Everything Is Negotiable

I know your mother probably taught you to not argue, and when you did you got put in your room without dessert.  But in the real world arguing is good. In fact, if you don’t argue in some cases, you might end up kicking yourself. My Dad used to tell me that Everything Is Negotiable. I’d watch him bargain all the time. We’d go into a clothing store, he’d make a significant purchase and then ask the cashier, “Now, what are you going to throw in to sweeten the deal?” Sometimes, asking for something and pushing back can feel awkward. We’ve all been in that nerve racking room at the car dealership trying to negotiate a better price for a sweet ride we’ve had our eye on. You wait in that room by yourself for what feels like an eternity while the salesman “meets with his boss and tries to work him down and get you a deal.” However, if you can hang in there and push for what you want, you just might get it.

How does this apply to the music industry? We have to negotiate deals everyday, for sync licenses, mechanical licenses, advances, publishing deals, record deals, concert fees, and so much more.  I recently negotiated an investment deal to make an album which I am currently working on in Canada. By working with the other party, we were able to get a great deal for everyone involved.

There are some easy strategies to remember when going in to negotiate:

1. Never be the first one to speak. The asians have mastered this best. There are instances where they will sit in a room to negotiate and remain in silence for the entire session. Silence is nerve racking. If you are quiet long enough and don’t reveal your wants and terms, your opponent will usually crack under pressure and show their hand first.

2. Define your terms before hand. You must know your absolute bottom limit (the bare essentials you need to make the deal beneficial for you). Then, you ask above that and when you come to a compromise, you are most likely to end up somewhere in the middle or at least make your essential requests.

3. Walk away. Don’t sell yourself short. If the offer is not beneficial to you or is drastically less than you know your services are worth, it’s okay to walk away from a deal. A bad deal doesn’t benefit anyone. Sometimes walking away can make your opponent nervous and start offering you things to make you stay. I’ve used that before when buying a car and when negotiating a music contract. When you act like you could live without it, you’ll see that the other party may not want to live without you.

4. Sleep on it. You must be patient. Don’t rush the deal. Record contracts can take up to 6 months to negotiate. Sometimes a few days to think about things can change a party’s mindset and soften them up.

5. Walk in their shoes. While you are dead set on your desires, you have to understand the other side. The more you know the opposing party, the more able you will be to get what you want by offering something that they really want. 

6. Compromise. Don’t loose sight of the bigger picture. This deal should be beneficial for both parties. Everyone must sacrifice a little to make the deal work.

Good luck in your negotiating endeavors. And remember, arguing can be good.