The key to being a successful Joint Venture negotiator is to have the ability to walk away at any time during the negotiations, and if you threaten to walk away, you have to do it.

There is also a spirit to negotiating – if one party is continually taking and not giving, unreasonably inflexible, arrogant, or “talking down” to the other party, the JV will never work.

Changing the Agreement is Dishonest

Also, remember that changing the rules or moving the goalposts, in other words not honoring what you previously agreed to, is not negotiating, it’s simply being dishonest. Anyone who promises and doesn’t deliver isn’t negotiating; they’re stealing and lying. And if they can steal a few hundred dollars, they will steal millions, too – it’s who they are.

Watch out for cheap, tightfisted people.

Only Talk to the One in Charge

Negotiating with a middleman – especially one who hides behind the authority which they represent, seldom works; try to work with the person who actually has the authority to make decisions, instead of a puppet.

Look for Clues

During negotiations, you can get an insight into the character and values of the person you’re dealing with. Look for patterns, clues, honestly, small lies, and passive aggression. Con artists use greed (the big carrot), threats, bullying, and lots of details to confuse honest people.

Watch Your Emotions

Remain objective and emotionally detached during negotiations. Maintain a healthy dose of skepticism. Business, after all, is a game. You can remove the two emotional issues – risk and cost – with good negotiating skills. Watch your own “Greed Meter” carefully.

Walk Away When Your Gut Says

When you get a negative gut feeling about the other party, don’t bother to continue with the negotiations.

I recently made that mistake by getting involved with religious fundamentalists – they proved that they were totally irrational, and could justify the most ridiculous assumptions and blatant dishonesty by hiding behind their religious delusions. I will be more selective next time. One’s philosophy will drive ones choices and actions. We continue to learn. You can learn from my mistakes.

ALWAYS IN WRITING!

Finally, JV’s should be comfortable, fun, profitable, and very clearly communicated, which means IN WRITING. After a meetings, send the agreements in writing and make sure everyone understands the terms and conditions.

Months down the line, people get selective memory and amnesia. Each party is solely responsible for themselves, and the “blame game” can be avoided if these responsibilities are clearly defined – in writing.

You have millions of options in the world of Joint Ventures – be selective, because you can afford to be. An ounce of discipline is better than tons of pain down the line.

If you’re unsure about how to do this, read this page about how to write a Memorandum of Understanding, otherwise known as MOU, which is a basic Joint Venture agreement.

Why It Pays to be Generous

If someone is comfortable with 10%, don’t try to negotiate 15% – they will be uncomfortable and sabotage the deal or undermine it. And if they’re happy with 10%, offer them 12% – the pay-off to generosity can be massive when dealing with the right people. Test your deals in a small way before launching them in a big way – “Take time to know her”, as the old song goes.

You Can Make More Money Walking Away Sometimes

Remember: You make more money by walking away from money when it’s “dirty” money. By that, I mean you can only earn dirty money by compromising your values and overriding your better instincts. If you’re not comfortable, don’t walk away – RUN – towards better deals!