Value-Based Fees, 3rd Edition

CHAPTER 5How to Convert Existing Clients: Be Passionate, Not Zealous

The most popular question I receive after “How do I create value-based fees?” is “How do I move existing clients from hourly billing to value-based fees?”

The answer is, “Very carefully.”

You've spent a considerable amount of time educating those clients “incorrectly”—and you've been very effective at it. You've also consistently enabled their behavior by replying to their demands for hourly or daily rates, reductions in rates, reductions in time, and perhaps reduction in numbers of people. They've become quite comfortable using your services in the manner maximally beneficial to them and minimally beneficial to you.

Other than that, it's been great.

Furthermore, you're highly credible! After all, your advice has been well received, your suggestions well taken, and your plans well thought through. Why shouldn't your billing scheme be as adept and effective as your consulting expertise?

Fortunately, that's the extent of the bad news. (I know, that's sufficient!) You've also developed a solid relationship with a buyer who would probably be very loath to see you leave, no matter how vigorous the protests against your fees and rates in the past. You also have a client base that permits you to set some criteria for which clients may be most suitable for “transfer” to a new billing arrangement. Finally, you're successful enough so that you might want to “fire” some clients rather than keep working with them on a ...