Value-Based Fees: How to Charge—and Get—What You're Worth: A Guide for Consultants, Second Edition

9.2. HIGHLY LEVERAGED PRACTICES FOR WORKING WITH BUREAUS

If you're going to deal with bureaus, and you're a professional consultant who is speaking, not a professional speaker who can't and doesn't consult, then follow these guidelines in your bureau relationships:

• Don't pay more than a 25 percent commission. Commissions on "spin-off" business (subsequent business generated by your appearance) should provide the same commission to the bureau for a finite period (one or two years, for example), although some bureaus reduce commissions on spin-off business. However, never pay that amount for spin-off consulting business. For this, pay a maximum of 10 percent.

• Demand to speak to the buyer and negotiate the actual fee yourself. Bureaus almost always deal with meeting planners, who are rarely economic buyers. Consequently, their demand is to conserve money, not to invest in value. (Obviously, this is a middleman dealing with a middleman.) After all, the higher the fee you negotiate, the higher the bureau commission.

• Develop a relationship with the bureau principal. If the two of you can't work together as peers, walk away.

• Be clear that subsequent consulting work that might arise out of your speaking is not subject to the bureau's speaking commission. You might agree to pay 10 percent or less, but the thought of paying the bureau 25 percent of a $200,000 consulting fee is not fair, justified, or sane. Make sure that this is clear before you speak, as most speakers' bureaus do not understand ...