The 97% rule says that roughly 97% of the people who visit your site are not ready to purchase. They are researching, comparing, and building confidence rather than rejecting you. This matters most in the Consideration stage of the Marketing Funnel, where customers start asking which solution is right for them. In this stage, you need to have empathy for the 97% of people who aren’t ready to purchase yet. Brands that win in this stage are the ones that demonstrate credibility and proof instead of applying pressure. Optimizing only for the 3% who are ready to buy today produces short-term conversions at the cost of long-term trust.

“People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

— Maya Angelou, American poet and civil rights activist

I once found myself at a military checkpoint in Egypt. My passport had been taken away, I was unable to speak the local language, and I overheard the captain say, “American,” several times into his phone. I was a person of interest, and I didn’t know why. Another time, I was bouncing through the streets of Delhi in an auto rickshaw at 1:00 a.m., tired, itchy from bedbug bites, carrying all my luggage, and lacking a hotel to go to. In other cases, I have slept in an old, converted communist camp in Russia and even wandered deep into sub-Saharan Kenya alongside local tribes.

On the surface, these situations may sound a bit precarious. And to be honest, I was a little nervous in Egypt and frustrated in India. Yet I rarely felt unsafe. Why? Because I trusted the people around me. They were locals I had spent time with before the situation unfolded. I’d met them through people I trusted. In word and deed, they had shown themselves to be reliable.

That trust changed everything. It turned moments that could have felt terrifying into ones I knew would simply make good stories—experiences that enriched my life. It made the difference between panic and perspective.

The idea of trust, or the lack of it, also applies to brands like yours. At times, customers will not approach you and immediately feel a sense of relief. Often, they are feeling uncertain, weighing risks, and wondering whether your solution is right for them. Just as I relied on people who proved trustworthy in unfamiliar places, customers rely on brands that demonstrate integrity, provide evidence, and show up consistently.

From Awareness to Consideration

In the Awareness stage of the marketing funnel, a customer recognizes that they have a problem and begins to look for solutions. They move from being Problem Unaware to Problem Aware to Solution Aware to Product Aware and finally, to Most Aware. By this point, they ideally understand their options and are ready to weigh them. This transition brings them into the Consideration stage of the funnel…

Read the full article

Three examples show the four content types at work in the real world. Red Bull turned a record-breaking space jump into branded entertainment that reached eight million live viewers and drove $500 million in additional sales. HubSpot built a durable growth engine on education, earning 93% of its website traffic through direct visits and organic search rather than paid ads. And a fractional CMO consultancy launched with just two thousand LinkedIn connections found clients by clarifying a confusing concept instead of pitching services.

Last week, we covered the four types of content every brand needs: entertain, educate, inspire, and convince. What does each of these content types look like in practice? These three examples that follow come from very different places, but they share one thing. Each one gave the audience something worth their time before asking for anything in return.

A Case Study in Entertaining Content: Red Bull

In October 2012, Red Bull transformed the boundaries of branded content with Red Bull Stratos, an audacious project that sent Austrian skydiver Felix Baumgartner to the edge of space. Suspended beneath a massive helium balloon above the New Mexico desert, Baumgartner ascended twenty-four miles into the stratosphere, then stepped off the capsule ledge and plummeted back to Earth.

What followed was not just a record-breaking skydive but one of the most iconic brand moments in modern history. Baumgartner reached a supersonic speed of 843.6 miles per hour, becoming the first human to break the sound barrier in free fall. He earned three world records in a single jump: highest balloon flight, highest free fall, and fastest speed in free fall. His descent lasted just over four minutes before he landed safely.

While the mission carried undeniable scientific value, it was, at its core, a piece of branded entertainment. The event embodied Red Bull’s slogan, “Red Bull gives you wings.” Instead of a traditional advertisement, Red Bull created a spectacle so compelling that global news outlets, social media, and everyday conversation revolved around their brand for weeks. Over eight million people watched the event live on YouTube, the largest audience for a live stream at the time, cementing the project as a marketing masterstroke.

The cost of the project is debated, with one estimate placing it at $30 million, yet the returns far outweighed that figure, with reports crediting it for generating an additional $500 million in sales.

Red Bull Stratos was not a commercial. It was an event. By staging a high-drama, visually spectacular moment, Red Bull positioned itself as not just an energy drink company but a cultural force in extreme sports and adventure. Entertainment, rather than product promotion, became the vehicle of persuasion.

This case demonstrates how brands can capture audiences not by pushing a message, but by creating experiences so entertaining and shareable that the audience pulls the message to themselves. Red Bull Stratos wasn’t about a beverage; it was a story of courage, innovation, and human possibility, all of which became inseparably tied to the Red Bull name.

A Case Study in Educational Content: HubSpot

Customer relationship management (CRM) platform HubSpot has become a leader in marketing and sales technology not only because of its product, but also because of its ability to educate. Competing with giants, such as Salesforce, HubSpot built its growth strategy around…

Read the full article

Content is any message a company creates to reach, inform, or influence an audience, and content marketing is the deliberate practice of using those messages to build interest over time. The most effective content balances what the customer needs with what the company needs, and falls into four types: entertain, educate, inspire, and convince. Entertaining content captures attention, educational content builds trust, inspirational content creates aspiration, and convincing content removes the friction that stands between interest and purchase. Auditing your existing content against these four categories reveals where you are strong and where there are gaps.

When you post a piece of content, do you know exactly what job it is doing? Most brands produce content without a clear sense of what each piece is supposed to accomplish. They post because they are supposed to post. But content marketing works best when each piece of content has a clear purpose. Some of it exists to get noticed, some to build credibility, some to stir aspiration, and some to close the deal.

