Deal Making Skills...
 

Recently, I've been thinking about "deal making skills"... And how important they can be...

I've actually done some very simple "deals" - but I don't really consider myself to be a very skilled "deal maker". It's something I'd like to become better at, though...

This website (Sowpub) actually started as a "joint venture"-type deal between Gordon and myself... I've also made business purchases as part of a "deal"...

Anyone who's read (and put into practice) Gordon's "The Chattel Report" or "The Beginner's Guide to Chatteling" knows there's some "deal-making" involved there too...

Recently, someone I know did a deal where he sold a domain name he owned for over $800. (That was just a domain name only - not a website.)

By the way, I don't really see deal-making as "how to screw others", but rather how to achieve a "win-win" result. And also how not to make sure you're not "screwed" yourself... (Since even if you try to make sure you don't "screw" others, there are a few out there who don't have the same scruples, so it's good to be a little careful...)

Does anyone have any experiences, or anything you've read, which could be useful regarding "deal-making" skills?

Thanks,

Dien

Re: Deal Making Skills...
 

The first thing you do is to change the way you look at the encounter with whomover you're trying to 'make a deal'. You, or they, have a problem or there'd be no reason to be discussing a deal. That being so, you have to take a MUTUAL problem-solving attitude to the entire process. THAT's the real secret to reaching a consensus and the agreement that results in a deal.

There's a lot more to it than that, of course, but you now have a starting point at least.

I wrote an article quite some time back about negotiating. In it I detailed how a typical negotiation proceeds, the pitfalls and tricks that one or the other party may try and the proper response that tells them whether you're a pro or an amateur out of your league. Pros gain respect, amateurs have already lost the deal in one way or another.

Hate to say this but, the majority of the time, American negotiators haven't a clue and don't even recognize when they hold trump...especially in high stakes negotiating. They're learning but it's been a long time coming.

It's one thing to know the ropes and another to have the ability to pull the right one at the right time so knowledge doesn't necessarily equal skill but it sure helps.

Sandi Bowman

Re: Deal Making Skills...
 

Dien,

You may have read this from a post of mine awhile back on Ryan P. Allis... But some good information...

A $200000 Lesson on Deal Making...
http://www.zeromillion.com/young/you...repreneur.html

Interesting reading and Learning...
http://www.ryanallis.com/
http://www.zeromillion.com/sitemap.html

By the way...

If you're still passing through Vietnam... :)

Share any Gold nuggets of info & opportunities you come across... ;)

Vietnam catches real estate fever
http://money.cnn.com/news/newsfeeds/...3-20894165.htm

Phil

I think everyone should read this...
 

Thanks Phil as always,

Scroll down and read, then print out and hang on wall, computer, monitor, somewhere you can see it every day:

Structuring a Percentage Deal & Using Other People's Money

It is the most succinct COURSE on deal making and is RIGHT ON.

Other comments,

Dien, I'm getting a full blown lesson on deal making from Harvey Brody...and consider that he makes 99% of his multi-million dollar deals from his home office...over the phone, fax and computer...he must have this deal making thing down pat (he does...and it is remarkable to those of us who haven't experienced it, to HB, it is daily routine)...

Harvey tells me he knows almost immediately if the deal presented is worthy of pursuing. That ONE skill alone is a valuable time saving money-making asset. You won't get BOGGED down in "bad deals".

Also, Sandi, I'm going to disagree with this statement:

"You or they, have a problem or there'd be no reason to be discussing a deal".

And it may be semantics or splitting hairs, let me know.

When you look at the deals that guys like Harvey Brody, Jay Abraham and Robert Ringer put together, it more often than not doesn't solve a problem, it creates more revenue or income. They make deals that produces passive income for themselves while increasing the bottom line.

The reason I say this is because many companies they work with are very successful, they don't have a problem, per se, they need to be educated or shown another revenue stream...exactly as Ryan says in his response to young Greg...

"Explain to the owner that they have no risk, as they will not have to pay you unless you bring in sales."

These type of deal makers increase profits for some very successful companies and businesses that are humming along, problem free, but aren't maximized in ways that a guy like Harvey Brody can help them with.

So, before negotiations even begin, the deal maker has to have a very clear idea, a well defined outcome, and the right attitude (as you mention) before an approach is made.

And the ultimate postion of strength is being able to walk away from any deal if it doesn't meet your criteria and makes you happy.

Once you have whetted their appetite, and you have a proven track record (although that didn't stop 17 year old Ryan)...they have more trouble walking away from a lucrative deal and are more willing to meet your "demands".

I do agree that "knowledge doesn't ... equal skill, but it sure helps".

It sure does.

Gordon Alexander

Re: I think everyone should read this...
 

Hi Gordon;

So when do you think you'll have this completed? AND most importantly, will it be available to us Sowpubers?

I loved the first report you put out on Harvey's material and have been anxiously waiting for more.

Carol

Re: Deal Making Skills...
 

