Mix these 3 Negotiation Styles and Close More Deals
December 8, 2021 | Written by NGI revised and edited by Samuel Newland CFP
Have you heard of the 3 most common negotiation styles? Aggressive advisors, Pleasing advisors, and Cold Minded advisors.
If not, in this article you will find the main characteristics of each style and our recommendations to combine them to be a successful negotiator.
While reading through this article if you find yourself using one of these styles more than the other, there is always a way to improve your style by following the rule of the 20% participation in a conversation, in case you haven’t heard of it, it is basically letting your clients talk 80% of the time, observe them and take mental notes on their not expressed needs.
They are often perceived as aggressive and harsh, their main interest is to be heard, and winning above all else. Negotiations are an intellectual battle for them. Some people call them sharks. By using this negotiation style you are keeping yourself away from the opportunity to explore new ways.
It is well known that most people don’t like doing business with somebody that is aggressive and imposes their will on others. The last thing you want to do is making your clients avoid doing business with you. Remember no human being likes having their autonomy taken away.
Others typically see them as sociable, optimistic, and too talkative. Their motivation is to form bonds with others. The negative way of this negotiation style is that advisors may overpromise and agree to give clients something they can’t actually deliver.
Your clients would be disappointed if the promises you made them weren’t achieved, leading to probably not doing business with you or recommend you in the future.
Cold Minded advisors
People may spot them as cold and indifferent. Cold Minded advisors are easily recognizable because they are focused on facts, along with accurate and exact information. They are skeptical, methodical, and dislike surprises, they prefer to work on their own.
The not-so-positive side of using this method is that your clients might perceive you as indifferent to their needs, not heard, and also as someone unapproachable. Being a tough man doesn’t always pay off, especially in a business where people are looking for a trustable and professional guide.
The best advisors are those who display respect and humility for their clients while creating bonding moments. Make a conscious effort to adapt your communication style to help them feel more comfortable, understood, and in control. Remember that whenever you sit down at the table, make the other side talk at least two times as much as you do. Doing so will help you earn their trust and learn what you need to know to influence their thought process.
You must treat your clients the way they want to be treated, leaving behind the way you would like to be treated. Our advice is to focus on helping them to reveal their financial needs and finding solutions to them instead of worrying about developing a reputation as a great professional. The results will naturally follow.
To read more about how to be a Better Adviser, click here.
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- Have any specific questions about the concepts or ideas in this article series or do not think it would be a bad idea to learn more about how to have better conversations
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