What are the secrets of dealmaking?
Alex is the Managing Director of major UK talent agency InterTalent. He represents his clients alongside overseeing the agency's creative strategy, day-to-day operations & acquisitions.
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🤔 What are the secrets of dealmaking?
It’s been a busy couple of weeks at InterTalent, with every conversation leading back to what this industry does best; dealmaking. The possibilities that come to fruition, and the few which don’t. We are on the way out of the Writers’ Strike in Hollywood which is a huge move forward for the industry. The guild won a lot of key points, especially when it came to Streaming & AI, in their negotiation but also had to accept some concessions to get a deal done. InterTalent were also the only UK talent agency present at the prestigious Royal Television Society conference in Cambridge where we got to spend one-on-one time with the most senior executives in TV both nationally and globally (including discussing the future of talent with the Co-President of CAA). We made a number of exciting in-roads that will hopefully end in major results for our clients further confirming that something will always happen if you just turn up. Negotiations are always easier in person! Everything we do as Agents is a movement towards the next adventure and the start of a new negotiation.
Being able to close an exciting deal is an art form. Working out a creative strategy to achieve for your client is a real skill, and every negotiation is completely different. It’s a mix of learned techniques that come from knowledge and experience merged with a natural flair to sell. The big difference for Talent Agents as opposed to those who sell, say, furniture is that what we’re selling has thoughts, feelings, dreams and emotions. Our clients have opinions and will make the ultimate decision. This adds a layer of complexity and pressure that only adds to the people skills an Agent needs to be able to succeed.
Who says a number first? How many times can I go back? Do I call? Email? What if they keep saying ‘no’ to my demands? Do they know that we’re desperate to do it? What if they change their mind? These are just a few of the thoughts that go through an Agent’s head when it’s time to go one-on-one with whoever is sitting on the other side of the table. It’s a game of chess. Each side takes it in turn to move, working out the best strategy, what to do, how to do it and sometimes you have to sacrifice something to get the win. It’s addictive and very quickly becomes the best part of the job, especially if you’re as competitive as me.
However, a lot hangs in the balance. You will be judged on what you come back with from the negotiating table. An Agent’s reputation will live and die by the clients they sign and how good a closer they are.
Today, I’m going to break down what I think is essential when dealmaking.
Let’s go! ⬇️
The goal is a winning outcome for your client. It requires knowledge, common sense, analytical thinking, communication, creativity, adaptability, confidence and a bit of chutzpah. Success starts with properly understanding the desires and motivations of all parties, leveraging your client’s strengths, using all your skills and finding creative solutions.
The worst thing you can do is go into a negotiation without any thought. You need to really think about your strategy. What you want to achieve. Why it’s important. How you’re going to do it. Your timing. Your method of communication. What will success look like?
Here’s my guide to what you should think about when starting to negotiate ⬇️
✅ Know The Market: It’s always important to do your homework first. Trying to get a sense of what similar deals look like is important. Ask your colleagues. Ask industry friends. There’s nothing wrong with looking for a little guidance before embarking on a big negotiation. What did so-and-so get for this? What might their budget be? What percentage of the back end does that company usually give up? I’m always tapping up others for information to make sure I’m playing in the right ballpark. If you go in blind then it’s likely you’ll either undersell your client (not a good thing) or oversell them and potentially lose the deal (also not a good thing).
✅ Managing Expectations: I’ve mentioned this often but you have to manage your client’s expectations from the start. Your job is to know more than them. That’s why they pay you. No doubt they will want A LOT of money, assume the other side has A LOT of money and no matter what you achieve they will want more. The difference is that if you’ve done your homework and know what the industry is dictating, so you know what is really achievable. You need to always explain the nuances of the situation to your client and manage their expectations as to what a deal might look like, both good and bad. If you don’t communicate that from the outset then you’ll rarely ever meet their aspirations.
✅ Access Points: Your access points are the strategies you use to get what you want in a negotiation. Industry information, having experience with similar deals, knowing what’s possible, timing, the method of communication, making compromises in exchange for bigger wins elsewhere and having a good relationship with the other party are all examples of access points you can use to your advantage and achieve a creative deal. This is all about mapping out your plays, where and how you can gain value for your client, where you might have to concede, and knowing how far to push. Map your strategy before you start.