From Value to Visibility: Four Content Types

Increasing perceived value is only part of the equation. People cannot appreciate your value if they don’t know you exist. This is why brand awareness is essential. Awareness does not simply come from shouting louder. It comes from creating content that meets people where they are and gives them a reason to care.

Content refers to any message a company creates to reach, inform, or influence an audience. It includes short videos, articles, social posts, guides, podcasts, and emails. Content marketing is the intentional practice of using these messages to attract and nurture interest over time.

As American digital marketer, entrepreneur, and New York Times bestselling author Neil Patel explains, “When it comes to building brand awareness for my company, the method that’s worked best has been content marketing. Although it involves a lot of work, and it takes six months to a year for it to be effective, it’s been proven to provide the biggest bang for the buck.” His point underscores that meaningful awareness is not a quick win, but a deliberate investment in content that steadily builds trust and recognition over time.

The most effective content strikes a balance between customer needs and company needs, guiding people along the path from Awareness to Purchase. Four types of content do this:

1. Entertain

2. Educate

3. Inspire

4. Convince

Each type plays a distinct role in shaping perception and driving action, addressing customers’ rational and emotional needs while also serving the company’s goals of building awareness and driving purchases.

Read the full article

The Value-Price-Cost Model explains the relationship between what a product costs to make, what you charge for it, and what the customer believes it is worth. For a purchase to happen, perceived value must exceed price, and profit is the gap between price and cost of goods sold. Perceived value is made up of three parts: the product’s tangible utility, the intangible brand, and the intangible marketing. Because branding and marketing raise perceived value without changing the product itself, they can both convert customers who would not have bought and support higher prices without hurting satisfaction.

Two products can be functionally identical and still sell at wildly different prices. The gap in price point is explained by more than just markup. It comes down to what customers believe a product is worth before they ever see the price tag. Understanding how that perception gets built, and how much of it you actually control, is one of the most useful things a business owner can learn.

Consistency Is Key

Good storytelling must be consistent across every customer touchpoint. Whether someone sees your social media post, reads your website’s About page, or speaks with your customer service team, they should feel they are experiencing the same narrative. Consistency builds familiarity, familiarity builds trust, and trust is the foundation of long-term brand loyalty.

In the context of keeping people interested, storytelling is the bridge between understanding a customer’s lived experience and showing how your brand fits naturally into it. This turns a basic transaction into an ongoing relationship and allows a product to become part of someone’s identity.

When storytelling is done well, customers are not only more likely to buy from you, but they are also more likely to share your story with others. They become advocates who extend your brand’s reach far beyond what you could accomplish on your own.

Storytelling creates the emotional connection that draws people in, but a strong brand must also deliver on the practical side of the equation.

The Value-Price-Cost Model

To truly sustain growth, you must align your story with the tangible and intangible values you provide. This is where the Value-Price-Cost (VPC) Model comes in.

Read the full article

Your brand is the summation of how people perceive your company, products, and services. It is far more than a logo or tagline. It is shaped by every touchpoint, from advertising and packaging to product performance, pricing, customer service, employee culture, and social impact. Shaping a brand requires clarity of purpose, a defined market position, consistency across every interaction, and delivering on the promise you make. Storytelling is what brings that foundation to life, and the most effective brand narratives cast the customer as the hero and the brand as the trusted guide.

Most companies think of their brand as something they design: a logo, a color palette, a set of fonts in a style guide. But your brand is not what you say about yourself. It is what other people think and feel when your name comes up, shaped by every interaction they have ever had with you. Brand is built in a thousand small places, and the businesses that grow are the ones that manage those places deliberately.

Transitioning to Awareness

In the Awareness stage of the Marketing Funnel, customers recognize they have a problem and begin to see your brand as a possible solution. They are not yet evaluating features or comparing options, but they are looking for a spark that helps them imagine a better possibility. This stage depends on inspiration, because inspiration prompts someone to lift their head, notice something new, and consider that change might be worthwhile. Your role is to capture attention in a way that feels fresh, relevant, and impossible to ignore.

The first step in capturing attention is to set your company up for success with a strong foundation. In other words, you must create a brand that is clear, consistent, and memorable. A strong brand communicates who you are, what you stand for, and why you matter. It reflects your positioning in the market, delivers a compelling promise to your customers, and shows up with consistency across every interaction. Without this foundation, even the best marketing tactics struggle to gain traction because customers won’t know what to remember you for.

What Brand Really Is

Your brand is the summation of how people perceive your company, products, and services. It is the overall identity and impression associated with you. In its simplest form, your brand is your reputation.

Brand is far more than logos, colors, and even a tagline. It is shaped by every way you show up in the world…

Read the full article

The MACJ process separates writing into four sequential roles: the Madman generates ideas, the Architect builds structure, the Carpenter drafts, and the Judge refines. Work through them in order, and the blank page stops being intimidating. I've used this for everything from short emails to my first business book, and it changed how much I produce and how good the result is.

This was the single most impactful lesson I learned at Harvard. What’s funny is I took an assessment and was permitted to not take the course, but I knew communication wasn’t one of my strengths, and I wanted it to be. So I took a class on business writing anyway.

And here’s what I learned. All good writers, whether they know it or not, follow a specific linear sequence in their writing process. Great writers don’t deviate from this, or it becomes far less efficient.

The process can be summarized into the MACJ writing process. This process has helped me write anything from a short email, to this article, to a full business book.

What is the MACJ Writing Process?

MACJ stands for the four essential “characters” you take on to complete a writing project: the Madman, the Architect, the Carpenter, and the Judge.

1. Madman: Every good piece of writing starts with chaos. This is the Madman phase. Your only job is to generate ideas. Capture everything that comes to mind: arguments, examples, stories, statistics, questions. Nothing needs to be logical. Nothing needs to be polished. In fact, it shouldn’t be. The biggest mistake people make is letting the Judge show up too early. The moment you start criticizing your ideas, creativity shuts down. The Madman’s job is simple: produce raw material.

