A question usually asked is How does my fee work? Here is the straight forward and candid answer.
How I Used to Charge…
Usually, I used to work on a success based model. Let me explain what that means.
This means I put in a relatively high number of hours, for free, into a project to ascertain the probability of success. This also means talking to you, briefly consulting, advising, data gathering, formatting the opportunity resume and then distributing the same to my solution providers, having multiple calls with them and then arriving at a decision.
All this is time. My time.
Time = money!
In most cases, all this comes at NO charge to you. Not even a penny! (there are exceptions, see below)
Once I am confident that a solution provider is reasonably eager to work with you, I would then have you and I draw out a referral agreement.
The referral agreement makes it a point that I would get a certain, mutually agreed referral fees, ‘should’ you decide to sign-up with the service provider I introduced you to. Once you sign the referral agreement, then I will introduce you to the provider. It is now up to you and the provider directly to assess each other and see if there is a business fit.
If you sign up with the service provider, then I deem the project to be successful and the referral fees are due to me.
Sadly, people started to abuse this. Once a provider(s) was known to them, many would approach the provider directly through alternative means and set up new companies and refuse to pay. Many would just be window-shopping or be lingering on with no need of ever signing up. All this has caused a lot of my time to be wasted and go uncompensated.
So I have decided to change the rules.
How I Charge Now…
After a referral agreement is signed, 25% of the amount is due. This is partially refundable. Meaning if you don’t sign up with my advisors, I will return your money, minus 2 hours of consulting time @ US$ 750/hour, i.e. US$ 1,500 would be deducted and the remainder of the money returned.
This separates the free-loaders and window-shoppers from who are serious and value the information & services being provided to them.
Starting 1st of March, 2019, all referral contracts that I sign up, I’ll be phasing out the 100% success-based model, with the more practical, deposit-first model.
Seriousness comes at a price and requires that clients pay a partial amount up-front so I know that they are serious.
If you have any questions/comments about this. Please feel free to ask.