Whether you are starting a new job or gunning for a promotion at your current one, it is always important to negotiate salary.  Many people avoid salary negotiation out of fear, but you risk missing out on bigger financial opportunities when you avoid asking for a raise.  Negotiating a better salary is something everyone will be forced to do at some point in their careers, so when the time comes it is important to approach the issue objectively.  Here are a few important things to know and tips for getting the most out of your next salary negotiation.

Know Your Value

If you want to get the pay you deserve, it’s crucial to know what you’re worth before walking into the negotiation.  This means doing some research to find out what the going rate is for a similar position in your industry and geographic area.  Next, you need to make a list of what special skills, talents, and accomplishments you have received so your employer knows exactly what you are bringing to the table.  If you want more money you need to convince them that you deserve it.

Resist Throwing Out the First Number

Oftentimes an employer or hiring manager might ask what your salary requirements are.  If they do, you should say that they are based upon the position and the overall compensation package.  If you throw out a number, you risk getting less than you could have gotten if the employer had a higher number in mind.  Furthermore, the employer is likely to only pay you the minimum amount you require so let the salary ball remain in their court.  If you are forced to give a number, provide a salary range that would be appropriate for that position based on your research.

Avoid Accepting the First Offer

Don’t be afraid to let the employer know that you want 24 hours to consider the offer.  This gives you time to come up with a reasonable counteroffer and it lets the employer know that you aren’t willing to settle.

Understand Your Leverage

Your negotiating power is highly dependent upon your current employment situation.  For example, if you are unemployed and applying for work, be prepared to accept slightly less than what you might want.  If you are going for a promotion or a new job, you have a little more bargaining power because you are not desperate to accept the first offer.

Negotiate More Than Just Money

It’s important to understand that negotiating your salary doesn’t mean money alone.  Your salary is more than just a paycheck.  It encompasses a number of other perks and benefits such as vacation, flex-scheduling, professional training, healthcare, childcare, and tuition reimbursement.  While dollar signs are certainly important, these other forms of compensation should also be considered as part of the negotiation.

Slumps in motivation is normal in sales and usually isn’t cause for much concern.  However, long-term lack of motivation and enthusiasm can lead to reduced profits and major consequences for the company.  While it is true that salespeople are always going to be faced with obstacles the fact is…no desire translates to no motivation.  Salespeople need constant motivation in order to remain positive and enthusiastic about their job and if you want your sales team to succeed they must have a lot of enthusiasm.  If you have noticed a lack of energy from your sales team, here a few things you can do to increase their energy and make them more enthusiastic employees.

Provide Helpful Feedback

Happy employees are confident in their work because they receive regular feedback from their superiors.  It is important to offer advice to your sales reps and critique their performance.  This allows them to make the necessary changes for improvement and ultimately sets them up for success.  Likewise, it is equally as important to recognize great performance and let them know when they have done something well. Making time for your team lets them know that you value them and want to help them succeed.

Encourage Breaks

Salespeople typically make a high volume of calls each day which can be incredibly draining.  With each call they are constantly expected to be ready to answer a slew of questions, prove the value of their product or service, and do so with a positive energy.  That can be difficult even for the best sales reps.  Encouraging your team to take breaks between calls or go for a walk if a call has gone bad can do so much for their morale.    It allows them to be refreshed and ready to go for the next call.

Offer Incentives

Putting in place the right incentives and pay structures can mean the difference between your sales team hitting or missing their goals.  Incentives are a great way to boost enthusiasm and really motivate your sales team to put forth their best performance.  There are several ways to incentivize your sales team.  You could implement commission tiers, whereas the higher the sales the higher the commission percentage.  You can also attach bonuses for specific results.  You could also encourage friendly competition by offering a reward to the sales rep with the highest numbers for the month.  You want to promote motivation in your organization by rewarding your sales team for their hard work.

Foster Continuous Learning

When managing salespeople you need to constantly monitor their knowledge and do everything in your power to ensure that they are continually learning about your industry, products, and services.  When you sales reps feel knowledgeable about what they are selling, they are much more likely to feel confident and enthusiastic about selling it.

Provide Opportunities for Growth

Every sales rep wants to know the path for advancement at the company and the most enthusiastic employees are the ones who are working to get a promotion.  If the opportunity for growth is stagnant, your sales team will put less effort into their jobs.  Therefore, you need to make sure there is a transparent plan for advancement in place.  This will motivate your entire team because they will clearly see the benefits for their hard work.

