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RolandFrasier.com  two part tale of two negotiations – one done right and one done wrong.

ISo, a few days ago I negotiated a couple of different deals. One didn’t work out and one did. Curiously, the deal that did not work out negotiate a speaker who is not very well known but who has a good track record for the subject matter we needed her for. The deal that did work out was with a niche do inpatient personality who had already achieved massive success. Attitude, approach and tactics are everything when negotiating and the person who masters them will win and put together great deals all the time over those who don’t.

Deal NumberTwo

In this deal, we wanted to partner with a very well known multiple time New York Times best selling author who had Already sold millions of books, sold movie rights and created a multi million dollar publishing company. This person had already made millions of dollars and unlike the person in Deal Number One whom I wrote about in my previous post, already dominated his niche completely.

Deal Two First Impressions Contrasted

The first time you meet and try to do a deal with someone tells a lot about how it will be to work with them in the future. Here is what happened.

We sat down over drinks and laid out our vision of what we were looking for. The other person then evaluated what we had to say, commented insightfully on different parts of our plan and program and said what they liked and what they thought could be improved upon and then talked about where they felt they could add value.

Remember deal number one took a more what’s in it for me job interview type approach. This time the approach was how can we work together and what can I do to add value and make this a success for you. What an amazingly collaborative and win win approach in contrast to deal number one.

Date Before You Marry

whereas deal number one person immediately jumped to contracting and presented us with a list of demands that never even considered our needs and objectives in the deal, deal number two person found out what we wanted and needed and said…

“Look, you guys don’t know me and I don’t know you. We might not even like each other once we start working together. Lets just work together and I will help you out and we will see what happens. If you screw me, I won’t help you any more, and if we work well together then we can can paper up then.”

What A Breath Of Fresh Air

This was such a lovely bit of fresh air. To me, it’s the big tell of whether so done is successful or a faker, secure or desperate and experienced sin doing deals or no so much.

The truth is you never know if a new relationship is going to work out. Most business deals don’t turn into long term deals for various reasons. So, it’s nice when you meet a wise, experienced person on the other side who is willing to start out and see how things go before investing in a contract that may or may not work once you start working together and see how things really go.

The person in deal number one didn’t get that. They wanted to pin us and every detail down before we even knew if the relationship was a fit, and they lost a huge opportunity for themselves in the process.

The person in deal number two took a flyer and we moved forward and things did work out and we are now contracting a long term deal that will hugely benefit both of us.

Lessons Learned

The lessons here for you are 1) always think about what the other person in a negotiation wants and needs, 2)be willing to enter into a first transaction with someone with openness, trust and without trying to get everything you possibly can from them on that first deal. Date before you marry, and be generous and flexible just to have the opportunity to work together and see what possibilities become available in the future.

Our person in deal number one missed. An opportunity to five times her income because she negotiated poorly and one sidedly. The person in deal number two built a relationship first, looked at all of the parties needs and helped create a new opportunity for themselves and for us that will help both our customer bases and make us each millions of dollars door years to come.

 

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RolandFrasier.com  two part tale of two negotiations – one done right and one done wrong.

I just finished negotiating two deals in the past few days and wanted to share some insights from those two real world experiences to help you see the difference between people who are wildly successful and those who struggle to find massive successs. I will not mention names because I don’t want to hurt anyone’s feelings.

Deal Number One

My partners and I were looking for someone who could assist us in presenting at a large event we were putting on with over 400 people attending. This would mean exposure for whoever we decided to work with not only to the attendees at the event, but also to about ten thousand other buyers of the product sold through a product launch.

We learned about this person when they responded to an email we sent out looking for people who wanted to work with us on growing their business. It sounded like a good fit so we flew them out to meet with us to see if we could strike up a deal. The meeting was very telling as was the follow up interaction.

First Impressions

The first time you meet and try to do a deal with someone tells a lot about how it will be to work with them in the future. Here is what happened.

We laid out the scope of the deal, basically a standard speaking presentation with about 12 hours or so of content to be provided by the person over three days at an upcoming event. We would record the event and distribute the recordings to everyone who purchased the product.

We asked the person what they would want to do the event so we could see how it would be to work together and if it went well, then we could explore the possibility of making them the face of the product, which could allow them the opportunity to make a lot more money, gain incredible exposure and be the clear leading expert in that category.