2. Architect: Once you have ideas, the Architect steps in. The Architect organizes the chaos into structure. Which ideas belong together? What is the central argument? What order will make the most sense to the reader? Think of this stage as building the blueprint before constructing a house. A useful trick is to force yourself to identify the main points your piece will make. If you cannot summarize the argument in concise sentences, the structure probably isn’t clear yet. The Architect turns raw ideas into a plan.

3. Carpenter: Now the Carpenter gets to work. This is the drafting stage. The Carpenter follows the blueprint and builds the structure of the piece sentence by sentence. The key rule: write forward only. Do not edit. Do not re-read paragraphs. Do not obsess over word choice. Momentum matters more than perfection. A messy draft is infinitely more valuable than a perfect sentence that never gets finished. The Carpenter’s goal is progress.

4. Judge: Only after the draft is complete does the Judge arrive. The Judge edits, tightens, cuts unnecessary words, and clarifies the argument. Grammar gets fixed. Sentences get simplified. Weak sections get rewritten. This is where good writing becomes great writing. But the Judge must arrive last. When the Judge appears too early, the Madman stops producing ideas and the Carpenter stops building. That is how writer’s block happens.

   

   Read the full article

There are Five Stages of Customer Awareness: the progression a potential customer makes from not recognizing a problem to becoming deeply familiar with a specific product. The five stages are Problem Unaware, Problem Aware, Solution Aware, Product Aware, and Most Aware. Understanding where a customer sits in this progression is essential, because effective marketing does not just promote a product. It helps people recognize their own challenges, discover that solutions exist, and identify a specific product as the right one for them.

“Awareness is like the sun. When it shines on things, they are transformed.”

— Thich Nhat Hanh, Vietnamese monk and peace activist

If you couldn’t tell yet, I’m a bit of an optimist. I love nonprofits and support many on a recurring basis, but I also believe for-profit organizations can be an incredible force for good. A business adds value by its very existence because every transaction is a sign that someone found what it offered worthwhile. After all, why would anyone trade their money for goods or services if they didn’t see value in them?

Of course, as the saying from Spider-Man reminds us, “With great power comes great responsibility.” Too often, individuals and organizations with power fail to use it wisely. That is precisely why I am passionate about building and supporting all organizations that use their influence to actively benefit others.

Jensen Huang, founder and CEO of NVIDIA, once said, “There’s no point in starting a company unless you want to make a contribution to society.” The optimist in me agrees, but the pragmatist recognizes a challenge. Many founders create products that are genuinely useful and solve real problems, yet their companies still fail to gain traction.

A great product combined with great marketing can create an enormous contribution to society. But a great product with poor marketing often results in wasted potential and wasted resources.

People need to know your brand exists.

Let me share a simple statistic with you, one that requires no citation: Your company will sell zero products if zero people know you’re selling them…

Read the full article

Keeping people interested is not about constant promotion. It is about delivering the right kind of value at each transition in the customer's journey. There are five key moments where interest grows or fades, each tied to a distinct customer need: inspiration, confidence, clarity and ease, satisfaction, and a sense of purpose. Brands that understand and respond to these needs move customers forward sustainably, without losing trust along the way.

Most businesses treat marketing as a volume problem: say it louder, say it more often, and eventually people will buy. But that is not how interest actually works. People move through a buying journey because they received the right kind of value at the right moment, not because they were pushed. Understanding what that value looks like at every stage of the journey, and delivering it with the right timing, is what separates brands that earn loyal customers from brands that are always starting over.

How to Keep People Interested

Now that we have explored the marketing funnel, the question becomes how to help people move through it. There is value in not only understanding the stages, but in understanding what helps someone transition from one stage to the next.

Some people will jump stages on their own, but most will not. They need you to add the right kind of value at the right moment. And if you push too hard or try to force someone ahead before they are ready, you risk losing their interest entirely.

This is a core component of maintaining interest. Keeping people interested does not mean constantly trying to sell to them. It means having empathy for what they need at each stage of their journey and offering value that helps them move forward. Brands that take this patient yet compelling approach grow sustainably. When you continually push purchasing messages at people who are not ready, you may win a few short-term transactions, but you will lose long-term trust.

This is why we need to focus on the transitions themselves. These moments are where interest grows or fades:

• Unawareness → Awareness

• Awareness → Consideration

• Consideration → Purchase

• Purchase → Repeat

• Repeat → Advocate

Each transition is driven by one core customer need, and each need carries a clear implication for your brand…

Read the full article

The marketing funnel maps the six stages every customer travels through, from Unawareness to Advocacy, giving marketers and business owners a shared language for diagnosing where attention is growing or fading. Critics call it too simple, but a model doesn't need to capture every nuance to be useful. It needs to help you see more clearly, and this one does.

Have you ever wondered why some customers never seem to move from curious to committed? Most businesses invest in marketing without a clear picture of what their customers are actually going through. They run ads, send emails, post content, and still can't pinpoint where interest stalls or why people drop off. The marketing funnel gives you that picture. It maps the full journey from the moment someone has never heard of you to the moment they're actively recommending you to others. And the reason it has stayed relevant for so long is not because it's perfect. It's because it works.

The Marketing Funnel

Marketing can be defined as the process of moving a target audience through the shopping journey. The natural next step is to understand what that journey looks like.

There are six stages in the shopping journey. They are:

1. Unawareness

2. Awareness

3. Consideration

4. Purchase

5. Repeat

6. Advocate

Together, these stages form what is commonly known as the marketing funnel. It earns this name because of the shape created when you visualize the number of people in each stage. The largest group sits at Unawareness, and the smallest group sits at Advocate.

