How to Negotiate for a Living

Not only can you negotiate deals for a living, there are many careers where you can earn a lot of money doing it. Unlike other fields that demand a 40- to 50-hour work week, you can negotiate for a living on your own time as your own boss. The key is proper preparation, self-improvement and communication skills to come out on top every time.

• 1

  Choose a field where your negotiation skills will grant you the income you desire. Several examples include arbitration, auto sales, real estate, law, politics and business.

• 2

  Decide to be an employee, independent contractor, consultant or business owner. All have varying levels of risk, reward and freedom. Keep in mind that owning a business has start-up costs and a higher risk, but allows you to replicate yourself through new hires, and therefore a higher income potential.

• 3

  Identify what group has the highest demand for your services. If possible, create or modify the conditions to intensify the demand. The more intense their demand or need, the more likely they will accept higher offers or requests. For example, a real estate agent may suggest the owners make changes to their home to get a higher offer on the house.

• 4

  Prepare well beforehand. Do the research necessary to know what the other party is likely to accept, and find out if he has the resources to do so. Have a goal in mind for an offer you are willing to accept or make each time you negotiate, and what situation will cause you to walk away. If you appear indecisive, you could easily lose control of the negotiation process. Also, quick counteroffers are important, as any delay could allow other negotiators to enter the process and create unnecessary competition.

• 5

  Request more or offer less than you have in mind. Be careful not to aim too high or too low below the perceived value, however, as you could scare away the other party. But, if you start higher or lower, you can accept a middle offer that lands precisely where you intended all along. For example, you offer initially to settle your client's case for $200,000 when your client is really willing to settle for $175,000. Your opponent makes a counteroffer of $180,000, and you settle for $5,000 more than expected.

• 6

  Work hard at self-improving. There are many resources available to develop your communication and people skills. Tapping into those could make the difference between a five-figure and six-figure income.