We told them to think about it for an hour and then we would meet again to discuss things. About an hour later we met and the person had typed up a deal sheet. When we read it, we al oat all fell out of our chairs. Despite the fact that the person was only making perhaps somewhere between $10k and $20k per month, they proposed a whopping $40k speaking fee, no ability for us to distribute the recordings to our buyers, ownership of the copyrights by them and a few other, similarly unworkable terms.

Don’t Try To Gouge Your Potential Future Partner

Remember now that this is our first time working together, and this is to get to see if we fit and if we can possibly work together in the future. The biggest tell in the proposal was that there was no consideration for what might be a win for us. The person never asked what they could do to help support us. It was all about them. They did not think to explore ways to help us with what we wanted or needed. This is fairly typical in negotiations, but in my experience is a mistake because the more the other side sees that you want to work towards a win for both of you, the more flexible they will be in helping you get what is most important to you in the deal.

Despite this, we worked towards preliminary deal points and with a few major terms agreed on, decided to move to a draft contract. I drafted the contract and included the reduced speaking fee of $10k we agreed upon and included a provision for us to provide the event recordings to up to 10,000 buyers of our product with a 5% royalty on net sales for any copies sold in excess of that.

In fairness to the other person, we had estimated that there would be about 8,000 copies distributed to existing buyers so this was 2,000 copies higher than what we talked about in our meeting, but we needed some room to allow for errors in our initial estimate and we needed to be able to get copies to all of our existing buyers, so I built in a 2,000 copy wiggle room. I should have explained why I did this when I sent the contract over, but I was in a hurry and did not take the time to do that.

The 5% royalty is within the standard range of royalties for this type of deal and was actually generous because the speaker would only represent about 30% of the total content for the event. So, that would equate to about a 17% royalty for all participants in the program. (17% total participant royalty x 30% of content provided by this speaker approximately 5% for that speaker). Again, rather than just including a royalty and assuming we would haggle over it, I should have explained the above to the other person and perhaps they would have understood better.

Always remember to look for your own mistakes when something does not work out and try to see it from the other person’s point of view.

How NOT To Respond To A Contract Draft

I sent the contract off after one more discussion on the phone with our potential presenter, and then heard nothing back for a day. When I did receive a reply, it confirmed what I thought at the beginning of the negotiation…

This is a person who may be standing in the way of their own success because they 1) do not know how to negotiate effectively, 2) they prefer quick income hits to investing in potential mutually beneficial long term relationships, and 3) they do not appreciate the fact that educational content is largely fungible and can easily be assimilated and organized and presented by anyone with a talent for speaking, and that the ability to distribute content and reach and move markets truer here the bulk of the value lies.

In what way did the reply give away that this person did not know how to negotiate effectively? Rather than explaining each specific challenge they had with the proposed contract, they immediately assumed the deal could not be done and wished us well. They still did not try to understand or address our needs or find mutual ground or attempt to pursue a mutual win win deal.

Lost Opportunity Through Poor Negotiating Skills

They could have had a deal, earned $10k for 12 hours work, become the face of a product that allowed them to do and teach what they loved and quintupled their income in the process. They could have reached and helped tens of thousands of customers in their niche, headed a business that earned several million dollars in its first month of existence and become a well known branded name, dominating their niche.

Instead, a lack of business and negotiating skills along with a scarcity mentality cost them a fantastic opportunity. Perhaps they will go on to be a great success, and I certainly hope that will be the case. But,  time and time again I have seen others who made similar mistakes continue to miss truly amazing opportunities until the opportunities stopped coming.

Lessons Learned

The lessons here for you are 1) always think about what the other person in a negotiation wants and needs, 2) NEVER assume a deal is dead or won’t work no matter how far apart you are because anything is possible in a deal and if you cut off a possibility you lose, and 3) be willing to enter into a first transaction with someone with openness, trust and without trying to get everything you possibly can from them on that first deal. Date before you marry, and be generous and flexible just to have the opportunity to work together and see what possibilities become available in the future.

