Tag Archives: negotiate

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Pro Bono Quid Pro Quo

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I’ve often recommended that Freelancers seek out speaking opportunities as a way to meet potential clients or referral sources, enhance your brand, add names to your mailing list to support leadgen activities and to generally build name recognition and expand your influence. Speaking before an audience, in-person or virtual, is a golden opportunity and, as noted, confers many tangible and intangible benefits. But the cold fact is, speaking engagements often do not pay, or pay only a modest amount.

As a seasoned professional with wisdom to share, you deserve to be paid for speaking engagements but unfortunately, that is not always the case. While occasional pro bono speaking engagements might be building blocks for your brand, it nevertheless makes sense to get some quid pro quo. Use some creativity and moxie to first, think about acceptable substitutes for money and then ask the organizer what can be done for you. In other words, redefine what it means to get paid and negotiate for an alternative form of payment that will compensate you for the value you’ll deliver. The alternative payment might be tangible or intangible. The idea is to not walk away empty-handed and create a win for yourself and the organizer.

As you consider what you may be willing to accept in place of monetary compensation, remember what is required to prepare a talk. Typically, a one hour program consists of about 45 minutes for the presentation plus 10-15 minutes allotted for your introduction and Q & A. Presentations require numerous hours to prepare—slides must be designed and created and maybe handouts, too. Practicing your delivery and figuring out how to best integrate the visuals can take three hours or more. You’ll want to negotiate for a fee alternative that for you will be a high-value commodity, even if it’s not money. Here are seven possibilities to consider:

Networking opportunities

There is value in relationship-building conversations with leaders. Request an introduction and 30 meeting with a leader or decision-maker within the organization to build broader deeper networks. This creates long lasting connections after your talk. Research the organization to help you prepare a list of questions you can ask and to also help you understand how you can be a resource to the organization and vice versa.

Testimonials

Ask an organizer in a leadership role to provide a flattering quote or endorsement that can be uploaded to your website or LinkedIn profile. If there is a heavy-hitter in the audience, ask the organizer to introduce you and ask if the VIP would be willing to supply a quote that you can record as a video.

Referrals

Request that if your talk receives positive feedback from the audience, you’ll be invited to speak again in 24-36 months. Or, if the organizing body happens to be the local chapter of a regional or national organization, ask your local contact to recommend you as a speaker at the regional or even national level. You can also ask to be referred and recommended to speak at a related organization or conference. The goal is to use this first opportunity as a stepping stone for upward mobility.

Discounted memberships and dues 

Many speaker series programs are hosted by organizations whose members and programs can provide networking and professional development opportunities for you. Consider asking to receive a waived or discounted one-year membership, to help expand your network, upgrade your skills and save money as you do. Or you might request comped admission to certain upcoming programs that you’d like to attend.  

A public speaking coach to build your skills

Ask your con if the organization has affiliations with professional storytellers or public speaking coaches. If so, request that the coach meet with you for an hour or two, to give feedback in advance of your talk. Or, ask for the coach to attend your presentation to evaluate you and provide verbal or written feedback. Using your talks as opportunities to improve your speaking skills is always a good strategy.

High-resolution event photos

Some speaking engagements are still virtual, but if your talk will be in-person , request that a photographer, if available, takes action shots of you at work, speaking at the podium and interacting with the audience. You might also request that the photographer take a headshot of you. High-quality photos are an important resource and images of you in action are especially valuable, but may be difficult to obtain. High quality, recent photos are guaranteed to be excellent additions to your print or online promotional materials, from website to media kit.

Social media boost

Ask the organizer to record the presentation, whether virtual or IRT, and send three of four five-minute highlight video clips for you to upload to social media. Teaser videos can also be used to promote your content and speaking style. Use the material as a demo reel to help solicit further speaking opportunities.

Thanks for reading,

Kim

Image: Former first lady of Argentina (June 1946 – July 1952), Eva Peron electrifies a crowd

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Negotiate Your Way into Healthy Cash-Flow

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Lovely summer is here, generously rewarding us with warm breezes, long days and abundant sunshine.  Summer gives us many gifts but unfortunately, a generous amount of billable hours may not be one of them.  Two possible solutions to the impasse are to step up your networking activity starting in early spring, to help yourself meet and connect with potential clients who are in hiring mode and to let family, friends and referral sources know that you’re looking for projects.  Don’t be shy!

