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Just read this:

http://www.amazon.com/Secrets-Power-Negotiating-Roger-Dawson...

Altucher is describing "The higher authority gambit" and "Nibbling". There are many more great negotiating tactics. Even if you don't use the techniques in Dawson's book, they will help immunize you against them.

Ever notice how salespeople are very quick to try to determine if they're talking to the "decision maker"? It's to avoid the higher authority gambit.

To avoid getting nibbled, define all the parameters when you're at the stage where Altucher was agreeing to the revenue multiple formula. Don't agree to the "formula" until you have the other parameters. Once you've settled on a price, call the other guy's bluff if he tries to nibble you once you appear to have a deal already done.




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