Noah Kagan’s Proven Strategy To Get What You Want (Every Time)
Short Summary:
Noah Kagan shares his negotiation strategies for consistently getting what he wants. He emphasizes a counterintuitive approach: admitting weakness ("I'm bad at negotiating") to disarm the other party. Key strategies include focusing on a positive experience for both sides, clearly defining the value being negotiated, and conducting biannual reviews of recurring costs (as exemplified by AppSumo's process). A crucial tactic is stating your desired price and then remaining silent, letting the other party respond. The implications are improved outcomes in personal and professional negotiations, leading to cost savings and better deals. The process involves a combination of psychological tactics and a structured approach to cost analysis.
Detailed Summary:
The transcript details Noah Kagan's negotiation tactics, broken down into several key sections:
Section 1: The Counterintuitive Approach & Building Rapport: Kagan's primary strategy is to initially present himself as a poor negotiator. He states, "I always say I'm really bad at negotiating," explaining that this lowers the other party's defenses and focuses the negotiation on their needs and desired outcome. He emphasizes the importance of a positive experience, aiming for future collaborations rather than adversarial interactions. He highlights the importance of long-term relationships, referencing his long-standing connections in the industry.
Section 2: Value Clarification and Biannual Reviews: Kagan stresses the importance of understanding the value being negotiated. He advocates for clarity in pricing justifications, using market comparisons ("comps") as examples. He details AppSumo's biannual review process, where all recurring costs (software, contractors, etc., totaling $1.75M monthly) are reviewed for potential cancellations or negotiation. This process highlights the importance of actively managing expenses and seeking better deals.
Section 3: The Power of Silence and the "Ask": Kagan's most impactful technique is stating your desired price and then remaining silent. He illustrates this with a recent sauna purchase where, after a chargeback due to a six-month delay, he negotiated a 20% discount simply by stating his desired price and waiting for the vendor's response. This emphasizes the power of assertive yet calm communication. He uses the phrase "get the result instead of being right" to illustrate his approach.
Section 4: Handling Difficult Situations (Chargebacks): Kagan discusses using chargebacks strategically, not as a first resort, but as a way to gain attention when a vendor fails to deliver. He explains that while he ultimately paid for the sauna, the chargeback forced a negotiation that resulted in a significant discount. This section highlights the importance of understanding the tools available and using them judiciously.
Section 5: Emotional Detachment and Focusing on Solutions: Kagan advises against emotional negotiations, emphasizing the importance of focusing on achieving a mutually beneficial outcome. His negotiation with the sauna vendor exemplifies this, where he calmly explained the situation and presented his counteroffer, leading to a successful resolution. He uses the phrase "get the result instead of being right" to emphasize this point.
In summary, Kagan's negotiation strategy is a blend of psychological tactics (presenting weakness, focusing on positive relationships), a structured approach to cost analysis (biannual reviews), and assertive communication (stating your desired price and remaining silent). His examples demonstrate the effectiveness of this approach in achieving favorable outcomes in various situations.