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WritingsJan 2, 2025Source article

On Negotiation

a continuation of the series of value "what is the value of value"
Negotiation begins with personal leverage, then turns on information, real-time valuation, and finding terms that work for both sides.

In negotiation, you are essentially trying to 'gain' leverage. But of course, the ultimate leverage is yourself.

The better you are, your skills and as a person, the more leverage you have.

Sadly the simplest things are of course the hardest, which is probably why we look for shortcuts.

A fair negotiation is where both sides come to agreeable terms, that fit both parties.

But for some reason, negotiation is taught as a macho game, of zero-sum win-loss game-theory chess-match.

In my opinion, negotiation should be a win-win, for both sides situation.

Theory and idealism aside, when you enter the negotiation, there's no more time for 'self improvement'. In essence, at this point is game-time. So what matters from experience is

  1. who has the knowledge
  2. real-time valuation

1: For who has the knowledge, the recruiter tries to hide their scale. I.e how much they are willing to pay for your position. What others in a similar position with a similar background as yours get paid. From the recruiters end, they desperately try to find out your scale by asking: "How much are you looking for?"

In labour negotiations, this is quid-pro-quo. If I'm willing to pay 100k for this truck, but the guy sold his last truck for only 40, he might be stoked with 45.

2: Real time valuation means where you fit on the scale. The recruiter / hiring manager might see that you are great, but you are mid-tier on the scale. It is your job to use 'negotiation' to highlight your own value. This is done through what others see your value as, and what you yourself see your value. For example: "I have a few other jobs I'm looking at, and one I'm in the final stages."

3: Ironing out the edges. At this point, you can say: "I'm okay with a lower salary if I can get more vacation." or "Let's keep the salary the same but up the equity because I believe in the company".

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#negotiation #gametheory

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