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ALAN WEISS

3rd Edition

Copyright © 2021 by Alan Weiss. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Library of Congress Cataloging-in-Publication Data

Names: Weiss, Alan, 1946- author. | John Wiley & Sons, publisher.

Title: Value-based fees : how to charge what you’re worth and get what you charge / Alan Weiss, Ph.D.

Description: Third edition. | Hoboken, New Jersey : Wiley, [2021] | Includes index.

Identifiers: LCCN 2021028896 (print) | LCCN 2021028897 (ebook) | ISBN 9781119776925 (hardback) | ISBN 9781119776970 (adobe pdf) | ISBN 9781119776963 (epub)

Subjects: LCSH: Business consultants—Fees.

Classification: LCC HD69.C6 W466 2021 (print) | LCC HD69.C6 (ebook) | DDC 001—dc23

LC record available at https://lccn.loc.gov/2021028896

LC ebook record available at https://lccn.loc.gov/2021028897

COVER DESIGN: PAUL MCCARTHY

COVER ART: © GETTY IMAGES | SECRET AGENT MIKE

Dedicated to the heroic people in our police and fire departments and all first responders, whose value will always exceed anything any of us could ever afford to pay .

My global coaching clients, both executives and entrepreneurs, have provided me with continuing “finger-on-the-pulse” wisdom from both sides of the desk. It's been my pleasure to work with them and to earn their trust.

I'm also thankful to the successful thought leaders who constantly exemplify generosity, which I've tried to emulate, though not as successfully as they have. So I happily thank Chip Bell, Dan Gilbert. Bob Cialdini, Dan Pink, Chip Heath, Jonah Berger, James Carville, Marty Seligman, Marshall Goldsmith, and Lou Heckler for their contributions to me and my global community.

The Ultimate Consultant Series is intended for successful practitioners who are seeking to scale still loftier heights. I'm happy to be among them.

This book is probably on the topic most eagerly anticipated of any I've written about in consulting. For the first time, I've recorded everything I know about the techniques that have worked best for me in raising fees, obtaining fees from unlikely sources, and supporting continuing fees. Yet this is by no means a mercenary book.

I believe in two aspects of consulting very strongly. First, you can't help others until you help yourself. Consequently, unless you're at least comfortable and secure financially, it's difficult to engage in pro bono work, to contribute to charities, and to help others to achieve their goals. Second, the basis for any successful client relationship is a win-win dynamic, the “good deal” you'll read about throughout this book. Therefore, you have to be treated well financially, and the client has to appreciate your value.

And when you come right down to it, there's a third aspect: Clients truly believe that they get what they pay for. No buyer ever bragged about being successful in capturing the cheapest consultant available, someone sitting by the phone with no business who took on the assignment in return for food. No, buyers—and their egos—revel in telling people that they snagged a consultant impossible to obtain, had to pay dearly, and expect everyone to listen closely.

After I worked on a project for a total of about six hours, the CEO asked his top officers what they would have charged had they been I. They guessed about $2,000 or less, having multiplied and divided by the $150 or $200 hourly rate that they charged.

“Well,” said the CEO, “he's charging us $18,000, so listen up! ”

Dizzy Dean said once, “If you can do it, it ain't braggin.'” As you read on, you might want to listen up.

Alan Weiss, Ph.D.

East Greenwich, Rhode Island

November 2001