How to Negotiate like a Pro so Can 4x Your Salary (OR MORE!)

what’s gonna happen is you’re gonna make
Michael Jordan retire early so don’t fight with them show that you’re on the
same side and they’ll probably move more than you think realize how much leverage
they have during the negotiation process because one thing I often hear is people
will say well you know I didn’t have any other job offers this is my first job I
just feel like I don’t have any leverage right they’re like oh man I need this
leverage in order to negotiate and that’s really not true because the thing
is people just think about it from their perspective that they don’t think they
have leverage but if you think about it from the employers perspective they’ve
probably spent a lot of time and money finding you so if anyone makes you a job
offer odds are they invested a lot of time
identifying you as a candidate interviewing you screening you sending
you assignments bringing you on site doing all these things and then behind
closed doors having discussions about whether they think you’d fit the team
whether they think you can do the job and all these other things and they’ve
decided that out of everyone that applied you’re the best fit so you
actually do have a lot of leverage because they’re the person because
you’re the person that they want to hire they’re confident that you’re going to
make a positive impact on the team on the company you’re really gonna be
someone great who’s gonna help them make more money be successful build the
practice up etc so you actually do have a lot of leverage because you have to
think from their perspective the alternative is there’s two things that
they can do instead of hiring you like if you say no there’s two things they
can do one they can go find someone else right but that’s starting the whole
process over my taking them two or three months to find you and make you know go
through the evaluation process and give you an offer so now they’re set back two
or three months and you have to realize the opportunity cost the bat’s of the
business and this might be a project where they think it’s ten million
dollars of yearly revenue that you’re gonna be working on and if you complete
it two to three months sooner right you’re looking at a couple million
dollars of revenue for the company okay so maybe that’s I don’t know 400
thousand dollars profit for the company they’re losing a
lot of money by restarting this hiring process or they can just hire they can
try to hire the second best candidate if that person hasn’t already moved on or
if they haven’t rejected them now again the opportunity cost is over time they
think that because you are the better candidate you’re going to provide more
value over time so again they’re losing out they’re losing money they’re losing
productivity they’re losing you know your great attitude and culture fit and
all these other things by hiring someone else besides you so you actually do have
a lot of leverage and it’s very rare that a company would actually pull the
offer so by beginning to negotiate you’re actually communicating that like
hey I think that I’m actually a really good fit I bring a lot of value I’m
going to help you I’m the person for the job so that’s really communicating
something positive about yourself even if they’re not willing to negotiate
which usually they are but occasionally companies will just give you the best
offer right out of the gate or they’re just for some reason there’s no way that
they can change it at all and that’s possible but you’re definitely
communicating the right thing that you believe you’re valuable you believe you
can help them etc so where most people go wrong is they think that negotiation
is like an argument right to like one side wins and one side loses so I was
reading this book recently called blood on the horns it was about the Chicago
Bulls 1990s championship runs and the GM like everyone hated this dude because he
thought every negotiation one side wins and one side loses so as the general
manager of the Chicago Bulls he always tried to get the best the best deal for
the team which essentially meant under playing under paying players like
Scottie Pippen was way underpaid Michael Jordan was underpaid until he came back
out of retirement and basically demanded 30 million a year but the players hated
him because he thought that like he had to win negotiations and what ended up
happening is he actually pushed Michael Jordan into retirement early Michael
Jordan and the entire team probably would have come back for another two
years and maybe won eight championships instead of six
so because he viewed negotiation as a fight as two opposing sides he built a
lot of enemies he forced Phil Jackson out of town as the head coach and
Michael Jordan said hey if Phil Jackson’s not the coach I’m not playing
he forced Michael Jordan’s retirement right Scottie Pippen left and when they
rebuilt the team I was complete garbage so the net effect was by viewing
negotiation as a fight of opposing sides he forced the best player in the history
of basketball maybe the history of sports into early retirement got rid of
arguably the best head coach ever you know some of the best supporting cast
ever with Scottie Pippen and these other guys
like that’s what happens when you view a negotiation as a fight what you want to
do instead of that is you want to align your interest with the other person’s
interests you want to show them you’re on the same side as them you have the
same goals and you want them to help you know you want to help them help you so
you guys can you know help the company solve problems make more money make a
bigger impact in the world whatever the company’s mission is you basically want
to tell them like hey I want to help you accomplish this mission but at the same
time I’ve got these other offers these other opportunities these other
companies really want me to work for them and I want to make sure that I’m
making the best possible decision you know for my future and I realized that
my market value is actually very high because I know that I can be able help
you so much so what can you do to help me get closer to my target value here so
that I can come in get started right away and really make a positive impact
all right like align yourself with their interests and then start negotiating
that way it’s more of a discussion and a conversation of like problem solving how
do we fix this how do we get it so everyone’s happy as opposed to a fight
all right because you’re never you’re never gonna win a fight what’s gonna
happen is you’re gonna make Michael Jordan retire early so don’t fight with
them show that you’re on the same side and they’ll probably move more than you
think and you can kind of be tougher than you think
like most people they tend to err on the side of being too cautious and too
scared and thinking like man if I keep trying to negotiate they’re gonna pull
the offer and that’s there’s simply not true the
usually tell you like hey we think that this is a very fair deal we think that
it’s very generous we can’t negotiate anymore
like they’ll tell you when that happens they’re not just gonna randomly pull the
offer like a crazy person which a lot of people think that they’re
just like pull the offer and they’ll disappear it doesn’t really happen
they’re gonna tell you okay this is the best we can do
you’re either want to be here and you’re willing to join us and you know take the
offer you know or you’re not so you’ve got a
lot more leverage than you think you need to align yourself with their
interests and then you can actually negotiate harder than you’re comfortable
with probably and you really don’t have a lot of risk there

2 Replies to “How to Negotiate like a Pro so Can 4x Your Salary (OR MORE!)

  1. Thank you Kyle. I've recently moved from the US and started working in Canada (Toronto) as a lead data scientist about four months ago but I was afraid to negotiate and I feel I got low-balled (70,000 CAD, which is about 53,000 USD) as it is my first job in the data science world and also in a different country. I was earning more in the US even before my master's degree (85,000 USD, which is about 110,000 CAD) as a business analyst so I tend to feel like I'm compromising more than I should. According to my performance reviews I'm doing exceptional work and going beyond expectations, and I genuinely really like working here. Regarding the value I bring to the company, I've been automating a few processes but I actually don't think its value is more than 30,000 USD a year. In your opinion, what would be a reasonable amount to ask for when negotiating given this information?

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