After all, when you\u2019ve invested a significant amount of time earning a prospect\u2019s trust and goodwill, it can be difficult to realize the deal (and, let\u2019s not forget, the sales rep\u2019s commission) are suddenly looking questionably thin.<\/p>\n
How do you respond? Is the deal still worth doing? What is having this client in your portfolio worth to your brand in the long run?<\/p>\n
To give you a framework for effective sales negotiations<\/a> and to ensure you\u2019re better prepared when you come across a ruthless prospect bent on obliterating your margins, we\u2019ve brought in Vendasta\u2019s Vice President of Revenue, Ian Jones, to provide killer tips he uses when negotiating a sale.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”1. Understand the zone of possible agreement in sales negotiations” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Jones says the first exercise you must conduct before entering sales negotiations is to understanding the zone of possible agreement (ZOPA).<\/p>\n Investopedia<\/a> defines ZOPA as \u201cthe bargaining range where two or more negotiating parties may find common ground. It is this area where parties will often compromise and strike a deal.\u201d<\/p>\n Jones says it\u2019s a concept that\u2019s widely taught in Master of Business Administration programs and often used in commercial transactions.<\/p>\n In the context of sales negotiations in the agency world, Jones explains: \u201cIt\u2019s a framework whereby an agency understands their needs as a seller, and researches and establishes the needs of the buyer. The ZOPA is where the needs of both parties intersect,\u201d Jones explains.<\/p>\n Referring to the visualization below, Jones says a ZOPA can only exist if there is an overlap between an agency\u2019s expectations for how much they expect or need to sell their services for versus what a small or medium-sized business (SMB) is willing to pay.<\/p>\n (Image source: CROPWATCH<\/a>)<\/p>\n [\/et_pb_text][et_pb_text admin_label=”2. Don\u2019t go into a sales negotiation with your \u201cgut feel\u201d” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Let\u2019s put ZOPA into an illustrative example.<\/p>\n In order for Agency X to sell a bundle of online presence and SEO services for a minimum of $1,000 per month, Salon Z must be willing to pay at least $1,000 per month. If Salon Z is willing to pay at least $1,100 per month, then both parties are in the ZOPA and a deal is possible.<\/p>\n But if Salon Z refuses to offer anything above $800 per month, then both parties are outside the ZOPA and a deal is unlikely.<\/p>\n Jones says from his experience, buyers and sellers at larger organizations typically predetermine their ZOPA by examining a whole host of economic and business inputs.<\/p>\n \u201cThey know what their operating expenditure, cost of acquisition, and cost of goods sold is. They take all this information to calculate the two magic numbers in their ZOPA: the walk-away price and the desired price. And they take that into their sales negotiations,\u201d he says.<\/p>\n But smaller and mid-market companies often haven’t done the math to determine their ZOPA.<\/p>\n \u201cThat\u2019s a big mistake. You can\u2019t go into a sales negotiation until you know what your bottom line number is,\u201d Jones says.<\/p>\n \u201cAnd if you\u2019re going into sales negotiations with your \u2018gut feel,\u2019 and pricing services based on cash flow needs, you\u2019re probably not in a great place to make good calls for your business. You\u2019re going to dig a deeper hole for your agency.\u201d<\/p>\n [\/et_pb_text][et_pb_text admin_label=”3. Don\u2019t have a ZOPA? Analyze your costs, desired margins and composition to make one” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Identifying the magic numbers to help formulate your agency\u2019s ZOPA isn\u2019t easy, but it must be done. A good way to start is by determining the cost of doing business and what you want to achieve.<\/p>\n This list isn\u2019t exhaustive, but it could provide useful pointers to help determine your pricing:<\/p>\n \u201cAs a seller, your agency needs to have a predetermined walk-away price,\u201d Jones says.<\/p>\n \u201cBefore you go into a sales negotiation, something else you need to really understand is: Where does your walk-away point put you in the context of the wider market in terms of your competition?<\/p>\n \u201cSo by doing some analysis, you can establish the cost of doing business, determine what your competitors are charging, and then choose how to set minimum and maximum prices for your solutions along the ZOPA.