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Well, aside from planning and preparation. Within that, I think you first

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need to think about what is it
that we're trying to create? Right,

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we had that at the beginning,
But then how am I going to get

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there? Because you may say to
me Mark, I want a quote unquote

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good deal, to which I'm going
to say to you, cool story.

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So does the other person what does
a good deal mean for you? What

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constitutes a good deal? So you
might say, well, I want to

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make more money, I want to
reduce risk, I want to improve communication.

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Could be a number of different things
you do. But then I would

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say, okay, break those down. What are you going to actually negotiate

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into the deal to ensure the successful
achievement of those things. You're listening to

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00:00:39,600 --> 00:00:45,119
Carrie Let's's Financial Survival Network, where
you get valuable information you just can't find

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00:00:45,200 --> 00:00:51,280
anywhere else to thrive in today's trying
times. You need the Financial Survival Network

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00:00:51,560 --> 00:00:56,799
now more than ever. Go to
Financial Survivalnetwork dot com and get your free

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00:00:56,840 --> 00:01:06,680
newsletter and gift. Financial Survival Network
now more than ever. Ed Welcome.

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00:01:06,840 --> 00:01:10,920
You are listening to watching the Financial
Survival Network of your host Kerry Lotz.

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Well person, you're about to hear
from really happy to brain you. It

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builds himself as the negotiations Ninja.
And your name is Mark or fan Mark

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trait to have you on the show. Hey, negotiation. Everything in life

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eventually becomes a negotiation, right,
it always does, always will. Everything

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about living day to day is about
negotiations. So being that that's the case

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of being a good negotiator. Is
it about winning or is it about getting

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both sides or all sides what they
want or getting closer to what they want?

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Yeah? Good, good. First
question, I'm going to say something

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controversial. Ridles the hop when win
is the biggest lie that's ever been told

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in the negotiation world. But so
is wood loose because it's built on the

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same premise. When when presupposes that
both parties can win, that's not possible.

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If you've been in the business world
in general, you know that to

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be true. But even let's just
say, for example, that both parties

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could win, then you would need
to know what the complete value of that

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deal is over the lifetime of that
deal, which is almost impossible to know

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as well. And you've got to
know that with complete certainty. And even

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if you could know that with complete
certainty what the deal is and the value

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of the deal is over the lifetime
of that deal, then you would need

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to be able to be quote unquote
fair with each other a distribution of that

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value. But what is fair,
really fair, is based on what your

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perception of what fair is, and
it's also based on what my perception of

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what fair is. And so we
have to come to an agreement on what

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fair is. But we can't because
it's not objective. It's subjective. And

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even if we were going to come
to an agreement on what fair is,

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we would also need to be one
hundred percent transparent with each other about the

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value and about our own interests and
everything that's going on in our business between

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each So I would argue that the
whole idea is built on faulty ground.

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Now, the number one objection I
get to this, of course, is

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mark that's not what winmen is about. Win win is about how you feel

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after the negotiation. It's about if
both parties feel like they want Well,

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that actually makes less sense to me
than the first thing, because if it's

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just making you feel good, then
I could do that all day. Right,

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All I have to do is to
emotionally manipulate you during the conversation.

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So I think the premise that that
is built on is a bit faulty.

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I would caution people when they think
about win when that it's now incumbent upon

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them to create a win for the
counterparty. That puts you in a very

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dangerous position and opens you up to
bad actors who would use your good ideas

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or your collaborative nature against you in
that negotiation. So first, I want

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you to think about what it is
the value that you're trying to create for

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your organization. They obviously want to
create value for them, That's why they're

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talking to you, right, Otherwise
they wouldn't be having a conversation with you.

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So what is it that you're trying
to get value out of? So

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is it a zero sum game?
So it's not a zero sum game.

