May 14, 2008

A Sense of Entitlement... Is He Really Wearing Red
Underwear?... Every Moment is Your Next Opportunity...
Should Your Business and Politics Mix?... and More.

** A Sense of Entitlement
By Adrian Newman, Founder of e-Wealth Daily

Tom's a good friend of mine. I've known him for about 12 years and, even though we see each other only on occasion, I still consider him to be in my close inner circle.

Tom recently left his job with a small company that he was with since the company's meager beginnings. After almost two decades, he decided that it was time to move on and that's exactly what he did.

Unfortunately, once Tom entered the open market for employment, he got a rude awakening.

First, he realized that the job market is tough and that there wasn't a lot out there. He spent months trying to find not only a job, but also a career. He enlisted the help of a recruiting agency, but spent more time meeting with them than with potential employers.

And when he did meet with employers, he found that the salary being offered was far less than what he was looking for. In fact, every company he met with declined to hire him because he wouldn't sign on unless it was a starting salary of a certain amount.

He finally got a short-term contract job with a big company and loves it. Unfortunately, the contract is ending in a few weeks and he's been back on the job market. He's running into the same old problems with salary demands.

The problem Tom has is that he is expecting a super-sized salary on the basis of one interview and a resume, not realizing the risk incurred by the employer.

You see, Tom has this sense of entitlement because he's been at a certain level with one company for a long time. Yet, he's not a professional (lawyer, doctor, etc.) and his salary was based on the success of his prior employment.

Now, Tom is basically starting from the ground floor. Sure, he's got experience and an impressive resume. But what he fails to realize is that, in the working world, you should rarely expect to be handed a big salary right off the bat.

So, in his interviews (and he's had a few), he's been asking for a certain amount and the prospective employers are simply saying, "No thanks."

When I met with Tom last week, I gave him this piece of advice:

"In your next interview, if you're not entirely thrilled with the salary, try and negotiate for a 90-day review schedule in the first year. You see, you've got to show them that all that experience on your resume is going to be used to generate profit for the company. If everything goes well, ask for a pay increase after 90 days. In another 90 days, you get another review with another potential increase. By the time a year has gone by, you've got your salary and the company knows you're valuable."

The key is to make your intentions known to your employer. Tell them straight out that you want your performance and value reviewed every 90 days for the basis of incremental salary increases. Now, sometimes the company won't go for it exactly. For example, they might want to do a 90-day review, and then wait for six months for the next review.

But the key is to remember that you're the "new guy" and, although you've got an impressive resume, you haven't done a thing for your prospective employer that warrants a big salary.

So put your "sense of entitlement" in your pocket and try to negotiate the best deal for the long term.

To make sure he would not be intimidated by anyone, former U.S. President John F. Kennedy had a trick. But you don't need presidential power to pull off this trick.

Kennedy's trick was to picture his adversary wearing red underwear. This might sound silly, but it works. 

Say you're dealing with a high-pressure salesperson. You don't want to buy at the price he's asking, but he keeps turning up the heat. He's trying to intimidate you into buying whatever it is he's selling.

Put him in red underwear. Suddenly, nothing he says has any power over you.

Say you walk into a bank seeking a loan. The banker greets you in his high-priced suit. No high pressure, but he maintains a superior attitude, in hopes that he'll soon have you signing up for all those "extras," like life insurance coverage on the loan. Put him red underwear.

Picturing your would-be intimidator wearing red underwear knocks down his power and turns up yours. Here's a valuable tip: Don't smile, no matter how foolish you make your adversary look.

Here's another valuable tip: It doesn't have to be red underwear; put him in a tutu if you like. 

When I feel someone is trying to intimidate me, I usually brush him off. But if he starts to succeed, I don't put him in red underwear. I put him on the toilet. It's the great equalizer (even the Queen of England sits on the throne)! 

The moral of the story: It's near impossible to succeed while you feel intimidated. On the other hand, it's easy to succeed when you feel confident. 

Try Kennedy's secret yourself. If nothing else, it's fun. Also check out the other negotiating secrets I reveal in my new book, "Getting Your First Million." You can order a signed copy by following the link below:

http://www.lombardipublishing.com/ads/YM/index.asp

** Every Moment is Your Next Opportunity
By John Hurd, Chief Wealth Researcher

Each morning, on my way to the office, I pass by hundreds of billboards. I'll see the same billboard about a dozen times, and a few I'll only see once.

Some have enormous, full-color photos of beautiful people. Others are just a few words promoting car repair. No matter what style of billboard I see, one thing is for sure; someone spent a lot of money to put that message along the side of the road.

When you have a million-dollar budget, advertising seems pretty easy. Put up as many ads as you can in as many places as possible and hope that not everyone will ignore your message.

But if you're just starting out and trying to get people to notice your product or service, it isn't so easy. You may not even have a budget to work with, so what can you do? Well, there are options, but you have to be creative.

Take, for example, something that happened to me. I was waiting in line at a local coffee shop. The employees seemed to be having a rough day and were moving extra slow. While waiting, the man behind me started making some idle chitchat. He soon asked what I did and began talking about his home business. He gave me his card with a phone number, web site and e-mail address to check out. He didn't go into specifics about what sort of work he does, but he certainly piqued my interest.

And that's all it took. This lone guy, with no budget at all (aside from change for his coffee), was able to market his business with a direct message that had me intrigued. All it took was an outgoing personality and his preparation. If he didn't have his card with him, it would have been difficult for me to check out his business.

The most direct message you can deliver is through word of mouth. Countless billboards and TV commercials will never be as effective as kind words spoken face-to-face. If you're looking to drum up more business, my advice today is for you to turn off your computer, grab a few business cards, get outside and start talking to more people.

As you may have heard, this summer's Olympic Games in Beijing, China, have already caused quite a stir. For the past few months, as the tradition of carrying the Olympic torch across the world has unfolded, there have been numerous political protests aimed at the torch-carrying athletes as they travel from destination to destination. In some instances, it was deemed too dangerous to run and the torch was transported in an automobile.

Usually, the Olympics are a time when the world comes together to cheer for their respective athletes at the highest stage of international competition. However, in some instances, like the summer games in 1936 and in 1972, and what is happening leading up to the 2008 games, the competition is overshadowed by political factors. In 2008, the issue that has taken the forefront has to do with Chinese/Tibetan relations.

Now, depending on whom you ask, international politics and protests should be left out of events like the Olympics. When it comes to your business relationships, there is no question about it: your personal opinions on certain issues should never be discussed.

The reason for this is that it can quickly turn a good business relationship sour. And, for the most part, your personal opinions on certain issues simply aren't necessary to disclose in order to make money.

Issues such as politics and religion are especially important to avoid because they can be quite divisive. Let's take a look at the current political situation in the United States. For the past few years, there has been somewhat of a line in the sand, with a good percentage of the population supporting the current administration, and another standing firmly against it. For many, it is a topic of discussion that evokes passion and strong ideals from both sides of the fence. The last thing you want to do in a meeting or around the office is make a comment that may offend the wrong person.

In business situations, try to keep the conversation light, free of opinion and focused on neutral issues like family, television, sports teams or anything that else that makes for easy, enjoyable and sustainable conversation.

Remember, the point of business is to sell goods or services to make money. When dealing with customers and colleagues, it's important to keep in mind that they may not have the same outlooks as you on certain situations, so it's best to leave those topics to discuss with family and friends.