November 25, 2011 nº 1,117 - Vol. 9
"There is little success where there is little laughter."
Andrew Carnegie
In today's Law Firm Marketing, Turn negatives into positives using the contrast principle.
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European Court of Justice rejects web piracy filter
The European Court of Justice has ruled that content owners cannot ask ISPs to filter out illegal content. It said that the move could affect ISPs ability to do business because it would have to "install a complicated, costly, permanent computer system at its own expense". The court ruled that the filtering could infringe the rights of customers and their right to protect their own data. The ruling could have implications for the creative industries as they attempt to crack down on piracy. The court said that while content providers can ask ISPs to block specific sites, wider filtering was in breach of the E-Commerce Directive. Internet freedom organizations welcomed the news.
AT&T and T-Mobile USA withdraw merger application
US telecoms giant AT&T and Deutsche Telekom have cast doubt over the $39bn sale of T-Mobile USA by withdrawing their merger application to the industry regulator. AT&T also said it would include a $4bn charge in its fourth-quarter accounts to cover any potential compensation due if the deal does not go ahead. The government has said the merger would lead to higher prices and restrict choice, and has requested a court order to block it. The US Justice Department moved to block the sale at the end of August. The two firms said they would focus on clearing the deal with the government.
Why not pull the trigger on Greek default swaps?
It seems clear that the European Union wants to avoid setting off credit-default swaps because of the aggregate exposure among European banks to Greek and other European sovereign debt. In a corporate exchange offer, you would suspect that the exchange was being done with exit consents. These get the departing bondholders to agree to strip out all the possible default triggers (other than pure failure to pay), making it less likely that a swap would be triggered going forward. But with sovereign debt, such bonds are not apt to have many of those covenants anyway. The really important issue here centers on why the European Union cares so much about not setting off credit-default swap triggers in this exchange offer. The absurd lengths European leaders are going to in order to make this "voluntary" does raise a few eyebrows. And I have no really compelling explanations.
Ho Ho Ho!
This year Santa decided to take his magical elves, and eight flying reindeers, to the sunny coast of Natal, a Brazilian city known for its beautiful beaches and dunes. True to tradition, he just finished writing his notes in his book on who has been naughty or nice. This year, he dropped jute bags containing presents and willow canes in Migalhas' chimney, to be distributed. And since we think all Migalhas readers have been behaving well, we will raffle eight books offered by Disal Publishing Group. To get a chance to write your letter to Santa and to participate in the raffle, please click here. Sympathetic magic of Christmas!
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1 - Financial finger-pointing turns to regulators - click here.
2 - Citigroup may need to pay more to keep SEC accord, attorneys say - click here.
3 - MF Global customers get hope; Corzine asked to testify - click here.
4 - KPMG chairman Michael Andrew says 'significant fraud' evident at Olympus - click here.
5 - Australia appeals judge questions fairness of Samsung tablet ban - click here.
6 - Court suspends Texas judge taped beating daughter - click here.
7 - George Clooney named as witness at Berlusconi sex trial - click here.
8 - Brazil's Vale wins appeal to force vote on Aquila JV - click here.
9 - Brazil 'risks loss of forest area equal to Germany, Italy and Austria' - click here.
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China is world's largest smartphone market
China has become the world's largest smartphone market by volume after it overtook the US in the third quarter, with almost 952m users, and continues to grow at a fast pace. At the same time, there has been a push by mobile phone operators to get more users to sign up for 3G services.
Alibaba profits miss expectations
Chinese internet company Alibaba's quarterly profits rise 12%, but blames the global economy as it misses analysts' forecasts.
Turn negatives into positives using the contrast principle
by Trey Ryder
No lawyer has all positive qualities. When prospects think about hiring your services, they see both strengths and weaknesses.
Positive qualities that distinguish you from other lawyers are your competitive advantages. Negative qualities are your competitive disadvantages.
Naturally, you hope prospects conclude that your positives outweigh your negatives. And to help make your case, you try to neutralize negatives so prospects think they are not important. Still, you can't be sure what impact those negatives will have on your overall presentation.
Here is your marketing challenge: How do you take negative aspects of your services and change them into positives so the negatives don't cause your prospect to hire another lawyer?
In his book, INFLUENCE (Morrow, 1984), psychology professor Robert Cialdini discusses principles that persuade people at the subconscious level. One of these, the contrast principle, allows you to change how prospects perceive facts.
The contrast principle says: You can change how a person perceives something by changing the event that precedes it.
Since prospects' perceptions are their reality, when you change their perception, you change what they believe is true.