Here is a simple overview of the six stages…

Read the full article

Have you ever encountered a brand that made you feel like a better version of yourself, not just sold you something? Marketing exists on a spectrum. Bad marketing preys on psychological triggers, good marketing motivates by connecting real solutions to real needs, and great marketing inspires by making customers feel capable of becoming a better version of themselves.

Have you ever struggled to explain what marketing actually is, beyond ads and slogans? You need a solid framework if you want to grow your business. Once we agree on what marketing means and how to view it at a fundamental level, we have a solid framework to expand into more advanced principles in future articles.

Not all marketing is created equal, and most of us have felt the difference firsthand. Some brands make us feel like a better version of ourselves. Others introduce us to a product that solves a problem we already had. And others push us toward a decision we almost immediately regret. Marketing falls on a spectrum: great marketing inspires, good marketing motivates, and bad marketing preys.

Great Marketing Inspires

I believe marketing is good for the world and that advertising makes my life better, though I’m sure this is not a popular opinion. As customers, we have been frustrated by the flood of ads interrupting our lives. As companies, we have been frustrated that marketing isn’t doing its job helping the bottom line…

Read the full article

Marketing is the intentional process of moving people through their decision journey by aligning what they need with what a business can uniquely provide, not simply advertising, branding, or persuasion. It has evolved through distinct eras: the production and product concepts of the early 1900s, the sales concept of the 1950s, the customer-first marketing concept of the 1990s, and today's societal marketing approach. Together, these shifts show a steady move toward deeper understanding of the people businesses serve.

Have you ever struggled to explain what marketing actually is, beyond ads and slogans? You need a solid framework if you want to grow your business. Once we agree on what marketing means and how to view it at a fundamental level, we have a solid framework to expand into more advanced principles in future articles.

Marketing is more than the misconceptions that surround it, and it has changed dramatically since the first market stalls of 3000 BCE, moving through eras of production, sales, and customer-first thinking on the way to today’s societal marketing approach.

What Is Marketing?

Marketing is the process of moving a target audience through the shopping journey.

Marketing is a process, which means it is an ongoing effort. It acknowledges that people go through a journey when making purchase decisions. And all this is for a target audience, which is a grouping of people with common needs.

In contrast, here’s what marketing is not…

Read the full article

The Risk/Reward Matrix helps leaders evaluate opportunities by comparing potential payoff with the level of risk. It categorizes projects into four types: Oysters (high risk, high reward), Pearls (low risk, high reward), White Elephants (high risk, low reward), and Bread and Butter (low risk, low reward). By scoring and plotting initiatives on these two dimensions, organizations can see where to invest, scale, or divest, creating a balanced portfolio that blends innovation, growth, and stability.

In our recent articles on the 2x2 Matrix, BCG Matrix, and Eisenhower Matrix we explored how two simple variables can turn complexity into clarity. The Risk/Reward Matrix continues that series, but this time, the focus is on how to evaluate strategic opportunities.

This matrix is often used in innovation and investment decision-making, helping leaders determine which projects to fund, which to scale, and which to let go.

The origin of the quadrant names emerged in the 1980s and 1990s, though it is a bit unclear who originally developed and popularized them together in this framework. Many credit McKinsey & Company or the Mathesons in their book The Smart Organization.

What is the Risk/Reward Matrix

Read the full article

The Eisenhower Matrix is a time management framework that helps you prioritize tasks by evaluating two dimensions: urgency and importance. It divides your work into four categories: Do (urgent and important), Schedule (important but not urgent), Delegate (urgent but less important), and Delete (neither urgent nor important). By listing tasks, scoring them for urgency and importance, plotting them into these quadrants, and building an action plan, you can reduce reactivity, focus on high-value work, and make more intentional use of your time.

In our recent article on the 2x2 Matrix, we explored how plotting two variables can uncover meaningful insights. We later applied that thinking to business portfolios in the BCG Matrix. Today, we’re shifting from company strategy to personal strategy with one of the simplest and most useful 2x2 frameworks: the Eisenhower Matrix.

Named after Dwight D. Eisenhower, the 34th President of the United States, the matrix is based on his famous principle:

“What is important is seldom urgent, and what is urgent is seldom important.”

Eisenhower used this mindset to manage competing demands as a five-star general and later as president. The framework that bears his name remains one of the most effective ways to prioritize when everything feels like it matters.

What is the Eisenhower Matrix?

Read the full article

The Boston Consulting Group (BCG) Matrix is a portfolio management framework that helps organizations allocate resources and prioritize investments across their business units. It maps products on two dimensions: market growth rate and relative market share, categorizing them as Stars, Cash Cows, Question Marks, or Dogs. By clarifying which areas drive growth, generate cash, or consume resources, the BCG Matrix helps leaders balance short-term profitability with long-term strategic investment.

In our recent article on the 2x2 Matrix, we explored how two simple variables can reveal powerful insights. We briefly mentioned the BCG Matrix, one of the most famous examples of this framework. In today’s deep dive, we will look more closely at what it is, where it came from, and how to use it to make smarter strategic decisions.

The BCG Matrix was developed in 1970 by Bruce Henderson, the founder of the Boston Consulting Group, as a tool to help large corporations allocate resources across multiple business units. Its core idea is that a company’s growth and profitability depend on maintaining a balanced portfolio of businesses: some that generate cash, and others that require it.

What is the BCG Matrix?

Read the full article

The 2x2 Matrix is a simple but powerful framework for making complex decisions. By identifying two key variables, labeling each axis clearly, and naming the four quadrants to capture their meaning, you can visualize tradeoffs and uncover insights that lead to better choices. The process turns complexity into clarity and helps you move from analysis to action.

