In this article we are considering, specifically, negotiation in the music industry but the ideas could be applied elsewhere. The ancient Romans had a word "otium" which meant leisure or recreation, by placing a negative prefix in front of it, the word became "negotium" meaning business or work, so leisure was first and work came second. Our word negotiation comes from the "negotium" and that fact should remind us that negotiation should be conducted in a business-like manner.

STAGE I - LOOKING AT THE SITUATION

1. You don't get something for nothing

Whether you are negotiating a gig at the local pub or a multi million dollar recording contract this principle remains the same. The other party expects to get something out of you just as you expect to get something from them. If you don't have anything they want then there is no reason why they should engage you, let alone pay you.

2. Business is business

The person you are negotiating with may or may not be your friend. For the purposes of negotiation this is irrelevant. You are not trying to broaden your social circle, you are attempting to achieve a successful outcome for you. The other party is not patron of the arts nor are they doing you a favour, they are attempting to achieve a successful outcome for themselves.

3. Identify the advantages

You should be able to list, clearly and simply, what advantages you will get out of a specific result. You should also be able list, clearly and simply, what advantages the other party will achieve.

4. Don't ignore the intangibles

Some advantages are difficult to see but have a real value. Don't miss these.

5. Identify the risks

The bigger the risk the better the potential outcome you should expect, this also applies to the other party. You should be able to list clearly and simply what both parties are risking.

6. Quantify the risks

There is a level of risk which is so high that it not worth engaging in. If the likelihood of a positive outcome for you is extremely small then it is not brave to take the risk it is foolish.

7. Perception is reality

In a negotiation it is what the parties perceive which will influence their position. This does not mean that you should try to "con" the other party but it does mean that you should point out advantages to them that they do not recognise. Likewise don't "con" yourself. If you can't simply and convincingly state the advantages of a particular outcome then they most probably don't exist.

8. Normal practice does not excuse bad practice

The music industry abounds with situations that are manifestly unfair and offer the musician little chance of return. Many of these practices are disguised by terms such as "paying your dues" or "industry standard". Just because the industry works this way does not mean you have to.

9. Make the variables material

Music itself is a virtual commodity and so are many of the elements in a music industry negotiation. By virtual is meant not having obvious quantifiable physical or financial form. Some examples of this are copyright, goodwill, potential to draw crowds, promotional value and time spent rehearsing. In order to give yourself a clearer picture of the risks and advantages in a specific situation it is useful to restate the situation using very physical analogies. An example would be to think of your songs as meat pies and substitute other appropriate physical elements for the rest of the situation. In this way a questionable offer from a publisher might become: "So you want me to give you all my pies and if you sell them I get a little bit of money but if you don't I get nothing and I'm not allowed to sell them anywhere else?"

STAGE II - THE PARTIES TAKE THEIR POSITIONS

Here we deal with your position, it is important to remember that the other party will, formally or informally, have done the same thing. Your aim is to try to predict all of the variations that may be presented to you. Any reliable intelligence which you have gathered about the other party will be extremely valuable.

1. The initial position

You should have a clear idea in your head about where you want to start negotiating. This position should not just be about money but about all the variables of the situation such as time, accommodation of the other party's concerns, provision of extra services, amount of risk assumed etc. The initial position should represent an arrangement that you will be happy with even should the advantages to the other party prove greater than you had expected. Your initial position should be informed by stage 1 above and it may even be that you are not interested in the deal at all.

2. Leeway

This is how far you are prepared to come down from your initial position and still be content with the arrangement. It is a good idea to have pre planned steps that you are prepared to concede if necessary. There should be parallel sets of steps on different fronts with the order of concession clear in you mind. For example: you might be prepared to move to your first step down on time but only after trying that would you be prepared to move down to your first step on money.

3. The bottom line(s)

This is the point below which you have decided that the deal is not worth doing. There may be a number of combinations that constitute bottom lines, you might, for example, be prepared to accept less money if the time worked is shorter or work more time if the money isn't lowered.

Next issue we will look at Stage III - Let the negotiation begin! and consider some examples.

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