This deal probably could never have worked, not because either of the parties were wrong, but because there was a fundamental difference in how each of us valued what we brought to the table. We have experience and a track record in building these types of platforms and we look for opportunities to work with people who see the uniqueness of our platforms and skills. We like to work with people who realize that plugging content into an existing channel is an amazing opportunity.

The person we were negotiating with had a small existing business in the niche we had chosen and felt that the content they had developed was worth much more than we could appreciate. Because we had already independently developed similar content it hey were right. What we wanted was an engaging skilled presenter who wanted to dominate a channel, who it was unlikely from the start that we would ever place a value on the person’s content that would make them happy.

Still, had either of us not made the mistakes mentioned above, maybe there could have been a deal.

Part Two Will Illustrate Roland Frasier’s Perspective On How A Deal Should Be Done

 

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Roland Frasier Reviews – Four Seasons vs. Banyan Tree in The Seychelles

We just returned from two weeks in the Seychelles, all on Mahe, and we spent half of it with Four Seasons and half of it with Banyan Tree. Both properties are beautiful in different ways, and it is definitely worth your while to experience both if you have the time.

The Research

Before we left for our trip, we read all the reviews of both properties and they seemed to be fairly evenly split. Having stayed in equal category rooms in both, I can easily say that I would choose the Four Seasons as the best of the two, and as one of the best tropical vacation hotel experiences I have had. Read on for more about Four Seasons and more about the pros and cons of each of the two resorts.

Arrival and Reception

From the moment you arrive, you realize that you are in the Four Seasons amazing experience bubble. From a refreshing welcome drink and cool scented towel to immediate service focused just on you as you relax at a lobby table while your documents are processed, the service level drips with awesomeness.

Villas

We were in a plunge pool villa, number 107, which had marvelous views of the beach and water below, a private day bed area for two with that same view, a spacious and well air conditioned room with on demand movies and plenty of entertainment for in room chilling, an amazingly spacious bathtub right against the floor to ceiling glass that separated it from the plunge pool and the pool itself with just the right amount of width on the stairs to lie on relaxing as you enjoyed the coolness of the water and the heat of the sun on you.

Beach

After checking in and checking out our villa, we went down to the beach and were immediately greeted by the staff who ushered us to an umbrella shaded area right on the sand and then plied us with a complimentary welcome drink, fresh towels to lie on and dry off with and another cool scented towel. Shortly after that, we were offered menus with a delicious assortment of on beach dining and cocktail options which we readily embraced.

Spa

Later in the trip, we visited the spa and had their signature service for me and my wife. The service was impeccable and as long as you are okay with the multiple stairs descent (and ascent after the treatment), you will not be disappointed in the quality of the massage experience there. They also have the most delicious cinnamon tea there. So delicious in fact that we kept asking for it from room service throughout our stay, which they happily provided to us by the pitcher full.

Property

The property itself is simply beautiful. It stretches for quite a distance from end to end and buggy service is never more than about 5 to 10 minutes away to whisk you away to wherever you want to visit on the property. If you have been to the Four Seasons on Bali at Jimbaran Bay, the property is very similar, nestled in and at one with the natural rock and native vegetation. This property sprawls from one end of a private bay and beach to the other, and even spills over on either side with residences on either side framing the hotel in the middle of the property.

The rooms would remind you of the Four Seasons in Costa Rica or Chang Mai in Thailand if you have visited either of those properties. They are clean, and they do have the occasional Gecko which shouldn’t bother you too much as they are pretty darned cute.

So now, let’s compare the properties, Four Seasons Seychelles vs. Banyan Tree Seychelles.

Reception and Service

Four Seasons is a 10 out of 10. We were promptly greeted, given welcome drinks and cool towels, our documents and arrival were all processed quickly, we were told about activities and were in our room within about 15 – 20 minutes including the buggy ride. Banyan Tree greeted us equally well, processed our documents, gave us a cool towel, but no welcome drink, and took us by buggy to our room in about the same time.

Rooms/Villas

We had the highest category rooms for one bedroom at each property, so this is a pretty fair comparison. The Four Seasons gets 10 out of 10. Our room was clean and spacious, provided stunning views of the beach and bay below, had a wonderful over-sized bathtub right on the floor to ceiling glass with views to the beach and sea, a separate shower big enough for two, an outdoor shower private enough to use for bathing, all three bathing areas were complete with bath gel, shampoo and conditioner and easy access to towels. We received a welcome amenity of champagne and local fruits. We were in Villa 107.

