Negotiations

This post is focusing on negotiations & negotiation techniques. I had the chance to sit down with Jeremy Golden, owner of Terraform Records. Small indie labels are trying to compete in a world dominated by major labels. The ability to negotiate can mean the difference between success and failure, according to Golden.

Golden founded Terraform Records while attending the University of Colorado in the 1990s. In recent years, Terraform has selectively released tracks of artists from Europe, Africa and North America.  Terraform Records has also licensed their catalog for TV and film.

1. How do you separate the people from the problem when you are negotiating?

JG – “Business is business, and it’s important to always remember not to make things personal, and not to take things personally.  However, things get personal from time to time. It’s bound to happen, but always know that at the end of the day these are people that you mostly want to have a lasting relationship with.”

2. How do you deal when the other party resorts to dirty tricks?

JG – “Again, it's business.  People want to make the best possible outcome for themselves. But if you play dirty, people will not want to deal with you.  Generally speaking, I will look to another artist or vendor before dealing with folks who resort to dirty tricks.”

3. As a follow, up have you ever been tempted to use dirty tricks in your negotiating?

JG – “As tempting as it can be, you have to remember that any gains found through dirty tricks are short-lived. One of the keys to longevity in business is the ability to build relationships.”

4. How important do you find objective criteria are in getting to good agreements?

JG – “Any objective criteria that is available will only make getting to a fair deal easier. What makes releasing a cover song easy, and using a tiny sample so difficult, is that the law provides objective criterion (or statutory rates) for covers, and absolutely no help on licensing a sample. So every sample that is used becomes a major hassle.”

5. When preparing for a negotiation, do you consider your BATNA or “best alternative to a negotiated agreement”?

JG – “Preparation is important. Understanding as much as possible before the negotiation begins is good business. As far as BATNA goes, plan B often becomes the best option, so you want to have a solid understanding beforehand.”

We hope that this provides some insight on negotiations, at least from an indie label's perspective.