Useful Negotiation Strategies and Tactics

Negotiation Tactics - Part II

There are a variety of methods to use when negotiating. In the first article, it was advocated to enter a negotiation from a position of power (strategy) - this means that they want your services just as much as you want their business.

The tactic is the mighty pause - name your price and sit still, count sheep, do mental math - anything to keep quiet (besides fidgeting).

Don't touch your face, smile, wince or or adjust your glasses. Studies have shown that your credibility and thus your believability rapidly declines when you touch your face, smile, wince or adjust your glasses, play with your hair in a negotiation.

The second strategy deals with the fact that the other party in the negotiation process wants everything they can - the proverbial 'get blood from stone.'

The tactic to keep them off balance is to just say, 'No.'

For example - an employee wants a raise. You reply, 'No.' Nothing else is said. Let them talk first (and you don't offer an explanation). If they ask, "Well why not,' - just answer 'No.' They'll look at you funny and won't know how to proceed. If you attempt to explain why, you're sunk. Just walk away.

Should the employee come back and ask again, say 'No.' - DO NOT offer any explanation(s).

To reverse this: (let's say it's you asking for a raise).

You: Hey boss, take a look at this. I've made a list of what I've accomplished for the past 8 months.'

Boss: (After reading it through).. You've done a lot.. So what do you want?

You: Well, I want another weeks vacation plus a 8.5% increase retro-active 8 months ago.

Boss: Well I'll have to think about that.

You: Thanks Boss (and walk away).

You have an 80% chance that you'll get what you asked for because you gave the boss proof (so the boss doesn't have to think - boss + thinking = not good for you).

The third strategy is focuses on the power of silence (the shut-up) factor.

The tactic to overcome this (in a boss) is to ask pre-answered questions (and you answer them).

For example: You ask for a raise - boss is silent.

You: (after slience from boss). Let's take for a moment, that these accomplishments weren't carried through. What do you imagine would have happened (and list the reasons) calmly and without emotion.

Boss: Well, anyone could have done that!

You: Most certainly - however, the fact is I performed these tasks. Did I mention that the company saved X as a result of this action? And as a result of this benefit - this is what I want - list whatever it is you want and then YOU be silent. Let the 'boss' do all the talking from here. DO NOT attempt to answer any of the questions the boss has - they aren't meant for you - they're the boss' verbalization of their mental process. They'll come to a conclusion all on their own - in your favor.

Negotiation tactics take some time to work on especially if you're afraid of carrying them through or afraid for your job. If your position is ever threatened by dismissal for just asking for a raise - then, I don't think that company is worth your time - do you?

Take what works and discard the rest.

Guide to Build a Successful Business

'Systematizing' the online business process is an area I've been struggling with for a little while now. While novices to IM(Internet Marketing) tend to feel swamped by the range of tactics and techniques available, more experienced IMers are merely buried in the ideas and knowledge they've gained (which in my case just swirls around in my head all the time!). Neither feels especially 'free' of worry or stress! Whatever stage you're at, finding ways to simplify the process is a major step in creating personal freedom. It would make a good subject for the group to discuss and develop.

Many guru's split the process into four stages - IDENTIFY YOUR MARKET, DEVELOP YOUR PRODUCT, BUILD YOUR LIST, PROMOTE YOUR OFFER and although there are clearly alternative stages, and sub-stages within this model, it pretty much covers every types of business. Even a $100-a-day cashcow that's runs on autopilot requires each of these stages to some degree. If these stages could be broken down into a simple checklist along the lines 'go here, do this, check that, click this - and so on' it would help both novices and experienced entrepreneurs. People like Ed Dale have been making attempts to do this and there are countless WSOs and short reports that try to do so but I haven't found any programme yet that has got the process completely right.

I agree that a 'proper' business is the natural goal for most entrepreneurs, but people starting out should consider carefully what they define as 'proper'. I've started, built and run several businesses. I've also been involved or advised countless others. Believe me, if you're fed up with doing a 9-5 job for someone else with limited remuneration, lack of enjoyment and buckets of stress, then running a 10/20/30-person company won't be any different! In fact, it'll be worse. 

There are only three reasons for doing it:

1. You 'might' make a shitload of money (but don't bet on it - 95% of all startups fail in the first three years)
2. You 'might' be able to sell the business for a shitload of money (after 5/10/20/50 years of bloody hard work building it up)
3. You 'might' be able to take a back seat, hand the company to employees to run, and live comfortably off the profits

Most people starting in business have options 1 (and maybe 2) in mind. But it's option 3 that is most appealing. Creating a business which produces hands-free 'residual' income year after year with little or no effort is, in my opinion, the key to success, and something that could be achieved in a matter of months rather than taking years.

A $100-a-day cashcow isn't always the best starting point. It's surprising how much time you can spend tinkering with your cashcow - before you know it, months or years have slipped by, and you're still only earning $100 a day! So I would be wary of focussing too much on that.

Having said that, it's doesn't take a huge amount of effort to get a small ebay business going, or setting up an ezine, or creating a short report, or building a simple affiliate site. It's not rocket science - you just have to get on with it.

Useful Negotiation Strategies

Rule#1 Always Go Into Negotiation With Power.
This means that you have valuable information which that company/individual wants. It also means that they might attempt to de-value your skills or services. They do this by asking very forward questions.

Examples:
Why should we pay you those fees?
Why should we believe you?
If you screw up, do you have insurance?
You don’t have an advanced Ph.D. What makes your opinion valuable?

These questions, while very legitimate can put off many, many otherwise secure and confident people. Just like the Merovingian in Matrix Reloaded, take his advice: Know the ‘WHY’.

Rule#2 They’ll Ask For The Song, A Dance, Candy And Flowers Too!
Don’t fight it. You’re building a relationship whether you like to or not. Do something different. Remove the ‘office setting.’ If the decision maker plays golf, you’d better play golf too. And be good at it while allowing them to save face if they aren’t too good. This is an opportunity to observe your potential client for 3-6 hours. You’ll learn their habits, whether or not they’re proud, vain, cheaters, liars or frauds. You’ll learn their management style – whether they’re laid back and handle pressure well or second guess themselves on decisions. Keep your wits about you and observe. Let things unfold as they may.

Rule#3: Learn To Shut Up
In an effort to ease a situation, lots of talking can occur. Zips your lips and shut up. Let them talk and talk and talk. Then let them sign and sign and sign. If it’s difficult to not interrupt, pinch yourself. How do I know this works? After I lost a $60K front end and a 3.8M back-end, do you know what the decision maker told me? ‘I’ll recommend you to someone else. Just please shut up.’ And so I have.

Take what works for you and discard the rest.