Kind of a neat concept, a role play between publisher and an aggregator, the publisher played by Marcia Taylor of Business Wire, role of aggregator played by Larry Schwartz of Newstex (AK Role Play Marcia and Role Play Larry). Publisher tasked with getting a 25 percent royalty rate, at least a $25 minimum,limit distribution online. Aggregator Larry doesn't agree to minimums, of course has to have open redistribution rights. Randy Marcinko of Marcinko Enterprises sets the stage. Six weeks ago, Role Play Marcia approached Role Play Larry, came in with hard ball terms much higher than what they want/need. Role Play Larry played hard back. What now? New facts are added to the simulation and handed to the negotiators for the first time: publisher's budget is in bad shape, had two large cancellations with aggregators, your salary is based on your budget. Aggregator contacted competitor contacted the publisher's competitor and signed and loaded their content - publisher's content is much less mission critical. OOPS! Role Play Marcia proceeds to try to negotiate herself into a hole rather quickly. Role Play Larry tests various terms, most are pretty onerous, closed networks with subscription access. RPL shuts the door unless RPM can come up with something new. The negotiation failed. No definition of value proposition, no definition of business. No real negotiation, no real likely role for success.

Jonathan Hoy walked us through the DRIVE strategy. D- define strategy. What's your value proposition and how to you bring it to market? "Be careful what you ask for - you just might get it." Sell the deal internally first, so that you don't have to go back. Define your walk-away proposition.
R - Research. Understand their model, strengths, weaknesses, recent deals, industry trends, power of negotiation in hands of other party.

I - Identify basic needs and priorities in a negotiation. Learn what the other person wants, don't be afraid to ask and tell, understand if the other person can walk away from the deal

V - oVercoming obstacles (?) Build trust early, set a collegial, business-like tone, identify real or perceived desire for power (needs could be accommodated mutually), deal with the "person in the shed" and know if they're there, make sure that they're in the loop BEFORE the negotiation.

E - Establishing measures of success - Did you hit or miss your walk-away position, were both parties unsatisfied, did you work with the other party during the term.

Great tool! This is something that I can use on a regular basis.

Second role play. RPL is now a new vendor, tasked with satisfying RPM's needs as a publishers. RPL needs to license the content without a minimum, royalty rate not greater than 25 percent, needs redistribution. NEW FACTS: PRM has discovered that RPL is launching a new deal with Google, RPM has a plan to help RPL get a better deal with Google. RPL now has outlined a market segment that's non-competitive with RPM's sales, RPL's boss will be willing to offer 20 percent royalties in this sector. Results: a search for common terms ensues, cards are put on the table gradually, common needs are defined, comparative relationships exposed. RPM exposes hole card late in the game.

Randy notes that research is undersold, it pays to come in to a negotiation understanding your opposite's position. Also emphasized logging on to your potential licensee's site and see how content is treated there - learn what will work and what won't. Put yourself in your user's shoes as well as your partner's. Think of how can WE make more money; include your partner in your success.

Fun exercise, insightful, interactive, broke up the usual not-another-panel-please tedium.