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