Preparing for a Contract Negotiation

"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

When negotiating commercial contracts, we in-house counsel focus a lot on indemnities and limitations of liability. These provisions are important. But in my experience, they become an issue maybe 1% of the time during the life of the contract. So what clauses do become issues a majority of the time? Price and price escalations, delivery schedules, payment terms, SLAs, insurance, contract periods, renewals, and terminations. While these are generally business decisions, it’s important that in-house counsel review these clauses to make sure that they are drafted properly and that they align with what the company wants and needs. Don’t miss the forest for the trees. #lawyer #community #howtocontract

3 things every People leader should negotiate before accepting their next offer. At the executive level, negotiating a smart package is about more than getting a market competitive salary. It’s about aligning on a set of terms that incentivize you to drive business success while providing a safety net for you and the company both if things don’t work out. Here are 3 things every People leader should ask about — and how to do so effectively — before accepting their next role. Equity While nothing is ever guaranteed, the right equity package can make you a millionaire overnight. If your company makes it big, you don’t want to be kicking yourself over losing out on a smart equity package. Explore guarantees that protect your equity while incentivizing you to optimize for the company’s success: - Single or Double Trigger Accelerations: To protect your stock if the company gets sold before you finish vesting - Extended Exercise Window: To buy yourself more time to exercise vested options post-departure  - Equity Top Ups: To protect against dilution during funding rounds Bonus Smart bonus plans don’t just focus on the dollar amount awarded, but the structure they’re built around. Consider: - Guarantee language to cover periods of approved leave, especially parental leave - Signing bonus — especially if you’re walking away from a hefty bonus at your current company and/or taking a big risk switching to an earlier stage startup - Annual bonuses tied to business metrics — to round out your total comp package while signaling that you prioritize business success over team-specific metrics Exit Plan Think of it like a prenup. You’re going into this with a confident outlook, but if things don’t work out, you want to have a smart plan in place *before* things get messy — not after — to ensure a smooth and mutually beneficial transition. Ask about: - Guaranteed COBRA coverage - Guaranteed salary payouts  - Guaranteed transition period where you stay on payroll as an advisor or consultant vs an abrupt departure — better for optics and enables smoother handoffs As with all things, the key to effective negotiation is being thoughtful in your framing. You want to come across as business-savvy, not out of touch. It’s the difference between pushing for an unrealistic bonus structure that would put the company financials at risk and pushing for a bonus structure that hinges upon the company’s ARR goals — you only win if the company wins. And remember: These discussions shouldn’t stop at the offer letter. Roles evolve, expectations expand, and company realities change. Smart execs revisit these terms over time. Want to learn more about what to negotiate, how to frame your asks, and what is (and isn’t) realistic depending on company size, stage, and industry? Check out my negotiation cheat sheet below. 👇 #hr #people #compensation

Negotiations don’t go wrong—they start wrong. Through my experience, I can often tell within the first 30 minutes whether a negotiation will take a collaborative or positional direction. The early signals—the tone, structure, and mindset of the parties—set the course for either value creation or value extraction. Too often, negotiations begin with adversarial positioning, where each side stakes out demands, focuses on "winning," and sees concessions as the primary path to agreement. This zero-sum mentality is where most negotiations start wrong. The problem isn’t what happens later—it’s how we approach the process from the outset. Do you negotiate how to negotiate before you start negotiating? This is a game-changer. Before discussing numbers or terms, set the stage for success. Consider opening with: "I am here today to help you reduce your risk, cost, and liabilities while improving your profits. Would you be interested in having me assist you with this?" This shifts the conversation from position-based bargaining to problem-solving and mutual value creation. SMARTnership® negotiation flips the traditional approach. Instead of defaulting to competitive bargaining, it starts by identifying asymmetric values, trust currency, and hidden gains that can turn the negotiation into a collaborative value-maximizing process. The real difference lies in: ✔ Mindset: Are we here to protect our own turf or explore mutual benefit?  ✔ Communication: Is the focus on claiming or creating value?  ✔ Trust: Is there openness to share real needs, costs, and priorities? If the first 30 minutes are spent staking positions, debating individual gains, or withholding critical information, the negotiation is already off track. But if we establish transparency, mutual benefit, and creative problem-solving early on, we unlock the hidden potential of the deal. Next time you step into a negotiation, ask yourself: Are we starting right? #Negotiation #SMARTnership #ValueCreation #TrustCurrency Tarek Amine Tine Anneberg Francis Goh, FSIArb, FCIArb Francisco Cosme Gražvydas Jukna Juan Manuel García P. Darryl Legault World Commerce & Contracting BMI Executive Institute #negotiationtraining Daniel McLuskie