✅ Methods: There isn’t a one-size-fits-all rule. For quick and simple deals with little to play for, email is fine. Or WhatsApp. I do quick deals on WhatsApp every day. Time management is key and if after doing your homework you know there isn’t much you can do, this is fine. However, for any major negotiation that’s important and complex, you lose all power if you don’t pick up the phone. A conversation gives you power and can lead you to greater results. You get a strong understanding of what’s important to both sides and if you’re a great salesperson you can talk your way to a victory… and when you hear something you don’t like, a moment of silence goes a long way. See who pivots first. The art of doing a great deal will always be done either in person or on the phone.
✅ Confidence: This is worth its own section. You have to be a confident negotiator otherwise the other side will run rings around you. It's very hard to get the best results while always being super-extra nice and accommodating. You need to be professional, good to deal with and a great listener but you need self-confidence, clarity and an inner toughness to keep your power in the negotiation and not lose sight of what the aims are.
✅ Letting Go: You have to accept that some negotiations don’t end with a deal. It’s a rarity, hopefully, but you have to be at peace with this. No one has guaranteed that a deal will be agreed, only that we’re going to discuss one to see if we can. Knowing this will focus your mind on what the dealbreakers are and what is truly important to you. Not agreeing terms isn’t always a bad thing. Sometimes you have to stand by what you feel is their correct standing in the marketplace. You also have to know…
✅ What Matters: You need to communicate with your client and listen to what is important to them. Sometimes it’s purely money but often can be other elements such as dates, ownership of intellectual property, back-end profit participation, on-screen credits or even transport & accommodation. You then need to discuss whether they are willing to walk away from the project if what matters can’t be achieved. This will determine every inch of your playbook. If your client is happy to walk away if the terms aren’t agreeable then it gives you infinitely more power to stand by every stipulation and not deviate. However, if they ultimately want to do the job no matter what then you have to accept you will need to be more open to finding a middle ground, maybe even conceding on more points than you’d like, to ensure you get the deal across the line.
✅ Value For Everyone: This is crucial, and often overlooked. You have to also know what’s important to the other party. Your loyalty is to your client, always, but the people you are dealing with have to be happy with the outcome too. They need to feel they are hiring your talent in a deal they are comfortable with which creates value for everyone. Once the deal is done everyone has to then work together. If you fight so hard without a care about what the other side wants and ultimately force them into submission not only will they resent the outcome but it will create bitterness down the line. They won’t want to deal with you again which, in reality, means you’ve actually lost. You’ll have won the battle but lost the war. Beating your opponent so hard in a negotiation that they never want to work with you ever again is not something to celebrate. The best dealmakers will not only get the best result for their client but everyone will still shake hands at the end of it. I remember reading an interview with LeBron James’s manager after his $1 Billion lifetime deal with Nike where he says ‘It's a fantastic deal. Nike feels great about the deal. That's the most important thing. As great as I feel, as great as LeBron feels—Nike feels fantastic about it.’
There are of course many books, podcasts, masterclasses and so on regarding the art of dealmaking. I’m obsessed with them. We would be here for days if we went into every nuance of dealmaking and I definitely advise you to read and listen to as many insights as possible. To begin with, a proper understanding of the above is a non-negotiable for those looking to become the best dealmaker in town.
As ever, here are a few recommendations to check out:
📚 TO READ:
Suits spend another week at the top of America's most-watched list. It’s amazing really. A show that ended a good few years ago has just broken the record for being the most streamed show ever.
NBA's Charlotte Hornets ink a jersey deal with... Mr Beast! This is a gamechanger. Mr Beast is the new sponsor of the Charlotte Hornets. He’s changing the game yet again.
A Letter A Day Recently introduced to this amazing Substack. Letters, memos, and transcripts from Investors and Gamechangers. My favourite is the one Walt Disney sent his board back in the 1960’s.
🎧 TO LISTEN:
Stick To Football New Football podcast from Neville, Carragher, Keane and co. Well worth a listen.
Who Shat Hilarious true crime podcast involving two brides and one turd.
Screen Time Really good movie news and reviews show.
📺 TO WATCH:
Beckham, Netflix Has anyone NOT watched this yet? Fantastic documentary, beautifully shot and a real insight into the Beckham family.
The Morning Show, Apple TV+ The new series is up and running, and it doesn’t let you down. It just gets better and better.
The Girl from Plainville, Channel 4 Brilliant Hulu original drama inspired by the story of Michelle Carter's texting suicide case.
See you next time!
Alex