As a self-employed professional, you are the captain of your ship and it is your responsibility to take all reasonable measures to improve your financial position.  Your survival depends on it.  Smart marketing and prudent financial management are the foundation of a successful enterprise.

The most critical aspect of financial management for Freelance consultants and small business owners is to collect accounts receivable as quickly as possible, so that adequate cash-flow is maintained and accounts payable, employees and subcontractors can be paid on time.  Regarding your accounts receivable, I recommend that you take the following actions to encourage on-time payments:

  1. During the project specs discussion propose a payment schedule, perhaps tied to the timing and achievement of certain project milestones.
  2. Request a down payment of 20% – 35% of the total project fee and unless you’ve previously worked with the client, don’t start the project work until it is in hand.
  3. Invoice according to the agreed-upon payment schedule.

I cannot overstate the importance of these three actions.  Accountants estimate that in a given year, 5% – 10% of professional services providers’ invoices will be uncollectible.  The client is not always entirely at fault.  Freelancers must demonstrate that we intend to get paid and that’s done by being serious about the project payment schedule, requiring a project fee down payment and on-time invoicing.

Another helpful tactic is to make money by saving money.  Examining your accounts payable might help you gain a few dollars each month.  The number one accounts payable tactic is to avoid paying late fees by any means necessary.  Several years ago, many companies recognized that late payment fees are a very lucrative passive revenue stream and so they doubled, or even tripled, their penalties.  Some also shortened the length of their grace period window, when a late fee could be avoided.  Defend yourself from this predatory practice by flagging all accounts payable with their due dates as they arrive and make every effort to pay on time.

Another reason to pay on time is that a good payment record can sometimes be used to negotiate a lower credit card interest rate or request that certain fees might be waived or reduced at your bank.  While you’re on the phone and in the mood to negotiate, call your cell phone company and internet service provider and see what they can do to lower your monthly bill.

Adequate cash-flow is the life blood of every business, required to finance all business operations, including marketing campaigns, technological upgrades, professional development and other activities that support the venture.  No business can function effectively, much less grow and thrive, without healthy cash-flow.  Your diligence and negotiation skills can contribute substantively to its maintenance.

Thanks for reading,

Kim

Image: The Fruit and Vegetable Seller (1631) by Louise Moillon (France, 1610 – 1696) Courtesy of La Musee du Louvre, Paris

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Win Every Negotiation With These Tactics

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Chris Voss is a former FBI lead negotiator for international kidnapping cases, founder and CEO of The Black Swan Group, a firm that provides negotiation services to law enforcement, businesses and governments and author of Never Split the Difference (with Tahl Raz, 2016).  When you are faced with a very important negotiation that you’ve decided is a must-win, Voss offers these field-tested tactics:

  1. Mirror words selectively

Validate your negotiating counterpart’s perspective by repeating back four or five of his/her words when s/he expresses something that is apparently important to him/her.  Do this and without realizing it, your counterpart will become more trusting and candid because you will have shown that at least somewhat, you hear and understand his/her viewpoint.

Furthermore, it will be to your advantage to slow down the pace of the conversation, to give yourself more time to think and ideally, gain more control over the process. While negotiating, speak in a calm and comforting tone of voice and a measured pace. Chris Voss suggests that you take on the vocal tone and pace of a late night radio disc jockey.

2.  Practice tactical empathy

Show strategic empathy for your negotiating counterpart by helping him/her to own and label fears or reservations. “It sounds as if you’re afraid that…” and “You seem to be concerned about…” will be phrases that you’ll employ.  Everyone wants their feelings to be recognized and understood.  Communicate empathy to neutralize distrust and emotionally disarm your counterpart.

3.  Get to “no”

Being pushed to say yes can make some people feel trapped and they’re liable to become defensive.  Make your counterpart feel in control by creating opportunities for him/her to say no.  We feel safer when in control and the ability to refuse a request will support that.  The smart negotiator will selectively present questions that will likely cause your counterpart to say “no.”

Start by confirming the negotiation meeting, once you’re both in the room: “Is this a bad time to talk?” S/he is likely to say “No, this is a good time to talk,” since the meeting date and time were mutually agreed upon.  If the negotiation becomes tense, ask “Have you given up on reaching an agreement?” Again, the reply will likely be “no.” Your counterpart sees benefits in reaching an agreement because if s/he didn’t, there would be nothing to discuss and no meeting.