If you accept the first salary offer, you just left money on the table. Most people do this. They get an offer, and instead of pushing back some… they just take it. That’s exactly what one of my students almost did, until I showed them how to negotiate like they should. Here’s what happened: They were working as a Systems Engineer and landed an offer for $10K more than their current salary. Not bad, right? But then they did some research. The market rate for their role was actually $10K-$20K HIGHER than what they were offered. So they came to me and said, “Broadus, I know I deserve more, but how do I ask for it?” This is what I told them: You don’t just ask for more money. You PROVE why you’re worth it. Here’s the exact script I gave them: 👉🏾 Hey [Recruiter’s Name], based on my research and experience, I’d love to revisit the salary discussion. Here are four key reasons why: 1️⃣ I’ve been in an engineering role for over a year and a half, gaining the necessary experience. 2️⃣ During interviews, hiring managers told me I exceeded expectations. 3️⃣ As an internal hire, I understand the company’s process, reducing ramp-up time. 4️⃣ I already have 70-80% of the required skills for this position. Based on industry data, this role in my location typically pays between $X and $Y. 👉🏾 What are the chances we can meet at [$X] instead? And guess what? The recruiter came back with a $10K increase. Here’s why this works: 👉🏾 It’s a logical, value-based argument, not an emotional plea. 👉🏾 It provides specific proof, you’re showing, not just telling. 👉🏾 It uses market data, you’re backing your ask with facts. 👉🏾 It’s a COLLABORATION, not a demand, the phrase “What are the chances?” makes it a discussion. If you’re about to negotiate your salary, do these three things: ✅ Research your salary range (Glassdoor, Levels.fyi, LinkedIn Salary Insights). ✅ List out your key value points, what makes you the best choice? ✅ Use this script and ask with confidence. The first offer? It’s NEVER their best offer. Negotiate. Ask. Demand your worth. If you want more real-world strategies to land high-paying cloud roles, drop a "Script" in the comments, and I will send you a script you can use on your negotiations!

The G.A.I.N.S. Comp Negotiation Playbook by Jacob Warwick Every successful negotiation starts with leverage. While most people ask, “What can you offer me?,” the people who secure the highest comp say, “Here’s how I’ll solve your most pressing challenges and create new possibilities for your business.” This shift isn’t semantic—it fundamentally transforms how decision-makers perceive your value. When you make them feel confident, inspired, and excited about the future you’ll build together, compensation becomes a natural reflection of that value, not a negotiation point. Whether you’re planning six months ahead or sitting in discussions right now, here’s the process Jacob Warwick developed through trial and error with hundreds of clients over 15 years. Here's the playbook: G: Gather intelligence. Go beyond the obvious. Dig into the company’s real challenges, understand who truly makes decisions (hint: it’s not always on the org chart), and know their market better than they do. A: Align with their needs. Stop selling your resume. Start demonstrating how you’ll solve their specific problems for the company/team. When you position yourself as the solution to their challenges—not just another candidate—the power dynamic shifts immediately. I: Influence key stakeholders. Create champions throughout the organization, not just with the hiring manager. Show each stakeholder how you’ll make their world better, and they’ll fight for your compensation later. N: Navigate complexity. Master the delicate dance of pushing for what you’re worth without creating tension. Know exactly when to advance discussions and when to build relationships. Timing is everything. S: Secure your value. Get agreements right, start delivering value before day one, and build the foundation for your long-term success. Here's more on part 1: G: Gather intelligence that others miss The most valuable information won’t show up in press releases or job descriptions. To build real leverage, spend time on three key intelligence domains: 1. Organization dynamics Forget the org chart—real power flows through history, unspoken alliances, and relationships. Approach: - Identify who gets consulted before decisions are made (often not who you’d expect) - Learn which past failures still haunt leadership thinking - Discover which rising stars have the CEO’s ear - Uncover the true drivers that aren’t discussed openly How to execute this: Before any interview, ask your network, “Who really influences decisions at this company?” and “Whose opinion does the leadership team value most?” The answers might surprise you. During the interview, ask questions such as: - How are decisions typically made in this organization? - Who are the key people I will collaborate with? - What’s the history behind this position? Is it new or am I replacing someone? - How can I best show up for you? And how can I best show up for [name other team member(s)]? Keep reading: http://bit.ly/3S1qiT2