Banyan Tree was also extremely nice and gets 10 out of 10. The villa and interior areas were all spacious and clean. We were in Villa number 7. The villa was right on the beach with amazing access to the sound and beauty of the water, but also private as they allow the trees to grow and cover the back yards of the villas for privacy with little holes cut through to the sea. This is ideal for easy beach access and also privacy. Our pool was huge and it was wonderful having the pool and the beach right there together.

We walked on the beach every morning and evening and splashed in the pool and the separate private little spa with waterfall. There is a generous lounging area with day bed for private sunning and a covered cabana with dining table for in villa dining. The outdoor shower is great for rinsing off after a walk on the beach, but not really private enough for bathing. Inside the villa, there is another spacious shower but no bath tub and we only had shampoo, no bath gel or conditioner for our entire stay.

Two warnings if you are staying in this type of room. First, the bed will attack your toes with extremely sharp corners. We repeatedly stubbed our toes into the sharp wooden bed corners the first day and solved this problem by wrapping towels around each end of the front of the bed. Second, the in ground lights on either side of the entry way doors to the villa burn very hot. If you walk on them on your way into your villa in bare feet, you will definitely get burned, so watch out.

Food – Banyan Tree 2 out of 10. Four Seasons 9 out of 10.

This is one of the two huge defining differences between these two properties for me. I could stay at either, but would probably not return to Banyan Tree simply because the food is flat out not very good. We dined in the specialty Creole restaurant, the special Chateaubriand on the beach Gazebo, bar and main restaurant as well as in villa and without exception the food ranged from average to just plain bad. The meats were low quality, and one soup was basically broth and gristle. Honestly, they tried but just missed it time after time. Everything is insanely expensive and that would be bearable but not when you could get a better meal at a Denny’s in the US. They are desperately in need of an entire team of chefs and bartenders, Executive, Pastry and Mixologist. We were so happy to arrive at Four Seasons and get quality food again. Cocktails sadly are the same. The bartenders at Four Seasons blow the generally awful concoctions at Banyan Tree clean away.

At Four Seasons, the breakfasts, lunches and dinners at all restaurants and bars were world-class Four Seasons standard. Service was prompt compared to lackluster at Banyan Tree, especially on the beach service. Four Seasons just “gets it” and Banyan Tree does not.

Once we arrived at Four Seasons, we were immediately greeted with fresh, delicious breakfasts, lunches and dinners and they know how to make all the cocktail varieties you might want to try on a tropical vacation. It was so noticeable that both my wife and I immediately sighed a deep sigh of satisfaction returning to the world of quality, tasty food from the overpriced dreck on offer at Banyan Tree.

Service – Four Seasons 9 out of 10, Banyan Tree 6 out of 10.

If you are English speaking, then Four Seasons is much friendlier than Banyan. There is just something a little bit off about Banyan, especially in guest services. It seems as though the three desks worth of people in reception would prefer that you just go away and not bother them, while Four Seasons welcomed and wanted to help you. On beach and in the restaurants the service was lackluster at Banyan, which made the poor quality of their food all the worse. In villa dining was a welcome exception and all of the staff in that area did a great job of providing wonderful service.

We were greeted by the manager of the property, Frank as I recall, who was friendly and welcoming, but his gregariousness was not shared and did not flow down through all the staff. All in all, i would say that half of the staff was well-trained and eager and ready to please at a very high level of service and half of the staff was not. This made for a very inconsistent experience.

Spa – Four Seasons 7 out of 10, Banyan Tree 10 out of 10.

The Banyan Tree spa experience was simply amazing, the best we have ever had. My wife and I went for their signature 3 hour service and the staff, the facility and the complete service and experience was nothing short of breathtaking. From the views to the four women who provided the experience, the foot bath, massage, scrub, shower and bath, it was just awesome. It’s crazy expensive, but completely worth it and if you don’t take advantage of it you are missing one of life’s great pleasures. 10 out of 10 for Banyan Tree here.

