Fee Model Options
| Model | Structure | Best For | Typical Range |
|---|---|---|---|
| Annual retainer | Fixed monthly fee for ongoing advisory services | Ongoing strategy and vendor management | $3,000–$10,000/month |
| Project fee | Fixed fee for defined deliverable | Assessment, strategy document, RFP management | $10,000–$50,000/project |
| Performance fee | Fee based on documented savings | Cost reduction initiatives | 10–20% of first-year savings |
| Hybrid | Base retainer + performance bonus | Long-term strategic partnerships | Base + 10–15% of savings |
Transitioning to Fee-Based
Transitioning from commission to fee-based revenue requires: (1) client education — explaining why fee-based compensation is better for the client; (2) value demonstration — showing clients the value you deliver that justifies the fee; (3) phased transition — starting with project fees before moving to retainers; and (4) transparency — disclosing all compensation, including any remaining commissions.
Anchoring to Value
Pro Tip
Anchor fee conversations to the value you deliver. "Our annual retainer is $60,000. Based on our assessment, we expect to deliver $800,000 in savings over 3 years — a 13:1 return on your advisory investment." This framing makes the fee feel like an investment, not a cost. Clients who understand the value will pay for it.