Value-Based Fees: How to Charge What You're Worth and Get What You Charge
How to Charge What You're Worth and Get What You Charge
3rd Edition
Published on 16. November 2021
Book
Hardback
304 pages
978-1-119-77692-5 (ISBN)
Description
In the 13 years since the second edition was published, we've seen the following developments which dramatically impact consultants starting in the profession or veterans in the profession.
* Remote means of delivering services, from workshops to facilitation, from strategy to M&A work.
* A waning of the power and repute of huge firms because of their cost and ponderous work methods, and a reception of less expensive, quicker small firms and solo practitioners. The mammals are scurrying amidst the dying dinosaurs.
* A globalization of economy (that will resume post-pandemic) making exported knowledge a key contributor to income (if it were considered formally as an export it would seriously shift the trade imbalance).
* The emergence of an African middle class, the decline of ancient dictators, and the growth of a huge potential marketplace in most countries on that continent.
* The growing abandonment of "career" and reliance on large companies and the inclination to forge one's own security and focus instead on a "calling."
* Advanced technology that effectually replaces meetings and keynote speeches delivered in person with Zoom and Livestream broadcasting of high quality.
* Tele-health demonstrating that "tele-consulting" is feasible and acceptable. Even therapy is being done this way today.
* A strong move from project work to advisory work which is as strong a shift as 30 years ago when I pioneered a shift from hourly billing to value-based fees.
* A huge change in social mores that include social consciousness, racial justice, and embrace of varying life styles. These are especially important in future strategy.
Specifically, in addition to the basics, the new book will focus on the impact of these and other ongoing changes relative to:
* Remote project work.
* Advisory work fee calculations.
* Establishing retainer amounts.
* Formulas for collaboration work.
* Formulas for subcontracting work.
* "Evergreen" clients (multi-year work).
* Fees based on monetization, emotional impact, and peripheral impact.
* The role for pro bono work.
* The formula for "fee/free" interaction.
* The relationship between premium fees and brand power.
* Charging and collecting fees internationally.
The book will have an electronic appendix, permitting ongoing updates and allowing immediate adjustments to the times.
* Remote means of delivering services, from workshops to facilitation, from strategy to M&A work.
* A waning of the power and repute of huge firms because of their cost and ponderous work methods, and a reception of less expensive, quicker small firms and solo practitioners. The mammals are scurrying amidst the dying dinosaurs.
* A globalization of economy (that will resume post-pandemic) making exported knowledge a key contributor to income (if it were considered formally as an export it would seriously shift the trade imbalance).
* The emergence of an African middle class, the decline of ancient dictators, and the growth of a huge potential marketplace in most countries on that continent.
* The growing abandonment of "career" and reliance on large companies and the inclination to forge one's own security and focus instead on a "calling."
* Advanced technology that effectually replaces meetings and keynote speeches delivered in person with Zoom and Livestream broadcasting of high quality.
* Tele-health demonstrating that "tele-consulting" is feasible and acceptable. Even therapy is being done this way today.
* A strong move from project work to advisory work which is as strong a shift as 30 years ago when I pioneered a shift from hourly billing to value-based fees.
* A huge change in social mores that include social consciousness, racial justice, and embrace of varying life styles. These are especially important in future strategy.
Specifically, in addition to the basics, the new book will focus on the impact of these and other ongoing changes relative to:
* Remote project work.
* Advisory work fee calculations.
* Establishing retainer amounts.
* Formulas for collaboration work.
* Formulas for subcontracting work.
* "Evergreen" clients (multi-year work).
* Fees based on monetization, emotional impact, and peripheral impact.
* The role for pro bono work.
* The formula for "fee/free" interaction.
* The relationship between premium fees and brand power.
* Charging and collecting fees internationally.
The book will have an electronic appendix, permitting ongoing updates and allowing immediate adjustments to the times.
