I just read the top-to-bottom best negotiation guide that's ever been published on the internet… thank you Ramit Sethi!
You can click here to read the entire thing, but I've already pulled out the gems for you below:
1. Know what you want.
If you walk into a salary negotiation without a number, you’re at the mercy of an experienced hiring manager who will simply control the conversation. That’s what they do. When you know what you want, not only can you communicate that crisply to the other person, you can demonstrate why — and this forces you to prepare for the negotiation. In other words, you can’t just say, “I want to make $95,000!!!” You have to SHOW why you’re worth it. This single distinction can be worth thousands to you.
This is a pretty straight forward rule. And pay attention to that last part… in addition to knowing your number, you also have to back it up with reasoning!
2. Know who you’re negotiating with
When someone negotiated with me, he kept offering things I didn’t care about, like “I can also do X for you, and Y, and Z.” But had he taken the time to find out what I REALLY wanted — reliability — he would have been able to offer specific examples like a weekly digest of what he’d accomplished and what he was working on the next week. And he could have charged me thousands for that peace of mind. Instead, I didn’t hire him.
Know thine adversary… that's all!
3. Have a toolbox.
Amateurs walk into a negotiation and just “wing it.” Top negotiators have a “toolbox” of options to use. If the other person doesn’t seem to care about vacation days, they press that lever. If the other person seems flexible on pay (which happens more than you’d imagine, like in the above example), a good negotiator will get a higher salary and trade something else. Creating a toolbox can be as simple as writing 2 columns on a piece of paper — “What THEY want” vs. “What I want” — but can get much more sophisticated.
This can include specific negotiating tactics that have worked well for your in the past. Play to your strengths whenever you need to give yourself an edge.
4. Practice relentlessly
Most people will lose tens of thousands of dollars over their lifetimes due to their failure to practice negotiations. Actually, most people won’t negotiate at all. But even the people who negotiate rarely practice. It feels “weird.” Who would I practice with? What do I say?
Yet if you don’t practice with a qualified friend or colleague, why would you expect to get good results in a real negotiation with a competent adversary? Hiring managers do this all day. Hotel clerks have heard everything under the sun.
One of my favorite things to do is share the practice I’ve done in the form of scripts — like the negotiation scripts in my book. A lot of times, people are skeptical about the book until they try one of the scripts…then they realize, “Wow. This works.”
Practice makes perfect! And it will save you money… even though you'll be practicing negotiating the small stuff, your savings will add up!
5. Have a fallback
There’s a classic psychological technique called the “Door in the Face” technique. It goes like this: “Hey Mike, would you donate $50 to the Save The Whale Foundation?” “Hell no.” “Ok, how about $5?” And donations increase dramatically.
If you’re negotiating, odds are you’ll fail. That’s fine — expect failure. Embrace it. Turn “failure expectation” into domination.
This is kind of like when you had to show your parents a bad report card… I used to ask them if they'd be mad if I burned the house down… then give them my report and run!
6. Don’t shoot your first basket in the NBA
I am trying to use more sports analogies to try to fool people into thinking I care at all about sports. As you can tell I have a long way to go.
Anyway, your first salary negotiation shouldn’t be against a hiring manager. Start off small — in a real-world environment — at your local farmer’s market. Try negotiating on Craigslist. By the time you get to the real negotiation, the one that matters, you’ll have several negotiations under your belt. The difference will likely be worth thousands.
I've screwed up several important negotiations by going in before I was ready… practice in your every day life — like with your cable provider or your kids (the toughest negotiators of all) — before you move into the big leagues.
Read more at www.iwillteachyoutoberich.com
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