Q. How do I negotiate an individual employment contract? Is it like negotiating a job offer? A. Your employment contract is an element of the offer, like vacation time or salary or any other negotiation point. As in any offer negotiation, you have more leverage if your skills are hard to find and in order to negotiate, you need to be able and willing to walk away if they do not meet your terms. When they extend the offer, they will say the salary is X and the bonus is Y, etc. You’ll talk about those elements and then you’ll say, I will need an employment contract for this role, and [for example] six months of severance if I should be released without cause. The most important provisions of your employment contract are 1) if you are dismissed without cause you will receive a negotiated amount of severance, and 2) they cannot change your pay, job title or major responsibilities without your approval. These are benefits most working people in the US do not receive. In the US virtually every executive gets an employment contract so if you are already working at a Director level or above and do not have one, you should negotiate one either at your next performance review or when you change jobs the next time around. I often hear from HR directors and VPs who were unaware that all of their peers have employment contracts because when they were hired, they were not offered one. In that case, the thing to do is contact to your firm’s outside counsel or check with your in-house counsel to get copies of those employment contracts. It is startling (and galling) for HR leaders to realize that although they are in charge of hiring, they were not offered the same contract their peers were but at least that is easy to correct. Of course, if you are hesitant to ask for an employment contract when your peers already have them or if you try to get one and are refused, it’s time to change jobs. If you are recruited by an employer or their agency recruiter, you have more leverage. An employment contract is an obvious and logical thing to ask for because without it, you have no assurance that your job will persist even for a week, and if you are already happily employed why would you change jobs under those circumstances?

After coaching the #1 sales reps at companies like Salesforce, HubSpot, and dozens of Fortune 500s…. I've noticed a pattern. Elite performers don't get better at handling objections, → They get better at preventing them. Here's how they handle the 7 most common deal killers. 1. "Your price is too high" This objection means one thing: perceived value < price. Average reps respond by desperately defending their pricing: "Well, we're more expensive because of X, Y, Z..." (creating more resistance). Elite reps prevent this by running a discovery process that quantifies: → True cost of inaction (what happens if they do nothing?) →Opportunity cost (what are they missing out on?) →Potential ROI (10X value compared to price) 2. "I need to think about it" This classic stall tells you nothing about what they're actually considering. Elite reps respond: "I completely understand. To make sure I'm giving you what you need, can you share specifically what you're thinking about?" Then they shut up and listen. The prospect's answer reveals the actual objection that needs addressing. 3. "I need to run this by my CEO first" If this surprises you, you missed uncovering all stakeholders early in your process. Elite reps ask: "If it was only up to you, would you move forward?" If they hesitate, they're not truly sold. If they are convinced, coach them for the conversation: "When you talk to the CEO, what concerns might they have? How will you address those concerns?" This transforms your champion into a prepared advocate who can sell internally for you. 4. "We don't have budget" When prospects truly see 10X value, they find the money. Personal example: When my parents found out I needed surgery for a broken finger as a teenager, they had zero budget for it. But the cost of inaction (permanent damage to my hand) was so high they found thousands of dollars. If your prospect truly believes your solution solves a critical problem, budget objections disappear. 5. "This isn't a priority right now" Average reps can only sell to prospects with active pain. Elite reps transform latent pain into active pain by helping prospects see the true consequences of inaction. If you're consistently hearing "not a priority," you're failing to elevate pain levels in your discovery process. 6. "We're considering Competitor X" Never trash talk competitors. Elite reps ask: "Based on what you've seen so far between us and them, which way are you leaning?" Their answer will reveal exactly what matters most to them and where you need to differentiate. 7. "I need to speak with your customers first" This is an uncertainty objection. Find out what they're really uncertain about: "I appreciate that. When you speak with our customers, what specifically do you want to find out?" Their answer reveals what you missed building confidence around earlier. When you thoroughly uncover pain, quantify impact, and build value upfront, objections rarely surface.