More details
Other editions
Additional editions
E-Book
09/2021
3rd Edition
Wiley
€60.99
Available for download
E-Book
09/2021
3rd Edition
Wiley
€63.99
Available for download
Previous edition
Book
09/2008
2nd Edition
Pfeiffer
Unfortunately, price unknown
Article exhausted; check for reprint
Person
Content
Introduction
Acknowledgments
About the Author
add space here
CHAPTER 1 The Origins of Value
What People Want Is Not as Important as What They Need
Abundance Agriculture and the Arts
The Abundance Mind-Set
Why Your Presence Isn't Required
The Importance of Buyer Commitment, Not Compliance
Critical Steps for Buyer Commitment
The Buoyancy of Brands: How Brands Help Fees
Creating Shared Success
Chapter ROI
CHAPTER 2 The Lunacy of Time-and-Materials Models
Who Wants to Be as Dumb as a Lawyer?
Supply-and-Demand Illogic
Ethical Conflicts of Interest and Other Minor Matters
Limiting Profits, or Why Not Just Forget Domani?
Why Lawyers and CPAs Do So Poorly
Educating the Buyer Incorrectly
The Mercedes-Benz Syndrome
Chapter ROI
CHAPTER 3 The Basics of Value-Based Fees
It's Better to Be an Artist Than to Be an Engineer
Focusing on Outcomes, Not Inputs
The Fallacy and Subversive Nature of "Deliverables"
Quantitative and Qualitative Measures and Criteria
Measuring the Unmeasurable
Serving the Client's Self-Interest
The Subtle Transformation: Consultant Past to Client Future
Perpetual Motion, Perpetual Progress
Chapter ROI
CHAPTER 4 How to Establish Value-Based Fees
If You Read Only One Chapter.
Conceptual Agreement: The Foundation of Value
Establishing Your Unique Value
Creating the "Good Deal" Dynamic
The Incredibly Powerful "Choice of Yeses"
Some Formulas for the Faint of Heart
Chapter ROI
CHAPTER 5 How to Convert Existing Clients
Be Passionate, Not Zealous
The Litmus Test--Setting Priorities
Offering New Value
Finding New Buyers Within Existing Clients
Finding New Circumstances
The Resistance
Abandoning Business
Chapter ROI
Interlude: The Case of the Loaded Loading Dock
CHAPTER 6 The Sublime Nature of Trusted Advisor Relationships
It's Just the Smarts, Stupid
Optimal Conditions for Trusted Advisor Relationships
Choosing Time Frames and Creating Realistic Expectations
Organizing the Scope and Managing Projects Concurrent with the Retainer
Capitalizing on Trusted Advisor Relationships
Aggressively Marketing trusted advisor Relationships
Chapter ROI
Ethics and Fees, Fees and Ethics: A Mid-Book Practicum
CHAPTER 7 Seventy Ways to Raise Fees and/or Increase Profits Immediately
Act Today and Receive a Second Bass-o-Matic Free of Charge!
Chapter ROI
CHAPTER 8 How to Prevent and Rebut Fee Objections
Since You've Heard Them All Before, How Can You Not Know All the Answers?
The Four Fundamental Areas of Resistance
Maintaining the Focus on Value
Boring In on the Subject
Offering Discounts
Full Payment in Advance
Using "Smack to the Head" Comparisons
Chapter ROI
CHAPTER 9 Setting Fees for Everything Else
How to Make Money While You Sleep, Eat, Play, and Make Money Elsewhere
Keynote Speaking: Don't Charge for Your Spoken Words
Products
Exploring New, Lucrative Fields
And Now for Some Perspective
Chapter ROI
CHAPTER 10 Fee Progression Strategies
Why You Fall Behind When You Stand Still
Entry-Level Fees
Transition to a "Going Concern"
Transition to Peer-Level Referral
Transition to the Brand Phase
Transition to Thought Leader and Icon
Alan's Axioms for the "Good Deal"
CHAPTER 11 Volatility Opportunity
Value-Based Fees in Times of Turmoil and Crisis
Value Doesn't Dissipate Due to Distance
We Don't Have Time, We Don't Have Money
How Can I Help You?