Anyone who has ever worked in sales understands the constant challenge to find solid leads.  While there is no “magic” marketing technique that will guarantee leads, there is a way to combine marketing and sales efforts to get your prospects on the right path: a sales funnel.  A sales funnel illustrates the journey that your prospects will go through on their way to becoming customers.  While a sales funnel is a great strategy for closing more customers, it is imperative that there be plenty of prospects in your sales funnel in order to do so.  Here’s why:

• Even if your company spends thousands of dollars on generating leads, it’s unlikely that most of these visitors will be ready to buy your product or service right away. While your marketing strategy might generate hundreds of leads, only a small percentage of those will actually contact you about information and only a fraction of those will actually become customers.  For this reason, it is important to have plenty of prospects in your sales funnel.  The more prospects you have the better your chances of actually closing a few deals.
• It is impossible to convert all of your prospects the first time around but that doesn’t mean that you should give up on them. You should consider retargeting those people again and adding them back into your sales funnel to provide another opportunity to draw them back in and entice them.
• Sales takes time, typically a few months before a client is ready to close the deal. This is another reason why it’s beneficial to have multiple points of contact in your sales funnel.  You can continue nurturing those leads while also working on other prospects at the same time.  Instead of sitting around and waiting for one deal to close, you can be working lots of other leads at the same time.  Over time this will allow you to close more deals.
• Sales is about relationship building and the more people you have in your sales funnel, the more relationships you can begin to develop. When you have several contacts in your sales funnel, it allows you to build relationships with various leads who eventually become customers.
• As the saying goes “It’s wise not to put all your eggs in one basket.” This is especially true in sales.  If you focus solely on a couple of strong leads and fail to add others to your sales funnel, you will be defeated if those leads don’t pan out.  However, if you have plenty of other prospects in your funnel, you have increased your chances of closing a different deal.

It’s no secret that the sales team is the lifeblood of any organization.  Therefore, sales should not be overlooked and under-appreciated in its importance to the company.  Without the revenue and income generated by a consistent sales team, a company will fail to achieve growth and expansion.  For this reason, it is critical to invest time and effort into developing and motivating your sales team.  After all, a solid sales force can increase brand awareness and drive the success of the company.  The key to optimizing the efficiency of your sales team is to offer appealing incentives that provide the salesperson with a valuable reward for their effort.

Motivate for Success

It is unlikely that your sales team is going to work tirelessly to close a deal when there is nothing in it for them.  Conversely, salespeople are largely motivated by money and ego, meaning that they will work harder when there is some reward given for their efforts.  Offering incentives are beneficial for both the salesperson and the company, because a focused, productive sales team can help companies achieve their goals for growth.  The fast-paced, high-pressure environment surrounding a sales team can be hectic, but managers have the power to inspire their team to want to work harder and more efficiently.

Empowering Your Employees

At some point, we have all had that manager who seems to rule with an iron fist.  This feels belittling to employees and kills their enthusiasm for the job.  However, when managers empower their employees they are motivated to work harder because they want to make their manager proud.  Instead of dictating everything your reps do and say, motivate them to work through issues to try and figure things out for themselves.  You can still offer guidance, but let them know you believe in them.  Empower them by assuring them that they are good at what they do and you have full confidence that they can find a solution on their own.  Of course, you will be close by should any problems arise, but empowering them to do some self-discovery is a great way to motivate.

Money Motivates

Money is a huge motivator.  This is nothing new, but when employees feel cheated their enthusiasm can quickly turn into resentment.  When offering bonuses and commission, make sure the process is transparent.  Paying your team consistently and on time will certainly motivate them to succeed.

Motivation Doesn’t Have to Be Monetary

There is no question that money is probably the best motivator, but there are also plenty of other ways managers can and should motivate their teams.  A great way to motivate your team is by providing an element of friendly competition.  This process, known as gamification, is great for building morale and encouraging friendly competitiveness.  Keep track of each salesperson’s success and offer rewards for the person with the highest score.  These can be monetary rewards, gift cards, extra time off, or taking them out for lunch.  This will create a fun work environment and a highly motivated sales team.  Sometimes, a simple act of recognition can go a long way in motivating your sales team.  This might mean rewarding the top sales person with an award, trophy, or certificate that they can display on their desk.  In addition to recognizing your top sales performers, take time to reward important qualities such as best attitude, best meeting contributions, most dedicated, etc.  When your sales team is recognized for more than just their numbers, they will be more motivated to improve their overall performance.

