Why Beginning Home Marketing Consultants Should Avoid “Contingency” Offers Like The Plague

Every time I’m training a new student to start a home business as a
consultant and start asking me about setting “contingency fees” (i.e. getting paid based on percentage of sales vs. a fee). I always have to spend an hour trying to talk them out of wanting to do it.

At least at the beginning.

Because?

There are many reasons:

One is that you are in a “partnership” with the business owner. Now you’re trusting her
honesty and your trust and your ability to do business, all of which are
completely out of your control. And although everything may look great “on paper”,
You could find yourself putting a lot of your time and energy into a business and not
receive a penny for your efforts.

Also, even if things go well at first, there’s a good chance that the things you like
not keep working the way you want them to work.

And on top of that, making a contingency deal changes the whole relationship between
you and the client.

Especially when it involves a lot of money.

Things can go well when the profits are modest. But when the great and sudden success
it happens (usually as a result of you, the consultant) clients who used to be rational
and honest person may suddenly start acting funny, trying to justify doing things that
disagreed (especially when it comes to paying him).

Now don’t get me wrong here.

I’m not saying that you should totally stay away from these contingency arrangements, as they can
you will quickly earn a lot of money that you would not have seen otherwise. In fact,
Sometimes a small “tweak” in a company’s marketing and sales can pay off big.
unexpected gains. And if you have a contingency arrangement, you’ll get a good taste of
those earnings.

But I would never recommend someone who is just starting to get into a cigar
contingency basis. It is much better to charge a flat fee first and then as you
they work with the client and they work with you, both of them can find out if they are going to
work well together.

In other words, let the deal become a contingency deal. you’ll be so much better
and avoid some of the nasty traps I see in so many consultants: marketing and
otherwise, fall in.