I Need Your Guidance
APPENDIX A: Questions for Qualifying the Economic Buyer
APPENDIX B: Questions for Establishing Business Objectives
APPENDIX C: Questions for Establishing Measures of Success
APPENDIX D: Questions for Establishing Value
APPENDIX E: Questions for Assessing Personal Value Contribution
APPENDIX F: The Difference Between Inputs and Business Outputs
Index
Acknowledgments
About the Author
add space here
CHAPTER 1 The Origins of Value
What People Want Is Not as Important as What They Need
Abundance Agriculture and the Arts
The Abundance Mind-Set
Why Your Presence Isn't Required
The Importance of Buyer Commitment, Not Compliance
Critical Steps for Buyer Commitment
The Buoyancy of Brands: How Brands Help Fees
Creating Shared Success
Chapter ROI
CHAPTER 2 The Lunacy of Time-and-Materials Models
Who Wants to Be as Dumb as a Lawyer?
Supply-and-Demand Illogic
Ethical Conflicts of Interest and Other Minor Matters
Limiting Profits, or Why Not Just Forget Domani?
Why Lawyers and CPAs Do So Poorly
Educating the Buyer Incorrectly
The Mercedes-Benz Syndrome
Chapter ROI
CHAPTER 3 The Basics of Value-Based Fees
It's Better to Be an Artist Than to Be an Engineer
Focusing on Outcomes, Not Inputs
The Fallacy and Subversive Nature of "Deliverables"
Quantitative and Qualitative Measures and Criteria
Measuring the Unmeasurable
Serving the Client's Self-Interest
The Subtle Transformation: Consultant Past to Client Future
Perpetual Motion, Perpetual Progress
Chapter ROI
CHAPTER 4 How to Establish Value-Based Fees
If You Read Only One Chapter.
Conceptual Agreement: The Foundation of Value
Establishing Your Unique Value
Creating the "Good Deal" Dynamic
The Incredibly Powerful "Choice of Yeses"
Some Formulas for the Faint of Heart
Chapter ROI
CHAPTER 5 How to Convert Existing Clients
Be Passionate, Not Zealous
The Litmus Test--Setting Priorities
Offering New Value
Finding New Buyers Within Existing Clients
Finding New Circumstances
The Resistance
Abandoning Business
Chapter ROI
Interlude: The Case of the Loaded Loading Dock
CHAPTER 6 The Sublime Nature of Trusted Advisor Relationships
It's Just the Smarts, Stupid
Optimal Conditions for Trusted Advisor Relationships
Choosing Time Frames and Creating Realistic Expectations
Organizing the Scope and Managing Projects Concurrent with the Retainer
Capitalizing on Trusted Advisor Relationships
Aggressively Marketing trusted advisor Relationships
Chapter ROI
Ethics and Fees, Fees and Ethics: A Mid-Book Practicum
CHAPTER 7 Seventy Ways to Raise Fees and/or Increase Profits Immediately
Act Today and Receive a Second Bass-o-Matic Free of Charge!
Chapter ROI
CHAPTER 8 How to Prevent and Rebut Fee Objections
Since You've Heard Them All Before, How Can You Not Know All the Answers?
The Four Fundamental Areas of Resistance
Maintaining the Focus on Value
Boring In on the Subject
Offering Discounts
Full Payment in Advance
Using "Smack to the Head" Comparisons
Chapter ROI
CHAPTER 9 Setting Fees for Everything Else
How to Make Money While You Sleep, Eat, Play, and Make Money Elsewhere
Keynote Speaking: Don't Charge for Your Spoken Words
Products
Exploring New, Lucrative Fields
And Now for Some Perspective
Chapter ROI
CHAPTER 10 Fee Progression Strategies
Why You Fall Behind When You Stand Still
Entry-Level Fees
Transition to a "Going Concern"
Transition to Peer-Level Referral
Transition to the Brand Phase
Transition to Thought Leader and Icon
Alan's Axioms for the "Good Deal"
CHAPTER 11 Volatility Opportunity
Value-Based Fees in Times of Turmoil and Crisis
Value Doesn't Dissipate Due to Distance
We Don't Have Time, We Don't Have Money
How Can I Help You?
I Need Your Guidance
APPENDIX A: Questions for Qualifying the Economic Buyer
APPENDIX B: Questions for Establishing Business Objectives
APPENDIX C: Questions for Establishing Measures of Success
APPENDIX D: Questions for Establishing Value
APPENDIX E: Questions for Assessing Personal Value Contribution
APPENDIX F: The Difference Between Inputs and Business Outputs
Index