When my partner and I founded our company, we wanted to ensure that our interests were aligned with that of our clients.  That drove several decisions in terms of our business model and fee structure.  On the one hand, we needed enough revenue to keep the lights on.  That’s in our clients’ interest and in ours. But, we intentionally kept our costs extremely low, taking the minimum office space that is necessary to operate the business and only spending money on those things absolutely  required to operate the business.   There’s no “flash” when you come to visit.  The chairs, the desks, the filing cabinets, and the computers have all been around the block more than once.   That allows us to keep our retainer fees comparitively low.  Again, that’s in our clients’ interest and in ours.  

On the other hand, we expect to be compensated fairly and proportionally, if we help our clients grow their revenue and increase the value of their businesses.  If we drive a million dollars in sales, we’ve increased revenue, but we’ve also increased the value of the business, and we expect to participate in that increased value.  That notion is difficult for some, who are used to a commission-only, a fee-for-service, or an hourly-rate model. 

In keeping with our aligned-interest model, if we work with one company, we don’t work with their direct competitors.  That might seem patently obvious to some, but probe a bit on the companies offering to make introductions or help promote your company, and you may be surprised at how many of those offering to work with you also work with your direct competitors.  (more…)

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