Deal Making Skills...

[Dien Rice]

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

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

[Dien Rice]

Originally Posted by Sandi Bowman

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.

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

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

Sandi,

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

Tom

[Dien Rice]

Originally Posted by Sandi Bowman

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.

Hi Sandi,

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

Best wishes,

Dien

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

[GordonJ]

Originally Posted by Phil

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

Phil

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

Originally Posted by GordonJ

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".
Gordon Alexander

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

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