Success base fee rather than upfront story. Which one is Win-Win?

Good morning.

So we had this amazing course & coaching provider contacting us. We spent some 2 hours altogether on the phone as an intro into their "amazing marketing & sales system with 1 year of coaching included".

We said that our income is ￡XXX,XXX and our next year goal is 2.5 x ￡XXX,XXX and they said "With us this is definitely achievable!"

Then we went to the pricing:

"it is usually $9,000 but I see here "amazing potential" so we give you our special offer of upfront $7,000 only that gives you lifetime access to our blueprints & 1 year access to our full coaching plus full marketing plan bespoke to your business.

Are you ready to buy?"

"I need to speak with my team but let's set something up tomorrow."

We set up the catch up next day but before that I sent them an email.

"Look. I used to be a Project Manager in my previous life and I see everything in the categories of Reward-Risk and working together for a win-win.

So what we propose is 3% of sales on the first $150k with help of your methods.

Then 1.5% on the anything on top of that.

Plus - 0.5% over the 2nd year.

Happy to get it contractually & measure with payments month by month but nothing upfront."

All together - if we were to achieve 2.5x our goal to which they said "this is definitely achievable" - they'd more or less get 50% extra in the first year and 100% extra in the 2nd.

We picked our phones at a given time on Friday and I started with this win-win approach.

So guess his answer?

"This is not the way we do business".

I said "bring this proposal to your boss! because this way our goals are aligned and we work towards win-win where with a bit deferred payment you can get 2x what you'd get upfront."

"No. I know the answer straight away".

"So you don't believe in the system you preach then..."

...We said a nice goodbye and wished each other to be very successful and "he still really believed in us, our solutions & our business".

I wish I could say the same about his...

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Your thoughts guys on upfront vs success based fees?

(Literally - royalties)

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I'll tell you one thing - anyone who will now approach me with "another amazing, standardised service offer that will definitely help you reach your goals" will get this "amazing counter-offer" (which I consider is more than fair) after an initial conversation.

And let's see whether they believe in what they preach!

That's it. You win only when we win. And we have quite amazing solutions for Property & Real Estate market where we help add Luxury to Property brands:

https://youtu.be/t_fhYHbIkPk

While during lockdown we can deliver Virtual Viewings anywhere in the world to pre-experience the Property simply - from the drawings, sketches or CAD / floorplans:

https://itoma.co.uk/vr

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