4.  “That’s right”

The beginning of a negotiation breakthrough is signaled when your counterpart feels that you respect his/her position, priorities, concerns, fears, or feelings.  Lead your counterpart to say “that’s right” by confirming his/her feelings and must-haves, remembering to underscore your appreciation of his/her point of view by repeating back four or five of his/her words.

5.  Resist compromise

Prepare exceptionally well for the negotiation by researching and anticipating the expected motivations, priorities, strengths, weaknesses, biases and company culture of your negotiation counterpart.  Develop a list of your competitive advantages and use them to prevail.

Pay attention to your counterparts facial expressions, tone of voice and body language and use that feedback to assess whether or not s/he is telling the truth.  Use a deal-making deadline to create a sense of urgency that will encourage your counterpart to accept your terms and get what seems to be the most s/he can get out of you by reaching an agreement.  Make your counterpart feel that if s/he declines to accept your offer, it will feel like a loss to him/her.  Play to win.

6.  Create the illusion of your adversary’s control

Use what Chris Voss calls “calibrated questions” that are designed to allow your counterpart to bring his/her must-haves, concerns and goals and perhaps also biases or world view, out into the open and make him/her feel good about having the opportunity.  Voss suggests that you pose questions that start with “what” or “how,” which will open the door to a candid conversation and not be perceived as demanding. The answers to these questions typically reveal lots of valuable information that you can use to your advantage later in the negotiation.

“What’s the biggest challenge you face?”; “What are you up against here?”; “What are we trying to accomplish?”; and “How is that worthwhile?” are phrases to remember.  Should your counterpart throw you a curve ball question, throw one back with “How am I supposed to answer that?”  Then shut up and listen to the answer, which will probably be some incoherent sputtering, or blurted information that gives you an unexpected advantage.

When your counterpart pushes back on something that you’ve proposed, ask “What about that doesn’t work for you?” or “What would you need to make this work?” When you need to throw off a refusal of your terms but still continue to move the ball down the court, rebound with “Let’s put price aside for now and talk about what would make this become a good deal?”

Finally, let your counterpart make the first offer, because that will reinforce his/her feeling of control and it might possibly exceed your expectations.

7.  Confirm the agreement

Validate that your counterpart’s “yes” is real by leading him/her to reconfirm what’s been agreed to at least three times.  To reveal behind-the-scenes deal killers, ask “How does this affect the rest of your team?” Get your negotiated agreement in writing ASAP.

Thanks for reading,

Kim

Photograph: The Basic Training of Pavlo Hummel by David Rabe, presented in New York City (l-r) Tisa Chang, Al Pacino, Anne Miyamato and Don Blakely (1976)                               © Afro Newspaper/Gado

 

 

 

 

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Overcoming Income Inequality

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Happy Halloween! Today, we’ll take a look at one of the ultimate Trick or Treat scenarios, the business model known as the Global Economy (the most recent version, that is—trade has been global at least since the glory days of Timbuktu) as well as other factors that will impact your income.  The Global Economy as we know it began about 20 years ago, midwifed by the internet.  There is plenty of evidence to show that the vast majority of the world’s 7.6  billion souls have received only a global Trick, while a fortunate “1% of the 1%” has received a nearly endless supply of economic Treats.  Most of the candy is in the goody bags of the 2,043 billionaires in the world, 233 more than there were in 2016.  In aggregate, they are worth $7.7 trillion USD. (Forbes Magazine, October 2017)

Earning a living isn’t getting any easier for the 99.99%.  In the October 8 and 15, 2017 issues of The New York Times, lengthy articles appeared and told sad tales about blue-collar workers.

From Indiana came the story of skilled factory workers who until recently earned $25/hour.  Those workers have now joined the growing ranks of low-wage and  underemployed workers, in the aftermath of the ball bearing factory’s move to Monterrey, Mexico.

Factory leaders appealed to the Indiana workers to train their Mexican replacements.  Despite significant peer pressure from most of their colleagues a few agreed to do so, primarily to receive the $5000 bonus that was promised to those who cooperated with the transition.  But once the replacements were trained,  factory leaders reneged on the $5000 bonuses.

Workers south of the border are paid less than $6/hour for their skilled labor.  Most of the former ball bearing factory workers in Indiana have secured other employment, but nearly all have seen their wages cut in half.  Financing their housing costs is an issue for many.

From Oslo, Norway, came the story of construction workers whose labor has remade the skyline of that city, capital of a nation that has become wealthy on profits from North Sea oil that was discovered in the 1960s.  Pay for construction workers remains generous, thanks to a strong union, but workers haven’t seen a pay raise in five years or more.  Further, workers from eastern and southern Europe are now being hired by local construction companies and factories at considerably lower wages than Norwegian citizens receive, so that the companies can compete successfully for projects that are put out to bid by national or global firms.