\u201d<\/p>\n [\/et_pb_text][et_pb_text admin_label=”4. Use ZOPA to help discover your ideal customer” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Undergoing an analysis to determine what you need to charge will indubitably help you figure out your agency\u2019s ideal customer profile (ICP) and the solutions you need to sell them to justify the margins you want to achieve.<\/p>\n Often it will make agency owners realize\u2014perhaps nervously\u2014that many of their prospective clients are actually out of their ZOPA.<\/p>\n What should you do in that case?<\/p>\n \u201cJust move on. Don\u2019t try and force them into your ZOPA\u2014let them go deal with mass-produced or lower-quality service providers if that\u2019s typically what they want to do,\u201d Jones suggests.<\/p>\n \u201cIf you\u2019re providing exceptional service and reselling quality solutions that provide results, then it\u2019s likely this exercise will force you to move upmarket and focus your business development efforts on prospects who have money.<\/p>\n \u201cOne of the biggest pitfalls when agencies don\u2019t have an ICP is that they waste time negotiating a sale with businesses that aren\u2019t in their ZOPA. Weeding those out in exchange for high-value, high-converting prospects works in your favor.\u201d<\/p>\n [\/et_pb_text][et_pb_text admin_label=”5. During sales negotiations, focus on value” _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n You\u2019ve established your ZOPA and minimum-maximum pricing baselines. You\u2019ve discovered your ICP. They have money and are happy to come to the bargaining table. But they keep asking or pressuring you on price.<\/p>\n From here on, it\u2019s your job to shift the conversation away from the monetary aspects of the deal towards the value your agency provides<\/a>, especially relative to competitors.<\/p>\n \u201cThe best way you can do that is by being an expert in your clients\u2019 needs and an expert in solutions that are out there in the market,\u201d Jones says.<\/p>\n \u201cThose are the two things you absolutely have to have if you want to decommoditize the conversation and have value, rather than price, be the primary focus.<\/p>\n \u201cYou have to shift it towards features and benefits and explain to the customer what your agency is bringing to the table, why it\u2019s relevant to them, and how it\u2019s going to improve their brand, marketing, and growth outcomes.\u201d<\/p>\n It\u2019s strongly recommended that you bring in sales assets to your meetings that highlight your prospects\u2019 challenges, their specific needs, and reasons why your agency is best placed to solve them and how.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”6. Consider specializing or employing sales specialists for select industries” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Jones emphasizes the point about becoming an expert in clients\u2019 needs.<\/p>\n While there are plenty of local businesses that need help with their digital marketing, the problem is agency owners and general sales reps can\u2019t possibly understand the dynamics of each and every industry in order to have meaningful conversations with them.<\/p>\n Hence he suggests: \u201cThink about fishing with a spear as opposed to casting a wide net when it comes to your prospects.\u201d<\/p>\n \u201cWhen you develop expertise in a few select industries, the motions of learning and repetition you get from speaking to prospects constantly evolves and adds to your credibility as opposed to dealing with a hugely disparate book of prospects.\u201d<\/p>\n Jones says Vendasta, and even massive organizations like Salesforce, are increasingly employing specialists or upskilling sales reps to hone in on certain industries to improve conversation and conversion outcomes during sales negotiations.<\/p>\n \u201cIf you\u2019re a small agency, start with an industry you know. And then as you scale, add layers of specialization by bringing in people who know markets you don\u2019t. That way you increase your addressable customer base,\u201d he says.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”7. Don\u2019t rush. Do your homework, especially with high-stakes clients” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n There is nothing more satisfying for an agency than winning a blue-chip client.<\/p>\n Imagine becoming an SEO provider for a major bank or managing the digital ad spend<\/a> for a state government\u2019s tourism division.<\/p>\n Jones\u2019s advice: Never rush to sign these deals in sales negotiations.<\/p>\n \u201cA common mistake I see is that agencies bite off more than they can chew,\u201d he says.<\/p>\n \u201cI know it\u2019s tempting to have that brand association and be able to brag about the halo effect that having a major brand in your portfolio gives you. But you need to ensure the deal is commercially viable.