Decoding Fee Integrity: The Truth Behind the Buzzwords for Professional Speakers
What does “fee integrity” really mean… and how can you ensure you’ve got it in spades?
I bet you’ve heard it before…
“Stick to your fee. Don’t negotiate. You have to maintain fee integrity.”
Oh man… “integrity!”
That’s a heavy word to throw around – especially if you’re accused of not having it. Today’s topic comes to us from SpeakingGigs.pro subscriber Gregory Offner Jr. , who wrote:
I heard I should always quote my gross fee so that I maintain my fee integrity. For example, a bureau could mark up a net fee ($10K, let's say) to a gross fee (i.e., $25K) for a client if they think they can get it. But if that same client were to come to me directly (without knowing, of course), I would quote $15K. Doesn't that hurt the relationship?
Thanks for your question, Greg! (BTW, Greg has a brand new book out!)
Honestly, I think speakers' bureaus have hijacked the concept of fee integrity. So today, let’s break down fee integrity and how it works… or how we think it might work.
What is Fee Integrity, Really?
Simply put, fee integrity is all about maintaining transparency, consistency, and fairness in the pricing of your keynote speeches.
However, somewhere along the way, it became synonymous with “sticking to your fee no matter what.”
How did that happen?
Well, I have a theory. Speakers bureaus have promoted and propagated the notion of fee integrity for decades.
Why? Because it benefits their businesses the most!
The Bureau's Perspective
Speakers bureaus have their reasons for advocating the "set your fee and stick to it" approach.
1. It reduces the need for constant negotiation.
Let's be frank: most bureaus and their agents are lazy. (Yes, I said most.) They handle multiple speakers for various events. Calling each speaker to check their fees just isn’t something they’d be willing to do.
So, it's easier for them if speakers stick to their fees without any negotiation.
2. Consistency and predictability are big for bureaus.
They want to know that your fee is always $15K regardless of the time of year or the speech you deliver. This allows them to streamline their operations and maintain a sense of stability in their business.
3. Bureaus want to protect their brand reputation.
They don't want their clients to discover that they could have booked a speaker directly at a lower fee or that another company secured the same speaker for a fraction of the cost.
This could damage the bureau's credibility and erode its market position.
To prevent this, bureaus encourage speakers to quote gross fees rather than net fees.
For example, if your gross fee is $10K, whether it's a direct client or a bureau, you always quote $10K. However, if a bureau books you at $10K, your net fee with their 20% commission would be $8K after their fee is taken out.
So, consistently quoting and selling gross fees are great for speakers' bureaus because they don’t undermine their brand’s reputation.
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Negotiating Fees: Embracing the Benefits
Now here's the thing…
Fee integrity doesn't actually mean sticking to your fee no matter what. That's what speakers' bureaus want you to think, but that's not what it really is.
?? Fee Integrity really means being transparent, consistent and fair when you quote your fee.
The truth is that fee integrity, using the bureau’s definition of “stick to your fee no matter what,” is not actually good business.
Here are five reasons you must be willing to negotiate your fees.
1. Flexibility
You have to be flexible to market conditions, budgets, different kinds of audiences, and the opportunity itself. They vary widely. And when you stick with your gross fee, you're gonna miss out on opportunities.
2. Long-Term Relationships
This is really important. While bureaus maintain relationships with clients, it's equally important for you to build and nurture long-term relationships with event organizers.
Negotiation plays a crucial role in this process. Collaborating with organizers and being willing to meet their specific needs demonstrates your commitment and flexibility.
This fosters trust and opens doors for more gigs in the future.
3. Market Demand
You must be able to respond quickly to shifting demand in the marketplace for a specific speech.
(Check out my other two articles about fee parity if you want to learn more on this topic.)
The speaking industry is constantly evolving, and market demand can shift rapidly. As a speaker, it's essential to pay attention to these changes and respond accordingly. Negotiating your fees allows you to adapt to the shifting demands.
4. Future Business
Building a sustainable speaking business goes beyond quoting a fixed fee. It involves understanding the potential for referrals and stage-side leads from clients. By embracing negotiation, you can explore new fractal markets, penetrate different industries, and foster valuable connections. Negotiation opens doors to new opportunities, allowing you to expand your reach and impact.
5. Fractal Penetration
You must be able to capitalize on industries and audiences where you generate new business, foster new relationships, and build new opportunities to speak. And the only way to do that is to be willing to negotiate your fee. (Not sure what a Fractal is? Here's an article that might help.
Here’s Your Takeaway
Yes, fee integrity is important.
But that doesn’t mean stick to your gross fee. Instead, it means “be consistent.” When you negotiate, you have to concede for legitimate reasons. And you have to document and honor your previously negotiated fees. And be clear about your next fee negotiation.
And that happens to be our topic for part two. If you’re a Premium Member, check out the second part of this article, and you’ll learn how to handle your next client negotiation while maintaining fee integrity.
Part two of this article covers the following:
Remember, the advice that got you here won’t get you there. It’s time for a massive move.
It’s time for a Monumental Shift.
Thanks for reading!
Andrew