Here's why you shouldn't hire on Commission Only!

Over the past two years of running my agency, I’ve experimented with various financial models to deliver the best client results possible while ensuring we are fairly compensated.

Each model comes with its own set of advantages and challenges, and today I want to break them down:

1?? Consulting Only

Pros: Best for businesses seeking strategy over execution. It allows us to focus solely on guiding without operational complexities.

Cons: Limited scalability for the agency. Results depend on the client’s implementation.

2?? One-Time Setup Fee + Performance

Pros: Great for clients who want immediate systems set up and are confident in their ability to generate results with them. Performance-based adds a win-win component.

Cons: Heavy upfront work for the agency. Performance terms can be risky if metrics are unclear.

3?? Only Retainers

Pros: Predictable revenue stream for the agency. Clients get dedicated attention.

Cons: Over time, clients see retainers as overhead costs, especially when results plateau or expectations aren’t aligned.

4?? Only Commissions

Pros: It seems risk-free for the client.

Cons: Clients and Appointment Setters who work on commission-only deals rarely respect the process. Without skin in the game, the work is not taken seriously by both parties.

5?? Setup > Pay Per Appointment (PPA)

Pros: A clear output-based model. Clients pay for tangible results, creating trust.

Cons: Works only when clients understand the value of high-quality appointments. Requires strong systems to avoid “cheap lead” requests.

6?? Free Trial > Retainer

Pros: Builds trust and showcases your capability before commitment.

Cons: Attracts clients with a “freebie-seeking” mindset. Trials also devalue expertise, implying the need to prove yourself constantly.

7?? Retainer for Fixed Period > PPA or Commissions

Pros: This has been a game-changer for us. A fixed retainer ensures mutual respect during the initial phase where systems are built and tested. Once proven, the model shifts to scalable terms (Pay Per Appointment or commissions) based on results. This balances risk and reward for both sides.

Cons: Requires upfront clarity and commitment from both the client and agency.

?? For agencies and clients alike: Always choose a model that fosters mutual respect and focuses on long-term results.

What financial models have worked best for you? Drop a comment below! ??