Good morning and welcome to The Closer, the newsletter all about deals. Today’s edition is short and sharp — one tactic, backed by research, to help you negotiate smarter. No headlines, no noise — just a Nugget you can deploy by lunchtime.
If you have a friend trying to work something out – a big deal, a tricky negotiation – please forward this to them.
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SOCIAL PROOF IN
NEGOTIATIONS
Closer Tactic #60 • Deal Psychology
Most people negotiate in isolation.
Smart negotiators bring invisible crowds.
The Nugget
References to what others have done or accepted can powerfully influence negotiation outcomes.
When Airbnb was raising early funding, Brian Chesky would mention that "other investors are seeing similar terms" without naming specific competitors. This social proof helped normalize their valuation asks. During their Series A, mentioning that other startups were getting similar valuations made their $7.2M round at a $60M valuation seem reasonable rather than aggressive.
How to Deploy
• Reference industry standards: Most deals in this space include...
• Mention similar situations: "Other clients typically..."
• Use benchmarking data to support your positions
Avoid making up social proof or using irrelevant comparisons.
Takeaway
People follow the crowd, even when they can't see it.
Reply with how you use social proof in negotiations—
we might feature you (and send a mug).