The global economy has caused workers everywhere to get low-balled on wages and benefits, whether we are blue-collar skilled labor or white-collar professionals.  Most companies fear losing a contract to a competitor; their strategy has become to keep internal expenses low, so that project proposals can include not only lower prices for the prospective customer, but also more in-house profit.  To minimize the heft of payroll, which is usually the biggest expense on the P & L statement, companies send jobs off-shore, recruit and hire foreign-born workers who desire a residency visa and are willing to accept a lower salary to obtain one , or clandestinely hire illegal aliens at bargain-basement pay.

Meanwhile, citizens who are employed at well-paying, full-time, benefits paying jobs are loath to complain or quit, because what are the chances of doing better financially at another company? For most, it’s smarter to grin and bear it.  Maybe you can rent out a spare bedroom on Airbnb or drive for Lyft or Uber to make extra money?

Another factor that depresses wages and impedes hiring is what appears to be lingering discrimination against 50% of the population.  Honeybook, a company that provides administrative support to the various specialties that service the special events and conference planning industry, in a 2017 report on the gender pay gap reported that on average, women earn 24% less than men and in the finance and insurance industries, women earn 29% less than their male counterparts.

Female Freelancers in the events and conference planning industry fare even worse. Honeybook analyzed 200,000 of the client invoices they prepare for affiliates from October 2016 – October 2017 and found that women who Freelance earn 32% less than men in the industry.  Female photographers make 40% less than their male counterparts and female event planners make 24% less than their male peers earn.  Regarding annual earnings, 42% of men earn more than $50,000 per year, while only 20% of women are paid at that rate; 20% of men earn at least $80,000 annually, while only 8% of women are able to do so.

Things are even more dismal for women at the top of the self-employment food chain, the venture capital funded start-ups.  The start-up database Crunchbase confirmed that globally, 43,008 venture capital-backed start-up enterprises were founded from 2009 – 1Q2017 and 6,791 (15.8%) of those companies had one or more female founders.

Crunchbase reports that in 2016, start-ups founded by men received a total of $94 billion in seed (angel) investment fundraising, while start-ups that had even one female founder received a total of only $10 billion.  Start-ups with one or more female founders raised 19% of all seed investment rounds, 14% of early-stage venture rounds, 8% of late-stage venture rounds.

Yeah, OK, so do we continue to cry into the champagne, or maybe do something substantive? The Honeybook crew strongly suggests that women (and men) who are Freelancing to negotiate rates and in fact, to come in with a project fee or hourly rate that reflects the quality and value of your work in the marketplace.  This is not exactly easy, however, and requires some courage. No one wants to lose a contract to a competitor, or to be challenged by a prospect.

Regarding negotiation, Freelancers have an advantage over the traditionally employed because fee negotiation is not unusual.  To succeed in a negotiation, it’s necessary to do a bit of research in advance to learn more about the project.  The process is quite simple—talk to your prospect and ask a few basic questions.  If you learn that your work will bring the client a significant ROI, or if a deadline looms, let that be reflected in your project fee or hourly rate.

If the client balks at your pricing, do not lower your fee.  Instead, adjust the scope of the work you’ll do.  If at all possible, avoid allowing a prospect to dictate your pricing terms.  Ask how much has been budgeted for the project and then decide how much work you can afford to perform for the money available.  Address the client’s most urgent needs and make him/her feel good about the value s/he will receive when your superior expertise and work ethic are applied.

Regarding female entrepreneurs, Crunchbase notes that there are now several angel investor networks funded by female investors who welcome women who lead venture capital backed enterprises.  Access to capital when it’s needed is crucial to a start-up venture’s success.  Women helping women is how we can climb the mountain.

Thanks for reading,

Kim

The Fendi sisters (l-r) Alda, Paola, Anna, Carla (who passed in June 2017) and Franca took over the business founded in Rome by their parents Adele and Edoardo in 1925.  Led by Carla, they transformed Fendi into an international brand that is now owned by LVMH.   Photograph: REX (1988)

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When Negotiating A Project Fee

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There are ways to strong-arm a highly competent Freelance professional who is ready to give a client his/her best work into accepting less than that Freelancer’s proposed project fee.  So many desperadoes are willing to work for pennies and that can make it difficult for those whose work quite simply is more valuable because s/he brings expertise and work ethic that ensure the project work will be flawless and client expectations will be met.  Those qualities should justify almost any project fee.  But sometimes, clients like to low-ball.

