Roger Dawson, in his influential book Secrets of Power Negotiating, introduces the “Call Girl Principle” — a concept that emphasizes how the perceived value of services diminishes after they have been delivered.
This principle, while provocatively named, highlights a fundamental reality in business and negotiations: timing and perceived value are everything. Let’s delve into why this principle matters and how understanding it can transform your approach to negotiations and business deals.
The Core Idea of the Call Girl Principle
The Call Girl Principle posits that services are most highly valued before they are performed. Once the service is delivered, its value often drops significantly in the eyes of the recipient. This phenomenon arises because anticipation creates value. Before a service is performed, there is a promise of what it can deliver; afterward, the promise has been fulfilled, and any unmet expectations may further erode perceived value.
Understanding this principle is essential for anyone in business, especially those providing intangible or creative services, where deliverables may be open to subjective judgment.
Real-World Applications of the Call Girl Principle
Consulting and Professional Services
Imagine a marketing consultant hired to craft a strategy for a client. Before delivering the strategy, the consultant’s expertise is highly valued because the client anticipates transformative results. Once the strategy is presented, the client might downplay its value, reasoning, “I could have come up with this myself.”
How to Counteract This: To maintain perceived value, consultants should highlight the results their strategies can achieve and deliver their work in stages, ensuring each step reinforces their contribution’s importance. Regular updates during the project also keep clients engaged and aware of the expertise involved.
Negotiating Salary or Compensation
Employees often find themselves negotiating salaries or raises based on their performance. Before delivering exceptional results, their potential is an attractive proposition to employers. However, after the results are delivered, the value may be taken for granted.
How to Counteract This: Negotiate compensation or bonuses before embarking on a high-stakes project or exceeding expectations. For instance, agreeing to performance-based bonuses tied to specific outcomes ensures that effort is rewarded fairly without the risk of post-delivery undervaluation.
Creative Work: Art, Writing, and Design
Creative professionals often struggle with clients undervaluing their work after delivery. A graphic designer, for example, might spend weeks on a branding project, only for the client to question the fee once they see the final logo.
How to Counteract This: Secure a substantial upfront payment or milestone-based payments. Additionally, involve the client in the creative process to ensure they appreciate the effort and expertise required to bring their vision to life.
Richard Gere and Julia Roberts, who plays an actual “call girl” starred in the famous 1990 movie “Pretty Woman” where the “Call Girl Principle” can be seen in use.
Why the Call Girl Principle Matters
Failing to account for the Call Girl Principle can lead to frustration, undervaluation, and strained professional relationships. Recognizing that perceived value diminishes post-delivery empowers professionals to:
- Negotiate Better Terms: Secure payment or agreements while their value is at its peak.
- Communicate Effectively: Reinforce the importance of their contributions throughout the process.
- Set Clear Expectations: Mitigate misunderstandings about the scope and impact of their work.
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Leveraging the Principle in Your Business
- Establish a Strong Pre-Delivery Perception: Highlight your unique skills and past successes early in the negotiation process.
- Demand Upfront Commitments: Request deposits or retainers to lock in perceived value before delivery.
- Reinforce Value Post-Delivery: Follow up with clear metrics or testimonials to validate the impact of your work.
By understanding and applying the Call Girl Principle, professionals and businesses can safeguard their value and build stronger, more equitable relationships with clients and partners.
For a deeper dive into negotiation strategies, check out Roger Dawson’s Secrets of Power Negotiating.
Charles Bivona Jr., aka Coach JP Money, is a business strategist, financial coach, and founder of CoachJPmoney.com. A lifelong entrepreneur, he launched his first real estate deal at 17 and went debt-free by 1998. Since then, he has built national media brands, advised small businesses, and helped clients grow online using smart strategy, digital tools, and creative grit.
An expat living in Baja, Mexico, Charles also writes and produces music as Johnny Punish and lives off-grid at Hacienda Eco-Domes, a sustainable retreat he built with his wife. Through providing small business services, coaching, writing, and podcasting, he’s on a mission to help others win their future—on their terms.
Read his full bio at PunishStudios.com >>>
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