Has anyone in the forum ever done pay-per-lead or pay-per-performance consulting before? (I mean, obviously besides MJ with limos.com, of course)
Had a client bring this up recently and was curious what people in TFF thought about it.
The TL;DR version---They sell a high-ticket platform. Right now, I'm charging a monthly retainer for consulting. But they suggested they would be open to looking at a lead-gen or percentage of sales model.
I did this in the past when I was a Slowlane employee. Basically, I pitched the owners on a comp plan that was a base salary and a % of new revenue. But I'm wondering if this is going to be more trouble than it's worth when dealing with somebody in another state.
The pros as I see it
- Potentially very lucrative
- The upside of an ownership stake without the headaches
- Longer-term revenue on current work (i.e. a payout on 12 months of service based on work I did this month.)
The cons
- Keeping track of leads/sales
- Disputes over what constitutes a proper lead/sale. "Oh, we spoke to that guy once five years ago. That doesn't count."
- It can become TOO lucrative and they want to cancel the deal.
- Depends on the closing rates of their team, not my own abilities.
- Costly litigation if there is a dispute
Had a client bring this up recently and was curious what people in TFF thought about it.
The TL;DR version---They sell a high-ticket platform. Right now, I'm charging a monthly retainer for consulting. But they suggested they would be open to looking at a lead-gen or percentage of sales model.
I did this in the past when I was a Slowlane employee. Basically, I pitched the owners on a comp plan that was a base salary and a % of new revenue. But I'm wondering if this is going to be more trouble than it's worth when dealing with somebody in another state.
The pros as I see it
- Potentially very lucrative
- The upside of an ownership stake without the headaches
- Longer-term revenue on current work (i.e. a payout on 12 months of service based on work I did this month.)
The cons
- Keeping track of leads/sales
- Disputes over what constitutes a proper lead/sale. "Oh, we spoke to that guy once five years ago. That doesn't count."
- It can become TOO lucrative and they want to cancel the deal.
- Depends on the closing rates of their team, not my own abilities.
- Costly litigation if there is a dispute
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