Hey guys!
Chicago’s summer music scene is going strong, and I hope you’ve all been able to take advantage of the amazing open air shows, upcoming festivals, and almost daily concerts. Today we’re going to take a short break from the indie performance scene to chat about some most artists love to hate: negotiations.
Ellie why would you ruin my summer vibes with that? Can’t I just leave it to my over-involved mom to handle?
I’m sorry to say, you can not. Before business managers and (hopefully) after parents, you and I have to take care of our own music. For an independent musician, that means handling revenue agreements at gigs, fielding offers from talent scouts and label representatives, figuring out music rights, and everything in between. If you don’t know how to negotiate the best deal, you’re going to be living in your grandma’s basement the rest of your life. (Granted, we don’t all live in basements. But we also don’t want to get trapped in a bad agreement and end up there.)
So how do we negotiate? I’m so glad you asked. There are a number of ways to approach negotiations, but first you have to think in three main steps.
- Figure out what you want. (Zwier, 2010). This could be as simple as the bigger live stage or as complex as a higher percentage of royalties and tickets sales based on fan response. Either way you have to know what you want.
- Decide why you want it. The most successful way to present this to your counterpart is to be able to explain why it meets your needs as well as theirs. Then you need to follow it up with hard facts about why you should get it. (Neale, 2013). Being able to do this is a process that we will talk about in a minute, and it involves something called objective criteria in addition to preparation for the negotiation. For now, just know why you should have it.
- Determine how to ask. You should make every effort to work with your counterpart. (Think along the lines of, “This is what I want, can you help me? Then, move to “I’m understanding what you want, and here is how I can help you.”) (Neale, 2013). Turn the negotiation away from “My needs vs. yours” and towards “Our needs being met at the same time.”
The most important part of any negotiation is what you do before going into that meeting. Make every effort to research your counterpart and their point of view. Empathy in your preparation may sound warm and fuzzy, but it’s your best weapon. (Kadlubowski, 2014). To really negotiate the best deal, you have to figure out how to help your counterpart get what they want at the same time that you get what you want.
If you are asking something that is not already on the table, you had better be able to back it up. Objective criteria is going to be your best friend. For example, if a TV producer is offering 15% royalties on a song you wrote, and you 30%, show Ms. Producer the numbers. If you find that the industry doesn’t really have a standard, you have a few options. Show them how paying a higher percentage of royalties is better than paying a licensing fee up front. (This is not always the case, but if you can prove it, go for it.) Determine your BATNA, the best option if you don’t get what you want, and where you draw the line between negotiating and walking away with your best alternative. Ultimately, your objective criteria should help you determine what is optimistically possible, and when it’s time to walk away. (Neale, 2013). Your preparation will help you determine what your counterpart’s BATNA is, so you will also know how far or hard to negotiate.
There is so much more to say about negotiating, but I want you to most importantly remember this: If it’s not win-win, no one is winning. Business negotiations should be about building long-term relationships. (Kadlubowski, 2014). If you cannot work together to solve your collective problems, you are not finding the best deal. There is always a way to use what you have to meet someone else’s need in a way that also benefits you. If you cannot work out a win-win, and “a no looks as good as a yes,” I would carefully consider walking away with your BATNA. (Neale, 2013). The worst thing an indie musician can do is get trapped in a bad deal, or develop a reputation for taking the losing side of things. Be smart. Be creative in problem solving. Be wise about getting trapped in bad deals. And then, get back to the music.
No comments:
Post a Comment