“There are more valuable things than money in the short term.” – Ramit Sethi
This episode is a workshop on negotiating. Out of all the resources out there on how to negotiate, 99 percent of them are piss-poor — but I guarantee you this isn’t one of them.
Your teacher in this episode is Ramit Sethi. These lessons are all taken from a multi-day course Ramit taught on CreativeLive.com, which is one of the fastest growing startups. [Full disclosure: I am an advisor.]
If you are an entrepreneur, perhaps just getting into entrepreneurship, thinking of taking the dive into entrepreneurship, or you just want to get out of a trap of your own making, I think you’ll find a lot here. Pay a lot of attention to the exact scripting that Ramit uses. And if a particular section isn’t clicking with you, just skip ahead 20 minutes or so and you’ll find yourself in a new lesson.
In this episode, you will learn about:
- Smart negotiation vs. dumb negotiation
- Overcoming mental barriers related to entrepreneurship
- What you should charge or how you should think about charging for your services
- Mock interviews
- And much, much more
If you only have 5 minutes, listen to this short segment on how to overcome the mindset that limits your ability to sell.
- Listen to it on iTunes.
- Stream by clicking here.
- Download as an MP3 by right-clicking here and choosing “save as.”
Want to hear another podcast with Ramit Sethi? — In this episode, we dig into the nitty-gritty tools, software, and experiments he’s used to turn a college side project into a multi-million-dollar business with 30+ employees. (stream below or right-click here to download):
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QUESTION OF THE DAY: What was your favorite quote or lesson from this episode? Please let me know in the comments.
Scroll below for links and show notes…
Selected Links from the Episode
- Connect with Ramit Sethi: Website | Twitter
- Ramit Sethi on Persuasion and Turning a Blog Into a Multi-Million-Dollar Business (our first conversation)
- 1,000 True Fans by Kevin Kelly
- The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk by Al Ries and Jack Trout (original edition)
- Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant by W. Chan Kim and Renée Mauborgne
- Getting Past No: Negotiating in Difficult Situations by William Ury
- Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher, William L. Ury, and Bruce Patton
- Secrets of Power Negotiating, 15th Anniversary Edition: Inside Secrets from a Master Negotiator by Roger Dawson
- Breaking the Time Barrier by Mike McDerment and Donald Cowper
- How to Negotiate Lower Car Insurance by Ramit Sethi
- 3 Ready-to-Use Scripts to Save Money and Build Your Career by Ramit Sethi
- Ramit’s 2007 Guide to Kicking Ass
- Clarity Media Group
- Bonuses for blog post readers:
- Optimizing your spending with credit card companies, cable and telephone providers, the gym — you name it. [07:46]
- Ramit’s word-for-word negotiation script (tested with tens of thousands of people and multiple companies). [11:43]
- Why you shouldn’t feel guilty about negotiating. [13:01]
- Mock negotiation (waiving a credit card late fee). [14:50]
- The importance of rapport. [17:28]
- Is rent negotiable? [18:50]
- Negotiating even when you’ve already got the best price in town. [21:21]
- How can you negotiate if you don’t have a perfect track record or the advantage of being a long-time customer? [22:28]
- What to do when clients use your negotiation tactics on you? [23:18]
- Are there gender differences in negotiation? [25:32]
- How to answer the “What are your salary requirements?” question. [28:19]
- The difference between theory and practice in negotiation. [31:21]
- Your credit card was just sold to a new company. How long should you wait to negotiate with the new company? [31:55]
- Can you negotiate insurance? [33:34]
- Can you negotiate with monopolies? [34:32]
- What Ramit learned by videotaping his negotiation style that changed everything. [35:43]
- Why being “too busy” is a good problem for creatives to have. [43:08]
- How to overcome the mindset of “I hate selling myself.” [43:53]
- Understanding the needs of your client base, upping your rate, and justifying it (to yourself) without guilt. [50:25]
- When you’re comfortable with your rates, you can be okay when clients say “No thanks.” [53:54]
- Finding ways to overdeliver. [56:40]
- How do introverts talk business? [57:47]
- How much should you charge? [59:12]
- Should you ever work for free? [1:00:40]
- How to go from one client to many. [1:05:55]
- How do you research what your competitors are charging when many of them don’t discuss it until they’re trying to close a sale? [1:08:10]
- How do you handle price shoppers? [1:10:41]
- For hourly consulting, is it better to price in packages? [1:13:22]
- Do you have to tell a story to convey emotion every time you’re pitching a client? [1:14:52]
- How powerful is a smile? [1:17:35]
- How to answer, “What is your greatest weakness?” [1:20:56]
- Reiterating the importance of storytelling. [1:26:44]
- How to answer the “Among all candidates, why should I choose you?” question. [1:28:13]
- How can you practice? [1:36:14]
The Tim Ferriss Show is one of the most popular podcasts in the world with more than 900 million downloads. It has been selected for "Best of Apple Podcasts" three times, it is often the #1 interview podcast across all of Apple Podcasts, and it's been ranked #1 out of 400,000+ podcasts on many occasions. To listen to any of the past episodes for free, check out this page.