A lot of good points, but this one I'm not sure I can agree with:
"Back yourself into a coner - Nothing makes asking for more money easier than not having an alternative."
Maybe that makes the conversation more urgent and steels your nerves. I could see how there'd be a psychological benefit there. But the best way to build leverage in a negotiation is to have a strong hand before starting the negotiation. This concept is known in behavioral sciences and business theory as BATNA ("best alternative to a negotiated agreement"). In layman's terms, it's your Plans B, C, D, etc. The stronger your backup options, the better your position in the discussion.
This correlates with the market-based theory discussed in the article ("If you can find someone to pay you X, you're worth X"). You increase your chances of getting X if you can get Backup Y as close to X as possible.
Glassdoor is extremely helpful for leveling a lot of the information asymmetries that push a money discussion in the employer's or client's favor. But Glassdoor isn't the same as leverage. Just because a typical Role X makes $Y doesn't mean you are entitled to that...unless you convince the market that you should be, i.e., by getting someone to give you that much (or more).
If one of your biggest obstacles to financial success is personal discomfort with the social/emotional piece, being cornered is an excellent experience for getting over it. I am going through that currently. It really is helping me change things about myself I have long been frustrated with but could not figure out how to change. So it kind of depends, I guess.
This forced me to get over my "let's engineer this new feature today!" and caused me to multitask on sales better. You have a fair point about having a winning hand so I actually sat somewhere in the middle of: I have no choice but to do this OR fall back to this within x period of time.
Exactly! Having more alternatives makes it easy to talk about money more openly and calmly. You are assured you have nothing to lose, and so does your manager.
> I’ve done plenty of business with friends. In fact, the
> majority of my business has been with friends or
> acquaintances. Some of those friends even stopped using
> me when I raised rates over the years and they’re still
> my friends. I’m having drinks with one of them tonight,
> in fact.
I'm happy that doing business with your friends worked out in this case, but in general I'd tend to stay away from it. Nothing can ruin a great friendship like money.
It is hard to build sales and marketing channels when you're just starting up. That is why majority of us start with closest circles - friends, family, friends of friends and friends of family... In many cases doing business with friends is inevitably.
Why should conversations about compensation be uncomfortable at all? You are not begging for a handout, and are likely not imposing any undue hardship on the other side. It might be personal for you; for them, it might be just a line item.
Because many employers, from the moment they hire you, endeavour to create the illusion they are giving you a hand-out, that they are oh-so-generous and that you're lucky to have a job. When I tell colleagues that it's a fair and equal exchange of their compensation and your labour, I get blank stares.
[+] [-] jonnathanson|12 years ago|reply
"Back yourself into a coner - Nothing makes asking for more money easier than not having an alternative."
Maybe that makes the conversation more urgent and steels your nerves. I could see how there'd be a psychological benefit there. But the best way to build leverage in a negotiation is to have a strong hand before starting the negotiation. This concept is known in behavioral sciences and business theory as BATNA ("best alternative to a negotiated agreement"). In layman's terms, it's your Plans B, C, D, etc. The stronger your backup options, the better your position in the discussion.
This correlates with the market-based theory discussed in the article ("If you can find someone to pay you X, you're worth X"). You increase your chances of getting X if you can get Backup Y as close to X as possible.
Glassdoor is extremely helpful for leveling a lot of the information asymmetries that push a money discussion in the employer's or client's favor. But Glassdoor isn't the same as leverage. Just because a typical Role X makes $Y doesn't mean you are entitled to that...unless you convince the market that you should be, i.e., by getting someone to give you that much (or more).
[+] [-] NovemberWest|12 years ago|reply
[+] [-] agibsonccc|12 years ago|reply
I think there's an advantage to this though.
[+] [-] chatman|12 years ago|reply
[+] [-] peter_l_downs|12 years ago|reply
[+] [-] mikitamikado|12 years ago|reply
[+] [-] unknown|12 years ago|reply
[deleted]
[+] [-] ivv|12 years ago|reply
[+] [-] switch007|12 years ago|reply
[+] [-] msacca|12 years ago|reply