If you’ve ever worked with a strategy consulting firm like McKinsey & Company, Bain & Company, or Boston Consulting Group, you’ve seen a 2x2 Matrix. It’s one of the simplest and most powerful tools in strategy and decision-making. By mapping two key variables on a single grid, you can visualize complex tradeoffs, spot patterns, and make clearer choices.

Whether you are prioritizing initiatives, evaluating deals, or deciding where to focus effort, the 2x2 framework helps you see what really matters and align teams around it.

What is a 2x2 Matrix?

A 2x2 Matrix is a four-quadrant chart formed by two perpendicular axes. Each axis represents a key variable that influences your decision. When you plot ideas or opportunities on the grid, patterns emerge that highlight where to focus.

Let’s take a look at three popular matrices.

The Boston Consulting Group (BCG) Matrix helps you decide where to invest by comparing market growth and market share across your product portfolio.

The Eisenhower Matrix helps you prioritize tasks by distinguishing what is urgent and what is important.

The Risk/Reward Matrix helps you evaluate opportunities by balancing potential return against the level of risk involved.

Steps to Create a 2x2 Matrix

1. Choose two meaningful dimensions: Pick variables that capture the real tradeoffs you are trying to understand.

2. Plot honestly: Place each idea or option based on real data or informed judgment. When possible, use data or your own consistent scoring criteria to plot your options.

3. Name each quadrant: Memorable or clear titles like “Cash Cow” or “Delegate” turn your matrix into a decision-making tool, not just a visual.

4. Translate insight into action: The matrix is only useful if it helps you decide where to focus or what to change. Once your matrix is populated, ask yourself “so what?”

Tips for Getting the Most from a 2x2 Matrix

1. Keep it simple: Resist adding a third variable or too much data.

2. Collaborate: Ask others where they would plot items to reveal blind spots.

3. Revisit periodically: The placement of options will shift as markets and priorities evolve.

4. Use it alongside other tools: Combine the 2x2 Matrix with other frameworks such as SWOT/TOWS and MECE to paint a broader strategic picture.

5. Make it a story: Clearly identify the implications of your 2x2 Matrix.

Wrapping It All Up

The 2x2 Matrix endures because it makes strategy visual, simple, and actionable. It takes complex discussions and distills them into clear tradeoffs that everyone can see and understand. By choosing the right variables, plotting honestly, and focusing on the implications, you turn a grid into a powerful decision-making tool.

The next time you face a tough choice, draw two lines, label your axes, and let the insights take shape.

This email is sponsored by Durable Finance

Durable Finance is an accounting and fractional CFO firm — built for operators, by operators. From bookkeeping and accounting to controller oversight and CFO-level strategy, they give business owners the financial clarity to run stronger, more profitable companies. Learn more at https://www.durablefinance.co/.

Sources & Further Reading:

Quantive: BCG Matrix: A Strategic Framework for Resource Allocation

Asana: The Eisenhower Matrix: How to prioritize your to-do list

Creative Commons: The Project Selection Model: Considering Risk and Reward

The ZOPA, or Zone of Possible Agreement, is the range where both parties’ acceptable terms overlap and a deal can actually be made. While your BATNA defines your best alternative if talks fail, the ZOPA defines whether an agreement is even possible in the first place. Understanding and actively managing this zone helps you focus on realistic deals, uncover hidden overlap, and expand the range of mutual benefit rather than chasing outcomes that cannot exist.

Over the past few weeks, we have discussed Integrative Negotiations, The Shadow Negotiation, and BATNA. Together, these concepts begin to form the foundation of effective negotiating, but there’s a critical piece missing.

Your BATNA (Best Alternative To a Negotiated Agreement) defines your best alternative if the deal falls through. The ZOPA (Zone of Possible Agreement) defines whether a deal is even possible. Without understanding your ZOPA, you might chase an agreement that cannot exist or leave value on the table by settling too soon.

What is ZOPA?

In a distributive negotiation, the Zone of Possible Agreement is the range in which both parties’ acceptable terms overlap.

Say you’re trying to sell something. If your minimum acceptable price is lower than the other side’s maximum willingness to pay, there is a ZOPA. If not, no deal will work unless someone changes their expectations or alternatives.

Think of it as the sweet spot where both parties can walk away satisfied.

For example, if you are selling a used car and the lowest price you will accept is $10,000, while the buyer is willing to pay up to $12,000, the ZOPA is between $10,000 and $12,000. A deal can exist anywhere within that range. But if the buyer’s limit is $9,000, there is no overlap and no deal possible unless one side adjusts.

How to Use the ZOPA in Practice

Understanding the ZOPA is valuable, but knowing how to apply it is what turns theory into leverage. Here are ways to find, influence, and expand the zone.

1. Estimate both sides’ ranges.
   Start by defining your reservation point, which is the least favorable deal you would still accept. Then, research or infer the other side’s reservation point based on market data, prior behavior, or subtle cues during conversation. The overlap between the two creates the ZOPA.
   

2. Test assumptions through dialogue.
   Ask open-ended questions that reveal constraints, priorities, or non-monetary tradeoffs. For example, ask, “What would make this deal feel fair for your team?” or “Which part of this scope is most flexible?” These insights help you confirm where the zone might lie.
   

3. Adjust the ZOPA by expanding variables.
   If there is no overlap, look beyond price. Introduce other negotiable factors such as delivery terms, payment schedules, contract length, scope, or additional services. Leverage concepts from Integrative Negotiations where possible. Broadening the conversation can transform a narrow or nonexistent ZOPA into a workable one.
   

4. Strengthen your BATNA to shift the ZOPA.
   When your alternatives improve, your minimum acceptable point moves upward, which often shifts the entire bargaining zone in your favor. The other party must then adjust if they want to stay within range.
   