I think it's a poor choice of words on my part, Gordon. Rather than a problem it should be a 'situation' , which could include wants/desires as well as, or as substitute for, a problem on one side or the other.

On the other hand, if one wants more, or doesn't have what they desire or need and someone else has it, it can be a problem for them so... Ah, well, same thing, different way of expressing it, that's all. ;)

Sandi Bowman

Re: Deal Making Skills...
 

Excellent question Dien.

I routinely register and sell domain names for 3-4 figures. My process of domain selling is easy. But can't be automated or outsourced. Let me see if I can write a short report on it quickly.

Anyways, I've made / tried to make quite a few deals. Some went well. Others went bust.

Some rules I tend to follow:

1. Before putting deals together, you need to know what you can do and how much resources you can spare.

2. Always find buyers first. Sellers are easy to find. Buyers are not. So you need to have a strategy in place that attracts the buyers to you.

3. ASK.

4. If possible, don't make the first offer. Let the other party make the offer to you. You'll be surprised how often it'll be more than you would have asked.

5. The 10% upgrade rule. Always ask "whats the best you can do" when discussing price. Most of the time, if you get an offer for $500 - you can easily make a counter offer of $550 and get it. People don't think a lot if they have to pay 10% more.

6. Always leave the other party satisfied.

7. Take care of your downside and the upside will take care of itself. First and foremost - minimize / spread the risk.

Re: Deal Making Skills...
 

Also...Read this book:
"The Risk-free Entrepreneur: The Idea Person's Guide to Building a Business With Other People's Money"
Amazon Link
Its quite a simply written book, and gives you a good grasp of the concepts, parties, and agreements one should put in place when outsourcing products/services for a deal.
(if you look it up in google books, there are about 100 pages of the book on sample)

Carol (group)here's an update on Toll Booth Positions as Harvey Brody teaches them...
 

Hi Carol,

Thanks for asking. The first part or Beginner's Guide to Toll Positions should be available before winter is over, maybe sooner. As far as "completed" goes, well...

I'm astonished at the amount of information, after all he's been doing this for 53 years now...and it may take a couple of years, working full speed, to get the whole of it "completed". But that doesn't mean we won't have some very useful, and practical...

no theory, pulled from the 53 years of success...

information on HOW TO GET STARTED that will help us all get established in the Toll Positon, or Toll Booth aspect of passive income.

Your patience will be rewarded, there is NO ONE out there that teaches this kind of stuff...I've been at it over a year, and I've just scratched the surface...although with Mr. Brody's help, I have gained not only knowledge but also have put into practice his methodology too.

IF you have a specific question regarding Toll Booth prosperity, I'll include it in the question sheet I send to him, OK?

Gordon Jay Alexander

Re: Deal Making Skills...
 

One of the best books I've read and tapes I've listened to is Roger Dawson's Secrets of Power Negotiating
http://www.amazon.com/Secrets-Power-...4985458&sr=1-1

Mack

Re: Deal Making Skills...
 

Thanks Ankesh,

Those are great tips!

I'd also love to see your report on selling domain names... ;)

(I have a ton of them.)

Cheers, Dien

Re: Deal Making Skills...
 

Thanks Johnny for the recommendation! I'll keep a lookout for it in the bookstores... :)

Here's a link that will take you to the Google Books page for it (it's the first link on this page)...

http://books.google.com/books?q=risk-free+entrepreneur

I've only had a quick look at it so far there - but it looks useful!

Thanks,

Dien

Re: Deal Making Skills...
 

Thanks Mack for the recommendation!

I'm sure I've seen his book around in bookstores... When I find it again, I'll pick it up and leaf through it to check it out... (and most likely get a copy)... :)

Cheers,

Dien

Re: Deal Making Skills...
 

Thanks Phil... Great links!

(Good story too...)

I am still visiting Vietnam... I'll look into the property situation! However, I don't know what the laws are here on foreigners owning property... I know some countries put strict restrictions on it. I'll have to check it out.

Cheers,

Dien

Re: Deal Making Skills...
 

Hi Sandi,

Thanks for sharing your insights!

It'd be great to also know some of the most common "mistakes" people make in negotiating, based on your experiences...

Cheers,

Dien

Re: Deal Making Skills...
 

Thanks Dien.

I've sent you an email re: selling domain names. Would love your feedback on the system too. I've been using it since the past 5-6 months. And sell a couple domain names every month. The lowest I've made on a domain name is $270.

I'll be writing the report by this weekend. Not sure if I'll sell it or give it away at this point though...

Re: Deal Making Skills...
 

That a nice investment. To have a that much from a domain name.

Re: Deal Making Skills...
 

Hi Ankesh,

Sounds like you have an interesting “twist” on domain names...

Hopefully, we'll be reading more about it on your Great blog...
http://www.blogclout.com/blog/

Try considering... “The Economics of Abundance and the Price of Zero”... In your decision in selling it or giving it away... :)

Phil

Ankesh... it's a brilliant system!
 