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So then the question is, sometimes
you can make too good a deal for

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yourself where it's so bad for the
other party that the deal is going to

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blow up, it's going to fall
r So it isn't just about achieving all

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your objectives at the expense erect of
the counterparty. And right, yeah,

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I'm not saying that mutually beneficial deals
aren't possible, But I'm saying it's not

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your job to ensure they get a
great win. So let I think the

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philosophy behind this is very very important
philosophically speaking. Don't go into it making

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it your job to ensure that they
get a win. That's their job,

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their job to ensure that they get
a win or value from the negotiation.

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But if you make too good a
deal and their value isn't there, that

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deals can fail. Right, So
you don't want to Yes, you want

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to pursue your objectives, but within
reasonable latenits right? Sure? Can I

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counter that with a counter argument?
Sure? What do we determined as reasonable?

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Is reasonable based on what your perception
of what reasonable is? If it

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is, what is that based on? Is that based on data or is

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that based on fear of rejection?
Where most people would now for you,

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for example, you may be in
a position where you're like, Okay,

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I've got forty five years of experience
doing this, I know what quote unquote

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reasonable is. For the vast majority
of people that I speak to, reasonable

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is based on fear of rejection.
I would say that reasonable is where both

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parties gain from the transaction. You
might gain more, and that's okay,

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but there's a benefit to both sides, Whereas if it's undre reasonable, then

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the costs to one party are two
great, and it's going to make it

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the outcome of this deal negative and
the deal may never happen as a result.

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Yeah, I love where your head's
at. What I would caution for

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people, though, when they think
about this, is be very cautious of

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how you determine what reasonable is versus
what reasonable is it. Because if it's

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if it's what you determine as reasonable, is that I get a gate,

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or even if either side gets more, that's fine. If all I have

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to do at that point to say, well we're gaining on this is unreasonable,

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like why am I not getting?
Ay? So okay. So,

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just like a lawsuit case in court, I assume negotiations are wanted loss on

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preparation and often revation alone. Right
Yeah, Oh, I mean the vast

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majority of the time, most people
are winging it, and I think we've

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probably got the media to blame for
that. I mean, if you watch

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any major commercial type V like a
Wolf of Wall Street or a Boiler Room

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or something like that, you see
these amazing salespeople create deals out of seemingly

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thin air. The reality is that's
not true. It comes with a lot

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of preparation, right, and preparation. So I think Sun Sou said,

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you know, you have to know
your enemy, but you need to know

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yourself even better than you know your
enemy. Yes, amen to Sun Sue.

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Correct. And he also said tactics
without strategy is the noise before defeat.

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But most people think that negotiation is
all tactics, like how you say

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the thing, the case of your
words, how you inflect on certain things.

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Though most of it comes down to
the strategy and preparation that you have.

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All right, So what other tools
do you break to the negotiating table?

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Well, aside from planning in preparation. Within that, I think you

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first need to think about what is
it that we're trying to create? Right,

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we had that at the beginning,
But then how am I going to

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get there? You may say to
me Mark, I want a quote unquote

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good deal, to which I'm going
to say to you, cool story.

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So does the other person what does
a good deal mean for you? What

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constitutes a good deal? So you
might say, well, I want to

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make more money, I want to
reduce risk, I want to improve communication,

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could be a number of different things
you do. But then I would

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say, okay, break those down. What are you going to actually negotiate

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into the deal to ensure the successful
achievement of those things. So I'll give

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you an example. Ha Here they
wanted to redo the pool house facility.

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So you know, I basically figured
out what they wanted, talked to the

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guy, and then you know,
he puts forth a proposal. Then they

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come back with a bunch of changes
which were meaningless, didn't really save anything,

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And I'm trying to explain. Look, contractors, they know how to

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get you here. You've either got
to cut corners or when you change something,

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they're going to get hit you with
a change order and they're going to

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make that money back. So you're
better off just acknowledging the fact that they

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need to make a profit regardless of
what the number is. If if you

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push for too good a deal,
you're going to get hit with change orders.