Sales is arguably the most critical department for any business.  Without sales, you don’t have customers…simple as that.  However, it’s not enough to just hire s few smooth talkers, hand out some manuals, and have them sit through a workshop or two.  Managers should never send their sales professionals out into the field unless they have been given the proper tools needed to be successful.  Without effective sales training and techniques, your sales team is likely to feel like they have been thrown to the wolves.  In today’s competitive market, there is no room for failure.  So, equip your sales team with the best techniques to help them succeed.

1. Field Training

Perhaps the most important training any sales professional can receive is field training.  It gives your sales team the real world experience they need to be more productive.  Hands-on experience is the only way for your sales team to really become more competent and confident with the sales process.  It takes repeated action and practice for sales professionals to become fluent in the sales process and successful in their role.

2. Improv Training

Your sales team will also really benefit from improving training.  The best way to prepare for a live call or meeting is through improvisational practice.  This allows your sales reps to learn in a safe and less risky environment.  It also gives trainers the ability to control the conversation and take it anywhere they want.  It allows for practicing a variety of different scenarios.  Play back some of the recordings and critique the call together.  It’s a great way to come up with some fresh insight while providing helpful feedback.

3. Motivate with Success Stories

It’s not enough to simply walk your sales reps through what a successful call should look like.  They need to actually see it for themselves.  Select a few real-world stories that demonstrate what worked, what didn’t, and why.  It gives the sales reps the chance to look for common patterns so they can better understand what a successful sales call looks like.  Once your team has listened to the success story, break it down into actionable steps so your team can replicate it.

4. Crafting Useful Scripts

There is nothing worse than a sales professional who reads directly from a script.  However, scripting can be a helpful tool for new sales reps.  Start by identifying some of the most common scenarios you are likely to face.  Now, jot down a few things you can say to address each of these scenarios.  This is not intended to make the sales rep sound like a robot, but rather empower them with a solid foundation on which to build from.

5. Identify Bad Customers

Wasting time chasing the wrong prospects can kill your sales numbers.  Big accounts can sometimes take several months to close even if they are good prospects.  Bad customers can waste your energy and take valuable time away from true prospective clients.  Train your sales reps to look out for a few red flags that can keep them away from bad customers.  These include: bad attitudes, demand for immediate response and lack of respect for boundaries, expecting a guarantee, impulsive buyers.

6. Learning Effective Listening

Sales reps often choose sales because they love to talk.  However, too much talking in sales can actually be counterproductive.  Active listening is actually the silent skill of sales.  Many rookie sales reps make the mistake of rushing to explain the benefits of their product but fail to actually listen to the needs of the client.  Throughout a sales call, the client will discuss their needs and problems.  The sales rep must be listening in order to address these specific needs.  Active listening exercises are a great way to get your sales rep in the habit of listening over talking.

7. Product Training

So much time is spent on training for the sales call but the rep must first be adequately trained on the product or service they are selling.  If your sales team doesn’t know your product inside and out, how could they possibly sell it?   Salespeople need to have a solid understanding of the product details in order to boost their confidence when selling it.  Sufficient product training is a must so your sales reps can provide the perfect solution to the customer’s needs.

8. Incentivize the Sales Team

Today’s sales reps need more than just the industry standard and a commission salary to get motivated.  If you really want your sales team performing its best, get them on board with a commission boost, flex time, extra perks, or by removing commission caps.  Otherwise, they will naturally lose their motivation to keep working hard.  You want to retain your top sales reps and reward them for their achievements.

Whether you are an aspiring entrepreneur or a seasoned professional, the ability to negotiate is a skill that will serve you well in your career.  Throughout history, some of the worlds’ greatest leaders have showcased their negotiation skills in ways that have changed the world.  Before stepping out into the boardroom, look to these business-savvy negotiators of the past for your inspiration for today.  Continue reading →

Negotiation is something we all do on a daily basis, be it at work or at home.  While it is something all of us are familiar with, many of us shy away from it out of fear of confrontation.  One can agree that negotiation is a tricky business, given that one wrong move can cause the entire process to come crashing down.  Nonetheless, if you want the best value for your time, effort, and investment you need to learn how to negotiate.    Good negotiators aren’t born- they’re made.  Through education, practice, and practical techniques you can learn how to become a solid negotiator.  Here are 7 timeless and proven techniques for becoming a top negotiator.

