One of the best negotiators Mark Cuban has labored with — or in opposition to — have one thing in widespread: They’re prepared to compromise.
Professional dealmakers know to not rush or nitpick when bargaining, says the billionaire entrepreneur and investor. “One: They’re affected person as a result of they know what they’re making an attempt to perform,” Cuban, 66, tells CNBC Make It. “Two: They do not attempt to win each deal level. It is OK to offer one thing with the intention to get the deal carried out.”
Cuban tries to showcase these qualities as an investor choose on ABC’s “Shark Tank,” the place he typically practices affected person silence — sitting quietly whereas his fellow panelists provide up their ideas and questions. The technique helps him receive data earlier than deciding whether or not to make funding presents, he stated in an interview with former FBI hostage negotiator Chris Voss final 12 months.
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″There can be occasions when somebody walks in on ‘Shark Tank’ and I am pondering to myself: ‘There is not any means I am .’ Or, if I’m, I haven’t got fairly all the info that I have to decide,'” Cuban stated. “Once I hearken to the opposite Sharks, they are going to inform me if I’ve any competitors financially to do a deal. They are going to train me issues, probably, about that business … concerning the particular person.”
Cuban’s methodology will depend on energetic listening, he added: “The extra you concentrate and the extra conscious you’re, the higher alternative you must get what you need … Silence is cash.”
How Cuban’s negotiating technique works
After quietly watching the back-and-forth, Cuban lastly entered the fray. “I am so bored with this, I am going to do $250,000 for 8%. However you have to say sure proper now,” he stated.
Greiner seemingly sensed the tactic coming. “He shouldn’t be capable of are available and scoop it,” she responded.
Finally, Cuban teamed up with Greiner and Herjavec to supply van Meer his $250,000 in alternate for 8% of the corporate — double the fairness from van Meer’s preliminary provide. The Genius Litter CEO accepted.
After all, few negotiators are good. Even Cuban can depart from his traditional strategy and soar at offers with unrestrained enthusiasm. As a freshly minted billionaire in 2000, he purchased the NBA’s Dallas Mavericks and not using a single second of negotiation — instantly accepting the preliminary asking value from the crew’s earlier majority proprietor, actual property developer Ross Perot Jr.
“It was all about enjoyable,” Cuban advised “The Draymond Inexperienced Present” podcast in April. “That was like a dream … I did not even negotiate, I used to be identical to, ‘Sure, no matter.'”
Disclosure: CNBC owns the unique off-network cable rights to “Shark Tank.”
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