The Four Seasons spa was nice as well. The reception staff at Banyan were more friendly and welcoming. The therapists at both were wonderful. The spa itself at Four Seasons is on the highest point of the property and has amazing views but the Banyan Tree spa is open to the sea from where the treatment is provided and the Four Seasons is closed, making the Four Seasons a little bit stuffy and not as nice as having the fresh breezes from the ocean to cool and refresh you. The cinnamon tea at Four Seasons is delicious, and the bath after the spa was nicer and cleaner at Four Seasons. The treatment itself just wasn’t quite as spectacular as the signature experience at Banyan. We were probably a little biased though because that Banyan Tree treatment was so amazingly over the top that Four Seasons just had a very hard hill to climb to come close.

Overall Conclusions

If you can do both properties, do both. The beach at Banyan is dangerous for swimming and much rougher than Four Seasons, but the crashing waves make an excellent background for walking or even sleeping in your villa. We were told that a few people have been killed swimming at that beach and that it is the most dangerous on Mahe, so you may want to consider that if you want lots of swim time or if you have young children or are not a strong swimmer. The beach at Four Seasons is completely calm and wonderful for swimming but we definitely missed those crashing waves.

If you can do both properties, I would stay first at Banyan Tree and finish at Four Seasons. Try all the local restaurants while you are at Banyan and avoid their food and cocktails as much as possible while you enjoy off property dining. Have the signature spa experience, relax on the plantation style deck and enjoy your amazing villa. Then go to Four Seasons (in a cab not hotel transport which is quite simply rape like pricing – $330US for a transfer from the airport or $200US for a transport to Four Seasons compared to our drive we found who charged $41US and $16US for the same service, which is simply shameful given all the other pricing at Banyan), and enjoy the on property dining options, which abound.

Either way, you will have a great vacation. If I could only choose one and when we return again, we will be staying at Four Seasons and only visiting Banyan for the spa.

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Randi Zuckerberg recently listed what she perceives to be the top ten social media trends today.

According to Randi,  the top social media trends in 2012 are:

1. Luxury living without luxury spending. Sites Airbnb are taking off.

2. Loyalty programs. Create an emotional connection. Things like offering fans or subscribers exclusive access and deals. Even allowing them to see a deal an hour earlier than the general public makes fans feel valued. One of the most successful examples was a company who took a photo of thousands at an event, posted it on Facebook and had everyone who was there tag themselves. It went viral as friends of those tagged also saw it.

3. Using social media platforms for customer service. If someone is passionate enough to post a comment they should be responded to. “The haters are often only an inch away from being likers.”

4. Mobile first. Businesses are designing sites for mobile first and not even websites.

5. People as curators. Pinterest has grown faster than Google and Facebook in the same time frame. Aggregate lots of helpful content about your niche whether it connects back to your own site or not.

6. Have a sense of humour. Have an authentic voice not a business-like PR response. Have fun.

7. Crowd Sourcing. Create contests, use giveaways to spread the love.

8. Video & livestreaming. Tell a story. Interact with the crowd. 90% of Facebook shares are videos.

9. The gamification of everything! Randi told us about the alarm clock that you put your credit card into and every time you hit snooze it donates $1 to charity or the scales that Tweet your weight (WTF?!)

10. Tech blogs. Read these daily to keep up with the latest online developments. She recommended www.allthingsd.comwww.techcrunch.com, and the New York Times culture blogs.

How can we take advantage of these top social media trends in our marketing?

1. Luxury living without luxury spending. We can understand that consumers are interested in personalized experiences and being treated well without being charged an arm and a leg for the privilege. If we can make our clients feel special, treat them like VIPs and offer them higher quality content, goods and services at prices that won’t break the bank, then they will appreciate it and keep coming back again and again. If you are publishing content, you can provide your subscribers/readers with resources to get top quality brands and merchandise or high-end services for less than full price. If you are providing high-end products or services, then start identifying and segmenting your buyer lists and let one-time, infrequent purchasers know about opportunities to buy below normal cost. Or, take the lead from Michael Kors, Chanel and Roberto Cavalli in the the fashion industry and make an A Brand that is luxury and is priced accordingly and a B Brand that still offers high-end category appeal at lower prices.

2. Loyalty programs. Randi’s examples listed above were pretty great. I especially like the photo tagging example from the live event.