3-step negotiating framework to finish Q4 strong and give away less of your commissions 👇 ✅ 1/ Anchor Anchor the entire negotiation around why they want to buy and what happens if they don’t. → Why do they want to buy? Confirm the business impact the buyer is expecting to make with your solution. Talk about what happens if they do nothing. The buyer needs to understand that they’d be crazy not to do this. → Are we the vendor of choice? DO NOT negotiate unless you are the vendor of choice. This avoids situations where buyers use you to get the vendor they really want to lower their price. If yes: “Can you tell me why?” If anything but a yes: “Sounds like we aren’t your top choice. Before we go any further, can we make sure we’re aligned on what you’re trying to accomplish?” → What’s the risk in using a solution besides ours? This includes attempting to do this on their own or sticking to their current solution. ✅ 2/ Align Now it’s time to get on the same page as the buyer. → What’s the ideal “up and running” date? This one’s simple. Confirm the date they need your solution live and why that’s important. → What is their internal purchasing process? Identify potential snags: 1) Has the budget been approved for this project? 2) What could be perceived as more urgent than this? 3) Are there any upcoming organizational efforts that could affect this? Confirm signing process: 4) Who needs to approve prior to signature? 5) Will my team send for e-signature or will yours? Launch: 6) When can we schedule an implementation call? ✅ 3/ Negotiate The buyer’s chompin’ at the bit to talk pricing now. → Find out what the buyer wants & understand why. Always get the buyer to open up first. Bite your tongue. Get them talking. “Can you help me understand where we’re at an impasse?” “Can you share what’s driving the need for a lower contract price?” 💰 Budgeted Amounts: Is there a legitimate budget constraint? ⛔️ Procurement Policies: Is there a purchasing threshold? 🤼♀️ Sport: Are they just asking because that’s what they’re supposed to do? → Counter Share what you’re able to do. Talk about what’s important, where you have flexibility, and ask for something in return. “Here’s what’s important to us…” “Here’s where I’m flexible…” “Here’s what we’d love to get in return…” → Secure next steps Hopefully, you’ve made progress at this point! ⛔️ If they need to go back to their team: Set another meeting to review ✅ If they agree to the terms: Get the timeline for their next steps ================ Want more? I’m running a webinar this Wednesday with 4x President’s Club achiever at Gong, Brian LaManna. He’s sharing a negotiation framework to finish Q4 strong and give away less of your commissions. Register here to join us: https://hubs.ly/Q028M3CV0 #Sales #Prospecting #Outbound

As sellers, sometimes we try too hard to be likable. The thinking goes: If they like me, they’ll buy from me. The problem? When likability is artificially pushed, it feels manipulative. Trying too hard to be liked can make us appear needy or disingenuous, which erodes trust. Rapport is built through listening, asking thoughtful questions, and showing genuine interest in the other person’s needs. So shift from being likable to being curious. Being likable: “That’s such an amazing idea! I’ve never heard anyone say that before! You’re a genius.” Being curious: “That’s an interesting perspective. How did you arrive at that?” Being likable: “Oh, I totally agree with everything you just said!” Being curious: “You bring up some great points. What’s your theory on why that is?” Being likable: “I know exactly what you mean. Last year, I was in a similar situation when I was closing a deal, and…” (proceeds to talk about own experience to build rapport) Being curious: “It sounds like you’re dealing with a lot of complexity. How are you currently managing that situation?” No one will find you likable if you’re trying to be likable.