Negotiating for Business

Negotiating Deals

Negotiating deals takes many forms and this subject needs to be approached in a manner best suited to your potential client or broadcaster as well as yourself. Negotiations can be anything from a telephone conversation through to a formal pitch and if you have got as far as negotiating fees and producing treatments then your approach should be deemed successful.

	How are deals actually negotiated?
	7.26 Martin Morrall

So doing deals is as much about trying to develop longer term relationships and getting that mutual trust so that an organisation that does commission you to do a job, knows they're getting value for money, are comfortable with the people they're working with and that we bring something of value to it over and above the straight financial transaction.

Methods of negotiating deals vary depending on the medium and the type of project you hope to win. For example, negotiating a deal to produce a television programme for a broadcaster will be very different from negotiating a deal to produce a website for a corporate client. Larger media organisations will have set procedures for pitching and will more often than not publicise the amount of money available to produce a series, whereas a corporate client may put a project out to tender and wait to see what a number of production companies will charge.

It is important to build trust with a client and if you are hoping to win future business, it may be sensible to offer a good deal for the first project in the hope that they will bring repeat business to you. This isn't always the case, but if you do a good job for a client and you build a good relationship, they may feel that they need to look no further for future projects.

Ratecards are often used in building budgets and provide a good guide as to how much certain crew and equipment will cost on a daily basis. With longer term client relationships it is sometimes the case that discounts on projects will be given for loyalty, but it is essential to ensure that your costs are covered and that you will still make a reasonable profit.

The more experience you gain in negotiating deals, the more confident you will become and the stronger your position. If your company is well established with a good reputation you will have more power over negotiations than if you are a new media producer starting out in the independent sector.