Here is how the contrast principle works. (Yes, you can try this at home): Prepare three buckets of water. One with cold water. One with hot water. And one with water at room temperature. Place one hand in the cold water and your other hand in the hot water. Then at the same time, place both hands into the room temperature water.
Your surprise illustrates the contrast principle. The hand that was first in cold water now feels like it is in hot water And the hand that was in hot water now feels like it is in cold water. Yet, you can plainly see both hands are in the same water.
How each hand perceives the room-temperature water depends on the event that preceded it, namely whether your hand was first placed into water that was cold or hot.
Another example: A man goes into a fashionable clothing store and tells the clerk he wants to buy a three-piece suit and a sweater. If you were the clerk, which would you show him first?
The contrast principle says always sell the more costly item first. Because after the man buys the suit, the cost of a sweater -- even an expensive sweater -- will seem small by comparison.
If the clerk first showed the man a $500 sweater, the man might hesitate because that sounds expensive for a sweater. But if the man had just purchased a $1500 custom-tailored suit, $500 for a sweater does not seem out of line.
How the man perceives the price of the sweater changes depending on whether it is the first item he considers, or whether he first buys the expensive suit.
Now, to your law practice: Identify something you believe prospects perceive negatively about you or your services. To make it easy, let's use your fee. If you want your prospect to perceive your fee as fair and reasonable, before you state your fee, quote something much higher. Then when your prospect hears your fee, he will perceive it as lower than he would have had you not quoted the higher number.
EXAMPLE #1:
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Wrong: "Mr. Jones, I can prepare your estate plan for $12,000." Mr Jones, in shock, thinks, "$12,000! That's more than I paid for my first house!"
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Right: "Mr. Jones, this estate plan will save your family over $200,000 in federal estate taxes. I can prepare this estate plan for you and your family for just $12,000." Now Mr. Jones thinks, "Not much at all compared with the amount of taxes my family will save. What a bargain!"
EXAMPLE #2:
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Wrong: "Ms. Smith, I can represent you in your injury claim and my fee will be one third of the recovery." Ms. Smith thinks, "This lawyer gets one third of my money!"
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Right: "Ms. Smith, to handle an injury claim like yours, some lawyers charge as much as 40 percent of the recovery, and even 50 percent if the case goes to trial. But, Ms. Smith, I'll be pleased to represent you -- and aggressively protect your interests -- for just one third of the amount we collect." Ms. Smith thinks, "This lawyer is much more generous than those other greedy lawyers."
The contrast principle holds true for any information you need to disclose, whether it is your fee, turnaround time for projects, even the number of years your client might spend in prison.
"Mr. Criminal, most people who commit armed robbery get 10 to 15 years in state prison. The district attorney has offered us a plea bargain that will make you eligible for parole in just five years. I recommend that you accept this plea bargain."
Five years sounds short after you quote 10 to 15 years. But five years would have sounded like a long time if you had not quoted the other numbers first.
"Ms. Client, under normal circumstances I would need three to four weeks to complete this project. But I understand this matter is a priority for you, so I promise to complete it and have it on your desk within ten days." By itself, ten days might seem like a long time, but not when first compared with three to four weeks.
Summary: When you reach the point in your discussion where you must disclose a fact that might be perceived as negative, describe something more extreme in the preceding sentence. Then your prospect will perceive the information you disclose as more reasonable. In fact, you might turn a competitive disadvantage into an advantage based simply on how you present it.
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© Trey Ryder
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Cooperación
El gobierno de Taiwán proporcionará a los países centroamericanos una cooperación por US$ 30,5 mlls., para ejecutar diferentes programas en el período 2012-2014, se conoció al concluir una reunión de cancilleres de la región con su colega taiwanés, Timothy Yang.
Negocios
El fabricante estadounidense General Motors Corp. espera vender 1,4 millones de automóviles en Sudamérica en 2015, lo que destaca el sólido crecimiento de algunas de las mayores economías de la región.
Un paso más
A través de un decreto ley el gobierno de Cuba anunció una nueva política de concesión de créditos para la creciente iniciativa privada en la isla, con medidas que permitirán a pequeños agricultores y otros trabajadores por cuenta propia tener acceso a préstamos y otros servicios bancarios. Las nuevas directrices de créditos para el sector privado, enmarcadas en las reformas con las que el régimen de Raúl Castro busca "estimular la producción nacional" y "actualizar" el modelo socialista cubano. (Presione aquí)
Cisco to H-P: stop suing your ex-employees
"In Silicon Valley, human capital is as mobile as financial capital," wrote Mark Chandler, general counsel of Cisco.The valley, he added, happens to reside in a state where the courts generally do not enforce employee non-compete clauses. Therefore, rival Hewlett-Packard should stop suing to block former employees from taking jobs at Cisco. Such efforts are "desperate moves" by a company beset by "the chaos of executive turnover," Chandler says.