Ankesh explained his system to me - and I've gotta say, it's brilliant!

When Ankesh comes out with his report, I suggest you grab a copy... :)

Cheers,

Dien

Re: Deal Making Skills...
 

Hi, Dien,

I dug out "Negotiation Through Training" , copyright by Sandra Bowman. These are excerpts from the article I had published on one of my sites several years ago. It is difficult, because of the necessity of understanding what goes before, to cut into the middle of it and draw things out so they make sense to folks but for you I tried.

* Always go for a win-win position. Some negotiators fake it but it's not recommended and can backfire.

* Operate from a position of strength or don't waste your time or theirs.

* Each party to a negotiation effectively 'trains' the others how to negotiate with them by what they will and won't tolerate or agree to. If you allow them to bully and threaten you and still get your business, you have trained them to use this method with you. The reverse is also true.

* Respect protocol and time lines...both yours and theirs.

* Come to the table with a full agenda of:
l. Must haves (non-negotiable essentials)
2. If possibles (highly desireables)
3. Bargaining chips (to be used for point advantage as in give-to-get).

* Never 'lay all your cards on the table'. It tells them you're an amateur and don't understand the process.

* Never put your final offer as your first offer. You will be at a distinct disadvantage from the outset and will end up making concessions you can't afford or the negotiations will fail ultimately.

Some sharp negotiators will make a big display of 'laying the cards on the table' in an attempt to rush you into believing that their terms aren't really negotiable 'we've already cut the offer to the bone'. This is often accompanied by an air of impatience. Inexperienced folks often fall for it and expose their minimal settlement terms. Sharpie then uses your NON-negotiables as the 'starting point' for negotiations! It's a trap for the unwary.

How to respond? Offer to pospone the negotiations if they're pressed for time. Almost invariably they'll back down and begin negotiating in earnest. You have, with that response, trained them to negotiate properly and leave the games and posturing to the amateurs. You have informed them that you are wise to the usual negotiating tricks, required that they treat you wtih respect, and gained a good psychological advantage ultimately.

* Understand the process and set achievable goals for a win-win outcome.

Hope this helps, Dien. It's far from the entire scenario but hope it's enough to let you get a taste of the process.

Sandi Bowman

Re: Deal Making Skills...
 

Sandi,

That was very informative and to the point. Thanks for sharing that with us.

Tom

Re: Deal Making Skills...
 

Hi Sandi,

Thanks for sharing this! There's some great advice there...! :)

Best wishes,

Dien

Re: Ankesh... it's a brilliant system!
 

Thanks Dien for your kind words :)

To everyone who has emailed me - the report will be out very very soon. I've written the report. Am in the process of setting up the sales letter and systems for it.

Re: Deal Making Skills...
 

Hi friends, I work at a University and I have some visiting researchers coming over for weekly periods to engage in research. They get their salary by the company in France but I wanted to know whether we should tax them as according to my interpretation of Article 21 of the double taxation agreement, they should not pay tax in the UK. Is anyone else who have helpful suggestions on this as I am not sure if we are following the correct procedure?

Double-taxation
 

Hi,

I'm no expert in this - for an expert opinion, you probably need to see an accountant.

However, many countries have double-taxation agreements. That generally means that if a person is receiving a salary from one place, and paying taxes on it, they should not be taxed in the other place. (Otherwise they would be taxed twice.)

I don't know for sure, but I would be very surprised if the UK and France didn't have such an agreement. However, to be sure, you probably need to see an accountant. You probably have accounting professionals working at your university who can tell you the answer, since I'm sure this can't be the first time this has happened...

Best of luck,

Dien

No Tax Payable/Collectable
 

CCSharon,

Thanks for asking.

You are Not their employer or payer, so why would you want to tax them?

They don't live in your country and are not employed by anyone in your country nor paid by anyone in your country. Hence, you do not tax them. Simple. Leave their employer to do what needs to be done. They are not residents for tax purposes.

Michael Ross

Re: Double-taxation
 

Not sure if any of this helps but it might contain some answers...

Although it might Not as it looks like much of it hasn't gone into force...

Maybe just old information...

Lots more of related info in Google might be worth Googling on...

UK/France Double Taxation Agreement – 2004...
UK/FRANCE DOUBLE TAXATION CONVENTION. SIGNED IN LONDON ON 28 JANUARY 2004 ... Article 20 (Government service). Article 21 (Teachers and researchers) ...
http://www.hmrc.gov.uk/international/france.pdf

Double Taxation Relief Manual: Contents...
DT7321, DT: France: double taxation agreement, Article 21: Students and business apprentices. DT7322, DT: France: double taxation agreement, Article 22: ...
http://www.hmrc.gov.uk/manuals/dtmanual/dt7250+.htm

UK-France Double Tax Treaty to be revised ... Please note that taxation is a complex subject and you should not take or refrain from taking any step without ...
http://www.sykesanderson.com/service...nce_latest.asp

Phil