5. Recognize when no ZOPA exists.
   Sometimes there is simply no overlap. In those cases, forcing a deal only leads to regret. The best move is to pause, redefine terms, or walk away with clarity rather than compromise.

Wrapping It All Up

Negotiation is not about pushing until someone gives in. It is about discovering whether a deal exists that serves both sides. The ZOPA helps you find that space. When you know your own limits, understand the other party’s, and explore creative ways to expand the overlap, you shift from guessing to negotiating with purpose.

What range defines the ZOPA in your next negotiation? And if there is no overlap today, what can you do to create one?

This email is sponsored by Northern Electric

Northern Electric is Utah’s trusted electrical contractor — delivering high-quality residential and commercial work with precision, reliability, and local expertise. Learn more at https://northernelectriccompany.com/.

Sources & Further Reading:

Harvard Business School: Understanding ZOPA: The Zone of Possible Agreement

Investopedia: Zone of Possible Agreement (ZOPA): Definition in Negotiating

Harvard Law School: How to Find the ZOPA in Business Negotiations

Docusign: What is a Zone of Possible Agreement (ZOPA)?

When win-win outcomes are not possible, the key to leverage lies in your alternatives. Your BATNA, or Best Alternative to a Negotiated Agreement, defines what you will do if a deal cannot be reached. A strong BATNA gives you confidence, clarity, and power by setting the minimum terms you are willing to accept and ensuring you never negotiate from a place of weakness. The stronger your BATNA, the better your results, often without ever needing to use it.

The past couple weeks, we covered Integrative Negotiations and the Shadow Negotiation with the premise that more often than we realize, it is possible to create win-win solutions that benefit all parties.

But let’s be real. That is the ideal scenario, not the universal one. Sometimes interests conflict. Sometimes resources are fixed. And sometimes, no matter how much empathy or creativity you bring to the table, the negotiation is purely distributive, meaning that one side’s gain comes at the other’s expense.

So how do you approach those situations strategically? How do you protect yourself and increase your leverage?

You build a strong BATNA.

What is a BATNA?

BATNA is an acronym for “Best Alternative to a Negotiated Agreement,” and it is exactly what it sounds like. It is the best option available to you if the current negotiation falls apart.

It answers the question: “What will I do if we cannot reach an agreement here?”

Knowing your BATNA gives you a clear standard for evaluating any offer. It sets a floor for what you are willing to accept and provides leverage because you have a credible alternative. If your BATNA is strong, you negotiate from a position of power. If it is weak or undefined, you risk accepting less than you deserve. The party with the stronger BATNA has the greater leverage.

For example, if you are negotiating a job offer and already have another offer in hand, your BATNA gives you confidence. If you are buying a car and have another dealership ready to sell you the same model for less, your BATNA strengthens your bargaining position.

Thinking through your BATNA is most helpful in short-term relationships or transactions, such as negotiating the price of an antique at a garage sale or in the aforementioned car buying process.

An Example of BATNA in Action

Imagine you are a small manufacturer negotiating a supply contract with a large retailer. The retailer pushes for lower prices and tighter payment terms. You feel pressured because they represent a big account.

If you have not developed your BATNA, you might concede just to keep the business. But if you have already explored other retailers, identified smaller but more profitable channels, or secured direct-to-consumer distribution options, you suddenly have leverage.

You can now say, truthfully, that you have alternatives. The retailer senses this and becomes more flexible on price and payment terms. Ironically, the stronger your BATNA, the less you often need to use it.

Why Your BATNA Matters

A strong BATNA provides three essential benefits:

1. Confidence: You can walk away if needed, which shifts the power dynamic.

2. Clarity: You know your minimum acceptable terms.

3. Leverage: The other party recognizes that you have options, which influences their behavior.

Without a clear BATNA, you are negotiating in the dark. With one, you are negotiating with purpose.

Tips for Strengthening Your BATNA

1. Identify all possible alternatives: List every viable option you have if this deal falls through.

2. Evaluate each alternative: Assess their feasibility, timing, and value objectively.

3. Improve your best option: Strengthen your top alternative so it becomes more attractive.

4. Know the other party’s BATNA: Understanding their fallback option helps you gauge their flexibility.

5. Avoid revealing too much: Share your alternatives only when it strengthens your position, not when it weakens it.

Wrapping It All Up

Great negotiators do not rely solely on persuasion. They prepare by knowing their walk-away point and building credible alternatives before they enter the room. Your BATNA is not just a backup plan, it is a tool. The stronger it is, the less desperate you are to close a deal, and the more likely you are to reach one that truly serves your interests.

What is your current BATNA in the negotiation you are facing? How can you strengthen it before you go to the negotiating table?

This email is sponsored by Workshop SLC

Workshop SLC is a creative art school and studio offering 200+ monthly classes in painting, drawing, ceramics, and mixed media — right in the heart of Salt Lake City. They aim to elevate the arts, supporting hobbyists and professionals alike with community and inspiration. Learn more at https://www.workshopslc.com/.

Sources & Further Reading:

Harvard Law School: The Program on Negotiation

Santander Open Academy: BATNA: What it means and how to get the most out of negotiations

Indeed: BATNA: What is Your Best Alternative to a Negotiated Agreement?

EXECUTIVE SUMMARY:

The Shadow Negotiation is a real decision-making process that happens before the official meeting. It is the quiet work of meeting with key stakeholders in advance to understand their interests, address concerns, and refine your proposal together. By building alignment ahead of time, you not only increase the likelihood of a “yes,” but you often create a stronger, more widely supported solution than if you presented it cold in the meeting.

You prepare for a big meeting that will decide the future of your proposal. You build a polished PowerPoint deck, rehearse your talking points, and even create 25 appendix slides to address every possible objection. You walk into the room confident and ready.

