You Should Use Mark Cuban's Negotiation Trick That's 'Money in the Bank'
Building a $6.8 billion empire like Mark Cuban has doesn’t necessarily follow a tried-and-true financial path. In fact, his best financial advice isn't about crypto, startup equity or some obscure hedge fund strategy. Honestly, it's a lot more boring than that.
In an interview discussing his former reign as a "Shark Tank" shark on "Fireside" with best-selling writer Chris Voss, Cuban said his silence got double-takes from everyone on set. The entrepreneurs start looking at him because they've heard from everyone else, and the other sharks wonder what he's doing. Cuban isn't afraid to pull the trigger on the deal; he simply knows his most valuable asset is his time.
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That's why he uses silence to his strategic advantage, which in his opinion is "money in the bank."
Use Silence as a Powerful Negotiation Tactic
Silence isn't just golden. According to Cuban -- it’s powerful. "Silence is money. Money in the bank. Most people don't realize that," he said.
One of the most powerful aspects of being silent and listening during a negotiation is that it gives you a chance to learn. Along those same lines, Cuban has often said as part of his ethos, "When you don't know what to do, do nothing." Staying silent and not acting on impulse gives you plenty of chances to learn.
That's the whole trick. It sounds too simple to be worth over $6 billion, but the point isn't that the bank is a great investment, but rather that confidence without knowledge is the most expensive thing in finance. If you can't explain why you're buying something in one clear sentence, you probably shouldn't buy it.
Cuban also said people will "freak out" in silence. A blog post from the Program on Negotiation at Harvard Law School confirms that silence discomforts many people in Western cultures. However, those who practice listening and being silent will be better able to absorb what they are hearing. Often, many people try to have a response prepared immediately after someone finishes talking, but this can signal that you were thinking instead of listening closely.
A helpful negotiation approach is to allow a few minutes to go by in silence before you respond. Doing so will help you to deploy active listening skills, including paraphrasing, inquiring and acknowledgment.
Try Acting Like a 'Sponge' During Negotiations
Cuban maintains that you have to be a sponge during interviews.
"What somebody says in a negotiation tells you everything," he said. "It tells you their strategy, it tells you what their mission is, it tells you what their aims are. The more you pay attention and the more aware you are, the better opportunity you have to get what you want."
Final Take: Keep It Simple If Not Silent
That bottom line, according to Cuban, is that nailing the boring basics is the best way to ensure you have more money in retirement and you're not drowning in debt. The basics are the building blocks for his success, and knowing when to optimize your time, energy and attention can go a long way to leveling up.
Heather Taylor contributed to the reporting for this article.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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