\u201d<\/p>\n He\u2019s seen agencies who have won major contracts go on to have cash flow issues because they rushed to sign the deal and didn\u2019t consider the additional costs they had incurred in order to deliver the project for the client.<\/p>\n So not only was the agency in a pickle financially, but the client wasn\u2019t experiencing good outcomes because the seller couldn\u2019t deliver on their promises.<\/p>\n \u201cEven mid-market agencies can have cash flow issues because they over-indexed on the value of the brand association without thinking about whether they could deliver the work,\u201d Jones says.<\/p>\n \u201cSo it comes back to the ZOPA\u2014even with a high-stakes deal, you need to ensure what is commercially viable for you or reframe it to a place where you think it can be viable for you and the buyer.\u201d<\/p>\n [\/et_pb_text][et_pb_text admin_label=”8. Bring in the right people when negotiating a sale” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Particularly where you have a lucrative deal, you want to make sure that the right people from your agency are dealing with the right client during a sales negotiation.<\/p>\n \u201cIt\u2019s a bit like American football. You have different formations for different plays and opposition, and you need to rearrange the pieces in the most effective ways you can,\u201d Jones explains.<\/p>\n While you may want to empower your sales team to close the deal on their own, some prospects have extra demands.<\/p>\n \u201cCertain local business owners want to deal with an agency owner because they need to feel that owner-to-owner connection. Others don\u2019t care for titles and want to sit down with your marketing specialist to understand the marketing strategy you\u2019re proposing,\u201d he says.<\/p>\n Given this, Jones suggests agencies develop a robust discovery process that allows them to categorize prospects into various buyer personas.<\/p>\n \u201cThat way you can align your sales strategy to the types of human beings involved in the transaction,\u201d he says.<\/p>\n \u201cRemember that digital marketing is a relationship and service-based industry, so not everything can be won on features, benefits, and pricing alone. Who the buyer is dealing with matters immensely.\u201d<\/p>\n Mark Roberge, author of the best-selling book Sales Acceleration Formula<\/em>, spoke at a Vendasta event earlier this year on how effective prospecting and discovery should be conducted during a sales negotiation. Check out his 5-step sales process<\/a>.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”9. Deliver a great customer experience, both during and after the sales negotiation” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n The final piece of wisdom is to ensure you deliver a great customer experience during and after the sales process.<\/p>\n \u201cCustomer experience is the single biggest differentiation factor that most organizations waste,\u201d he says.<\/p>\n He points to two of Vendasta\u2019s most successful partners: Social Ordeals CEO Chris Montgomery<\/a> and Janice Christopher Marketing Agency Founder Janice Christopher.<\/a><\/p>\n \u201cWhat Chris, Janice, and their teams do really well is customer obsession. They provide an incredible experience in the sales negotiation and overdeliver on the promises they\u2019ve made in the post-sales phase,\u201d he says.<\/p>\n \u201cSo you want to make sure you really go out of the way to understand the prospect, tailor product and service bundles<\/a> to their needs, help them understand the value, make them comfortable, and then overdeliver.<\/p>\n \u201cAnd if you do that, you\u2019ll be able to deepen your relationship with that client, drive up your prices, and sell them more digital solutions they need to grow their business.\u201d<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Want more tips to slam dunk your next sale?” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n1. Understand the zone of possible agreement in sales negotiations<\/h2>\n
![\"zone-of-possible-agreement\"](\"\/wp-content\/uploads\/sites\/6\/2025\/07\/sellers-range.webp\")
<\/p>\n2. Don\u2019t go into a sales negotiation with your \u201cgut feel\u201d<\/h2>\n
3. Don\u2019t have a ZOPA? Analyze your costs, desired margins and composition to make one<\/h2>\n
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4. Use ZOPA to help discover your ideal customer<\/h2>\n
5. During sales negotiations, focus on value<\/h2>\n
6. Consider specializing or employing sales specialists for select industries<\/h2>\n
7. Don\u2019t rush. Do your homework, especially with high-stakes clients<\/h2>\n
8. Bring in the right people when negotiating a sale<\/h2>\n
9. Deliver a great customer experience, both during and after the sales negotiation<\/h2>\n
Want more tips to slam dunk your next sale?<\/h2>\n