As part of the AllWorld commitment to continually seek better ways to serve clients, I’ve discovered an increasingly popular value-based system that offers at least three key client benefits, described below: (1) return on investment, (2) flexible spending, and (3) better focus.
Additionally, your investment may be tax deductible (e.g., professional development) so check with your accountant or attorney. The skills and growth internalized in collaboration may continue to enrich a client’s life well beyond our original objectives years, even decades, later and, as a result, well beyond the initial cost.
| CLIENT BENEFITS: RETURN ON INVESTMENT |
Whether collaborating on a half-day group workshop, doing long term individual enhancement, or developing a speech for a retreat, we always begin with understanding your goals and interests. Just as we don’t use a one-size-fits-all approach, we don’t use a one-size-fits-all fee. Instead, we first answer three questions, in favor of a fairer range of fees:
Once the short- and long-term value (see “recent client benefits” on the Examples | Partners page) is clearly defined and understood, your investment follows as a multiple of that value. This value-based system offers numerous benefits to clients:
|(1) What are your performance and well-being objectives, both short- and long-term?
(2) What are our measures of progress and success?
(3) What is the value of these outcomes to you (or your group), both personally and professionally?
| CLIENT BENEFITS: FLEXIBLE SPENDING |
|High school athletes and coaches, aspiring actors, start-up entrepreneurs, and meeting planners aren’t automatically precluded by fees priced at PGA athlete, NFL coach, Hollywood actor, Fortune 500 CEO, and keynote speaking levels.
|Conversely, professional athletes and coaches, Hollywood actors, Fortune 500 CEOs, and keynote planners pay a more transparent fee that is a multiple of their specific benefits, rather than a randomly inflated figure.
Further yet, I try to provide options whenever possible, even and especially when it comes to fees. In most cases, after our discussion(s), I will propose a scale of collaborative options, graded by value to you and by corresponding investment, for your choosing. [A scale of options is even provided for speaking planners; there are many potential value propositions for speaking engagements depending on the desires of the planner, the topics, the audience, and other conditions.]
| CLIENT BENEFITS: BETTER FOCUS |
In the case of ongoing collaboration, I will also offer flat fee options in the proposal in addition to potentially suboptimal, but familiar, billable hours. Depending on the collaborative objectives with certain clients, such as professional athletes and seasoned entrepreneurs, hourly fees may be relatively meaningless and eliminated all together. Here is why:
The final decision, however, will be up to you and your comfort level; that is whole purpose of offering you a range of options.
|Hourly fees may reward clients for micromanaging and limiting collaboration time (and quite possibly limiting effectiveness) and, although obviously unethical, may reward the proprietor for inefficiency, malingering, and adding frivolous activities. Or, when trust is not fully established, clients may be wondering, “Is this time or activity really necessary?”
|Flat fees, alternatively, may reward clients by fixing costs, which is particularly helpful when times are tough and they need the proprietor more than usual, by eliminating the need to track billable hours and minutes at different rates for different activities, and by shifting the focus to reaching objectives. Fixed fees may reward the proprietor for efficiency (allowing for more clients or more free time), effectiveness, and simplified billing.