5 Negotiation Tactics That Actually Work (And Why Most Entrepreneurs Fail at This Critical Skill)
Why you're probably losing deals you don't even know you're in
I got an email from Alex Hormozi the other week that made me stop what I was doing.
Not because it was revolutionary.
But because it crystallized something I've been thinking about for months:
Most entrepreneurs are getting their asses kicked in negotiations they don't even realize they're having.
You think negotiation is just for big deals? Wrong.
You're negotiating when you hire someone. When you set your prices. When you talk to vendors. When you ask for a deadline extension. When you discuss equity splits.
Every. Single. Day.
And if you suck at it (which most of us do), you're bleeding money, time, and opportunities.
The PEAK Reality Check
Here's where this connects to everything we talk about in PEAK framework:
P - Presence
Most entrepreneurs aren't anchored in the present moment during negotiations. They're thinking about the outcome instead of staying present in the process.
E - Energy
They don't harness their raw horsepower effectively. Instead of directing their energy into systematic preparation, they wing it.
A - Awareness
They lack brutal self-awareness about their triggers and situational awareness about what's actually happening in the negotiation.
K - Kalibration
They drift from their center when things get tough and don't know how to recalibrate quickly when their approach isn't working.
Sound familiar?
I've watched brilliant entrepreneurs build amazing products, then give away half their value because they couldn't negotiate their way out of a paper bag.
Hell, I was one of them.
The 5 Tactics That Changed Everything
Hormozi laid out five tactics in his email. I'm going to break them down through the PEAK lens and show you how to actually use them.
The Finding Peak Podcast
Early this week, we hit #2 in the Apple Business category…
1. BATNA: Your Backup Plan is Your Superpower
What it is: Best Alternative to Negotiated Agreement
Why it matters: The person who needs the deal less wins. Period.
The PEAK application:
Most people walk into negotiations with tunnel vision. They want THIS deal with THIS person at THIS time. That's not negotiation - that's begging.
I learned this the hard way when I was trying to land my first big client. I was so focused on closing them that I gave away everything. No backup plan. No alternatives. Just desperation disguised as enthusiasm.
The result? I got the deal, but at terms so bad I barely broke even.
Now? I never enter a negotiation without at least two other viable options. Not because I don't want the deal, but because having alternatives gives me the freedom to walk away if the terms don't make sense.
Before your next big negotiation, line up two backup options. Feel how that changes your entire approach.
2. Anchor First & Move Small: Control the Frame
What it is: Set the first number and barely budge from it.
Why it works: That first number becomes the reference point for everything that follows.
The reality check:
If you're selling and they say "What's your price?" and you say "Well, what's your budget?" - you just lost.
If you're buying and they throw out a number first, you're already negotiating in their frame.
Here's what most people get wrong: They think anchoring is about being unreasonable. It's not. It's about understanding that every negotiation has a range, and whoever sets that range has a massive advantage.
Example: They offer $5M for your company. You wanted $3M. Your counter isn't $4M - it's $3.1M. Maybe $3.2M if you're feeling generous.
This signals that you're not moving much. They need to come to you.
3. Multiple Equivalent Offers: Make Them Show Their Cards
What it is: Never give them one option. Give them 2-3 options you'd be happy with.
Why it's genius: They have to choose, which reveals what they actually value.
How this plays out:
Instead of: "Here's our proposal..."
Try: "I've got three ways we could structure this. Which makes more sense for you?"
Option A: Higher upfront, lower ongoing
Option B: Lower upfront, higher ongoing
Option C: Equity component with reduced cash
When they pick or ask questions, you learn what matters to them. That intelligence becomes your advantage in round two.
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4. Strategic Reciprocity: The Art of Unequal Trades
What it is: Give small things that feel big. Ask for big things that feel small.
The psychology: People feel obligated to return favors, but they're terrible at calculating relative value.
Real example:
I once threw in "free" strategy sessions (cost me an hour) in exchange for a longer contract term (worth $50K+ in predictable revenue).
One hour of my time for $50K in security. That's strategic reciprocity.
The key is breaking deals into multiple variables: price, timing, terms, risk, service level, and payment schedule.
More variables = more trading opportunities.
5. Framing: It's Not What You Say, It's How You Say It
What it is: Never present your price as a cost. Present it as an investment with returns.
The shift:
Instead of: "This costs $100K"
Try: "This generates $300K in additional revenue over 18 months. Your investment is $100K."
Same number. Completely different frame.
Most people screw this up by making claims they can't back up.
Don't say it generates $300K unless you can show exactly how.
Why This Actually Matters
Look, I'm not trying to turn you into some sleazy negotiator who screws people over.
I'm trying to help you capture fair value for what you create.
Here’s what I know…
When you negotiate well, everyone wins.
You get fair compensation for your work. They get clear expectations and better outcomes.
When you negotiate poorly, everyone loses.
You resent the terms. They sense your resentment. The relationship suffers.
The PEAK Integration
Here's how these tactics fit into the PEAK framework:
Presence: Anchor yourself in the now during negotiations. Trust, clarity, and power only exist in the present moment - not in worrying about outcomes.
Energy: Your ADHD isn't chaos - it's raw horsepower. Direct it into systematic preparation: know your BATNA, prepare multiple offers, practice your anchoring.
Awareness: Develop brutal self-awareness about your negotiation triggers and situational awareness about what's happening in real-time. See your patterns, read the room.
Kalibration: You will drift during tough negotiations. The edge comes from recalibrating fast when one approach isn't working and returning to your center.
Your Next Move
Pick one upcoming negotiation.
Could be hiring someone. Could be a vendor contract. Could be setting your prices.
Apply ONE of these tactics. Just one.
Start with BATNA. Before you have that conversation, line up one solid alternative. Notice how it changes your confidence.
Then build from there.
Every negotiation you lose makes the next one harder. Every negotiation you win makes the next one easier.
The compound effect is real.
What's your biggest negotiation challenge? Hit reply - I read every response and often turn them into future posts.
This is the way.
Hanley
P.S. If you’re frustrated with your personal or business growth, if you know you’re capable of more but unsure how to unlock the best version of yourself, fill out this form and let’s chat.