Yet the meeting goes sideways. Stakeholders raise concerns you did not anticipate. The energy shifts. The discussion stalls. In the end, you walk out without the decision or approval you expected. What happened?

Chances are, the decision was never going to be made in that room. It was shaped in advance, in conversations you were not part of. This unseen process is called “the shadow negotiation.”

What is The Shadow Negotiation?

The Shadow Negotiation is the work that happens before the proper “sit down at a table” meeting. Before the formal “negotiation.” It is the quiet process of meeting with key stakeholders individually or in small groups to test ideas, hear their concerns, and incorporate their insights.

Think of it as the “meeting before the meeting.” Rather than presenting your idea for the first time to a room full of decision-makers, you gather input ahead of time. By the time you step into the official meeting, you already know where each person stands and have strengthened your proposal with their contributions.

This process does not just improve your odds of success. It often improves the quality of the solution itself. Additionally, when people feel they had a hand in shaping an idea, they are more likely to support it enthusiastically.

Last week, we talked about Integrative Negotiations and how uncovering the underlying interests of each party can allow you to find ways to meet those interests simultaneously. The Shadow Negotiation is a great tactical method to finding win-wins.

An Alternate Scenario: The Shadow Negotiation at Work

Now imagine you approached the week before the meeting differently.

Instead of waiting for the big reveal, you scheduled short, informal conversations with each key stakeholder.

You learned that Finance’s real concern was not the total budget but how the spending would align with quarterly cash flow. You met with Operations and discovered an implementation hurdle that could have delayed rollout, so you adjusted the timeline together. Marketing shared that they would be far more enthusiastic if the initiative could tie into an existing campaign, so you collaborated on messaging that made the project feel like a natural fit.

By the meeting date, the proposal had evolved. It was leaner, more practical, and better aligned with everyone’s priorities. More importantly, the stakeholders felt that they had shaped the plan.

When you stepped into the meeting, there were no surprises. Instead of a debate, the conversation became a formality. You presented the refined proposal, and one by one the decision-makers voiced their agreement.

The difference was not in your presentation skills or the quality of your appendix slides. It was in the quiet work you did before the meeting to build alignment and improve the idea itself.

Tips for Successful Shadow Negotiations

1. Start with curiosity, not persuasion: Treat pre-meetings as learning conversations. Ask what matters most to each stakeholder.

2. Clarify interests early: Go beyond “yes” or “no” to uncover what they need in order to support the idea.

3. Refine collaboratively: If someone suggests an improvement, integrate it where possible and acknowledge their contribution.

4. Document insights: Capture the concerns and ideas so you can address them explicitly in your final proposal.

5. Secure informal alignment: Aim to leave each conversation knowing whether they are likely to support you in the official meeting.

Wrapping It All Up

Great leaders don’t treat formal meetings as battlegrounds. They treat them as milestones. The real work of influence often happens in the shadow negotiation when you invest the time to listen, align, and co-create before the group gathers. By approaching these pre-meetings with curiosity and openness, you will not only increase the chances of a “yes,” but you will likely arrive at a stronger, more widely supported solution than you could have achieved alone.

Is there an upcoming decision you need to influence? Consider scheduling your shadow negotiations this week to build alignment and improve your proposal before the big meeting.

This email is sponsored by Tailor Cooperative

Tailor Cooperative is a luxury custom clothier specializing in suits, shirts, jackets, denim, shoes, and other sartorial pieces made to your exact measurement and style — with personalized, hands-on service for the discerning client. Learn more at https://www.tailorcooperative.com/.

Sources & Further Reading:

Business Standard: Managing Negotiations

Beyond Intractability: Summary of "We Need a Larger Theory of Negotiation: The Importance of Pre-Negotiation Phases"

Harvard Business Review: Breakthrough Bargaining

EXECUTIVE SUMMARY:

Negotiations often default to a distributive mindset, where one side’s gain is the other’s loss. This zero-sum approach can overlook opportunities to create better outcomes. Integrative negotiations take a different path by uncovering the underlying interests of each party and finding ways to meet those interests simultaneously.

In practice, integrative solutions are more common than we assume. By asking the right questions and exploring what truly matters to each side, many seemingly fixed conflicts can be resolved in ways that benefit everyone involved.

Say you are at a store on an October afternoon and there is only one pumpkin left. You and two others reach for it at the same time and find yourselves in a standoff. If you get the pumpkin, no one else will. If someone else gets it, you will not. Your plan to carve a jack-o-lantern with your child seems at risk of being quashed.

Do you flip a coin or play rock-paper-scissors and leave the decision to chance? Or agree that no one buys it, so everyone walks away empty-handed?

Someone suggests a compromise: one person buys the pumpkin, then cuts it into thirds. But that doesn’t really solve the problem. You can’t carve a face into just a third of a pumpkin.

Then you have an idea. You decide to ask a question to the group: “Why do each of you want the pumpkin?”

Everyone responds. It turns out your interest is the shell for carving a jack-o-lantern. The second person wants the seeds to roast for a snack. The third wants the flesh to make a pie.

You strike a deal. One of you buys the pumpkin, you split the cost three ways, and each person walks away with exactly what they wanted, all while saving money.

Everyone wins.

Distributive vs. Integrative Negotiations

There are two broad approaches to negotiation: distributive and integrative.

A distributive negotiation assumes there is a fixed pumpkin to divide. Whatever one side gains, the other side loses. This approach often shows up in price haggling, salary discussions, or one-off transactions. The focus is on claiming value, not creating it. Each side typically starts with extreme positions, makes concessions, and eventually meets somewhere in the middle. The relationship often feels competitive, and trust can be hard to build because each concession feels like a loss.

