Up front payment implies a fixed fee, as apposed to time billing but some professional services firms believe they have no option but to bill for time on the job.
What I challenge them to do is to firstly define what their customer’s objectives are, how they can actually measure those gains, and what is the true value to the customer for having those objectives met?
You may be very surprised to find you have been leaving a lot of money on the table!
Take a simple example of delivering a Sales Training course to improve the negotiation skills of a large corporate executive sales team.
Typically these types of courses, off the shelf, cost around $1500 per participant and take 3 days to deliver. Class size is usually no more than 8. That’s $12,000 all up.
If the sales team was previously generating $2,500,000 pa in sales. A 10% increase in their closing rate would achieve $250,000 more in the first year alone. And the first year return on investment for this company would be 20 times the cost of the course in simple terms.
The consultant or trainer could easily charge 10% of the increase gained ($25,000), which would represent a very reasonable return on investment!
What sorts of (legal) investments can you find where you get 1000% per annum? So, when you look at it, this is a great deal! The business gets a fabulous return and the trainer gets a fabulous fee. That is a real WIN, WIN, WIN.
But the key to all this is to thoroughly specify what the value is to the client in terms of improvement. If they have not defined the “What’s in it for me?” factor, you cannot sell based on value.
Please note in the above, I have said ‘they?’ If ‘they’ have not defined the value they see as being possible, then no amount of ‘selling’ by you will get you anywhere.
So, essentially, the key is to get your client, or prospect, to define in their own terms the value they expect to receive.
Otherwise you will be left charging an hourly rate in a competitive market and virtually giving away your services.
Think that through and see if you can use it in your own professional practice.
Remember just because every one else bills clients in this manner doesn’t automatically mean you should. | 