What do you do when s/he who would be your client tells you that you charge rather more than others for the same work? Remember that the best defense is a good offense and start justifying your pricing strategy from your initial contact with the prospect. Continuously model professionalism and expertise that separate you from the hoi polloi.

Remember also that Rule Number One in the consultant’s bible is to never cut your price. Not-for-profit organizations can receive a 10%- 25% discounted rate, but under no circumstances do you lower your hourly or project fee for any client.

Instead, add in a modest service upgrade at no charge, to make the price more palatable.  You can also scale back the work and that would be associated with a fee reduction, but one does not do the originally requested work for less money.  If the client becomes adamant about receiving the original project specs at less than your proposed fee, then find the courage to walk away.

I know that billable hours may not be falling out of trees, but you cannot participate in a race to the bottom.  Do not get sucked into competing with online Freelance service mills.  Read on and learn to create your rebuttal.

Exhibit your expertise

Clients get what they pay for and pay for what they get! Let prospective clients know that when you are hired, a task can be completely handed over to you and you will own it. Furthermore, you are willing to use your expertise to make suggestions that might improve the quality of the project deliverables.  You are a first-rate service provider who is dependable, responsive, talented and trustworthy.  Your work is done correctly the first time and there will be no need for either micromanaging or do-overs.  The client’s role in completing the project will be much lighter and that adds up to value.  These practices and competencies are reflected in your project fee and hourly rate.

Reveal your responsiveness

Especially when an important deadline looms, reassure your prospect that you are prepared to work hard and ensure that project milestones and the deadline are met.  You understand that sometimes, late nights, weekends and holidays must be at least partly devoted to work.  Your admirable work ethic is reflected in your project fee and clients who are in a hurry find your fee structure reasonable.  Your project fee includes timely communications, responding to feedback, generating ideas and more.

Demonstrate your dependability

Clients can be confident and relax when you are on the job because they know and trust your work, attention to detail and diligence.  You make life easier and allow the client to attend to other duties while you manage the project.  Project work is reliably completed as requested and within budget.  Your clients look good to their superiors, peers and direct reports.  No one winds up with egg on their face when they hire you.

Trot out your testimonials

In addition to your LinkedIn recommendations and endorsements, you no doubt will be able to supply client testimonials from one or two satisfied customers who will speak on the record with a prospective client.  If you have one or two client success stories on your web site so muh the better, as these are case studies that detail the client journey and spell out the wonderful work you can do.

Thanks for reading,

Kim

Photograph: Mike Tyson (left) by Milo threeoneseven for ESPN (date unknown)

 

 

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Defending Your Prices 2.0

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There is a lot to like about the Freelance life, but recurring paycheck anxiety isn’t one of them.  If we’re not waiting to get paid by a client who should have mailed the check 10 days ago, then we’re fretting that the check is rather too small anyway for the amount and quality of work that was done.  But how can one be choosy when the possibility of being replaced is so real? No matter how you earn your living, by 1099 or W2, the employer is in the driver’s seat.

Nevertheless, we Freelance consultants do have some leverage.  While there are thousands of Freelancers willing to accept small hourly rates and project fees, hiring managers in the know realize that the quality of their work is often less than ideal.  As always, you get what you pay for and pay for what you get. Below is a list of selling points that in your next pricing negotiation can help you to justify and defend the premium price I know you are worth:

Expertise

Shopping for B2B services is not like shopping at the old (and sorely missed) Filene’s Basement, where frugal fashionistas could find premier designer label clothing for a fraction of the retail cost.  The caveat was, one had to expect certain shortcomings, like maybe a  missing button or two because one of the infamous button thieves got to the item first (there were apparently several such individuals over the decades).

Inexperienced or less skilled Freelancers may request lower prices for any number of reasons, including perhaps the inability or unwillingness to perform complex assignments.  Some people like to compete on price and there will always be those who respond for whatever reason and that sometimes includes an antipathy toward paying people.  Those who like the low-ball figure should be advised that they are vulnerable to receiving only the bare minimum of work because they’re only paying the bare minimum price.

Make it clear to your prospect that you produce the highest quality work. The prospect can totally hand the project over and trust that you and your team will successfully complete the job as specified, on time and within budget. There will be no need for the client to perform after-the-fact do-overs of your work.  Your base price may be higher, but in the end you save clients time, money and aggravation.  You make them look smart for hiring you.