1. Make the First Move

People hate to go first for fear that they will miss an opportunity to get more money.  However, research shows that the purchase price is often higher when the seller makes the first offer than it would be if the buyer made the first offer.  The buyer’s first offer will always be low and it’s important to set a higher anchor.  Therefore, if you’re selling you need to start the bidding high.

2. Learn the Art of Listening

Most people tend to talk a lot when they are nervous, but talking too much can end up costing you the deal.  Oftentimes, the other party will start talking if you don’t respond to them immediately.  They might end up listing reasons why your offer isn’t reasonable or why they need the deal to close more quickly.  This is information you would never have had if you were speaking, but you can now use to your advantage.  Listen more and speak less during a negotiation.  If you must speak, ask open-ended questions so you can find out the needs of your counterpart.  You can’t meet in the middle if you don’t know the needs of the other party.

3. Never Set a Range

People love to ask for ballpark numbers in a negotiation.  Don’t provide them with these figures.  If you tell them people pay anywhere from $500-$1000 for your services, they are going to try and get as close to $500 as possible.  Never provide an estimate.  Instead, keep asking questions to find out what their specific needs are and how you can meet them.

4. Know Your Position

Before entering any negotiation, you should always have a plan.  This plan includes your BATNA, or Best Alternative To a Negotiated Agreement.  In other words, BATNA refers to your minimum or the level where you decide you cannot go below.  If you begin a negotiation without a BATNA in mind, you could end up regretting the deal.  By coming prepared and with a firm position, you will know when it is time to walk away so you can avoid making a deal you might regret.

5. Ignore Bold Statements

In negotiations, you can never accept anything as fact.  People often make bold statements during a negotiation to try and intimidate the other party into giving them what they want.  These bold statements are a bullying tactic and should not get you flustered.  Instead, ignore the statements and stay focused on the needs of your client.  Don’t fall victim to these negotiating tactics.

6. Don’t Push Too Hard

We tend to get defensive when we feel trapped; so does the other party.  If you push too hard and take all of their options away, they are probably going to end up walking away.  Don’t try to be a ruthless negotiator.   It’s not about winning or losing.  The best negotiators understand that a successful negotiation leaves both parties feeling like they received something of value.

7. Build a Relationship

You never want to take too much or leave too much on the table.  Doing so can result in your counterpart having a bad taste in their mouth about their experience with you.  As you negotiate, always think about what you can say and do to establish a long-term business relationship with the client.  Not only will this make the negotiation easier the next time around, but it will help your business to grow as you retain more and more relationships with clients.

Negotiation involves two or more parties with different needs and goals who are working together to form a solution.  Oftentimes when we hear the word negotiation we think of a huge business deal.  While that may be one example of negotiation, the truth is negotiation is a skill that can be helpful in a number of situations and not just in the business world.  In fact, life is a series of negotiations.  You negotiate every day from the time you wake up until you go to sleep.  You might negotiate with your spouse about who will take the kids to school.  You get to work and your day is full of negotiations with colleagues and business partners.  Then, you head home and negotiate with the kids over how much TV they can watch, what they will eat for dinner, and what time they will go to bed.  On any given day you might be faced with multiple situations that require negotiation:  buying a car, having work done on your home, which medical advice to follow, which school to choose, how much to spend on a vacation, how long your parents can stay with you and the list goes on and on.  From the major to the mundane, negotiations are a part of life and the way we get things done.  Learning to communicate well and influence other people are skills that are essential in both the business world and your personal life.  Learning to negotiate effectively can help you in just about any situation, and here’s why:

Confidence

Many people hear the word negotiation and immediately go in the other direction.  When you feel intimidated, however, you are already on your way to defeat.  The world has its fair share of tyrants and those who are out to intimidate their way to success.  People can sense when you are not up to the fight and they will take advantage of that.  Conversely, people who possess strong negotiation skills appear more confident and have the ability to take control of the situation.  Don’t get bullied into giving in.  Instead, strengthen your negotiation skills and build the confidence you need to get winning results.

Knowing When to Walk Away

There are times when it’s worth the fight and there are times when you just need to walk away. You will be presented with these types of scenarios both personally and professionally, but the people who possess strong negotiation skills will know when it’s time to walk away.  When important decisions hang in the balance, it’s important to know when to walk.

Learning to Compromise

Contrary to popular belief negotiating is not about winning as much as it is about compromise.  A competition for resources or benefits isn’t a true negotiation.  In a true negotiation, each side has something to offer and some things they can reasonable concede.  Those who are open, fair, and honest will be able to compromise in order to reach a win-win solution.

