Doing The Right Math To Monetize Your Expertise
- January 27, 2021
- Posted by: Rochelle
- Category: Running Your Business
I had a conversation the other day with a client who was in the midst of a negotiation.
She’d been presented with a proposal where she’d get a fee—essentially a royalty—every time her unique content was published via an existing alliance partner.
The partner—who by the way was trusted and reliable after three plus years of interaction—would broker each deal and receive nothing if they didn’t close.
She didn’t have concerns about the quality of the placements since she’d seen good work from these folks in their other interactions.
The problem? The partner wanted a 20% cut of the revenue and she felt this was too much for the work involved.
We worked through the math, so she could see that:
One: What she paid them didn’t really matter—what mattered was the net value of the outcome (in this case revenue) she received.
Two: 80% of something is waaaaaaaaay better than 100% of nothing.
Three: None of that math would matter if she didn’t highly respect and trust the source of the proposal.
The clients on the receiving end of your proposals might be getting stuck in this sort of thinking too.
When you hear things like “well how many hours will this take?” it’s a big ole neon sign that you’ve got to refocus the discussion on outcomes.
Because until you can show your prospects how their world is going to change from your work, you’ll get stuck in an endless loop of justifying your price tags.
And who wants to do that?
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