AboutOsama El-kadi Expertise Osama El-Kadi is an International Negotiation Strategy Expert and Business Motivational Speaker.
Osama deals with all questions relating to formulating negotiation strategies and tactics, dealing with difficult negotiating situations and large scale business negotiations.
Over the years, osama developed a negotiating strategy methodology based on Sun Tzu the Art of War famous treaty. This methodology is gaining recognition and respect through out the world today. His motto is to "win without fighting is best of skill" which is what Sun Tzu said.
Experience Over 28 years success in sales, buying, negotiation and strategy within UK Blue chip companies.
As Chief Commercial Officer of Centrica plc a UK FTSE 30 Company, developed and negotiated successfully, major initiatives for cost savings, Multimillion pounds deals for all type of business acquisitions, Major system integration contracts ($700million) and the largest IT outsourcing deal in Europe in 2006 ($1.5 billion).
Organizations Besides CIPS Osama is the creator and author of Negotiation Strategy and Sun Tzu the Art of War Website, He publish articles on the application of Sun Tzu to business, negotiation, success and career progression
Education/Credentials BA Commerce, Alexandria University
MA Economics Alexandria University
Past/Present Clients Capgemini, Fujitsu/Simens,IBM, ITC Infotech,PBH Bank Polland, Sun
Microsystems, Axon, RHM to mention but a few
Question Hello.
Recently my partner and I are discussing with an Internet portal about payment terms from advertisements placed on our co-branded website.
Basically, the portal wishes to pay us on terms I feel are way too long and could lead to cash flow issues.
For example.
If a client places an advertisement on our site for the month of April, our portal partner will collect money sometime in May (most likely end of May). Then the will take 60 days to process and pay us our revenue end of July.
They are a large Internet portal in Japan, and since they will receive client payment from the advertiser, I can see how they need 60 days to process. It is not a difficult sales process at all. Paying for a banner! I feel the portal should be asking the client for money on the day of the banner launch or during the month.
I wonder if there are some arguments or points I can make to convince they should be paying no later than 30 days after they receive from client.
Answer Hello Tyron
Thank you for your question. It is obvious to me that their payment terms are not fair whatsoever. Can you do anything about it? It all depends on your "bargaining power" or leverage with them. I suspect that you do not have any leverage over them “initially” and therefore you only have a choice! Either accept or reject.
It is wise to accept their terms if you want the business initially, then you could work on improving your leverage with them and that will only happen if your site becomes important to them.
Like in the case of Google adsense, none of us has leverage over Google to determine payment terms or the type of Ads they place, UNLESS of course you get more than 20,000 visitors a day and then only then Google will listen to you. Google will also appoint an account manager for you and place the exact Ads you want on your site ensuring they are high value ones.
Hope this helps and please let me know how you are progressing.
