure enters the conversation first becomes the anchor, and the other is judged against it.

Illustration showing that delaying a decision has a measurable cost. It compares current results to a target, highlights the performance gap, and shows how the cost of waiting grows every month until action is taken.

Solution: Introduce an answer

Present the way out as a sequence, and only then show the product. Build the sentence with three words: AND, BUT, THEREFORE. “Your leads are up, AND the team is working hard to close them, BUT conversion has been declining for two quarters; THEREFORE, the fix could be a structured follow-up system.” The buyer hears their situation, the block, and the exit in one sentence. If you skip straight to the full demo, you are just handing them homework, cause now they have to figure out which part solves their problem.

Pro Tip: Write the and-but-therefore sentence before every sales call. If you can’t fill in the “but” with something the prospect said, you’re not ready to present

Illustration showing a simple storytelling framework for sales conversations. It uses And to describe the buyer's situation, But to identify the main obstacle, and Therefore to present the solution, creating a clear path from problem to action.

Transformation: Show them the promised land

Buyers pay for the version of the world that exists after the solution, so describe that after-state in the terms they’ll live it in. Then prove it with a case study or testimonial. The buyer here is silently asking 3 questions:

  1. Why do this at all?
  2. Why do this now?
  3. Why do it with you?

Answer all three with names and numbers before they ask.

Pro Tip: Before writing any proposal, make sure it includes compelling answers to all 3 questions. Bonus points if you use the reverse testimonial framework to capture the most compelling case studies to convert new customers.

Illustration showing that buyers cross from their current state to the desired outcome only after three questions are answered: you've done it yourself, you've done it for companies like theirs, and you have a clear plan to do it for them.

Offer: 80% destination, 20% deliverables, one ask

Write the offer so that 80% of the words cover the transformation and 20% cover the deliverables, and tie every deliverable to a result. Then ask for the exact next step you need from them, a signed SOW, a pilot, or a scheduled kickoff, and build the whole offer backward from it. Don’t write an inventory proposal in the form of a one-deliverable page, with three options, and no single next step.

Pro Tip: Ask one thing per conversation; offering two next steps is giving them options to compare instead of deciding, and comparison delays every decision.

Illustration showing that a proposal should focus 80% on the buyer’s desired outcome and 20% on deliverables, ending with one clear next step instead of multiple options.

Run the sequence honestly

PASTO works because it answers the buyer’s questions in the order they ask them, and it only works when run honestly. Sometimes the gap math comes out small, and the honest read is that they shouldn’t buy this year. Say that. You might lose the deal and keep the buyer, and the CEOs you tell the truth to are the ones who call back when the cost of inaction number gets big. Speaking of PASTO, do you know why the PASTA got locked out of his house? … … …gnocchi! It all starts with a Problem worth solving,

Whenever you’re ready, here’s how we can help if…

  1. You already know what kind of problem you’re dealing with and just need the right person in the seat: The Express Match™ gets a relentlessly generous fractional executive in your business within 2 weeks.
  2. You can tell something’s off but you’re not sure if it’s Complicated or Complex: The free 30-minute Scalability Audit pinpoints the biggest constraint holding your growth back and shows you how fractional leadership can fix it.
  3. You want to talk through the problem with other CEOs before deciding anything: The Free Entrepreneur Roundtable is where growth-stage CEOs swap honest answers about leadership, hiring, and what’s working right now.