An integrative negotiation takes a different mindset. Instead of assuming resources are limited, both sides explore the underlying reasons behind their positions to uncover shared interests. By doing so, they can often identify new options that expand the total value available. In this approach, success is defined not by how much one side “wins” but by how much both sides benefit.

In business, distributive negotiations might look like a supplier and buyer arguing over a unit price without considering other factors. The conversation revolves around who gets a larger share of the existing margin. An integrative negotiation might focus on reducing costs through more efficient delivery schedules, improving quality to reduce returns, or offering longer-term contracts that create stability for both parties. These solutions create additional value that did not exist when the focus was only on price.

Integrative negotiations are particularly powerful when the parties expect to work together over time. Building trust and finding mutual gains strengthen the relationship and make future negotiations easier. Distributive tactics may secure a quick win today, but can damage relationships or leave opportunities undiscovered.

Tips to Achieve Integrative Negotiations

I was first introduced to the concept of integrative negotiations in my Negotiation course at Harvard University. What stood out to me was that only about ten percent of the curriculum focused on distributive tactics. The rest emphasized finding mutual gains. The message was striking to me: more often than we think, integrative solutions are within reach if we approach negotiations with curiosity, empathy, and creativity.

Here are some practical tips for putting integrative negotiation principles into action:

1. Focus on interests, not positions: Ask why each side wants what they want to uncover motivations that lead to creative solutions.

2. Ask open-ended questions: Use thoughtful questions to reveal hidden priorities, constraints, and opportunities to expand the pie.

3. Brainstorm options first: Generate several possible solutions before deciding, to avoid settling too early on a narrow choice.

4. Trade on differences: Identify what each side values most and make trade-offs that maximize joint gains.

5. Use objective standards: Anchor agreements to market data or expert benchmarks to build fairness and trust.

Wrapping It All Up

Many negotiations feel like a zero-sum contest, but real opportunities often emerge once you understand what each side truly needs. The pumpkin story shows that by uncovering those interests, you can reach solutions that meet everyone’s goals more effectively.

Is there a negotiation you are in right now, or one coming up soon, where asking a few more questions could reveal a better path forward? Approaching it with curiosity and collaboration might unlock value you did not realize was there.

This email is sponsored by Let’s Go Design Co.

Let’s Go Design Co. helps business and property owners tell powerful stories through brand-driven design. From bold murals to strategic interiors, they create scroll-stopping spaces and visuals that move the needle. Learn more at https://www.letsgodesign.co/.

Sources & Further Reading:

Harvard Law School: The Program on Negotiation (Article)

Getting to Yes: Negotiating Agreement Without Giving In, by Roger Fisher and William Ury (Book)

EXECUTIVE SUMMARY:

The Camel Principle shows that adding something temporary can turn an unsolvable problem into a simple one, just like borrowing a camel makes the 17-camel riddle work. In business, a short-term resource such as a consultant or a well-run meeting can unlock clarity, save time, and create more value than it costs.

Consider this riddle: In ancient times, a father leaves seventeen camels to his three sons after he passes away. His will states that the oldest son should receive half of the camels, the middle son should receive a third of the camels, and the youngest son should receive a ninth of the camels. How many camels should each son receive?

As the story goes, the three sons visit a wise man in their village for advice. The wise man ponders their dilemma and eventually thinks of a solution, one that doesn’t involve chopping up camels into fractions.

The wise man goes to a neighbor and borrows one camel. Now, with a set of eighteen camels, they make their divisions.

• 18/2 = 9 camels

• 18/3 = 6 camels

• 18/9 = 2 camels

9 + 6 + 2 = 17 total camels

The borrowed camel was then simply returned to the neighbor.

What is The Camel Principle?

The Camel Principle is a problem-solving approach where you temporarily add and subtract (or multiply and divide by) the same quantity to turn a complex or unsolvable problem into a simpler one without changing its underlying truth.

More broadly, it shows that sometimes the key to solving a challenge is to add something temporary, such as a resource, a perspective, or a tool, that makes the path forward clear. Once the problem is solved, you can remove what you added, leaving the final outcome intact and at no additional cost.

Bringing The Camel Principle To Life

We may not be dividing camels today, but the principle still applies. In modern business, the Camel Principle shows up whenever a temporary addition unlocks progress and pays for itself many times over.

A company might bring in a consultant to untangle a growth bottleneck. The upfront expense may seem like an added burden, but if the consultant helps unlock a solution that drives new revenue or efficiency, the business can earn back the cost of the engagement and in many cases generate more profit than the investment required.

Another way this shows up is with meetings. Adding an extra meeting might feel like a waste of time, but if it is run well with a clear agenda it can align a team early, prevent confusion, and reduce the amount of work that needs to be redone later. That single added meeting can also save hours of future debate and correction, meaning the “extra” time actually creates a net gain in productivity.

Wrapping It All Up

The Camel Principle reminds us that sometimes the smartest way to move forward is not by forcing a solution within existing limits, but by adding something temporary that makes the path clear. Whether it is a consultant, a tool, or even a well-run meeting, these additions can unlock progress, save time, and often pay for themselves. The real power of the principle is that once the problem is solved, what you borrowed can be set aside, leaving you with the benefits and little or no lasting cost.

This email is sponsored by Marseille Inc

Experience your favorite games with unprecedented detail, clarity and quality using mClassic. This plug-and-play device upgrades your game console without having to upgrade the hardware itself. Enjoy the visuals of a higher resolution and improved graphics on any screen and take your entertainment to the next level. Shop now at https://marseilleinc.com/.

Sources & Further Reading:

The Palindrome: The Camel Principle

StackExchange: Mathematical Fallacy - The 17 Camels Problem

MathOverflow: 17 Camels Trick