How to Negotiate (or, "The Art of Dealmaking") | Tim Ferriss

all right this is on how to negotiate or the art of deal-making whether you like it or not you are a sales person you're going to be persuading others to buy into your ideas your services your product your career path investing in you in some capacity you need to learn how to persuade so we'll talk about a few different techniques that I use routinely for negotiating which isn't exactly the same as persuasion if you're interested in the general broad scope of persuasion and influence I highly recommend you pick up the book influence by Robert Cal Dini or chal Dini I'm not sure how it is pronounced but that is a classic that I read many many times in the very beginning my career had found very very helpful getting into negotiating a few things to keep in mind mantra number one is he or she who cares the least wins so having options is very helpful for giving you that type of confidence walkaway power the other is doing an exercise called fear settings so that the downsides of losing the negotiation are d tooth in a way and you can find out more about fear setting at tim dot blog for slash ted I did an entire TED talk on this so I won't spend time on it right now a few things when it comes to negotiating a price a deal structuring etc the first is that you want the counterparty the person that you're negotiating with to negotiate against themselves first how do you do that if possible I like to ask them to make the first offer put something on the table to get the ball rolling or to initiate the conversation and very often you'll be interacting with someone who you can position is the expert you know more about this than I do you've done this a hundred times this is my first rodeo why don't you just put something on the table so that we can discuss it as a starting point that is in my experience very often more beneficial than it is harmful sometimes they will try to anchor that is give you a very very high ball price or a very very low ball price depending on if they're on the sell side or the buy side but generally speaking I like to get the other side to open up and show their initial hand at that point you can do what's called a flinch and when I lived in China and in 96 I saw this all the time where he'd go to buy a shirt or a phone charger whatever it might be and you would offer a price and then the woman selling it would go and make all these faces and contortions and so on she did that very deliberately to get me to then back off or retract or a back step right you don't have to make some type of extreme theatrics to accomplish this you could just pause hmm you know that's that's a bit more than I would have expected and then wait and the waiting is the hardest so if you can develop the ability to sit in silence you will have a tremendous advantage in negotiating so you want to flinch in some fashion first wow that's a lot higher than I would have expected then perhaps they backpedal which happens a lot especially with novice or intermediate negotiators and then you can very simply ask is that the best that you can do do you think this is the best that you guys can offer and again pause and wait when you want to get into some of them more I suppose sophisticated or developed techniques in negotiating different types of bracketing how to make certain concessions how to drill into what they want the needs behind their requests so they want a certain price but what are the incentives are they trying to hit a quota do they want to for instance be remembered in some fashion or retain branding maybe a statue in front of the shopping center would do instead of them getting top dollar on the shopping center you're trying to buy something like that there are resources that can help with these types of more advanced techniques one would be roger dawson secrets of power negotiating I listen to that in audio format it is available in audio I don't know the quality these days but I listened to that driving to and from work during my commute in 2000-2001 and if I remember correctly Roger made his first fortune in real estate and I found it very very helpful and particularly in audio so I could hear inflection how he delivered certain phrases asked certain questions the other book is getting past no and the author or at least co-authors William ury you are why getting past no was a follow-up to getting to yes which was a book co-authored by the founders of the Harvard negotiation project I believe it is one of which is William ury but getting past no is I think the more pragmatic realistic way to phrase many of your experiences in the world of negotiating you're going to be either trying to sell something that isn't immediately obvious to someone or you're going to be trying to buy something at a price or with a structure that isn't immediately obviously appealing to someone otherwise it's not negotiating you simply put something on the table and you sell it or you buy it the other facet of negotiating is avoiding it altogether and that sort of leads to this which is you can structure your life to avoid certain types of negotiation in the case of say my podcast and podcast sponsorship of a very lean team of just a few people and we want to avoid altogether the extreme back and forth that can be involved with ad purchasing or selling this is very routine and podcasts size of mind very often F staff of twenty thirty people and agencies and all sorts of folks involved to avoid that we decided that we would have everyone prepay there are no payment terms no net thirty or anything like that we did not offer any discounts still don't offer any discounts we would charge a premium the way you get a discount is by locking in today's pricing because with the rate of growth we expected with the podcast the absolute pricing would always go up not the CPM and so there are ways you can set policies and systems in place in the beginning so that you do not have to expend many many cycles of negotiating to pull that off though in the case save the podcast you have to deliver a very very high amounts of traffic with high conversion all right so that in a sense forces you to deliver a higher-quality product and I always find that the premium space or selling to the affluent if you want to take a look at that book to be much much easier than negotiating with players who are looking for the lowest cost option so those are a few approaches to deal making and negotiating and structuring different approaches to putting together say packages for buying or selling that I found useful and I hope do as well you

Channel: Tim Ferriss

Views: 114,806

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Keywords: tim ferriss, 4 hour workweek, timothy ferriss, entrepreneur, ferriss, tim ferriss blog, timothy ferriss speaker, Tim Ferriss Podcast, negotiation, dealmaking, how to negotiate, how to negotiate better, negotiation book, negotiation resources, how do i negotiate, how to make a deal

Id: z3U0FRb9yr4

Length: 7min 1sec (421 seconds)

Published: Thu May 28 2020