People Skills

More often than not it’s not as much about what you say as how you say it.  Those who possess strong people skills stand to gain much more from any negotiation.  Approaching a negotiation nervously or aggressively gives the other person the upper hand.   Having good negotiation skills will empower you to remain calm, civil, and direct during conversations.  People skills certainly go a long way in building friendships, and personal and professional relationships.

Most people think about negotiation as a win/lose proposition that requires fighting for what you want.  In reality, however, a successful negotiation occurs when two parties communicate openly and strive for mutual benefit.  A good negotiator is not looking to defeat an opponent, but rather seek a win/win outcome that will foster a long-term relationship. If you want to be a successful negotiator, it is imperative that you be well-prepared and lay the groundwork ahead of time.  Below are a few reasons why thinking ahead will help you become a better negotiator.

Negotiation Requires Preparation

Negotiating doesn’t come easily to most people.  For those who think they can just walk into their boss’s office to ask for a raise and just “wing it,” they better not be surprised when they walk out empty handed.  Negotiating effectively requires planning and preparation.  You can prepare yourself by asking some of the following questions:

-What do I want to achieve?

-What other options would be acceptable?

-How can these options benefit the other party involved?

-What problems might I face with my request? How can I solve them?

-How much leverage do I have?

No matter how seasoned of a professional you are, negotiating can be stressful and emotional.  You are much more likely to keep your cool, gain the respect of your fellow negotiators, and come out on top if you maintain control.  Preparation is the key to maintaining such control during a negotiation.

Negotiation is a Process

It is important to look at negotiation as a process, not an event.  Partnering with management and business colleagues is a smart career strategy.  If you want your boss in your corner when it comes time to apply for that promotion, you should think ahead and schedule regular meetings with him where you discuss your goals and achievements.   Likewise, if you spend months building a relationship with a client, chances are they are going to trust you when it comes time to negotiate a big deal.  Thinking ahead empowers you to build trusting relationships so managers, colleagues, and clients will be on your side when it comes time to negotiate.

You Always Need Multiple Solutions

Negotiation is not always black and white.  Sometimes things do not go as planned and when that happens, you need to have a backup plan in place.  Thinking ahead allows you to prepare for a variety of situations.  Not only will you be better prepared to handle different situations, but thinking ahead will give you the confidence you need to handle whatever comes your way.

Confidence is defined as a feeling of self-assurance arising from one’s appreciation of one’s own abilities or qualities.  Confidence is the most important trait needed to be a successful negotiator.  If you are not confident when you walk into an interview, for example, the interviewer is going to notice right away and you will be perceived as a weaker candidate.  Likewise, when you sit down to negotiate a business deal and you lack confidence in your ability, the other side will pick up on that and they will use it to their advantage.  Without a doubt, confidence is the number one trait of a strong negotiator. So how can you increase your confidence to become a better negotiator?  The following tips will help you learn how to become more confident and powerful in your next negotiation.

Believe in Yourself

Confidence is all about mindset.  If you doubt yourself and your abilities, think about how you can retrain your brain to focus on more positive thoughts.  You need to believe in yourself if you want to exude confidence.  Tell yourself “I can do this” before walking into a negotiation meeting.  Your mindset is your greatest asset when it comes to gaining confidence.

Practice, Practice, Practice!

When it comes to building confidence, perhaps the best strategy is practice.  Confidence in negotiation is built through experience so look for every opportunity to practice those skills. Get experience by starting small with things like yard sales and work your way up to negotiating bigger things like projects at work.  The more you practice, the more comfortable you will become negotiating and the more confident you will feel in your ability.

Have a Plan B

You need to remember that negotiations do not always go as planned.  If you are prepared with multiple options and alternatives, you are more likely to feel confident in your ability to achieve that win-win outcome.  The best negotiations happen when both parties have multiple options to come up with an agreeable solution.  Don’t let your confidence fade the minute things go awry.  Be prepared and have a backup plan ready to go.

Fake It Until You Make It

Even if you aren’t feeling super confident in a particular situation, act as if you are! No one will know any differently and if you convince yourself that you know what you are talking about, they will think you do!  Simply put, always exude confidence no matter what.  You can actually trick your body into thinking you know something even if you don’t when you act confident.

Negotiation skills are essential to any professional who wants to be successful. The good news is that negotiation is a learned skill and we can all get better with effort.  Confidence can be a great asset to your negotiation and can help you become more powerful in your abilities.