3. Using social media platforms for customer service. Take the time and provide the budget for someone to crawl the social media space and respond to both good and bad comments about your company, product or service when they appear. People will appreciate the fact that they have a voice and that you are listening to them. This could be as simple as creating a Google Alert for your company, product and/or service and then tasking an employee with the responsibility of monitoring the alerts and replying to anyone who creates a mention of your brand. Give them a path to fix anything that your company has done a less than perfect job on and reward them for “turning” disgruntled customers into company advocates.

4. Mobile first. I understand that mobile is the future, but don’t forget about the desktop. When you do design mobile sites give the user the ability to access your full site or do a better job on your mobile site than most people do. Those plug-ins that convert existing sites to abysmal mobile experiences have to go. I want rich, interactive content on my iPhone and iPad that lets me use all the cool features of those devices. Give me an opportunity to “opt-out” of the mobile experience with a link at the bottom of the mobile site that I can click to enlarge, pinch and otherwise interact with the mobile site on my smart device like I am used to interacting with full versions of sites..

5. People as curators. Consider enlisting your raving fans to help curate your content. You can incentivize these folks with money (be aware of any required disclosure laws), products, insider access to you and your company, etc. Hey, they already love you, so why not get them to comment and add their own perspectives to your company’s content. Who knows, they may tap a customer sentiment or vein that you have missed.

6. Have a sense of humour. People like to be entertained so be conversational, real, authentic and if at all possible… funny. No matter what you may think about your brand or company, people like to be entertained. Give your copy and company some personality.

7. Crowdsourcing.  As Randi said, create contests, use giveaways to spread the love.

8. Video & Live Streaming. Live streaming works, there’s no doubt about it. We do live events and we recently added live streaming and not only was it cool because it allowed folks who were unable to make the live event attend, it actually made us money in two distinct ways. First, we sold the live stream for $97 – $197. Second, people interacting with the live stream contacted us and ask if they could buy the products being offered at the live event, even though they were at home. Those inquiries lead to additional sales for the event of over $60,000. Now tell me live streaming isn’t worth it. You can do a live stream now for almost nothing with a video camera you probably already own, a little box that costs about $200 to connect it to your computer and a Ustream account.

9. The gamification of everything! As more and more gamers start to grow up and continue to be interested in fun and entertainment, you’ll have to try harder and harder to keep their attention through making your interactions with them game-like. Look for ways to interact with your customers and to market to them in ways that are entertaining.

10. Tech blogs. Use Google Reader or something like it aggregate RSS feeds from the news and information sources that you use to keep up on things that are technical. It will save you a ton of time and create an information experience that you can consume quickly while still getting the gist of everything that you need to know.

That’s it. The Roland Frasier – Top 10 Social Media Trends Today article is brought to you by the Roland Frasier blog.

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I haven’t posted here in a bit but it’s because I have been really busy doing the business I teach. Over the past twelve months I have grown a brand new multi-million dollar business, formed amazing new partnerships, bought a company and Conti used to grow my other businesses.

The biggest challenge with keeping up on my posting here is my travel schedule. Last week for example I was in Dalls, TX on Monday and Tuesday, then Las Vegas Wednesday and Thursday for the Licensing Expo. This week I am in Cleveland, Ohio Wednesday and Thursday and then doing a live event in San Diego Fridayand Saturday, flying to Las Vegas Saturday afternoon to speak Sunday morning and then flying back to San Diego to finish out the live event there.

Don’t get me wrong though. I love it, and I am excited to be able to share all of this stuff with you. Here is what is coming up over the next several weeks and months…

June 22 – June 24: Maps Magic Local Marketing, San Diego, CA

June 24: Affiliate Mastermind Group, Las Vegas

July 11 – July 13: locksmith Tradeshow, Las Vegas

July 20 – July 22: Business Broker University, San Diego

July 27 – July 29: Local Marketing Mastery, Austin, TX

August 17 – August 19: Nitro Master Local Marketing, Dallas, TX

August 24 – August 26: Local Lead Machines Live, San Diego, CA

That’s just the live events we are doing. We are still actively buying business eases, providing local marketing services and much, much more.

I hope to see you at one of these upcoming events soon!

Cheers,
Roland Frasier

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