How do you handle when your client asks you to share the cost savings rather then paying you the fees?
I want to ask about a specific situation I faced with a prospective client. My client asked me to be a advisor to look for problems in two of his company departments and then work as a solutionalist to implement my recomendations. This is all fine, but he wants to share the cost savings from my recomendations and not pay my fees for this activity. What would be your advice in such a case? Wish you all a good day. Regards Puneet
Puneet, if I read this correctly the client wants to pay for results achieved. There are many considerations here so I'll choose one path and play it out. Let's assume: 1) this prospect will provide great visibility for you and is worth your while to engage with, 2) the project is well within your sphere of expertise and is desirable to you on it's own merits, 3) you are in a financially stable place and 4) building credibility is important to you.
With those assumptions in place here is a suggested offer to the prospect: propose that you do the project at a cost equal to 50% of the fee you would have charged and stipulate a % of the resulting cost savings be paid upon successful completion of the project (here you have to estimate the projected savings- you also have the potential to make more in the end than you may have with a straight fee). Unusual approach, maybe, unorthodox, not at all. It is something to consider.