Value-Based Fees: How to Charge--and Get--What You're Worth (Ultimate Consultant Series)
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Value-Based Fees shows consultants how to easily and adroitly educate clients about value determining worth and consequent investment. Unlike the contingency fees of attorneys, Weiss explains, his technique is about establishing a win-win dynamic with clients, while accommodating buyers' egos that "you get what you pay for." Filled with stories of successful consultants, sample proposals, letters of agreement, and other practical tools, Value-Based Fees' pragmatic advice includes: Step-by-step guidance on how to establish value-based fees. How to create the "good deal" dynamic in client relationships. Sixty ways to raise fees and increase profits immediately. How to prevent and rebut fee objections. How to use retainers wisely. How to develop fee progression strategies. How to make money while you sleep, eat, and play! Value-Based Fees clearly explains how to charge for your value-and get-what you're worth, providing the kind of nontheoretical, pragmatic advice that will help to improve any consultant's practice immediately.
and so on. As long as both are positioned as they are, both deserve what they get. (No one would pay $100,000 for forty-five minutes of speaking, and no one would pay only $40,000 for his or her child’s future. This is why so few of us stand out in a crowd.) There is no reason on earth that a consulting project can’t be sold, implemented successfully, and concluded brilliantly without a single mention of “deliverables”—unless, of course, that’s what
variables involved for you to rely on the attainment of a “magic number.” Second, you cannot base your contribution on what I call a “magic number.” Even though a 6 percent increase in sales might be highly desirable and even, in your opinion, very achievable, it’s never a good idea to peg your success to that magic number. The reason is that there are far too many variables that can affect that number adversely for you to take that risk. For example, if three
much training or three times as many coaching contacts. That’s crazy. I invite you to use Figure 3.2 as a template. 16 The left column’s generic headings should be replaced by your own unique past, and that column should grow continually. (If it’s not growing after every single engagement, then you’re taking on projects you can do blindfolded and, hence, you’re not growing and not increasing your potential value.) The middle column should be your particular
Figure 4.1 The Value-Based Fees Sequence. One last time, then: • Objectives: Business outcomes (for example, higher sales, better teamwork, faster time to market) that are essential for the project to deliver for the client • Measures: Objective or subjective (anecdotal) criteria that will indicate progress and, eventually, completion for client and consultant • Value: The demonstrable organizational or personal benefit
attitude of “Can I get away with this?” and “How can I take advantage of the other party?” We can also see this situationally in some professions, in certain industries, and in some organizations. Fees are actually dependent on only two things: is there perceived value for the services provided that justifies the fee, and do both parties possess the intent of acting ethically? For a consultant, the questions are about value, not fees. Fees are