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And you can't explain thus to these
people. They just don't know they

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have to negotiated right. And important
in that is you also knew what you

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wanted as a part of the leadership
of the HOA right, you wanted to

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ensure a smooth process. You probably
had a timeline that you wanted to hit.

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You probably wanted to reduce some liability
as a result of all that,

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But there were some key things that
you probably want to hit too. Very

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true, Very true. Well,
I find it to the fascinating that most

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people, like you say, they
go into a negotiation that wing it.

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You don't really know what you want, so therefore you don't know if you

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got it, and you don't know
if you wanted or lost. To react

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to you. But sometimes you make
these deals, like you said, it

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seems everything se as a reasonable The
company, you know, a consultant,

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basically he develops a marketing plan for
big companies, household names, right,

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And he doesn't really want to do
it, he doesn't need to do it,

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but he says, look, I
know, I think it's going to

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work. You're going to give me
six percent of revenues in perpetuity, right,

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And they need him so badly at
that point, and seems like a

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great deal. Twenty years down the
road, they're still paying in royalties millions

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of dollars a year and they just
want they'll do anything to fy the door.

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But they know that they can't get
out of it fire. That's all

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that. Yeah, this is what
I mean by in terms of the total

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value of the deal over the lifetime
of that deal. Right like this,

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that's the perfect example of what I
was talking about. So understanding that at

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the beginning of the conversation and determining
that could be very, very beneficial to

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your organization long term. I mean, think about if you grew business from

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you know, let's just say,
yea, I'm the six seventh figures,

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right, You've got a one point
five two million dollar business, but you

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grow that into a two hundred million
dollar business. Six percent at two million

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dollars doesn't seem outrageous. Six percent
at two hundred million dollars seems crazy,

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right, So when you think about
the scope and scale of the business,

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that's why that's so important. Exactly
what we're talking about here. And yeah,

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when you were a tenet of size
or one hundredth of size, hey,

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it was get out. It was
pie in the sky right exactly.

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Plan worked and you wouldn't be there
without him, right, right, you'd

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be there without him. But as
he had said, I want when you

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hit twelve two hundred million, I
want twelve million a year. You would

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have told them to take a hike, but when you were negotiating, he

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never even thought that was possible.
So you still want the negotiation. It's

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just that maybe he made a better
deal than you thought he did. Yeah.

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Absolutely, it's good. Give us
some real life examples of the deals

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that you've helped negotiate for clients and
others. Some that have turned out amazing,

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and some of that have bombed.
Well, I'll tell you the one

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that bombed. It was one of
the larger negotiations I've ever done. It

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was about two hundred and fifty MILI
and everything was going hikey, Dori,

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And we were about nine months into
the negotiation, which is fairly reasonable based

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on a deal of that size,
and I was getting stuck in the weeds.

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I was too deep in the weeds
to see it. You know.

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That's saying you're so deep in the
forest that you can't see the forest through

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the trees. That's where I was
right. And we were arguing over venutia

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nonsense. Little thing was that within
the grand scale of the deal didn't make

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a lot of sense. And were
buttonheads over and over and over again,

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and should have done this way sooner. But I went to the person that

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I represented and I said, listen, we're stuck. We're stuck in this

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deal. I don't know what to
do. And I got pulled out of

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the deal and the counterparty side got
pulled out of the deal, and they

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put two new people in place,
and they closed that deal in the next

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three weeks. So the shot them
going to the right. Yeah, and

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we were like seventy five percent done
right at nine months, and they closed

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the last twenty five percent in the
next three weeks. And that taught me

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a big lesson. The lesson is
don't let your ego get in the way

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of your success. That's probably the
biggest lesson that I've ever learned in a

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negotiation, because ultimately, you want
to be right in a negotiation. Oftentimes

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when your ego gets in the way, and so you could let being right

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get in the way of securing a
really important deal for your business, and

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fundamentally that changes the way that you
think about the deal. You end up

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putting being right ahead of making money. And when you're putting being right head

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of making money, you're now emotional
in the negotiation, and that's bad.

