Negotiations are something that every freelancer will encounter at one point or another.
Whether it’s with a client, or another freelancer you’re outsourcing work to, it’s essential that you know how to negotiate successfully so that all parties will walk away satisfied.
When negotiating, many freelancers tend to focus on the price while failing to look at other aspects of the situation such as project value or certainty. Focusing on certainty can allow you to present not just a price to the other party, but also an opportunity.
“3. Prospect Theory: Bargain using certainty
Let’s pretend that you’re a hiring a new developer. In negotiation, the developer is trying to obtain a far higher salary than you are prepared to pay.
Instead of playing a numbers game, try a different approach. You say, “What I can offer you is a guarantee. You can be certain of your employment here for a minimum of six months, no questions asked. Your position is absolutely safe as long as you accept this salary.”
This negotiation tactic comes from prospect theory. Prospect theory is a method of understanding how people make choices, especially when the choices involve a degree of risk. In any negotiation, there is some level of risk.”
Read the other 2 tips at Inc.