BP gags in-house lawyer on oil spill lawsuits
UK courts can grant gagging orders to companies seeking to prevent employees or others from publicizing information which may be injurious to their business.
Syria faces Arab League deadline
Syria is a few hours away from a deadline to allow Arab League observers into the country, or face possible sanctions, as a months-long crackdown continues. The Arab League wants 500 observers to enter the country. If Syria fails to sign an agreement in Cairo, the Arab League says it will meet on Saturday to decide what sanctions to impose. The options for sanctions include a suspension of commercial flights to Syria and a halt to all dealings with its central bank.
Moroccans prepare to head to poll
Moroccans are preparing to vote in a parliamentary election. It is the first since the introduction of a new constitution, proposed by King Mohammed VI, was approved by a referendum in July. It is expected to be a close contest between a moderate Islamist opposition party and a new coalition of liberals with close ties to the royal palace. Both parliament and the prime minister will have greater powers under the new constitution.
Three Olympus board members quit
Three directors have quit the Japanese camera-maker Olympus, which is embroiled in one of the country's worst corporate scandals. The firm admitted covering up huge losses for decades after former boss Michael Woodford questioned massive payments made to consultants. Woodford had questioned about $1.3bn in advisory fees paid to obscure firms, as well as money spent on takeovers that was subsequently largely written off.
Karadzic cross-examines Srebrenica witness at trial
The former Bosnian Serb leader, Radovan Karadzic, has cross-examined a survivor of the Srebrenica massacre, at his trial for war crimes at The Hague. Karadzic, who is defending himself, put detailed questions to the man who had just described seeing around 40 men killed at Srebrenica. He denies 11 charges of genocide, war crimes and crimes against humanity. Prosecutors say he orchestrated a campaign of "ethnic cleansing" against Bosniaks (Bosnian Muslims) and Croats.
Brazil bans Chevron from drilling
The ANP - National Petroleum Agency said it would suspend Chevron's activities in Brazil until it had established the cause of an oil spill off the coast of Rio de Janeiro. Chevron has apologized for the leak, but has stressed it acted as rapidly and safely as possible to contain it. The Brazilian government has fined Chevron $28m for the spill.
Harrisburg bankruptcy claim ruled illegal
The city of Harrisburg, state capital of Pennsylvania, will not be allowed to file for bankruptcy protection, a federal judge has ruled. Pennsylvania Governor Tom Corbett, who objected to the Chapter 9 bankruptcy petition, wants the city to pay down around $300m (£193m) of debt. Harrisburg filed for bankruptcy in October, to avert a state takeover of the city's financial operations. Bankruptcy protection, which would enable the city to seek leniency from its creditors, was also opposed by Harrisburg Mayor Linda Thompson, who said the city council lacked a credible debt repayment plan.
Portugal debt ratings cut to 'junk' status
Portugal has had its debt rating cut by Fitch to so-called "junk" status, and warned it could be cut again. Fitch made the downgrade because of its "large fiscal imbalances, high indebtedness across all sectors and adverse macroeconomic outlook".
Moody's affirms top rating for US
Credit rating agency Moody's says the failure of a US congressional committee to agree deficit reductions does not affect the country's rating.
Avoiding the tax man could cost Italians dearly
Tax evasion is a long tradition in Italy. But with the country facing a crippling debt crisis, the new prime minister hopes to convince markets that he can get tough on those who refuse to pay up, and perhaps change Italian attitudes about tax avoidance as well.
British Columbia Supreme Court upholds anti-polygamy law
The Supreme Court of British Columbia ruled on Wednesday that a law banning polygamy was constitutional. The law was under challenge by two bishops of the FLDS - Fundamentalist Church of Jesus Christ of Latter Day Saints who claimed that the law infringed on their religious freedom and was not consistent with the Canadian Charter of Rights and Freedoms. The court held, however, that: "the salutary effects of the prohibition far outweigh the deleterious. The law seeks to advance the institution of monogamous marriage, a fundamental value in Western society from the earliest of times. It seeks to protect against the many harms which are reasonably apprehended to arise out of the practice of polygamy. Finally, and not insignificantly, the prohibition is consistent with, and furthers, Canada's international human rights obligations. In my view, this adds very significant weight to the salutary effects side of the balance."