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Yeah, you got to be objective
and emotionally uninvolved. Correctly, you love

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cut the deal and it popped the
champagne. So this is an example where

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you got so tied up in the
details that you forgot what the goal was.

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That's right. Luckily your client didn't, So becoming a hand drance,

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that's right. Right, So all
right, and that is that? What

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a great lesson. I mean,
it's not great for how you feel after

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after that happens to you. You're
like, oh my god, I'm a

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loser. What have I done?
But it's an important lesson to learn.

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Yeah, well you came back down
to earth, you know exactly, Hey,

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because of the success. Look,
I'd always say you learned way more

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from your failures than you do from
your successes. You know, you should

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treat your failures like gold or the
lessons you learned from them. So what

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about one where worked out the opposite
where you were the hero everybody deciety?

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Yeah, I mean the opposite is
also true. I've worked on many deals

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where I haven't. The goal is
to not be a hero. Strangely enough,

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the goal is to ensure that I
represent the need of the business that

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I'm representing in the best way.
Possible, and when you always keep that

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top of mind, you're always more
successful. One such deal in particular,

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similar kind of industry, similar kind
of situation. We're able to get the

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feedback from the client about what it
is they were trying to achieve down to

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the nth degree. We were crystal
clear about what is it that we wanted

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to achieve during the negotiation, and
we had a range of acceptable outcomes for

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each of those things. Going into
the deal. Made that transaction a lot

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easier because we were very clear about
what we could do, what we could

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not do, where we wanted to
be, where we didn't want to be.

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And I didn't have to go back
and forth with the client. I

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didn't mess rever represent the client's need, I didn't get stuck in the minutia.

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It was much much easier to be
able to get things done. And

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I think that's the major message that
I want to leave with everyone today is

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be very very very very clear about
what it is you want to achieve and

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how you think you might want to
achieve it, because once you're clear about

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that, the negotiation goes much sooner. I know there's a lot of people

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who try to be cagey with that
sort of things in negotiation, or they

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say, well, if I just
ask for what I want, that's too

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on the nose. I find the
opposite is actually true. I find the

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more direct you are, the better
it's going to be. Right any So,

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what about the concept of envisioning or
visualizing the completed deal as you want

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it? Love that working from the
end result to the you know, it's

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kind of law of attraction, the
new ag type stuff. But I find

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it really works. It works.
It does work because you get a clear

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vision of what success looks like for
you. And I think where most people

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think that that sounds maybe to fluffy
is you're probably thinking high level at not

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breaking that vision down. So if
you want success, like what does the

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successful deal look like to you?
How does it end up? But then

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working backwards from that to create the
concrete steps to be able to achieve that

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is where you be to be.
If like the end state of visualization is

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too fluffy, work backwards from that. So are where we find you on

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the web? How do we connect
with you? The easiest play to find

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me is right on the website negotiations
dot Ninja or connect with me on LinkedIn

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and you can just search my name
Mark Grafin on LinkedIn and I'm happy to

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connect. Just make sure that you
said you listened to Carrie's podcast, because

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that's why I'll know how to connect
with you. Excellent. Really appreciate that.

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Hey, you got a question from
Mark and myself. If you've been

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stuck in the negotiation, it hasn't
worked out, or it has worked out.

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Who want to hear from you?
Shoot me an email kl at Kerrie

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lets dot com. Go to the
site of Financial Survival Network dot com show

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notes to this interview. You'll have
Mark's link right there. Just click it.

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Go ahead. While you're there,
sign up for your free newsletter.

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Mark. Been a pleasure. Thanks
someone for stopping by. Thanks so much

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for having me Kerry appreciate it.
Thanks for listening to Carrie Letz's Financial Survival

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00:18:17,039 --> 00:18:21,799
Network, your solution to today's trying
times. For the latest, go to

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00:18:21,960 --> 00:18:27,200
Financial Survivalnetwork dot com. Financial Survival
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