July 9th, 2010 - By Marvin
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When it comes to dealing with people and money, negotiation is a skill that should never be taken lightly. In fact, there have been books written which are completely devoted to the topic of negotiation. In this chapter, we will go over a few rules of thumb which you can use to strengthen your position when negotiating with potential clients.
- When negotiating with clients, make yourself look larger than you really are – This is a common technique that many animals use in nature, often as a way of protecting themselves from predators. An animal that looks larger or more formidable than it really is will often deter potential predators. Likewise, the same principle can be applied to the world of negotiation. By seeming bigger than you are, or endowed with more resources than you actually have, you can prevent the other side from assuming a stronger position.
- If you are in a stronger position than the other side, negotiate while putting pressure on them – By putting constant pressure on the weaker side during negotiations, in most cases you will force them into offering you terms which are much more generous to your long term goals. This technique is good for an established freelancer who has rare skills and or many clients. For example, during negotiations, a skilled freelancer could place time limits on the other side, telling them that “they have other projects in the pipeline, and if the negotiations aren't made quickly enough, you will take on the other project.” A client who desperately needs you will suddenly be open to all sorts of terms.
- If you are the weaker side, use time to your advantage by extending the negotiation time – In negotiation, the weaker side must do the opposite of the stronger side. Instead of trying to put pressure on the opposition, it can be beneficial to buy yourself as much time as possible, which allows you to figure out ways to get what you want and strengthen your own position. In the past, when two countries were at war, the weaker side would sometimes use negotiation as a ruse, gathering and strengthening their forces behind the scenes while using negotiation as a way to buy themselves time.
- Always be willing to walk away – Regardless of the amount of money involved, the successful freelancer is the one who is always willing to walk away when the terms are not agreeable to them. If you accept any terms which are offered to you, the other side will often not respect you. However, if you're willing to walk away, you convey the message that you're already established and successful, and this will make you more desirable to the other side. Because you are willing to walk away, it shows that you are valuable, and don't need them or their money.
These are the four basic negotiation techniques that you can use when dealing with potential clients, and history shows that these negotiation techniques work. They have worked well in warfare, and they will work equally well in business.