Tips for Communicating Terms to Partners

"We have budget for $199,000," the procurement manager spat at me. I had a $325,000 deal forecasted, and we had 7 days left to close it. That was June, 2020. End of quarter. Egg about to be smeared all over my face. I paced around my house while my family swam at the pool. Cursing under my breath. Back then, I knew every negotiation tactic in the book. But that was the problem: My negotiation "strategy" was actually what I now call "random acts of tactics." A question here. A label there. Throw in a 'give to get.' There was no system. No process. Just grasping. Since then, I now follow a step by step process for every negotiation. Here's the first 4: 1. Summarize and Pass the Torch. Key negotiation mistake. Letting your buyer negotiate with nothing but price on their mind. Instead: Start the negotiation with this: “As we get started, I thought I’d spend the first few minutes summarizing the key elements of our partnership so we’re all on the same page. Fair?” Then spend the next 3-4 min summarizing: - the customer's problem - your (unique) solution - the proposal That cements the business value. Reminds your counterpart what's at stake. They might not admit it: But it's now twice as hard for them to be price sensitive. After summarizing, pass the torch: "How do you think we land this plane from here?" Asking questions puts you in control. Now the onus is on them. But you know what they're going to say next. 2. Get ALL Their Asks On the Table Do this before RESPONDING to any "ask" individually. When you 'summarize and pass the torch,' usually they're going to make an ask. "Discount 20% more and we land this plane!" Some asks, you might want to agree to immediately. Don't. Get EVERY one of their asks on the table: You need to see the forest for the trees. “Let’s say we [found a way to resolve that]. In addition to that, what else is still standing in our way of moving forward?” Repeat until their answer is: "Nothing. We'd sign." Then confirm: “So if we found a way to [agree on X, Y, Z], there is nothing else stopping us from moving forward together?" 3. Stack Rank They probably just threw 3-4 asks at you. Now say: "How would you stack rank these from most important to least important?” Force them to prioritize. Now for the killer: 4. Uncover the Underlying Need(s) Ignore what they're asking for. Uncover WHY they're asking for it. If you don't, you can't NEGOTIATE. You can only BARTER. You might be able to address the UNDERLYING need in a different, better way than what they're asking for. After summarizing all of their 'requests,' say this: “What’s going on in your world that’s driving you to need that?” Do that for each one. Problem-solve from there. P.S. These 7 sales skills will help you add an extra $53K to your income in the next 6 months (or less) without working more hours, more stress, or outdated “high-pressure” tactics. Go here: https://lnkd.in/ggYuTdtf

❌ "We don't accept redlines to our terms." ❌ Well, as an in-house attorney, I don't always accept that position. Sure, there are some instances in which I agree that negotiating the terms isn't necessary. For example, if the deal is low risk to us, if the terms offered are well drafted and reasonable, or if my business client needs it signed asap and accepts the risks. But what about all those other times where I don't think it's in my client's best interest to sign the terms as-is? How do I get past this initial NO? My Secret 🤔➡️ With a thoughtful negotiation strategy that requires minimal effort from my counterparty and focuses on impactful yet reasonable asks. Aka I make it really hard for them to keep saying No to me. Here are three things I do - and recently did again - to get past NO during a tough contract negotiation. ✅ Run a gap analysis of the terms and identify my client's three top issues -- Aka I am reasonable because I'm only asking for three changes. ✅ Outline them in an email and explain WHY I am requesting these changes -- Aka I am respectful because I didn't send them my redlines after they told me they don't accept redlines. ✅ Schedule a call to discuss only those three issues and screen share a redlined draft showing my proposed markups -- Aka since we're on the phone already and I did all of the work, how can you say No to me again? I implemented this strategy last week and the counterparty agreed to all three changes. 🤐 This isn't the first time this approach has worked. My Client's Response: "Wow! I can't believe you got them to change their mind! I guess No doesn't always mean No." That's right. No doesn't always mean No. Especially when you use smart redlining and negotiation skills to navigate the situation. ❓Tell me, what are your best methods to get a counterparty to agree to your redlines after they've already said No? #gettingtoyes #negotiationskills #negotiationtips #contractnegotiations #fromnotoyes #corporatecounsel