France court allows Noriega extradition to Panama
A French appeals court ruled Wednesday that former Panamanian dictator Manuel Noriega can be extradited to Panama. Noriega faces charges of human rights violations in Panama for crimes allegedly committed during his 1981-1989 rule. He was already convicted on three counts of human rights violations in absentia, and each count carries a 20-year prison sentence.
As investors flee Groupon, outlook for I.P.O.'s darkens
The market pullback seems to suggest that investors, while eager to capitalize on first-day gains, lack the confidence to hold on to the Web's latest offerings. And that may be a concern for Zynga and Facebook. Selling begets selling. "In the environment we're in right now, investors are wary of risk, and so these less-seasoned companies will naturally face more selling pressure." When returns turn negative, that creates a problem for the I.P.O. market. Because what's the incentive to buy into the next I.P.O.? Bankers are now probably revisiting how many and which deals they will launch.
Daily Press Review
Egypt activists step up pressure on military
Al Jazeera, Doha, Qatar
New Libyan government sworn in
Asharq Al-Awsat, Pan-Arab daily, London, England
Yemen's Saleh condemns Sanaa violence
Egyptian Gazette, English-language, Cairo, Egypt
Egyptian forces, protesters to face off as Cairo unrest enters 2nd week
Haaretz, Liberal daily, Tel Aviv, Israel
Egypt braces for fresh rally against military rule
JPost, Conservative, Jerusalem, Israel
GBP 1bn scheme targets young jobless
BBC News, Centrist newscaster, London, England
Olympus shares surge as board members quit
CNN International, London, England
Moroccans cast votes after protests
Daily Express, Conservative tabloid, London, England
Carry on claiming: MPs could still get public money to pay mortgages, says watchdog
Daily Mail, Conservative daily, London, England
Ugly Betty star America Ferrera says swapping sitcom for suspenders has been liberating
Daily Mail, Conservative daily, London, England
Suspected neo-Nazi propagandist arrested
EuroNews, International news, Ecully Cedex, France
Egypt: Defiant protesters reject army's interim PM
France 24, Issy-les-Moulineaux, France
Palestinian rivals make fresh attempt at unity
Hurriyet Daily News, (Liberal, English-language), Istanbul, Turkey
US branch of Fair Trade goes it alone in move 'to relax standards'
Independent The, London, England
Anti-crisis jabs
Moscow News The, Independent, Moscow, Russia
Migration in 2010 at record high
Telegraph The, Conservative daily, London, England
Salma Hayek: Antonio Banderas is 'crazy'
Telegraph The, Celebrity news, London, England
Thailand stands by populist rice policy
Bangkok Post, Independent, Bangkok, Thailand
Protesters reject Yemen president's power transfer
China Post, English-language daily, Taipei, Taiwan
Korea's Service Sector Needs a Big Push
Chosun Ilbo, Conservative daily, Seoul, South Korea
Kamal Ganzouri appointed Egypt's new PM
Hindustan Times, New Delhi, India
Mumbai wants Sachin to just do it today
India Times, Conservative daily, New Delhi, India
Self-Defense Forces to put on air show in Gifu
Japan Times, Independent centrist, Tokyo, Japan
Kiwi killed girlfriend before killing himself
New Zealand Herald, Conservative daily, Auckland, New Zealand
Raisin Monday turns to Foam Fight!
People's Daily Online, English-language, Beijing, China
Australia plans world's biggest marine protection zone
Straits Times, Pro-government, Singapore
So close to cricket history
Sydney Morning Herald, Centrist daily, Sydney, Australia
Egypt military rulers reject protester calls to step down immediately
Taiwan News, English-language daily, Taipei, Taiwan
US economy expands 2% in September quarter
The Economic Times, Business, Mumbai, India
N.L. oil rig hit by supply ship
Canadian Broadcasting Centre, Toronto, Ontario
Hundreds of thousands of Russians flock to see Virgin Mary relic
Globe and Mail The, Centrist daily, Toronto, Canada
Mitsubishi Buys Out Australian Partner, Controls $10 billion Oakajee-Jack Hills Iron Ore Project
International Business Times, Business news organization, New York, U.S
Belo Monte Dam and Hunters Endanger Amazon Turtles
IPS Latin America, International cooperative of journalists, Rome, Italy
Asian shares, euro fall on Europe deadlock
Reuters, Business News, New York, U.S
Insight - New cars for clunkers - Myanmar on road to change
Reuters, World News, New York, U.S
Home attack victim pleaded with intruder to kill her
Toronto Star, Toronto, Ontario
Egypt military 'appoints new PM'
BBC News, Centrist newscaster, London, England
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