Dependability

In sum, you will produce what has been asked of you and if there appears to be an obstacle to doing so, you will alert the client as soon as that is recognized and suggest collaborate on making adjustments or creating a Plan B, especially for time-sensitive projects.  You meet deadlines and respect budgets.

Follow-up

One of the biggest mistakes a Freelancer can make when negotiating project or hourly rate pricing is to limit the scope of what you offer solely to the project work as described in the specs.  Make it known to prospects that you are selling an entire service package that includes not only the project spec work, but also includes responsiveness and prompt follow-up; good communication and feedback; efficiency with logistics; and the willingness to ensure that deadlines will be met, even if that means working outside of the 9:00 AM – 5:00 PM, Monday to Friday paradigm.

Showcase your value-added services by ensuring that your project proposal answers all of the standard or required questions and is sent to the client on time.  Respond to client follow-up inquiries quickly, efficiently and cheerfully.

Testimonials

While any confidentiality requests must be respected, revealing selected names on your client list, newsletter or blog statistics, links to published articles and webinars hosted and publicity listings for your noteworthy speaking engagements will provide tangible proof of your reputation and expertise and in that way, justify your pricing.  Depending on your specialty, an online or hard copy portfolio of your work to show to prospective clients is yet another effective way to demonstrate the quality and sophistication of your work and help to explain why you do not price your services at the bargain basement level.

Don’t be shy! Prospective clients want to see what you can do, so that an informed decision can be made.  Build your case, present it well and show them what you are worth.

Thanks for reading,

Kim

Shoppers at Filene’s Basement  (1974)  Photograph courtesy of Nick DeWolf

 

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Negotiating 2.0: Taming Hardball Tactics

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Freelance consultants are always the little guy.  We possess agile talent and experience that bring value-added to so many mission-critical projects,  but we never control the process.  We value our savvy and survival skills,  but we are alone and vulnerable, truth be told. We navigate and negotiate our way through work assignments and do whatever we can to obtain billable hours.

As we enter into negotiations in pursuit of contract assignments,  prospective clients will sometimes seek to take advantage of us. Passive aggressive withholding is the usual weapon. Prospects are known to play ugly games,  sometimes to bargain down our already quite reasonable fee,  other times to sneak more work into the agreed-upon scope of  project work (mission creep) without paying a supplement for the extra duties.

Negotiation skills are a crucial defensive mechanism that help us to protect our integrity and our income and maintain good client relations as we do. Deepak Malhotra, author of Negotiating the Impossible (2016) and professor of business administration at the Harvard Business School, has a few suggestions that will help us to respond when a prospect or client decides to become an adversary.

Tactic:  “We will never…”

This is an ultimatum. Malhotra recommends that one should simply ignore ultimatums because he’s found that they are usually NOT deal breakers. Ultimatums are frequently issued in the heat of emotion, or as a tactic to intimidate or control.

Avoid acknowledging the ultimatum and you allow the person who put it out there to slide away from it down the road,  because you never started a discussion about it. The other party will not lose face should they contemplate surrendering their tough position.

If ignoring the ultimatum is impossible, then try to reframe the statement in less harsh language that gives the other party an out. “It may be difficult,  I understand…” or “It could be costly (or time consuming or put you into unfamiliar territory)…”.

Tactic “Oh, and we also will want…”

The other party may have a laundry list of add-ons and conditions that delay agreement. Malhotra observes that there are a couple of likely motivations for this behavior. One, they sense that doing the deal is important to you and they aim to exploit that.  Alternatively, the conditions might possibly be meaningful to them in terms of obtaining satisfactory ROI.

Malhotra recommends that you put a cap on the demands by stating that if something is truly important,  you would like to understand why and that you will work with them to accommodate any legitimate concerns or objectives. However, you are not willing to negotiate an individual element so late in the negotiation process.

If adjustments are critical, he says, then tactfully make it known that it will be necessary to propose and discuss concessions that they would be willing to make in exchange. The other party must be willing to give some easement and flexibility on issues of value to you as well.

Tactic “Great– I’ll confirm this with my boss.”

Malhotra advises that first of all, make sure you are negotiating with the person who can really approve and set into motion the terms of the negotiated agreement. Sometimes, unfortunately, the other party will not be transparent.  Negotiations can be handed off to a gatekeeper while the real authority remains behind the scenes.

