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Value-Based Fees


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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

About the Author

Alan Weiss consultant, speaker, and author of the best-selling The Ultimate Consultant is the founder and CEO of Summit Consulting Group, Inc. His clients have included Merck, Hewlett-Packard, General Electric, State Street Corporation, and Times Mirror Group. He is a highly sought-after keynote speaker. Success Magazine declared him "A worldwide expert in executive education."

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