Music in the freelance world:
Music Business Negotiation
Negotiation:
1. What is meant by the term negotiation??
2. Why do you think that it’s particularly important for freelance musicians?
NOTE: Everything is negotiable, apart from death, taxes, and the price of apple products.
- Freelance musicians ALL need an understanding of the negotiation process.
- DEFINITION: Bargaining process between two or more parties seeking to discover a common ground and reach an agreement.
- Negotiation skills are valuable in all walks of life.
- A 5-year management agreement or a recording contract it is so important that you get it right.
- Poor negotiation in the short-term can mean massive problems in the long term.
- Non-enforceable contracts can result in a loss of assets, or worse, losing your life’s work and savings.
- Negotiation by its very nature means to compromise.
- When two parties enter into an agreement, a contract between the parties outlining the terms and conditions of the agreement is mutually agreed.
- It is unlikely that both parties expect exactly the same terms and conditions.
- Hence there is the need to negotiate.
- Strong negotiation skills are fundamental to achieving and sustaining a career.
- Those who want to get better results need to develop effective negotiation skills.
- Poor negotiation skills prevent people getting what they want.
- Negotiation is vital to direct events to your advantage.
Class Exercise
1. When do your negotiate in your personal life?
2. When do you think you will need to negotiate in your music business life?
3. Take your time to think and give some examples.
Especially when your freelance and your selling a product the important thing to remember is that you are going to negotiate and people like negotiating.
PLANNING TO NEGOTIATE _ YOUR TEAM:
- It can be a good idea to allocate a negotiator e.g. your music business lawyer.
- Be aware of the cost of employing someone to negotiate for you.
- You may wish to have people supporting you ‘negotiating team’
- The best results begin with effective preparation.
- Find out whom you are dealing with.
- Ask yourself some fundamental questions before you enter into negotiation.
PLANNING TO NEGOTIATE QUESTIONS:
1. What do they want from you?
2. What do you have?
3. Do you need them?
4. Who else might want it?
5. Does anybody else have what you have?
6. What might someone else be prepared to give for it?
7. Are you willing to concede anything and why?
Other considerations:
- Estimate the importance of negotiation in the first place.
- Determine what the effects will be if no agreement is reached.
- This will make you think about what you have got to lose.
- Consider if you are in as a strong position.
- E.G. if you are an artist how many management companies are interested in representing you.
Estimating your position:
- How many labels are attempting to sign you?
- Are you really in a position to take on this responsibility?
- Can you deliver what is required?
- And appreciation of value of what is your buying or selling is vitally important?
Formulate a strategy:
- Creating/agreeing objectives.
- Allocating roles – e.g. chairperson etc.
- Prepare your case and consider the opposing teams position.
- Create an agenda..
- Have a plan B or even C & D.
- If both parties agree on their Plan B, it can be much more beneficial as both sides feel as though they have achieved something of value.
Conducting Negotiation
- Each side has goals, interests, personalities and persuasive abilities.
- Don’t assume you are strong and they are weak or vice-versa.
- The goal is to complete the deal you want.
- Draw up an outline of what you want to discuss.
- This ensures that you do not miss any vital points.
- Take notes.
- Keep clear what you’ve already agreed to.
- Only make concessions in reverse order importance.
- But only in order to gain something from them.
Dos and don’ts:
- Don’t negotiate unless you need to.
- If you think what you have to offer is such good value then stick to your guns.
- Always evaluate your needs honestly and buy/sell hard.
- Work out your ideal position, don’t be afraid to state it straight away and stick to it unless you feel you need to move never ever accept the first offer.
- There is almost always a different to better offer behind it.
- If you accept to quickly they will think they should have asked for more.
- Listen more and talk less. Good negotiators lead by listening not talking.
- Let them ramble on even if its rubbish and frusterating.
- Don’t offer free gifts. Always ask for something in return, as no one values a free gift for long.
- A free gift today becomes tomorrows starting point.
- Never disclose your bottom line, not before you start. (Don’t give your game away)
- Never make a quick deal.
- Check your understanding.
The way, Keep people talking! Engage in conversation they will gradually soften to your way of thinking. As long as you can keep it going they will soften to your level.
Concluding:
- Closing – make sure you sense it, but don’t rush begin to summarise.
- When the terms have been agreed y the parties they represent, can the negotiating process be considered complete.
- A verbal agreement is legally binding, its just more dofficult to prove.
- Get it in writing. Signed and dated.
- State that the agreement is subject to contract.
- If you address the above points the result should be a competitive agreement.
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