In this thoroughly revised edition of his classic book, Alan Weiss shows how consulting fees are dependent on only two things: value provided in the perception of the buyer and the intent of the buyer and the consultant to act ethically. Many consultants, however, fail to understand that perceived value is the basis of the fee, or that they must translate the importance of their advice into long-term gains for the client in the client's perception. Still others fail to have the courage and the belief system that support the high value delivered to clients, thereby reducing fees to a level commensurate with the consultant's own low self-esteem. Ultimately, says Weiss, consultants, not clients, are the main cause of low consulting fees.
Table of Contents:
Introduction xv
Preface to the Second Edition xvii
Acknowledgments xix
Chapter 1 The Concept of Fees 1
Will People Actually Give Me Their Money for My Advice?
The Ethical Nature of Capitalism 2
The Mercedes-Benz Syndrome 5
The Importance of Buyer Commitment, Not Compliance 9
Critical Steps for Buyer Commitment 11
The Buoyancy of Brands: How Brands Help Fees 12
Creating Shared Success 15
Chapter ROI 18
Interlude: A Case of Bottom-Line Blindness 21
Chapter 2 The Lunacy of Time-and-Materials Models 23
Who Wants to Be as Dumb as a Lawyer? Supply-and-Demand Illogic 25
Ethical Conflicts of Interest and Other Small Matters 28
Limiting Profits, or Why Not Just Forget Domani? 32
Why Lawyers and CPAs Do So Poorly 35
Educating the Buyer Incorrectly 37
Chapter ROI 39
Chapter 3 The Basics of Value-Based Fees 41
It’s Better to Be an Artist Than to Be an Engineer Focusing on Outcomes, Not Inputs 42
The Fallacy and Subversive Nature of “Deliverables” 45
Quantitative and Qualitative Measures and Criteria 49
Measuring the Unmeasurable 52
Serving the Client’s Self-Interest 54
The Subtle Transformation: Consultant Past to Client Future 56
Perpetual Motion, Perpetual Progress 58
Chapter ROI 60
Interlude: The Case of the Annoying Accountants 61
Chapter 4 How to Establish Value-Based Fees 63
If You Read Only One Chapter . . .
Conceptual Agreement: The Foundation of Value 64
Establishing Your Unique Value 68
Creating the “Good Deal” Dynamic 72
The Incredibly Powerful “Choice of Yeses” 75
Some Formulas for the Faint of Heart 79
Chapter ROI 82
Chapter 5 How to Convert Existing Clients 85
Correcting Your Own Mistakes
Setting Priorities Among Existing Clients 86
Offering New Value 90
Finding New Buyers Within Existing Clients 94
Finding New Circumstances 97
What If Clients Resist Conversion? 99
Abandoning Business 101
Chapter ROI 103
Interlude: The Case of the Loaded Loading Dock 105
Chapter 6 The Fine and High Art of Using Retainers 107
It’s Just the Smarts, Stupid Optimal Conditions for Retainer Arrangements 108
Choosing Time Frames and Creating Realistic Expectations 113
Organizing the Scope and Managing Projects Within the Retainer 116
Capitalizing on Retainer Relationships 119
Aggressively Marketing Retainer Relationships 121
Chapter ROI 124
Ethics and Fees, Fees and Ethics: A Midbook Practicum 127
Chapter 7 Seventy Ways to Raise Fees and/or Increase Profits Immediately 141
Act Today and Receive the Bass-o-Matic Free of Charge!
Chapter ROI 159
Interlude: The Case of the Rebounding Retainer 161
Chapter 8 How to Prevent and Rebut Fee Objections 163
Since You’ve Heard Them All Before, How Can You Not Know All the Answers?
The Four Fundamental Areas of Resistance 165
Maintaining the Focus on Value 170
Boring In on the Subject 173
Offering Discounts 176
Using “Smack to the Head” Comparisons 177
Ignoring the Competition 179
Chapter ROI 181
Interlude: The Case of the Perverse Purchasing Agent 183
Chapter 9 Setting Fees for Nonconsulting Opportunities 185
How to Make Money While You Sleep, Eat, Play, and Make Money Elsewhere
Keynote Speaking: Don’t Charge for Your Spoken Words 186
Highly Leveraged Practices for Working with Bureaus 190
Products 192
Exploring New Lucrative Fields 196
And Now for Some Perspective 202
Chapter ROI 204
Chapter 10 Fee Progression Strategies 205
Why You Fall Behind When You Stand Still
Entry-Level Fees 206
Transition to a “Going Concern” 209
Transition to Word-of-Mouth 211
Transition to the Brand Phase 213
Transition to the Ultimate Consultant 217
The Book’s ROI: Alan’s Axioms for the “Good Deal” 219
Interlude: The Case of the Fee Feng Shui 225
Chapter 11 Technology and Fees 227
Greater Wealth in the Brave New World
The Service Enhancement 227
The Publishing Prerogative 230
The Remote Consultant 233
Passive Income 236
The Bottom Line 238
Chapter ROI 240
Appendix A: Questions for Qualifying the Economic Buyer 241
Appendix B: Questions for Establishing Business Objectives 243
Appendix C: Questions for Establishing Measures of Success 245
Appendix D: Questions for Establishing Value 247
Appendix E: Questions for Assessing Personal Value Contribution 249
Appendix F: The Difference Between Inputs and Business Outputs 251
Index 253
