How to Negotiate Like a Pro — My Win-Win Strategy

Added: 2026-05-09

[00:00:00]Two kids crying and fighting over an orange. A parent walks in, cut the orange in half, and [music] gave to both kids.

[00:00:09]Neither of those kids got 100% of the orange. They got 50/50.

[00:00:15]Guess what happened [music] next? One of those child took the orange, cut the peel out, ate the orange, and chucked the peel in the bin. [music] The other kid cut the peel out, chucked the orange in the bin, and made a cake [music] from the peel. Neither of those kids got 100% of what they really wanted from the orange. What the parents could have done was >> [music] >> to ask the question why they wanted the orange. In doing so, each child would have got 100% of what they really wanted [music] from the orange. Because one wanted the orange, the other wanted the peel.

[00:00:58]>> [music] >> By splitting the orange in half, neither of them got 100%. [music] One got 50% of what they want and 50% of what ended up in the bin.

[00:01:09]That is how to master the art of [music] negotiation. Find out exactly what the other party wants from the deal. [music] With that in mind, you can craft a deal that meets the other parties' needs, making little compromises on your side that would mean both of you would get exactly what you want from that [music] deal, walking away happy.

[00:01:40]>> [music] >> Are you tired of feeling [music] like you left money on the table?

[00:01:50]What if I told you there is a secret concept that gives you the power to walk away from [music] any bad deal with confidence?

[00:02:01]Negotiation is not about splitting something in half, 50/50.

[00:02:07]>> [music] >> It's not about having things your way.

[00:02:11]It is definitely not about who is winning or losing. [music] Let me show you the best way to enter into a business, property, or life negotiation [music] and come out winning in three easy steps.

[00:02:27]One, give the other side the illusion of control. [music] What do you want me to do? How do you want me to proceed? What can [music] I possibly do to help you see that this is such a great deal for both of us?

[00:02:44]This technique always leads people to think about [music] treating you fairly.

[00:02:50]It forces them to consider your position as well as theirs. Two, focus on interest, not position.

[00:03:00]Communicate your interest, and more importantly, [music] make sure you find out what theirs is.

[00:03:06]This helps you put the person first and the problem [music] second. Once you win the person, they may even compromise on the solution >> [music] >> to the problem. Research shows that having a good rapport or good relationship with someone >> [music] >> before going into a negotiation leaves both of you a 48% chance of coming out with a favorable result.

[00:03:35][music] Once you win the person, they may even compromise on the solution to the problem.

[00:03:43]Three, invent options for mutual gain.

[00:03:48]Draft the contract to meet their needs with little compromises that help meet your needs. In a previous video, I explained how we negotiated our way [music] to getting exactly what we wanted from a land deal. [music] And how did we do that? By understanding what's in it for everyone else. We then crafted a perfect deal [music] that meant everyone got what they wanted. In doing so, we won the heart of [music] everyone in that deal. The auctioneer got what they wanted from it, which [music] is their commission. The landowner got exactly what they wanted, guaranteed sale. And the neighbor got what he wanted, a [music] new garage and 50,000 pounds in the bank. And we got exactly what we wanted, [music] a land we can build on with no restriction.

[00:04:48]That is the power of mastering [music] negotiation. And here is a bonus, number four, BATNA, [music] best alternative to a negotiated agreement, [music] especially when people aren't playing >> [music] >> fairly or when they are more powerful or won't budge.

[00:05:09]That's where BATNA comes in.

[00:05:12]Without BATNA, you're negotiating blindly. [music] It's your fallback plan. BATNA was made popular in the 1980s [music] by Roger Fisher and William Ury of Harvard University. Never enter a negotiation without having a [music] better great alternative. You will also lose, overcommit, or allow your emotions to get in the way.

[00:05:39]>> [music] >> BATNA is your baseline.

[00:05:43]If the deal on the table isn't [music] better than your BATNA, just walk. Here is a Silicon Valley example of where [music] BATNA was in full play.

[00:05:54]In the early 2000s, Disney and Pixar were partners, [music] but their relationship was crumbling.

[00:06:03]Disney CEO Bob Iger knew they needed Pixar's [music] creative spark to save Disney animation.

[00:06:13]But Steve Jobs, who owned Pixar, was a notoriously tough [music] negotiator.

[00:06:20]Here is the deal.

[00:06:22]Disney wanted to buy [music] Pixar.

[00:06:25]Steve Jobs set an incredibly high price.

[00:06:29]>> [music] >> And Iger's alternative was to try and rebuild Disney's internal animation from scratch, a process that would take years and had no guarantee of success.

[00:06:43]>> [music] >> But here is where BATNA comes into play.

[00:06:48]Iger openly [music] acknowledged his BATNA was weak.

[00:06:53]He realized that for Disney, the cost of not reaching a deal [music] meant a slow decline in animation quality was worse than the high price >> [music] >> Jobs was demanding.

[00:07:07]So by understanding that his BATNA was failure, he was [music] able to pivot his strategy to a collaborative one.

[00:07:18]Eventually, he closed [music] the $7.4 billion deal.

[00:07:24]But here is the full [music] picture. If we flip it and look at it from Steve Jobs' perspective, >> [music] >> he understood his BATNA. His BATNA was to probably sell Pixar to one [music] of Disney's biggest competitor or to carry on running a [music] successful, thriving business. Because Pixar was doing really, really good. So he had [music] no real intention to settle for less.

[00:07:54]So his BATNA was strong. He knew that, and he also understood [music] Disney's BATNA, that Disney technically had no choice but to either accept his deal or to build from scratch, which was going to take years and might not even get to Pixar's animation quality.

[00:08:17]So understanding your BATNA is really, really crucial to walking into a negotiation.

[00:08:25]But what's more important is understanding [music] the other parties' BATNA. That gives you leverage when it comes [music] to very, very tough negotiation. Before walking into a negotiation, it is best to understand what [music] your alternatives are and what your best fallback is.

[00:08:47]This allows you to plan a fallback situation for both the seller and the [music] buyer. Are you spending enough time understanding what the alternatives of your counterparts are?

[00:09:01]When negotiating a deal, are you leaving money on the table every time >> [music] >> because you're allowing your emotions to get in the way?

[00:09:10]Deploy these three or four techniques and see how you would always walk out of negotiation happy [music] with the outcome.

[00:09:22]Always put the other person in the frame [music] and give them the sense of control.

[00:09:29]Have their interest at heart by knowing what is most important [music] to them.

[00:09:36]You would either get what you want from it or walk away knowing [music] your alternative is better than the no deal.

[00:09:45]Either way, you would have won the heart knowing they are also happy with the outcome. In [music] doing so, you could even win a potential business partner in the future. [music] You don't need to go beast mode on every negotiation. Understanding your partner is so crucial, but what's more important than that is understanding the other parties >> [music] >> partner. That gives you leverage when the stakes are high. [music] Like, share, and subscribe for more conversations like this.

[00:10:22]>> [music] >> See you on the next one.