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Prospect Education Checklist

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1 Never quote a fee before project objectives and their value to the client are stipulated (we'll discuss this in a bit).

2 Don't quote any time unit basis at all.

3 Explain to the client, if pressed, that single, value-based fees are in the client's best interests.

4 Resist comparison to other consultants by pointing out that your potential client probably also operates differently in many respects from his or her own competitors.

5 Never commit to arbitrary amounts of time for the accomplishment of objectives.

6 Focus on results, not tasks.

7 Never accept a prospect's conclusion—stated or implied—that you will constantly be onsite or that you're available “on call.”

8 Emphasize results, not deliverables; in fact, minimize deliverables.

9 Don't accept contingency fees or “pay for performance”; you're not a seal. Variables are often outside your control, and besides, you're being paid for your best advice. It's up to the client to implement it effectively.

10 Provide value immediately. Shift the focus to how much value you provide, not how much work there is to be done.

I've found that in most cases, consultants create their own quicksand by undermining any possibility of establishing value-based fees at initial meetings by ignoring or acting contrary to the rules just stated.

If you explain to the client that you're a performing horse, the client will understandably ask you to jump over hurdles and stand on your hind legs. If you explain that you're a partner interested in helping generate results, the client will understandably ask, “How do we do that best?”

Two parties are concerned about maximizing results—you and the buyer. But only one of you is concerned about maximizing your fees. If you emphasize the former, the latter will occur. But if you treat these as two separate considerations with the buyer, that person will try to maximize the former and minimize the latter every time.

Wouldn't you?

Value-Based Fees

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