To head off this possibility,  ask clarifying questions of the other party  before you get too far along into the negotiations.  Inquire about who will need to sign off on or otherwise sanction the deal that is struck. Ask what factors might speed up or slow down the process. Learning the process of the one across the table shows you are someone who respects the organization and allows you to set expectations for the outcome you can achieve. Do you want to invest time talking to these people, or should you walk away and find a potentially better prospect?

Thanks for reading

Kim

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Eight Leadership Styles. Which One Is Yours?

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When assuming a leadership role,   one does what is required in that position at the time.   There is no road-map because leaders must respond to events as they occur,   as they simultaneously champion projects developed by members of their team,   push through selected personal initiatives and follow through with worthy projects that started before their regime.   Most of all a leader must be versatile,   possessed of good judgment and more than a little lucky.

Nevertheless,  we all have our strengths.   Some of us are super strategists,  or change agents.  Others are great with process and operations,  we intuitively know how to get things done efficiently.  Still others are master communicators: deal-makers,  negotiators or coaches.

How does one rise to leadership,  take the reins and succeed when certain key projects call for talents outside of the natural skill set? Good judgment will encourage the leader to recognize what is beyond his/her expertise and delegate such tasks to better qualified team members.   Further,  the leader is advised to acknowledge team members who step up,  because recognition builds loyalty and the productive can-do spirit of a high-functioning team.

Leadership development specialist Manfred F.R. Kets de Vries,   author of “The Hedgehog Effect: The Secrets of Building High Performance Teams” (2011),   has identified eight leadership competency archetypes for us to ponder.   Do you recognize yourself in one?

The BUILDER approaches leadership as an entrepreneurial activity.  This leader longs to create a tangible legacy.

The CHANGE AGENT loves to ride in on a white horse and clean up a mess.   Re-engineering is the preferred activity.

The COACH derives great personal satisfaction from talent development and knows how to recognize the strengths of team members and get the best out them.

The COMMUNICATOR,  like former presidents Bill Clinton and Ronald Reagan,  loves being on stage and knows how to influence people.

The INNOVATOR is able to sort through difficult problems and devise creative,  yet practical solutions.

The NEGOTIATOR is highly gifted at recognizing,  selling and bringing to the organization lucrative new business opportunities.

The PROCESSOR is an operations expert who will make the organization run like a well-oiled machine.  This leader will institute systems that support the organization’s objectives.

The STRATEGIST has the vision to recognize which goals and strategies the organization would be wise to pursue to ensure its future growth and sustainability.

Merry Christmas and thanks for reading,

Kim

Sales , Leave a comment

Negotiating Tips

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“What’s your best price?”

“That’s too expensive,  we can’t budget that amount.”

“Last year I hired one of your competitors to do the same thing for half your price.”

Freelancers,  business owners and of course salespeople are confronted with the above statements on a regular basis.   Customers are always angling to get the goodies on the cheap.   We need the sale,  we need the work because we need to get paid and that puts us in a vulnerable position.  How can we command what we consider to be  a fair sum  for the top-drawer services that we deliver?  To get what we feel is our due,  it’s imperative that we sharpen our negotiation skills.

Many people are afraid to negotiate.  But all of life is negotiation,  if you think about it.   All relationships involve  give and take,  do they not? Life is all about the exchange of what is valuable: time,  love,  expertise,  friendship,  products and services,  money.   To frame the process of negotiation in that light is to de-mystify it,  take away the fear and encourage one to learn to become more adept.  The tactics listed here will help:

The cards you hold

First,  understand the value of what you bring to the table.  Do your homework and investigate your competitive advantages.   How urgent is the need for what you’re selling?  Who else can match or possibly exceed you in quality,  expertise,  price and/or timing?

The person with the best data often triumphs,  so learn as much as you can about the prospect and any competitors.  If possible,  figure out if the prospect has the ability to do the project in-house.   Ask whether this project been done before and if so,  who did the work?  While you’re gathering intelligence,  try to figure out whether they might be inclined to cancel the job if they can’t get what they want for cheap money. 

Identify what the prospect wants,  why they want it and what they gain by having it,  or lose by not having it.  If a lot is on the line,  that strengthens your hand and vastly improves your chance of getting paid what you want,  depending on who you’re competing against.