Remember the childhood game of telephone? One person whispers a phrase, it passes through a chain, and by the end, it’s completely distorted. Funny as a kid. Disastrous in business. Recently on Friends with Benefits, we talked with Franz-Josef Schrepf about how this same dynamic plays out in partnerships. You have one vision, your partner has another, and by the time that vision moves through sales, marketing, and leadership, it’s often unrecognizable. This is how deals stall. How expectations misalign. How “strategic” partnerships turn into transactional ones. So, how do we avoid a game ofCall me maybe?"Over-communication and executive alignment. It’s not just about making sure your teams are on the same page, which can be a challenge in and of itself. It's also about making sure each stakeholder understands the partnership in a way that ties to their goals. 📈Executives care about revenue and growth. Frame the partnership in terms of impact on pipeline, market share, and competitive advantage. 🤝🏼 Sales teams care about ease and speed. Make sure they understand how the partnership helps them close more deals, faster. 👀Marketing cares about positioning and demand. Ensure they see how the partnership expands reach, adds credibility, or unlocks a new audience. Before you can communicate effectively, you have to deeply understand what each person values, the goals they're trying to reach and how they define success. Otherwise, you’re just playing a giant game of telephone where no one walks away with the right message. Great partnerships aren’t built on handshakes and hype. They’re built on clarity, consistency, and alignment at every level. If your partnerships aren’t driving results, ask yourself: • Do I fully understand what my partner (and their leadership) actually cares about? • Am I communicating their value in a way that makes sense to them?

One of my favorite things is having conversations with partner leaders and understanding how they're approaching their partnership strategies. I caught up the other week with Aleksi Mattlar at Pigment and I appreciated the "brutal honesty" approach that he takes with partners. He emphasized the importance of being upfront with partners about expectations, benefits, and required commitments, and explained that he clearly communicates the expectations from the outset and at every stage of the partnership process. If partners do not meet these expectations, he does not advance the partnership. He also described his approach to managing partners who are not providing adequate returns. He mentioned telling partners that they need to invest where they are also getting returns, indicating that he would communicate directly if the partnership was not beneficial. If there isn't immediate alignment, there isn't further investment in the partnership. And his partners are required to stay aligned to continue to get the benefits from Pigment. When it comes to the all-important executive alignment, Aleksi expressed his belief in under-promising and over-delivering He finds more alignment when he ensures that there is always “wiggle room” by not promising too much too quickly. This conservative and realistic approach to managing leadership expectations and partnership outcomes was a part of his brutally honest approach. Clear expectations, and open communication are critical to successful partner strategy. Aleksi is nailing it.

This may surprise C-suite execs, but your partners don’t work for you. Yesterday I spoke with the CEO of an early-stage SaaS startup. He was confused why, after inking a bunch of partner agreements with “excited” new partners, all of their new “partnerships” fizzled. So I asked him one simple question: “Did you set and align on goals and expectations with these partners?” As soon as he heard the question a lightbulb went off. The answer was NO and he immediately understood why this was a mistake. I hear this all the time... Teams are so focused on getting partners “over the line” they skip critical alignment. Here are a few important things to discuss with a new partner: - What level of partnership the partner would like to achieve - Each partner’s expectations and goals for the partnership - What resources each side can commit to the partnership - How quickly this partnership could be rolled out widely - How you can make the partner more successful - What the partner can expect from your team - How many customers this could be a fit for - What successful partnership looks like - How your product or service works - How your partner program works - What you expect from their team This simple list will make all the difference in how a partnership tracks. Do it as EARLY as possible. If the partner isn’t interested (or willing) to discuss these topics they aren’t bought in. Things end how they begin. So begin your partnerships right.