Re: competitors,  find out who they are and if a prior relationship exists and why the prospect didn’t call that company/Freelancer in again?  Are they in search of something else,  or is it required that a certain number of vendors be interviewed and that’s why you’ve been invited to bid?  A vendor who’s done business with the prospect previously has a huge advantage,  but if you can make a good case,  it’s possible to scoop the business.  Maybe the administrative assistant can fill you in on a few things,  so be friendly and diplomatically ask a couple of questions.

Practice

Hone your abilities and your confidence by incorporating negotiation into your everyday life.  You’re liable to be pleasantly surprised by the receipt of a few unexpected benefits.   When making large purchases,  bring your checkbook.   Ask the store clerk  (who will have to consult the manager)  what the discount is when you pay by check  rather than by credit card  (merchant credit card processing fees cost more money).

If you visit a flea market or antiques store,  ask for 20%  off the marked price.  Again,  bring your checkbook and sweeten the deal by allowing the merchant to avoid the credit card processing fee and pass the savings onto you.  Even when you’re paying by credit card,  requesting a 10% – 20%  discount on original art,  furs and high-end jewelry allows the merchant to move product that might otherwise languish and saves you money.  You’ll be so proud of yourself!

Be confident and pleasant when you ask for your discount.  Ask for a little more than what you expect to receive  (your prospect will do that as well,  when squeezing you for a lower fee)  and expect to wind up somewhere in the middle.  Get comfortable with silence when negotiating.   Make an offer or respond to the client with a counter-offer and then shut up and wait for the response.  You may go back and forth a bit,   but hang in there and don’t be afraid to do a little horse trading.

Walk away

When entering a sales negotiation,  always have your minimum standards in mind and adhere to them.   Be prepared to leave the business on the table if you feel the prospect is out to exploit you.   It won’t help your cash flow,  but you’ll be able to hold your head high and become even more savvy as you successfully sell to the next prospect.

Thanks for reading,

Kim

Survival Strategies , , Leave a comment

Ask and You Might Receive

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Nearly all Freelancers are feeling the pain of the long slog through the sluggish economy.  Merely treading water is now considered a victory.  Even those fortunate  enough to have maintained robust billings are sensitive to the cash flow problems of their customers and fellow business owners.  Consequently,  the time is ripe to ask for a better deal,  for everything.  You may be pleasantly surprised at what people will do to keep your business.  To get the ball rolling,  all you’ll need are some creativity and moxie.

You’ll also need to remember that your goal is to both save money and build mutually beneficial business relationships,  especially when approaching fellow Freelancers or other small business owners.  Be assertive,  but considerate and respectful.  Don’t try to squeeze someone whose business may be hurting.  Think of benefits that will accrue to the other party and communicate that as you present your proposition.

The other party will appreciate that you’ve thought of their interests as well as you own,  so no matter what,  you’re likely to be seen in a positive light.  Even if you are unable to get what you want,  you’ll never lose by asking.  As they say,  it’s just business.

  • Think about bartering products or services.  What do you sell or do that suppliers and service providers might value for their businesses?  HR or IT services?  Graphics or PR or landscaping?  You’ll never know until you ask the question and get the dialogue started.  Make sure the exchange is of equivalent perceived value,  so that no one feels short-changed.
  • If you rent an office,  begin preparations now to campaign for a rent roll-back.  Commercial space is plentiful and most landlords want to keep a good tenant.  Be sure to pay your rent on time and otherwise cast yourself in a favorable light.  Get information on rents for comparable spaces in your area and determine what would be reasonable to pay for yours in the current economic climate.  Are their problems in the building?  If so,  make a list so that you can more effectively negotiate with your landlord at lease renewal time. 
  • When it’s time to advertise,  ask for a discount (try 10 %).  You’ll be more successful if the ad is larger and/or if you place multiple ads with that publication.  Ask also if you can be notified when remnant space is available,  which will save even more money.  You must be flexible and prepared to act quickly when taking remnant advertising space.  You might even spend more than you anticipated.  In exchange,  you just might get an eye-popping half page ad for the price of a quarter page.
  • Think about the products and services that you use all the time when doing business.  Do you ship items on a regular basis?  Do you travel frequently and stay at the same hotel?  If so,  then it’s time to ask for a loyalty or volume discount.  Have information about how often you use the service/product and how much you spend at the ready,  to support your case.
  • To preserve your cash flow,  request more flexible payment terms from suppliers and service providers.  Ask for 45-60 day terms,  or ask to pay half of the balance in 30 days and the remainder at 60 days.  The other party may not love it,  but the terms may nevertheless be extended in an effort to keep you as a customer.

Thanks for reading,

Kim